News Article: Bettman "Oilers a well run, well owned team"

[SupremeTeam16]

When Katz bought the team they went from a hockey club to an entertainment group plain and simple. Of course he’d like the team to be more successful on the ice and haul in some of that playoff revenue but it doesn’t seem to be a primary focus at all. The focus seems to be finding new and creative ways to dip into fans pockets and they are substituting quality hockey for events and gimmicks. For Katz however the hockey team is secondary to his other ventures.

Of course Bettman thinks they are a well run organization because he sees things through a financial lens first and foremost and this is an organization that despite unprecedented failure has continued to be one of the more profitable clubs, they got their city to help them build a state of the art rink and they continue to be one of the leagues most marketable clubs based on their storied history that they continue to play up, and they have the best player in the game who they basically force to go supernova on a nightly basis just to give his team a chance to win.

 

[Niten Ichi Ryu]

Thanks Gary, even though it's partially un-true, not kicking this franchise while their down, like Toronto sheep, is appreciated.

Nonetheless, I will still boo the hell out of you every chance I get. No Olympics, mutliple lock-outs, no World Cup now, and doing next to nothing in amending the referee system, but doing everything to squeeze every penny out at the cost of the players/fans.

In regards to Katz, love him or hate him, the Oilers probably relocate from Edmonton if not for him. We have a billion dollar district that uplifted the entire city into a new plateau, with the best arena in the NHL. We have financially stability for the first time in the organization's history.
He's a goddamn hero in my books.

 

[BoldNewLettuce]

translation; "they built us an arena so we gave them one year"

 

[Chet Manley]

Bettman has 31 bosses and doesn't throw shade on them.

 

[soothsayer]

How does one own something well?

 

[GodPucker]

How does one own something well?

If you own a business it would mean you run it properly and turn a nice profit. If you don't own something well it's the opposite. The wording sounds funny though.

Bettmans job is to make owners money. That is what he is doing. I laugh at people who boo him. He saved this hockey team before.

I couldn't give 2 sh*** about Olympics and a World cup. Garbage to me. I'd rather the players not get hurt and play on the clubs that pay them through the fans.

 

[HolyGhost]

At lose for this one. Must have been pay day and the oilers were not paying him till he said this

 

[GodPucker]

GB gets paid from the league as a whole, not directly from each team.

 

[bucks_oil]

Not sure if anybody caught the statement at the ASG but according to Bettman;

NHL commissioner Gary Bettman defends Edmonton Oilers organization

“To suggest that the Edmonton Oilers are in disarray or in trouble, I think is a gross overstatement,” said Bettman. “That franchise is well owned, well run, but they have some issues to deal with.”


“This is an incredibly competitive league and everybody wants to win,” Bettman said. “I know Daryl Katz and Bob Nicholson are committed to winning. The team is being provided with all the resources, but it’s tough to win.”

These are crucial thoughts coming from the commish, who either see's no problems here or isn't saying so. In anycase the comments are putting lipstick on a pig. Telling Oilers fans "its tough to win" is like throwing salt in wounds. As if we wouldn't know. The Oilers lose more than any team in the league in the current CBA.

But its startlingly tonedeaf that Bettman, in 2019, would opine with "Well run, well owned team"

But when one considers business side the comments become more clear. This is a team with a deep pockets owner that has a new funded arena, all proceeds of that arena, with improved revenue streams, and that has several arena district collorary projects that have given him some great return. Katz has already sold Edmonton Tower, which has been largely leased by the City of Edmonton, to an Alberta Crown Corp investment arm. Disclosures are that Katz made huge turn around on this deal in a very short time frame. It should be noted the City, and provinces(indirect) involvement in Edmonton Towers huge profits to this point.

As many have understood is its the real estate and property plays Katz has made in the Entertainment district that really transform revenues. Edmonton, that has historically had an office and tower suites glut has suddenly (I wasn't sure this was coming) become an investment darling in the portfolio of real estate investment and holdings that have seen huge pricing in Vancouver and Toronto. Suddenly Edmonton is touted as the value add for investors and development fund managers. With almost every tower touting attractive relative to Vancouver and Toronto pricing. So that the rental and lease towers being built in the district are selling a lot faster than could be expected. Mainly due to influx of outside investment coming to this market. This all spells gold to Katz who has hit a gusher on these developments.

