Oilers bouncing cheques to hotels and being sued?

iCanada

Registered User
Feb 6, 2010
18,940
18,362
Edmonton
I think the real question is what the heck do you get for $27,000-$28,000 in a stay?

Are they getting 27 rooms at $1000 each, or staying there multiple nights? Looks like it was one night only both trips.

I mean, that seems relatively reasonable. You have 23 roster forwards, 3 coaches, 3 staff, probably 3 scouts, and probably a player "fixer", a misc management staff for promotions, and a good 3 equipment staff. Thats easily 37 people, likely a minimum of 20 rooms. They are also likely staying for at least two nights, so that's in effect 40 booked rooms. They also likely are paying like 2-5k for conference rooms and private meal rooms. Means that each room is only charging on average 500 to 625 a night, which is high but not exactly unfeasible. Notably there is a good chance that each room is around 350 a night, meaning you only really need to account for 200 dollars per room per night. Two room service orders (one per player) + a PPV movie + an alcoholic beverage each gets you there easily, and most of these hotels have all sorts of extras that they could be utilizing such as massage therapists and the like that I can't imagine the team wouldn't pay for if not encourage.

I've been in some 3 star hotels for work where a chocolate bar from the mini-fridge is 20 bucks.

I find the whole situation odd. I am sure they could have settled the issue without resorting to a lawsuit.

Did hotel management not call the OEG and ask " hey, your check bounced, you need to pay these outstanding fees?"
It's not like they can't afford it.

I'd imagine they are close to going out of business and may or may not be going through the ringer to stave off bankrupcy.
 
  • Like
Reactions: oilers'72

OfCorsiDid

Ah shit, here we go again
Mar 20, 2017
19,929
30,602
Toronto, ON
I mean, that seems relatively reasonable. You have 23 roster forwards, 3 coaches, 3 staff, probably 3 scouts, and probably a player "fixer", a misc management staff for promotions, and a good 3 equipment staff. Thats easily 37 people, likely a minimum of 20 rooms. They are also likely staying for at least two nights, so that's in effect 40 booked rooms. They also likely are paying like 2-5k for conference rooms and private meal rooms. Means that each room is only charging on average 500 to 625 a night, which is high but not exactly unfeasible. Notably there is a good chance that each room is around 350 a night, meaning you only really need to account for 200 dollars per room per night. Two room service orders (one per player) + a PPV movie + an alcoholic beverage each gets you there easily, and most of these hotels have all sorts of extras that they could be utilizing such as massage therapists and the like that I can't imagine the team wouldn't pay for if not encourage.

I've been in some 3 star hotels for work where a chocolate bar from the mini-fridge is 20 bucks.



I'd imagine they are close to going out of business and may or may not be going through the ringer to stave off bankrupcy.

That sounds immensely plausible.
 

Daryls Friend

Registered User
May 14, 2017
3,068
3,306
I mean, that seems relatively reasonable. You have 23 roster forwards, 3 coaches, 3 staff, probably 3 scouts, and probably a player "fixer", a misc management staff for promotions, and a good 3 equipment staff. Thats easily 37 people, likely a minimum of 20 rooms. They are also likely staying for at least two nights, so that's in effect 40 booked rooms. They also likely are paying like 2-5k for conference rooms and private meal rooms. Means that each room is only charging on average 500 to 625 a night, which is high but not exactly unfeasible. Notably there is a good chance that each room is around 350 a night, meaning you only really need to account for 200 dollars per room per night. Two room service orders (one per player) + a PPV movie + an alcoholic beverage each gets you there easily, and most of these hotels have all sorts of extras that they could be utilizing such as massage therapists and the like that I can't imagine the team wouldn't pay for if not encourage.

I've been in some 3 star hotels for work where a chocolate bar from the mini-fridge is 20 bucks.



I'd imagine they are close to going out of business and may or may not be going through the ringer to stave off bankrupcy.
Players all have their own rooms. I assume coaches do as well.
This is not surprising coming from a Katz org.
 

