Interesting read on Daryl Katz, the Oilers and Erie Otters

[Replacement*]

I found the article interesting more than anything, and didn't sway my opinion of him one way or the other. You don't become a billionaire without angling for the best deal no matter what.

One thing I'd like to know about Katz is the true story of how he managed to take a tiny storefront pharmacy chain that his Dad started, and successfully gobble up larger chains to become the brand that Rexall is. There is no way that earnings from those smaller operations could solely float those acquisitions, and it seems too risky to me for banks to get involved. Did some of the ex-Oilers help out in some way so he feels indebted to them? Were some major pharmaceuticals or other suppliers involved with lending money? Kudos to him for pulling it all off though.

Katz for years operated cross border online and mail order pharmaceutical sales due to Canada having different regulations on when generics could be made of popular drugs (every new drug gets a time period of sales before generics are allowed) Given that in Canada this time period is less (bad policy that doesn't provide any impetus or reason for pharmaceutical companies to do research and development when they can just copy) So katz simply targeted high popularity, high priced US non generic new drugs, and sold Billions of the stuff cross border at the cheaper Canadian generic prices. Generics are usually quite similar and often in the ballpark of 50% or less of the regular price.
Katz utilized this *freetrade* loophole to make his first Billions.

Good for him to act on the difference in jurisdictional standards but a lot of people recognized the opportunity. Katz, with his aggressive takeover mentality put it to optimal use. Being a growing big player in acquiring chains for his Rexall conglomerate allowed him further legitimacy in doing global pharmaceutical sales. The $ was in Pharmaceuticals. That was the brunt of it.

 

[iCanada]

I'm not mad he manages His businesses in a manner that makes him successful, I'm mad he hasn't run his hockey operations the same way.


If this man had his gms forcing and leveraging deals like this and we were winning cups because of it I'd be the happiest man in the world.

Instead we have an idiot running around giving away all his plans hopes dreams to anyone who will listen.

 

[frag2]

I'm not mad he manages His businesses in a manner that makes him successful, I'm mad he hasn't run his hockey operations the same way.


If this man had his gms forcing and leveraging deals like this and we were winning cups because of it I'd be the happiest man in the world.

Instead we have an idiot running around giving away all his plans hopes dreams to anyone who will listen.

I still think, as I've mentioned the moment he bought the Oilers and pushed for a new arena, once the arena is built, he'll manage the team like his pharmacies, aka ruthless.

 

[HeavyHitter99]

Billionaire businessboy uses bully tactics against elderly lady. Meh, is normal.

Except there were no ladies involved in this

 

[taunting canadian]

I still think, as I've mentioned the moment he bought the Oilers and pushed for a new arena, once the arena is built, he'll manage the team like his pharmacies, aka ruthless.

I'm not sure what the point would be of waiting, at this point, until the arena is complete to do that. Maybe before the arena deal was done, there would be a point in waiting, but now he is just eroding goodwill and reducing the waiting list, putting a drag on potential ticket price raises, by maintaining ****** management. It has reached the point where it is looking very unlikely that the initial season in the new building will be a successful one, because anyone brought in to fix the organizational problems is probably going to need more than one season to do it.

To me I think the big difference is that the people he's dealing with and managing in the pharmaceutical business aren't his buddies and heros from the 80s, so he makes decisions regarding them based on business rather than personal loyalty.

 

[Pressure]

It's a business. He's a businessman. He didn't get to this point in his life and purchasing the Oilers (saving them) without having to do things he wasn't proud of. If that meant strong arming city council as they sat on their hands talking about auditing the amounts we'd be in the same position as the pathetic LRT system and city infrastructure.

I don't blame him. He's kept us here, he's given the city a chance. Be grateful he isn't looking to sell this team right now as the dollar drops to some other owner to move into Ontario. Everyone making a big deal out of this is ridics.

 

[Lock]

Being a successful businessman and operating that business with integrity are not mutually exclusive.

You dont have to step on people's face to get ahead.

 

[Pressure]

Being a successful businessman and operating that business with integrity are not mutually exclusive.

You dont have to step on people's face to get ahead.

I used to think this when I was green and in University. I thought the world would hand me a job when I got out because I have a business degree. Well reality check happened and realized this is a dog eat dog world. You can't go through life being the nice guy, especially when you're a businessman. Now blow that up to epic proportions to someone making billions...I wish integrity and successful go hand in hand but that's only in a perfect world.