In turn the Oilers Forbes valuations are higher than ever, and spectacular considering a perennial non playoff team.

David Staples: 'Any other market besides Edmonton would have abandoned the Oilers a long time ago': Sports business expert

Worthy to note the valuation of the Oilers franschise is now 540M, Over 5 times as much as it was in the 2004 season. Oilers revenues are twice as much as they were even in the Pronger cup final year, and the valuation of the org 4X increased in value in a mere 12 years.

So when Bettman is talking "well owned" he's talking dollars and cents. But when he's saying this org has good people that will figure out the on ice team he's talking out of his ass.

This thread exhibits that the actual performance of a club doesn't even matter, it doesn't even factor. In todays pro sports environments of massive corollary investments the on ice performance hardly even factors in the bottom line.
.
Take a look at the chart. The valuations and revenue in the respective years that this club made the playoffs barely did anything to move numbers forward. The biggest change that led to the Oilers being valuated differently, and the franchise worth much more, is the Arena and Entertainment (and real estate) district. It would be less sexy if it was just called the Real Estate district but its what the whole investment play is about.

Thanks for the thoughtful and informative post.

For the record:
1) I don't have a problem with what Bettman said, he's clearly talking about the business side and, as your post details, he's quite right about that.
2) I don't think it's Bettman's place to opine on hockey decisions for ANY of the franchises. He doesn't have a credible leg to stand on, so it's good that he didn't comment specifically on Chia, or trades, or any matters of hockey ops... he shouldn't.
3) The on-ice product matters obviously, but Bettman's biggest concern should be in the aggregate of the teams, not in specific cases, unless a huge, unequal playing field, or talent disparity exists resulting in a highly uncompetitive franchise.
4) Our expectations as fans are clearly not met, but it isn't Bettman's fault (he's actually helped create parity IMO). And moreover, this season we are not "highly uncompetitive"... we just aren't winning as much as I'd (we'd) like... but while often painful outcomes, the games are still entertaining (unfortunately losing IS part of the entertainment equation we all sign up for)... and we get to watch the best player in the world. So from a league commish perspective, there is no issue in Edmonton.

 

[justafan22]

Do people forget that Katz/Gretzky/Bettman used seattle as a threat in 2012 for the new arena?

 

[rboomercat90]

Do people forget that Katz/Gretzky/Bettman used seattle as a threat in 2012 for the new arena?

That was good business.

 

[Daryls Friend]

Do people forget that Katz/Gretzky/Bettman used seattle as a threat in 2012 for the new arena?

Only the stupids, gullible, corrupt or those who could be bought thought relocation was ANY possibility.

 

[Drivesaitl]

It seems a lot of comments in the thread are merely based on the title, instead of the content of the OP. The thread is not saying Betmann is bad as his job. Indeed he makes the owners a lot of money. The thread and references indicate that its all about money, results don't matter, that was the discussion intended. The Bettman comment was a jumping off point because it was such a money quote. The words jumped off the page. I understand what Bettman was saying with "well owned" and I agree. Katz, financially speaking is the most astute owner this org has had. But well run, nah, that speaks to something else and if one looks at the entirety of the Bettman comments he does talk as well about the on ice performance and that with Connor McDavid in tow that the org will "figure it out".

Actually theres little reason to believe that a club that has been among the worst clubs in the league almost every season since the cap will put it together. Indeed the player lineup had gotten appreciably worse during the Nicholson tenure.

 

[Drivesaitl]

Thanks for the thoughtful and informative post.

For the record:
1) I don't have a problem with what Bettman said, he's clearly talking about the business side and, as your post details, he's quite right about that.
2) I don't think it's Bettman's place to opine on hockey decisions for ANY of the franchises. He doesn't have a credible leg to stand on, so it's good that he didn't comment specifically on Chia, or trades, or any matters of hockey ops... he shouldn't.
3) The on-ice product matters obviously, but Bettman's biggest concern should be in the aggregate of the teams, not in specific cases, unless a huge, unequal playing field, or talent disparity exists resulting in a highly uncompetitive franchise.
4) Our expectations as fans are clearly not met, but it isn't Bettman's fault (he's actually helped create parity IMO). And moreover, this season we are not "highly uncompetitive"... we just aren't winning as much as I'd (we'd) like... but while often painful outcomes, the games are still entertaining (unfortunately losing IS part of the entertainment equation we all sign up for)... and we get to watch the best player in the world. So from a league commish perspective, there is no issue in Edmonton.

