More Blazers. . . .

From The Daily News of Monday, Aug. 13, 2007
Mike Priestner arrived in Kamloops from Edmonton on Sunday night.
Tom Gaglardi is expected in town this morning.
The two businessmen, both of whom are involved with offers to purchase the
WHL’s Kamloops Blazers, will meet with the team’s board of directors this
morning.
Murray Owen, the president of the Kamloops Blazers Sports Society, has said
that today’s sessions are for information purposes only. The board feels it
isn’t in a position to do any negotiating because it hasn’t received such
direction from its 250-plus members.
The earliest that could come would be Aug. 23, the evening for which the
board has scheduled an extraordinary general meeting.
Priestner, who owns the Edmonton-based Mike Priestner Automotive Group
(MPAG), which has 10 dealerships, made a “partnership proposal” late Friday
night. He proposes buying 51 per cent of the team, leaving the society
holding 49 per cent.
Priestner would pay $3,626,100 for 51 per cent, something that would put a
value on the franchise of $7,110,000.
Gaglardi is part of River City Hockey Inc., a group that includes ex-Blazers
players Shane Doan, Jarome Iginla, Mark Recchi and Darryl Sydor. RCH offered
$6,100,176 for the Blazers on July 18.
Gaglardi said last night that he hasn’t seen the offer Priestner made Friday
night so didn’t want to comment on it.
“I need to look at it first,” Gaglardi said.
Priestner’s proposal refers to various aspects of a business plan.
For example, it states that it would be important to “gain control of our
revenue streams.”
“Selling and representing our business sponsorship and advertising programs
will be controlled in-house,” the proposal reads. “We have extensive
experience in business-to-business sales. We will construct (a)
value-packed, easy-to-understand ‘gold, silver, bronze sponsor program.’ ”
According to the proposal, Priestner sees “long-term involvement of minor
hockey as a critical factor to building our fan base.” That involvement
would include a minor hockey ticket program, the continuation of the
coaches’ mentoring program, and supplying all elite teams with “Blazers’
authentic jerseys.”
Priestner also promises a big push to allow “local business to partner with
the Blazers.” As well, the proposal claims that “we will continue to work
with the booster club in the current arrangement.” The team also would
“establish a student discount program” with Thompson Rivers University. And
ticket prices would remain unchanged for 2007-08.
As for employee relations, Priestner’s proposal leaves all current employees
in place and “every Kamloops employee will participate in a profit-sharing
program as all of our (MPAG) employees do.”
Priestner’s proposal was prepared by him and an accountant.
As for today’s presentation to the board, Priestner said: “I think it’ll be
a combination of the business plan and partnership idea, and the move
forward . . . as to how we can get that done.
“At least, that’s the idea.”
His presentation also is likely to include a comparison, made by him and his
accountant, of the two offers.
According to that comparison, RCH “is not assuming any liabilities
associated with the Blazers. This reduces the value of their offer
substantially.”
Priestner’s proposal goes on to claim that while RCH will leave the
commitment to the team’s education fund with the society, his offer “will
assume this commitment in full,” something that could cost as much as
$750,000.
As well, Priestner’s comparison reads, RCH “is paying out the individual
shareholders plus interest and deducting this amount from the purchase
price. . . . This is money that the society will never have and is contrary
to the community spirit of the establishment of the society in the first
place. The Priestner offer has no such payout . . .”
The Priestner proposal also says that he will assume liability for all
“employees and related term of service obligations.”
When all is said and done, the Priestner proposal claims it “will accrue
benefits to the society of $4.2 million more than the River City offer.”