Monday, February 11, 2008

Getting Here From There: The Fall of the Kamloops Blazers

CHAPTER 7: The Dawning of a New Era

With an offer on the table for its WHL franchise, the Kamloops Blazers Sports Society had met on July 11, 2006. There were 194 shareholders at the time, but only 96 appeared at the meeting.

Asked to decide whether society assets were for sale, the members voted ‘No.‘ The vote was 49-38.

But now River City Hockey Inc. (RCH) was back again, with a bigger offer.

And, on Aug. 23, 2007, an extraordinary general meeting of the society was held at Interior Savings Centre.

On the ice, the WHL team’s rookie camp was in progress, giving fans a look at the future. In a room at the front of the facility, the future of the franchise off the ice was being decided.

Vancouver businessman Tom Gaglardi, who headed up RCH (its name would later be changed to Kamloops Blazers Hockey Club Inc.), was in the room, as were his partners – ex-Blazers players Shane Doan, Jarome Iginla, Mark Recchi and Darryl Sydor.

By night’s end, they were well on their way to accomplishing their goal of owning the WHL team. The purchase price was around $7 million, the highest price – by $3 million – ever paid for a WHL franchise.

This time there were 256 eligible members, the increase from 194 due mostly to Gaglardi having bought up an untold number of shares from some members, many of whom had held multiple shares. And it was evident early in the meeting that, unlike the meeting of July 11, 2006, RCH now had a whole lot of support.

Before the meeting wrapped up – it was an emotional and passionate affair that ran more than two hours – 19 different people spoke. Gaglardi, Recchi, Doan, Iginla and Sydor all were heard, as were society board members Dennis Coates, who was the treasurer, and Don Moores, who chaired the hockey committee.

Recchi led things off and it was evident that there still was some bitterness over the way RCH felt it had been treated by the society’s board of directors over the previous 14 months. RCH members had never been allowed to meet with society members, and they had only met once with the board.

"They refused to meet with us," Recchi told the meeting. "They refused to put the offer to the membership. They refused to allow us to appear at the members’ meeting. The reason was that we were not members at the time.

“They went ahead and called a members’ meeting without proper legal notice. They only gave 11 days (notice) instead of 14. The summary of our offer, which was laid out for the members at the meeting, was concealed from the members. As those of you know who were at the meeting (of July 11, 2006) basically the meeting got overwhelmed."

According to Recchi, had things been handled differently over the summer of 2006, RCH may have taken its lumps and gone home.

"We probably wouldn't be here if we felt the agenda was run properly last year," he said. "We would probably have walked away if things had been addressed a little bit better last year."

That didn’t happen, though, and RCH was back. And this time things were different. At least one member of the board was on RCH’s side.

"The time has come to choose a private model," said Coates, a Kamloops lawyer who has done work for Northland Properties, a Vancouver-based company of which Gaglardi is CEO. "My personal opinion is . . . that the time has come to privatize the enterprise. Quite frankly . . . I disagree with price being the driving force. I think it's a combination of price and hockey commitment."

Moores, who had spoken emotionally on July 11, 2006, when members voted that the assets weren't for sale, favoured selling, too, but not without going to the market place.

"I'm not naive enough to not take a look at all this and see that we have a membership that is fractured,” Moores told the gathering. “There's no question that's what has happened. So in my mind it's inevitable that this hockey club is going to sell.

"The four guys that are wanting to buy the hockey club . . . this has nothing to do with them. . . . My issue with what is going on is the process. As a society, there is a process that is laid out. And we should be putting this hockey club on the open market only because it's the right thing to do."

One member went so far as to call what she was witnessing a “hostile takeover.“

"We love you guys," Helen Long told the four ex-Blazers, "but what you are attempting here is a hostile takeover. If we decide to sell, it should be on our terms and open to all offers."

Don Larsen, the Blazers’ long-time marketing director who lost his job in the shakeup that followed the discovery of a fraud and the resignation of president Colin Day, didn’t see things that way.

"I have no problem turning the team over to these guys," Larsen said.

Andy Clovechok, a former board member who served the society for a long time, also sided with RCH.

"Now is the time to sell," he said, “not two years down the line. What are we waiting for? Let's go."