Thank you. but:

Re; #2 Bettman DID comment on hockey ops and makes several references to having faith the org will "figure out" the on ice product. I quoted some of the comments, but not all of them, but others are contained in the cited Staples article. I quoted the content that gives the gist of what Bettman had said.

I disagree with #3. There are times where the operations of an org are so miserable that the league, or even the NHLPA should start making noise about it. Examples of this would be the Ballard Run leafs, the elder Wirtz run Blackhawks, and the current Ottawa Senators. Some situations are so odious that they impact league brand as well as logo and ought to be dealt with at least behind closed doors. My take on this is not isolated either. The entire notion of franchising, (and member teams can be viewed as outlets of the NHL brand) protects the integrity of the product served to every consumer, in every product, without which the product is potentially tainted or the operations do not befit the intended product delivery mandated by the league.

Further, the league exacted a capped restrained player cap that actually involved a rollback SPECIFICALLY to help small market clubs like the Oilers be competitive. This was viewed as a parity related solution and signifies that the NHL wanted competitive member franchises and league. That this has not occurred in Edmonton and that the org has continued to flatline for 14 years even resulting in a record 4 first picks should communicate loudly that this member team is NOT doing what it needs to do to be competitive and that its management structure is contraprepared to deliver the same desired competitive product.

 

[Drivesaitl]

Thanks Gary, even though it's partially un-true, not kicking this franchise while their down, like Toronto sheep, is appreciated.

Nonetheless, I will still boo the hell out of you every chance I get. No Olympics, mutliple lock-outs, no World Cup now, and doing next to nothing in amending the referee system, but doing everything to squeeze every penny out at the cost of the players/fans.

In regards to Katz, love him or hate him, the Oilers probably relocate from Edmonton if not for him. We have a billion dollar district that uplifted the entire city into a new plateau, with the best arena in the NHL. We have financially stability for the first time in the organization's history.
He's a goddamn hero in my books.

What benefit has been served other than just having a club?

I sometimes think Quebec City is better off. A city that always had its own identity has, with the absence of a CFL club had to work even harder to rediscover and maintain its civic interests. Quebec City continues to be an amazing place in North America and unparalleled in some ways, and it does that without an NHL club.

Theres an oft noted missive that Pro Sports teams love to deliver, that posits that the absence of pro teams result in Cities becoming second rank. But that's about as flat and empty as Coca-cola advertising that sells sexual attraction.

As well, the "New Plateau" you describe is something this city had decades ago well before an NHL team was here, and when DT Edmonton was a vital and cherished spot that the vast majority of the surrounding population enjoyed regularly.

I have Citadel Theater STH, have had them for a decade now, the immediate behaviors I note of patrons before and after plays is that the mode behavior seems to be getting out early after the play. People getting to the parkade, getting out of dodge. With no difference signalled in recent years.

Out of interest I make a point of going out to the arena on game nights or concert nights and seeing what kind of biz is in the area. Some of the places are near full, many are near empty. Typically the Joey type places seem to be doing well. But just blocks away I see no uptick at all on places like Craft before or after games. Some impetus goes on 104st and most obviously in the nearby Mercer buidlign and establishments. But this version of an Arena transforming buzz in the DT hasn't occurred yet. Maybe when all is built out it will.
But the history of these districts is that excitement in them tends to be fleeting. Usually about a decade of these being hotspots. After which they are viewed as just another place and "been there, done that". Really, as well, WEM offers another example of how people will be excited with some such infrastructure like this for awhile, but then just see it as ugly, contrived, and not going there much.

In most cities the places people flock to endlessly are people places that are alive and with street front activity like Whyte Avenue. Those are the places people go to, congregate in, and stay.

 

[insomniac]

Hey, I mean they're run better than the Ottawa Senators are..

 

[bucks_oil]

Thank you. but:

Re; #2 Bettman DID comment on hockey ops and makes several references to having faith the org will "figure out" the on ice product. I quoted some of the comments, but not all of them, but others are contained in the cited Staples article. I quoted the content that gives the gist of what Bettman had said.

