Bettman Orders Burke, Lowe To "Cease and Desist" Bickering

Bettman Orders Ducks, Oilers GMs To Cease Public Feud

DONE DEAL: The WALL STREET JOURNAL's Matthew Futterman reports in a "sign that confidence in the [NHL] continues to grow, CIT Group Inc. said Monday it had completed" a $100M loan agreement with new Oilers Owner Daryl Katz for the purchase of the team. Katz, who had reached a deal to purchase the Oilers for $200M in February, was able to complete his purchase in "about three months," while Oren Koules' $200M purchase of the Lightning "took nearly two years to close, partly because of financing problems." Katz said that the purchase of the Oilers "was timed to take advantage of a booming local economy." CIT Managing Dir of Media, Entertainment & Sports Gordon Saint-Denis: "The debt markets have been a little finicky. But this is a deal for a hockey team in Canada, where hockey is king, and Edmonton has been doing very well from an economic standpoint" (WALL STREET JOURNAL, 7/8). SPORTSBUSINESS JOURNAL's Daniel Kaplan wrote the interest rate yield the Oilers paid as part of the agreement "was far higher than in sports deals past." The Oilers also agreed to terms, "or covenants, that had not been a part of many loans during the more-robust credit environment of a year ago." The team is "paying 325 points over the Bankers Acceptance Rate, a Canadian interest rate benchmark." Last week the rate was at 3.12%, meaning the Oilers' rate was 6.37% (SPORTSBUSINESS JOURNAL, 7/7 issue).

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