Edmonton Investors Group Looks to Future with Oilers and Arena Developments

The Edmonton Investors Group is looking to the future with a renewed sense of optimism, thanks in part to the city's beloved Oilers hockey team. The team has a rich history in Edmonton, with a loyal fan base that packs the Rogers Place arena for every game.

The Oilers have been a major driving force behind the city's economic growth, with a significant impact on local businesses and tourism. Fans from all over the world visit Edmonton to catch a game, generating millions of dollars in revenue each year.

Rogers Place itself is a state-of-the-art facility that has set a new standard for sports and entertainment venues in Canada. With its sleek design and cutting-edge technology, it's a must-visit destination for anyone interested in sports, music, or performance art.

A fresh viewpoint: B Capital

The Edmonton Oilers sale was a long and winding road that finally led to Daryl Katz becoming the new owner of the team. Daryl Katz purchased the team for $200 million, a price that was agreed upon by all 34 members of the Edmonton Investors Group.

Katz had been trying to work out a deal for 10 months, and his persistence paid off when the EIG agreed to sell their shares in the franchise to him. League approval often takes six to eight weeks, so the process is far from over.

The EIG had previously struck a 10-year, $20-million deal with Katz for the naming rights to Edmonton's Northlands Coliseum, renaming it Rexall Place in 2003. This deal was a significant one, and it's clear that Katz was willing to spend big to get what he wanted.

Katz initially offered $145 million for the Oilers, but he sweetened the pot four times to $22,000 a share for 7,492 shares – or double the original purchase price. This shows that Katz was willing to negotiate and work towards a deal that both parties could agree on.

Earlier this month, EIG chairman Bill Butler recommended that shareholders refuse to sell until Katz agreed – in writing – to keep the team in Edmonton and commit $100 million to a new facility to replace 34-year-old Rexall Place. This was a key condition that the EIG was looking for, and it's clear that they wanted to ensure that the team would stay in Edmonton.

For your interest: Peter S Lynch

Katz had expressed a willingness to build a training facility for the team at the University of Alberta, and spend the maximum for players under the salary cap. This shows that Katz was committed to investing in the team and making it successful.

The sale of the Edmonton Oilers was finally approved on June 18, 2008, with Katz purchasing the team for a reported $200 million.

The Edmonton Investors Group (EIG) has a diverse group of shareholders, each with their own unique story. The ownership of the EIG is spread across various individuals and entities.

Dave Addie and Neal Allen are two of the shareholders, both from Alberta, holding 1.735% of the company's shares. They paid $2.9 million for their shares.

Jakob Ambrosius, a resident of Edmonton, holds 6.673% of the company's shares, making him one of the largest shareholders. He paid $11.1 million for his shares.

Here is a breakdown of the top 5 shareholders:

The Lloydminster Consortium of Five, consisting of Marcel and Roger Roberge, Brian Nilsson, Rusty Stalwick, and Keith Weaver, also hold shares in the EIG, with a combined 3.570% ownership.

The Edmonton Investors Group is planning for a new arena to replace the aging Rexall Place, where the Oilers currently play. This new arena is expected to be a state-of-the-art facility.

According to Oilers Chair Cal Nichols, the economics of the team and the NHL need to justify private individuals and the community investing money in a new building. The investors must be viable and profitable to consider building a new arena.

The Edmonton Investors Group still needs to pay the remaining C$30M on the 1998 bank loan used to purchase the team before a new arena can be built. This loan was a significant investment, and the group has yet to make money on it.

The lockout has had a significant impact on the team's finances, with lost revenue estimated at C$9M. Corporate sales are down 40%, resulting in an additional C$2M shortfall.

Here are some key facts about the new arena plans:

The Edmonton Investors Group is taking a cautious approach to building a new arena, ensuring that the team's financial situation is stable before making a significant investment.