I disagree with #3. There are times where the operations of an org are so miserable that the league, or even the NHLPA should start making noise about it. Examples of this would be the Ballard Run leafs, the elder Wirtz run Blackhawks, and the current Ottawa Senators. Some situations are so odious that they impact league brand as well as logo and ought to be dealt with at least behind closed doors. My take on this is not isolated either. The entire notion of franchising, (and member teams can be viewed as outlets of the NHL brand) protects the integrity of the product served to every consumer, in every product, without which the product is potentially tainted or the operations do not befit the intended product delivery mandated by the league.

Further, the league exacted a capped restrained player cap that actually involved a rollback SPECIFICALLY to help small market clubs like the Oilers be competitive. This was viewed as a parity related solution and signifies that the NHL wanted competitive member franchises and league. That this has not occurred in Edmonton and that the org has continued to flatline for 14 years even resulting in a record 4 first picks should communicate loudly that this member team is NOT doing what it needs to do to be competitive and that its management structure is contraprepared to deliver the same desired competitive product.

I won't argue with the long term stink on the org. We all agree on that.

My point, is more that THIS is not the year it would be reasonable for Bettman to step in and comment negatively. We are only a few points out of a playoff spot and we just took action to fire our GM. Since Nicholson took over we are in the playoffs 33% of the time, 50% if we squeak in this year (this season is not yet lost in my mind). In a 32 team league that's par for the course and from a governance/parity perspective a team that treads water and makes the playoffs 50% of the time is exactly what Bettman should be hoping for.

It just sucks for us... that's all.

 

[Drivesaitl]

I won't argue with the long term stink on the org. We all agree on that.

My point, is more that THIS is not the year it would be reasonable for Bettman to step in and comment negatively. We are only a few points out of a playoff spot and we just took action to fire our GM. Since Nicholson took over we are in the playoffs 33% of the time, 50% if we squeak in this year (this season is not yet lost in my mind). In a 32 team league that's par for the course and from a governance/parity perspective a team that treads water and makes the playoffs 50% of the time is exactly what Bettman should be hoping for.

It just sucks for us... that's all.

Thanks again for your comments.

The 3pts out of the playoffs thing is kind of a misnomer. Wer're not far from last place either. We're 5 teams removed from a playoff spot being in 13th place and only 2 away from last place. The degree of distance from the WC place is due primarily to the WC sucking this year, a lot of clubs having more grievious injury situations than us, and the curve distribution being pretty grouped around the mean with not much tail skew on the low side of the normal curve.

Being 3pts out with Connor McDavid and Leon Draisaitll, two of the best players in the world, is not an accomplishment, and being 13th place at this tenure in the McD timeclock is an indictment.

Doesn't matter we're firing people either when the people do the hiring can't discern what the problems have been in the first place. The indepth forensic analysis never occurred, Nicholson has no more insight on what he has done wrong, and he and the org keep paroting things like Culture, Character, Chemistry being the key search points. Meaning the hires won't necessarily be related to how expert or proficient they are but more on how they arbitrarily match to subjective terms that involves as much bias in detection as substance. This is an org that hired Eakins, Chiarelli and McLellan because they felt they had the perfect ingredients.

As another poster mentioned its unfortunate that Nicholson as well had some parting shots at Chiarelli as these are much differnet statements than what were made about Chiarelli when they hired him. Indeed the contrast is stark. Chiarelli was supposed to be somebody that would be very involved in aspects. He was describes as somebody with great insight that worked well with others and that had clear vision on team construction and clear goals. He's seemed anything but that. Basically I don't think anybody in this org are even good at basic interviewing. Not objective anyway. Who they hire is almost random aside from the connections and OBC stuff.

 

[Frank the Tank]

Has Bettman ever commented on the on-ice performance of a team in a negative way? By definition is not his role to remain impartial in that regard?

The only time Bettman seeks to make controversial statements publicly are to: 1) put pressure on certain markets for a new building, and 2) negotiate with the NHLPA or IOC through the media.

 

[Beerfish]

That was good business.

When owners do this it is a business decision.
When players go to fa or demand trades, it is a business decision.
When it comes to fans in all pros sports you are expected to 'support' the team no matter what even if they have been been a joke and provide very little entertainment for the dollar.

I wish governments would come to a good business decisions by making entertainment expenses not deductible tax wise.

 

[Drivesaitl]

Bump

This is the last thread I will ever start here and probably some of you missed it during the break.

I figure its even more timely now.

Nothing else to say.

 

[TopShelfGloveSide]

He won’t be saying that if the Oilers start to lose money over the next couple of seasons.