Blazers sale could be finalized in October

From The Daily News of Tuesday, Aug. 28, 2007 . . .

River City Hockey Inc. (RCH), the proposed new owner of the Kamloops
Blazers, could take possession of the WHL franchise as early as Oct. 11.
That’s the day following the next scheduled WHL board of governors meeting
in Calgary. Vancouver businessman Tom Gaglardi, the majority partner in RCH,
is expected to appear before the governors at that meeting.
After 23 years of ownership, the Kamloops Blazers Sports Society’s
membership voted Thursday night to sell its WHL franchise to Gaglardi and
partners Shane Doan, Jarome Iginla, Mark Recchi and Darryl Sydor.
The process that leads to the transfer of ownership has started.
“We have a due diligence process that we go through in all of these cases,”
WHL commissioner Ron Robison said Monday from the WHL’s Calgary office. “Any
time there is a sale that occurs . . . as soon as we get the formal
documents from the club — the purchase and sale agreement — then we commence
with the steps in the due diligence process.
“That largely involves the submission of a comprehensive business plan to
see how the club will operate for the next five years. That’s what we will
be looking for.”
Robison said he expects Gaglardi to make an “in-person presentation” to the
board of governors at that Oct. 10 meeting.
“Obviously, this group comes with a lot of credibility in a lot of areas,”
Robison said. “But we need to see their plan and to evaluate it. There is a
series of documents they have to submit, but the business plan is done on an
in-person basis.”
Robinson said that the whole package will hinge on that business plan.
“he key concern,” he reiterated, “for us in this whole process will be to
ensure that we have a new ownership group that will not only continue to
operate based on the tradition of the Blazers but, more importantly from our
standpoint, be in sync with the type of operating philosophies we have
traditionally had.”
Before all is said and done, RCH also will have to enter into an ownership
agreement with the WHL.
“It provides us with the assurances that they will comply with the bylaws
and various standards of the league,” Robison explained.
The last private sale of a WHL franchise involved the Portland Winter Hawks.
In that instance, Robison said, the transfer of ownership took “probably
close to six months.”
The commissioner doesn’t anticipate that happening with the Blazers.
If all goes well with the submission of a business plan and the execution of
the transfer of ownership agreement, Robison said he could “be in position
to present a recommendation for approval” to the board of governors on Oct.
10.
And, Robison said, “Once the league approves it, it becomes effective.”
“(RCH) would not be in a position to formally start operations until after
the board of governors’ approval,” Robison said. “The earliest would be Oct.
11.”
In the meantime, it will be business as usual with the Blazers.
“The staff in place will continue to operate the franchise,” Robison said,
“and the board (of directors) will continue to oversee the operation until
the formal transition takes place upon the approval of the governors.”
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Mike Priestner, owner of the Edmonton-based Mike Priestner Automotive Group,
also made an offer on the Blazers. He proposed to buy 51 per cent of the
franchise, leaving 49 per cent in the hands of society members.
His proposal, which valued the franchise at $7,110,000, was never given any
consideration by members.
Asked Monday how he felt about the way things went down, Priestner said: “No
comment.”