Tobias Kahun

Registered User
Oct 3, 2017
42,060
50,989
I mean, that seems relatively reasonable. You have 23 roster forwards, 3 coaches, 3 staff, probably 3 scouts, and probably a player "fixer", a misc management staff for promotions, and a good 3 equipment staff. Thats easily 37 people, likely a minimum of 20 rooms. They are also likely staying for at least two nights, so that's in effect 40 booked rooms. They also likely are paying like 2-5k for conference rooms and private meal rooms. Means that each room is only charging on average 500 to 625 a night, which is high but not exactly unfeasible. Notably there is a good chance that each room is around 350 a night, meaning you only really need to account for 200 dollars per room per night. Two room service orders (one per player) + a PPV movie + an alcoholic beverage each gets you there easily, and most of these hotels have all sorts of extras that they could be utilizing such as massage therapists and the like that I can't imagine the team wouldn't pay for if not encourage.

I've been in some 3 star hotels for work where a chocolate bar from the mini-fridge is 20 bucks.



I'd imagine they are close to going out of business and may or may not be going through the ringer to stave off bankrupcy.
Players get their own rooms.
 
  • Like
Reactions: nabob

SaltNPeca

Registered User
Jan 9, 2017
1,997
1,775
Köln
I find the whole situation odd. I am sure they could have settled the issue without resorting to a lawsuit.

Did hotel management not call the OEG and ask " hey, your check bounced, you need to pay these outstanding fees?"
It's not like they can't afford it.

I find the whole situation is like making a mountain out of a molehill and I don't like how the hotel went about it.



Obviously, the oilers going to rectify the situation because I don't feel it was intentional and puts the whole team in a bad light even though it was a accounting issue.

I would not want to do business with that hotel again if this how they try to solve these problems.

Would they have done it to get publicity for their hotel in the expense of shitting on the oilers brand?

Pretty low if that was their intention.
Yeah who knows.

In my old company some dumb things would happen in accounting. Just for example, not having an account setup properly in SAP (say due to a human mistake or someone on vacation, whatever). Then the vendor doesn't get paid, sends warnings, sends to collection agency... Due to strict corporate approvals process including multiple approvers stuff could "take a while".

A small company would pay that after one warning letter, but you sometimes literally CAN NOT pay a bill easily outside of the regular process.

Maybe something changed on OEG side or Hotel side in accounting, maybe people got sick/distracted, maybe some mistake, maybe disputed charges...

Anyways for me pretty normal coming from a large company, and not that embarrassing. "Business as normal".

btw the King of Thailand is living in a German Luxury Hotel since the start of Corona with 100 people including 20 concubines. Just lol imagine the charges?
 

Daryls Friend

Registered User
May 14, 2017
3,068
3,306
Yeah who knows.

In my old company some dumb things would happen in accounting. Just for example, not having an account setup properly in SAP (say due to a human mistake or someone on vacation, whatever). Then the vendor doesn't get paid, sends warnings, sends to collection agency... Due to strict corporate approvals process including multiple approvers stuff could "take a while".

A small company would pay that after one warning letter, but you sometimes literally CAN NOT pay a bill easily outside of the regular process.

Maybe something changed on OEG side or Hotel side in accounting, maybe people got sick/distracted, maybe some mistake, maybe disputed charges...

Anyways for me pretty normal coming from a large company, and not that embarrassing. "Business as normal".

btw the King of Thailand is living in a German Luxury Hotel since the start of Corona with 100 people including 20 concubines. Just lol imagine the charges?
It’s highly unusual. Invoices are sent. Calls are made. Demands are sent. Calls made. Finally an Action has to be commenced.
If I had to make an educated guess the Katz org said “FU” , come and get us.
 
  • Like
Reactions: Stoneman89

Stoneman89

Registered User
Feb 8, 2008
27,407
21,803
Yeah who knows.

In my old company some dumb things would happen in accounting. Just for example, not having an account setup properly in SAP (say due to a human mistake or someone on vacation, whatever). Then the vendor doesn't get paid, sends warnings, sends to collection agency... Due to strict corporate approvals process including multiple approvers stuff could "take a while".

A small company would pay that after one warning letter, but you sometimes literally CAN NOT pay a bill easily outside of the regular process.

Maybe something changed on OEG side or Hotel side in accounting, maybe people got sick/distracted, maybe some mistake, maybe disputed charges...

