Oilers owner , Darryl Katz taking the Boyle Street Community Services to court over a 5 million dollar donation

[ArGarBarGar]

Love how people like to push this narrative of "well because X-person has soooooo much more money than everyone else, they should just give Y-group the money, regardless of terms or anything. It's just in a drop the bucket for them."

Poor billionaires

 

[zar]

Daryl Katz, personally and via the EOCF have donated a lot of money in the Edmonton Community. A lot.

Were there some alterior motives to his “donation”… no doubt. I am guessing that Katz is lodging this lawsuit because the non-profit charity fell well short of a reasonable commitment they made in a legally binding agreement. An agreement is an agreement. Do you think Katz didn’t fully understand that this lawsuit would become public knowledge… of course he did. He’s not a dumb man.

I’m going to give him the benefit of doubt that he understands many bleeding hearts will see him as a miser for doing this but people with balance will likely see it as one party egregiously ignoring a significant part of a mutual legal agreement.

If I’m proven wrong then Katz is a rich asshole.

 

[HarrySPlinkett]

On the bright side, at least the non profit is of age this time

 

[ChaoticOrange]

Some facts from the article since most wont read it.

Katz's group gave $20m to Boyle Street between the sale and donations.
Katz's group allowed Boyle Street to stay with a $1 per month rent and the agreement to move by end of year 2023

Kat'z group is alleging that Boyle Street did not put effort into hitting the fundraising goal because if they didnt hit the goal they'd get that disputed $5m.

Mostly through the EOCF.

The EOCF that conducts the 50/50 fundraisers at Oilers games.

The Oilers 50/50 is routinely the biggest one in North America, raising millions every gameday.

Katz makes "donations" from the 50/50 with your money and then claims a charitable tax break.

Pretty sweet racket, in all honesty.

 

[Dr Pepper]

Daryl Katz, personally and via the EOCF have donated a lot of money in the Edmonton Community. A lot.

Was there some late riot motives to his “donation”… no doubt. I am guessing that Katz is lodging this lawsuit because the non-profit charity fell well short of a reasonable commitment they made in a legally binding agreement. An agreement is an agreement. Do you think Katz didn’t fully understand that this lawsuit would become public knowledge… of course he did. He’s not a dumb man.

I’m going to give him the benefit of doubt that he understands many bleeding hearts will see him as a miser for doing this but people with balance will likely see it as one party egregiously ignoring a significant part of a mutual legal agreement.

If I’m proven wrong then Katz is a rich asshole.

Pretty sure he's been a rich asshole for a while now.

You being right or wrong has nothing to do with it.

 

[zar]

Sounds like Boyle Street breached the contract, idk what everyone is getting so fussy about

… and I suspect it’s highly probable it was an egregious miss, not just missing a $2m fundraising target by 10%.

 

[Rubi]

"But according to court documents, Katz Group and Boyle Street also signed an agreement for a "backstop gift," agreeing that if Boyle Street was unable to meet its fundraising goal on its own during the campaign, the Katz Group would give it an extra $5 million."


Ya, who couldn't see that one coming? A promise of free money. If they couldn't raise it. Drops all incentive to fund raise.

Sounds like a win win for Katz. Can't raise enough money I claim you didn't work hard enough at it and I don't have to pay the $5m. If you raise enough money, again I don't have to pay the $5m.

 

[zar]

Pretty sure he's been a rich asshole for a while now.

You being right or wrong has nothing to do with it.

Many people who have experienced little financial success in life hate rich people.

 

[klefbombs shoulder]

The key segment of the article in my mind::

"In 2021, Boyle Street agreed to sell the property at 10116 105th Avenue to the Katz Group, with plans to put the money toward the purchase and renovation of a new facility.

The social service agency signed a lease for $1 per month with the Katz Group that allowed it to continue operating out of its former building until 2023, when it was expected to relocate.

As part of the conditions of the sale, the Edmonton Oilers Community Foundation also made a $10-million donation to Boyle Street to put toward its new premises.

The sale and donation were publicly announced, and a capital campaign was launched to fundraise $28.5 million for the project — with at least $8.5 million needed at a minimum to move ahead.

But according to court documents, Katz Group and Boyle Street also signed an agreement for a "backstop gift," agreeing that if Boyle Street was unable to meet its fundraising goal on its own during the campaign, the Katz Group would give it an extra $5 million.

