News Article: erie-otters-file-for-bankruptcy--Katz/Oilers named as bad guys
- Thread starter Jumptheshark
- Start date
Seems fairly simple. Katz loaned bassin 4.2 mill so that bassin could buy out his partners. Then, he could sell the entire team to Katz.
Bassin fIls to buy out his partners and uses the money to finance the operations of the team. The contract had stipulations that, in the event of failure to buy out the partners, bassin would repay Katz.
IMO, bassin is the only bad guy in this deal as he is the one who failed to keep his end of the deal. He is using katz's money to finance his personal business and breached his contract.
Bassin fIls to buy out his partners and uses the money to finance the operations of the team. The contract had stipulations that, in the event of failure to buy out the partners, bassin would repay Katz.
IMO, bassin is the only bad guy in this deal as he is the one who failed to keep his end of the deal. He is using katz's money to finance his personal business and breached his contract.
CornKicker
Holland is wrong..except all of the good things
- Feb 18, 2005
- 11,852
- 3,127
its a good thing katz didnt end up with the otters, he would have assigned kelly buchburger there and they wouldnt have even made the OHL playoffs let alone be in the semis
I hate when I lend someone money, and they don't pay me back, and then proceed to call me a bad person for loaning them the money.
:/
Sorry Katz is not the badguy in this.
:/
Sorry Katz is not the badguy in this.
The Otters were in a huge financial hole from 10 years of mismanagement. To me it seems Bassin played Katz for money to keep the team afloat because he wanted to stick around for the McDavid years.
Basically what will happen now is that Bassin will sell the team and pay Katz back with what he gets from the sale.
Basically what will happen now is that Bassin will sell the team and pay Katz back with what he gets from the sale.
Beerfish
Registered User
- Apr 14, 2007
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The oilers sports management empire is ruthless. This incident is just business however. also nice that katz has money to toss around on ventures like this, the kings, buying up other minor league teams and doesn't have two nickles to rub together when it comes time to pay for their own arena.
Jumptheshark
Rebooting myself
Here is the theory tossed my way last year when this was heating up. Oilers wanted to buy and move the otters--the owners was all for it. However the process was held up when the otters got McDavid and the owners suddenly realized he was about to flip a gold mine. And that is when he started to drag his feet. My understanding is that the owner has not tossed on losses previously written off in his filing.
While I am not a fan Katz' management style--all those people running to the defence of the otter owner--he never offered the money back till he had made the money back on other income. The gravey train is coming to an end the the otters owner is cashing in his chips in an attempt to keep the money he made over the past few years by tossing in losses from up to ten years ago.
THis move has come as a shock to no one who has been paying attention.
Like I said--I am not a katz fan--but the Otters owner player "oh I am just a small business guy"--he took the money--bought out his co owners and when he got Mcdavid? That is when the complications started
THis is not about a big bad company running over a small guy this is more about someone, midway though a deal decided that the value was higher then when the selling started..
This is a long way from being over
While I am not a fan Katz' management style--all those people running to the defence of the otter owner--he never offered the money back till he had made the money back on other income. The gravey train is coming to an end the the otters owner is cashing in his chips in an attempt to keep the money he made over the past few years by tossing in losses from up to ten years ago.
THis move has come as a shock to no one who has been paying attention.
Like I said--I am not a katz fan--but the Otters owner player "oh I am just a small business guy"--he took the money--bought out his co owners and when he got Mcdavid? That is when the complications started
THis is not about a big bad company running over a small guy this is more about someone, midway though a deal decided that the value was higher then when the selling started..
This is a long way from being over
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Jumptheshark
Rebooting myself
after he has cashed all the cheques he made by having McDavid on the team. last year when this was being talked about, the moment McDavid left the otters--the team lost 50% of its value or something to that extent.
There was an interview last year where the Owner was down playing how much money he made during the past 3 seasons. After awhile he only talked to local journalist that "were on his side" and not asking tough questions. He was on sportnet (I think) and he was asked some tough questions and he did a song and dance over how much having McDavid helped his bottom line--the guy reminds me of Peter Pocklington
Replacement*
Checked out
There was a previous thread on this and the whole thing has already been rehashed.
Lots of reasons to dislike Katz and this isn't one of them. Deadbeat Erie owner defaults on loan, expected result ensues.
No story here.
Lots of reasons to dislike Katz and this isn't one of them. Deadbeat Erie owner defaults on loan, expected result ensues.
No story here.
dustrock
Too Legit To Quit
- Sep 22, 2008
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Beerfish
Registered User
- Apr 14, 2007
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Otters, oil kings, other minor league teams they have bought or are about to buy.
In any case, lets change those numbers a bit.
Arena = 435m
Otters = nothing.
The oilers were whining and battling for every single nickle in the arena deal and more than once change the goal posts.
Ok let's change the numbers.
Arena - $435m
All "minor league teams" - ~$50m ?(at the very high end)
Same thing.
The Arena battle was never about whether Katz could pay for it all.
It was about what he should pay for.
Katz and the city negotiated based on their own expected benefits of a new arena.
Katz looked at ticket prices, luxury boxes, parking, etc.
The city was looking at Taxes, land value, development.
Is it because Katz is a billionaire that people should just expect he toss all his money for the goodness of his heart to the city of Edmonton?. For some reason we expect all the benefit with none of the risk.
Fact is if he put up all the cash for the new arena he'd lose money in the end.
I honestly blame the owners and players. Too much of the money goes to the high end team owners and players pockets . None left for the owners to buy/maintain arean's in all but the richest NHL teams (NYR, Toronto).
So what's left is municipalities contributing in hopes of return of investment. Owners leverage moving the team to play cities against each other.
CantHaveTkachev
Legends
PBandJ
If it didn't happen in the 80's, it didn't happen
PBandJ
If it didn't happen in the 80's, it didn't happen
That would require being a decent owner who cares about the team.
Don't get your hopes up.
Mcnofool6110
Re-defining Rock Bottom since '07