Anyways for me pretty normal coming from a large company, and not that embarrassing. "Business as normal".

btw the King of Thailand is living in a German Luxury Hotel since the start of Corona with 100 people including 20 concubines. Just lol imagine the charges?
All of those could be legitimate excuses. For a couple months. Not eleven. That's one hell of a lot of rope with which to hang yourself with.
 

samiam

Registered User
Oct 4, 2010
665
213
Since the first incident took place in Mid-Dec 2019, I find it somewhat bizarre that there was never any issue with any of the other subsequent hotels the Oilers stayed at for the balance of December, as well as all of January or February & early March. It was only ever just this Dallas hotel in Dec & March. There just has to be some sort of simple explanation!
 
  • Like
Reactions: oilers'72

Stoneman89

Registered User
Feb 8, 2008
27,407
21,803
Since the first incident took place in Mid-Dec 2019, I find it somewhat bizarre that there was never any issue with any of the other subsequent hotels the Oilers stayed at for the balance of December, as well as all of January or February & early March. It was only ever just this Dallas hotel in Dec & March. There just has to be some sort of simple explanation!
Perhaps the answer will come out after it is finally settled. Parties are usually pretty tight-lipped when they are involved in a lawsuit.
 
  • Like
Reactions: oilers'72

samiam

Registered User
Oct 4, 2010
665
213
Perhaps the answer will come out after it is finally settled. Parties are usually pretty tight-lipped when they are involved in a lawsuit.

Yes, I also agree. But just the fact that this may be going to court is just weird. I don't think for one minute that the Oilers are denying that they owe anything for their stay, which leads me to believe there just has to be more to this story for this to have snow-balled this far.
 

shoop

Registered User
Jul 6, 2008
8,333
1,911
Edmonton
In my old company some dumb things would happen in accounting. Just for example, not having an account setup properly in SAP (say due to a human mistake or someone on vacation, whatever).

I have done (parts of) those account setups in SAP. Sure shit happens, but for a company big enough to use SAP the accounts are reconciled monthly and they have backups for when people are on vacation.

Maybe those excuses might explain a bill being paid two or three months late. 11 months? No freakin' way.
 
  • Like
Reactions: Stoneman89

Jumptheshark

Rebooting myself
Oct 12, 2003
99,866
13,848
Somewhere on Uranus
I have done (parts of) those account setups in SAP. Sure shit happens, but for a company big enough to use SAP the accounts are reconciled monthly and they have backups for when people are on vacation.

Maybe those excuses might explain a bill being paid two or three months late. 11 months? No freakin' way.


11 months? Oilers laid off most staff a couple of weeks after the season got shut down. If they were brought back, they were busy setting up and arranging for the vendors and other things.

After the first lockdown here I was hired by hotel to sort out their mail. I thought they were joking until I saw the physical and emails there were talking about.

Ooilers shutdown their offices and we have no idea what structure they put in place when they re opened
 

shoop

Registered User
Jul 6, 2008
8,333
1,911
Edmonton
11 months? Oilers laid off most staff a couple of weeks after the season got shut down. If they were brought back, they were busy setting up and arranging for the vendors and other things.

A priority of any business is to pay the bills, from their vendors.

The Oilers shut down three months after this invoice wasn't paid?

Sure you lay off some of your AP staff. But the entire finance department? That's insane.

If this lawsuit is because of the financial straits of the particular vendor are there other unpaid invoices going on a year old?
 

Tobias Kahun

Registered User
Oct 3, 2017
42,060
50,989
A priority of any business is to pay the bills, from their vendors.

The Oilers shut down three months after this invoice wasn't paid?

Sure you lay off some of your AP staff. But the entire finance department? That's insane.

If this lawsuit is because of the financial straits of the particular vendor are there other unpaid invoices going on a year old?
If this was a lack of money thing, it would be more hotels than the same one, 5 months apart.
 

shoop

Registered User
Jul 6, 2008
8,333
1,911
Edmonton
If this was a lack of money thing, it would be more hotels than the same one, 5 months apart.

Potentially. Maybe the Oilers cut a deal of some kind with their vendors? 70 cents on the dollar?

This was the only vendor that wouldn't take a deal?

Not saying I know what happened, but I'm saying it is possible that it was a cash flow thing and there is only one vendor who has filed suit ... so far.
 

Ad

Upcoming events

Ad

Ad