The gift amount would decrease on a dollar-for-dollar basis if Boyle Street was able to raise at least $8.5 million on its own.

In its filings, the Katz Group alleges that Boyle Street didn't try hard enough to fundraise and was planning to rely on the backstop gift.

"The charity has not utilized its 'best efforts' in undertaking and completing the capital campaign," it alleges in an amended statement of claim filed Nov. 24, 2023.

The Katz Group claims that Boyle Street initially targeted a small number of private donors, rather than casting a wider net for donations, that its efforts to get government funding were inadequate, and that Boyle Street was fundraising for its endowment fund rather than focusing on raising money for its new site.

It's also alleged that Boyle Street failed to provide regular updates on the status of the fundraising efforts.

The claim asks the court to declare that Boyle Street breached the contract and that the Katz Group doesn't have to pay any part of the $5 million.

In its statement of defence filed on Dec.13, 2023, Boyle Street denies much of the Katz Group's allegations, and instead alleges that the Katz Group is trying to get out of its commitment to support development of the new building because it already has what it wanted — the land adjacent to Rogers Place.

"Rather than focusing on the unprecedented houselessness and drug poisoning crisis in Edmonton, developing the new premises, and using funds for these purposes, Boyle Street must now use its resources to defend the allegations made by Katz Group," Boyle Street alleges in its court filings.

When the backstop agreement was signed, the Katz Group offered to support the fundraising campaign, but failed to follow through and was generally unresponsive despite Boyle Street's repeated efforts to reach out and provide updates, Boyle Street alleges in its filings.

Boyle Street also defended its fundraising efforts — stating that during the campaign it reached out to thousands of supporters, major donors, politicians and ran ad campaigns — raising more than $7.3 million by the end of 2022 from 171 private donors, and additional funds since.

The social agency also says that it tried to get the city, the province and the federal government to provide grants and funding, but that both the city and province have declined to offer any support, and that it has applied for a federal grant that has yet to be approved."

Not sure who is in the wrong here, but its never a great look for a large corporation to go to court with a community services organization.

IMO the lack of provincial help has exasperated this issue. They are the branch of government with the highest capacity to help here. In the last several years they have stripped public funding to various programs that help the disenfranchised in central Edmonton (because Edmonton doesn't vote UCP) while also helping fund an arena in Calgary...

 

[MrHeiskanen]

"But according to court documents, Katz Group and Boyle Street also signed an agreement for a "backstop gift," agreeing that if Boyle Street was unable to meet its fundraising goal on its own during the campaign, the Katz Group would give it an extra $5 million."


Ya, who couldn't see that one coming? A promise of free money. If they couldn't raise it. Drops all incentive to fund raise.

Then why did Katz agree to it? lmao

Who cares what the agreement was or was based on. Both parties agreed to it. If Katz was concerned about donating $5M then don't promise it? Shouldn't be hard for a billionaire to figure out.. he isn't 4 years old?

 

[Sidney the Kidney]

"But according to court documents, Katz Group and Boyle Street also signed an agreement for a "backstop gift," agreeing that if Boyle Street was unable to meet its fundraising goal on its own during the campaign, the Katz Group would give it an extra $5 million."


Ya, who couldn't see that one coming? A promise of free money. If they couldn't raise it. Drops all incentive to fund raise.

This is kind of the crazy part to me. Why would Katz's group agree to that kind of stipulation? It just encourages them NOT reaching their goal.

It would be like a parent saying, "If you don't do your chores by the end of the day, we'll buy you a new PS5". What does the parent think will happen?

I would have thought instead the agreement would be if the Boyle Street reached a certain amount in their own fundraising, THEN Katz would kick in an additional $5 million.

 

[OG Eberle]

Poor billionaires

Sure, if that's the perspective you want to take from that lol...

I'm sure every 9-5er in here would be totally fine if they got scolded publically for not giving the panhandler on the street $5 when they pass them on their morning commute cause "it's just a drop in the bucket for you".

 

[BraveCanadian]

Sounds like a win win for Katz. Can't raise enough money I claim you didn't work hard enough at it and I don't have to pay the $5m. If you raise enough money, again I don't have to pay the $5m.