They forced his hand, he made a slight of hand/power move. Did he even have full intention of moving the team? who knows. It was a move on a chess board.

Seriously look at it now. Look at our dollar and the projections. Imagine if we had waited another year how much more costly it would be?

 

[Beerfish]

I used to think this when I was green and in University. I thought the world would hand me a job when I got out because I have a business degree. Well reality check happened and realized this is a dog eat dog world. You can't go through life being the nice guy, especially when you're a businessman. Now blow that up to epic proportions to someone making billions...I wish integrity and successful go hand in hand but that's only in a perfect world.

They forced his hand, he made a slight of hand/power move. Did he even have full intention of moving the team? who knows. It was a move on a chess board.

Seriously look at it now. Look at our dollar and the projections. Imagine if we had waited another year how much more costly it would be?

It's too bad you have had such poor life experiences but what the previous poster said is 100% correct.

Look at it from the point of view for who is actually paying for the arena perhaps? The city of Edmonton. They have spent a large amount of capital funding on a privately run arena, they even had to dip into our infrastructure grant from the province.

I'll give you two guesses as to what is going to happen to infra funding grants and transfers from the province to the cities in the next while. I can't wait for the tears from city council about funding cuts while we are spending money to fund an arena for a private for profit sports team which is run like a hobby farm.

It's jut too bad that municipal politicians are just total rubes and duped so easily. The nice lofty projections of development down town will hit the skids quick if the economy stays as it is or gets worse.

 

[Summary]

I used to think this when I was green and in University. I thought the world would hand me a job when I got out because I have a business degree. Well reality check happened and realized this is a dog eat dog world. You can't go through life being the nice guy, especially when you're a businessman. Now blow that up to epic proportions to someone making billions...I wish integrity and successful go hand in hand but that's only in a perfect world.

They forced his hand, he made a slight of hand/power move. Did he even have full intention of moving the team? who knows. It was a move on a chess board.

Seriously look at it now. Look at our dollar and the projections. Imagine if we had waited another year how much more costly it would be?

You're still just connecting two different things. The world isn't an ******* because it makes you merit your success. Working hard doesn't mean being ruthless, people skills still go a long way.

Sure, life isn't charity. But many here have this warped mental image of the scary mean capitalist that hates babies, fun and Santa who gets his kicks out of foreclosing people's homes. In reality there's all types in business circles just like everywhere else.

The reason this situation shows badly for Katz is that it's not strictly business, he's playing on the city's attachment for a pastime to fund something that is (at least partly) a hobby portion of his business.

And lastly, maybe you need to sharpen your business hat a bit. Recent economic developments will make it cheaper to build the arena, not more expensive. Part of the hurry was we seemed headed into an overheating economy with difficulty securing skilled labour and increasing wages. Unless your saying that taxpayers would've somehow been obligated to pay more of the arena tab to make up for Katz' difficulties paying hockey salaries in USD.

 

[Lock]

I used to think this when I was green and in University. I thought the world would hand me a job when I got out because I have a business degree. Well reality check happened and realized this is a dog eat dog world. You can't go through life being the nice guy, especially when you're a businessman. Now blow that up to epic proportions to someone making billions...I wish integrity and successful go hand in hand but that's only in a perfect world.

They forced his hand, he made a slight of hand/power move. Did he even have full intention of moving the team? who knows. It was a move on a chess board.

Seriously look at it now. Look at our dollar and the projections. Imagine if we had waited another year how much more costly it would be?

Its unfortunate that your experience was so negative, but 'being handed a job because you have a business degree' likely wasnt a realistic expectation either.

Thats like thinking "The Oilers cant suck they have three #1 overall draft picks!!"

The fact of the matter is that business has to be conducted in many different ways to achieve the overall objective.

We all know that the hockey world is a small one so you really have to be careful how you treat the people in it and Katz has burned every shred of Goodwill the Oilers have ever had with the City, the League and the fans.

Is that 'good business?' Maybe short term, but if the losing continues, probably not.

Leveraging Hamilton and Seattle against Edmonton so they cough up money? I was shocked that he didnt get a Ballsillian slap in the face from the league for that. Arizona has been hemorrhaging more red ink than Enron after the truth came out and they cant secure a move.

Meanwhile the Oilers are making money hand over fist while being one of the worst professional sports teams of the past decade and theres still no way in hell that the league would ever have authorized a relocation.

And as was stated, large capital projects are awesome in economic downturns. Material and labour tend to be dramatically less expensive as the overall demand typically decreases.