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While Recchi had hammered away at the board early in the meeting, the other three ex-Blazers took the soft-shoe approach when they spoke, one after the other, late in the meeting.

"Coming here at the age of 16 and under the guidance of Bob Brown and (Ken) Hitchcock . . . these are the years when I really learned what it takes to be a man," Sydor said.

Doan offered: "I've moved here . . . this is my home now. My wife's family lives here . . . Kamloops is a huge part of my life."

Doan also made reference to a truck on the outskirts of Kamloops that sports a sign: This is Blazer Country.

"That's the Blazer pride," Doan said, his voice rising. "That's why we're involved. That's why we want to buy the team . . . that's what we want. We want that to be able to pass it on. . . . We just want an opportunity.

"Our offer is just an offer. It's not a power play. It's not a hostile takeover. We're members just like you now. We have the right to vote. We're not trying to be hostile . . . we're not trying to do anything that is sleight of hand. . . . We're not trying to steal anything away."

Doan also made a promise.

"We have no plans of raising ticket prices," he said. "No way. There's no plans of that. It says that on our website. This is not so much about profit as it is about pride; this is about pride for us."

Iginla drew a rousing ovation when he opened by pointing out that the four ex-Blazers had "won five Memorial Cups, three world junior championships, five world championships, an Olympic gold medal and four Stanley Cups."

He added: "We came in here as young men and we looked for guidance . . . In our era, when we played here we had it. The best coaching . . . we had the best billets. We had the best management. It was always about helping us . . . developing a work ethic and being appreciative of our opportunities."

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The vote was held via a show of hands. And when the votes were counted, it was resounding – 151-43 in favour of selling the society’s assets to RCH.

“It was pretty intense," Iginla, the Calgary Flames’ captain, said as he displayed his trademark smile. "It really does (weaken the knees). There's so many emotions but that's the way it should be.

"That shows what a great hockey city Kamloops is, what a great junior hockey city Kamloops is.”

Iginla, who hadn’t been part of RCH during the summer of 2006, admitted to enjoying the outcome a whole lot more than the process.

"Through the whole process it's been hard for us because it's such a passionate issue and we know it's very important to all of you," he had told the crowd. "As everyone has said, it's very important to us, too. We want to have an impact. You guys had a huge impact on us."

When it was all over and the impact of what had happened was beginning to set in, Iginla said it felt "pretty overwhleming."

"It's a huge honour," he said. "To see the support and the passion. I've never been to a meeting like this . . . a town hall meeting. There was a lot of passion."

It was, he said, what hockey in Canada is all about.

"Exactly," he said. "It was pretty intense . . . and the support that was shown was very special."

The post-vote feeling, Doan said, was "definitely something like (after a game)."

"It's a great experience to be a part of something like that to see how it goes and how it works," he said.

Doan also was excited with the resounding victory with which members had presented him and his partners.

"I think,” Doan said, “that was really important for all of us who were involved to realize . . . we wanted the people to realize that we are an extension of what they have taught us, what the community has taught us, what the society and the foundation have all taught us."

Sydor, who had arrived in Kamloops on a private plane from Dallas where he was a member of Stars’ centre Mike Modano’s wedding party, offered: "It hasn't sunk in. But it‘s been a long time coming. The membership has spoken. It was resounding and that makes us feel better. It makes us proud.”

Sydor returned to Dallas and the wedding immediately after the meeting.

As for Gaglardi, he simply offered: "Wow! That's quite something."

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And just like that it was over. Members scrambled for autographs; some posed for photos with the ex-Blazers.

A group of shareholders had purchased 33 per cent of the franchise from the NHL's Edmonton Oilers in the summer of 1981. The remaining 67 per cent was purchased from the Oilers over the summer of 1984 when the team’s name was changed from Junior Oilers to Blazers.

Later, a non-profit society was formed and its board of directors, under the terms of the Society Act, operated the franchise.

But now – just like that – it was over.

All that remained was for the WHL’s board of governors to approve the sale, something it did on Oct. 11.

The sale became official, meaning the paperwork was done and the money changed hands, on Oct. 25.

NEXT (Feb. 28): Setting Off in a New Direction (Again)

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