That is the same kind of deal they always get on their public private "partnerships" with cities and municipalities for arenas and development deals too.

 

[Voight]

Can you blame him? he's paying Jack Campbell $5 million dollars to NOT play in the NHL.

Coincidence? I think not.

 

[Coffey]

IMO the lack of provincial help has exasperated this issue. They are the branch of government with the highest capacity to help here. In the last several years they have stripped public funding to various programs that help the disenfranchised in central Edmonton (because Edmonton doesn't vote UCP) while also helping fund an arena in Calgary...

Suddenly Flames fans are quiet.

 

[Frank Drebin]

Until I saw this thread I thought Katz was dead lol

HA HA HA!

 

[ArGarBarGar]

Sure, if that's the perspective you want to take from that lol...

I'm sure every 9-5er in here would be totally fine if they got scolded publically for not giving the panhandler on the street $5 when they pass them on their morning commute cause "it's just a drop in the bucket for you".

We aren't talking about 9-5ers, we are talking about people with so much money they can buy sports teams and lobby the government to give them money to build stadiums for them.

For the record I am one of those weirdos who is okay with my taxes being raised if that means better services for people like the unhoused or poor. Wild, I know.

 

[MrHeiskanen]

This is kind of the crazy part to me. Why would Katz's group agree to that kind of stipulation? It just encourages them NOT reaching their goal.

It would be like a parent saying, "If you don't do your chores by the end of the day, we'll buy you a new PS5". What does the parent think will happen?

I would have thought instead the agreement would be if the Boyle Street reached a certain amount in their own fundraising, THEN Katz would kick in an additional $5 million.

Boyle Street also defended its fundraising efforts — stating that during the campaign it reached out to thousands of supporters, major donors, politicians and ran ad campaigns — raising more than $7.3 million by the end of 2022 from 171 private donors, and additional funds since.

Sounds like they did do their job, 7.3 out of 8.5 million required. Now poor boy Katz can't pony up his promise.

 

[BraveCanadian]

IMO the lack of provincial help has exasperated this issue. They are the branch of government with the highest capacity to help here. In the last several years they have stripped public funding to various programs that help the disenfranchised in central Edmonton (because Edmonton doesn't vote UCP) while also helping fund an arena in Calgary...

You mean there are better things to do than waste tax money on arenas for rich people???

 

[MrHeiskanen]

Sure, if that's the perspective you want to take from that lol...

I'm sure every 9-5er in here would be totally fine if they got scolded publically for not giving the panhandler on the street $5 when they pass them on their morning commute cause "it's just a drop in the bucket for you".

Did we promise the $5? lmao your argument makes no sense. Scold me all you want if I say I will give the $5???

Horrid argument is actually so funny.

 

[AM]

Doesn't matter if Katz wins in court, he loses on publicity on this one. Probably not worth the PR hit if they had already factored this (that they'd owe an extra $5M) as a potential scenario when signing the deal for the land

I agree, and it’s called extortion.

 

[BigBadBruins7708]

Boyle Street also defended its fundraising efforts — stating that during the campaign it reached out to thousands of supporters, major donors, politicians and ran ad campaigns — raising more than $7.3 million by the end of 2022 from 171 private donors, and additional funds since.

Sounds like they did do their job, 7.3 out of 8.5 million required. Now poor boy Katz can't pony up his promise.

Sounds like they're gaming the deal.

Fall $1m short, get the extra $5m from Katz and net $4m more from the deal than you were supposed to...how convenient.

 

[klefbombs shoulder]

You mean there are better things to do than waste tax money on arenas for rich people???

Absolutely yes. But it seems this is the world we live in.

 

[MrHeiskanen]

Sounds like they're gaming the deal.

Fall $1m short, get the extra $5m from Katz and net $4m from the deal than you were supposed to...how convenient.

Then Katz should have negotiated a different deal if he wanted a different outcome? Terrible businessman I guess.

Also, read the article,

if they hit 8.5, he gives 5

if they hit 10.5 he gives 3

if they hit 13.5 he gives nothing

So if they were gaming the system, 8.5 was where they wanted to be.

 

[klefbombs shoulder]

Then Katz should have negotiated a different deal if he wanted a different outcome? Terrible businessman I guess.

Katz is plenty of things but a terrible businessman ain't one of them.