Oilers’ Owner Daryl Katz Is the Problem

Daryl Katz bought the Edmonton Oilers on July 2, 2008. He did some great things, including facilitating a deal to build a new downtown arena. However, the on-ice product has been underwhelming under his leadership. He bought the team during the decade of darkness, and they didn’t make the playoffs until 2017, despite being gifted with three straight first-overall picks and four within six years.

The Oilers’ rebuild took way longer than it should have, considering they were given every opportunity to succeed. They made awful decisions during that time, and most of the blame should be placed on ownership. The Oilers should have a Stanley Cup by now, but the owners’ stubbornness has been a detriment. Katz wants to win, but his decision-making has been a major problem, and he’s only getting worse. The organization is a mess in its current state.

Katz Hired the Wrong People

Katz continues to fumble his hirings, and it has a trickle-down effect. In June 2014, he hired Bob Nicholson as the Vice-Chairman of the Oilers Entertainment Group (OEG), who was later promoted to the team’s Chief Executive Officer (CEO). Nicholson hired Peter Chiarelli as the Oilers’ general manager (GM) and president of hockey operations in April 2015. That hiring set the organization back years. He made some awful decisions which the organization is still recovering from. He had the luxury of drafting Connor McDavid, but he failed to build a team around him.

After the Chiarelli experiment failed, Nicholson and Katz hired Ken Holland as his replacement. While Holland wasn’t as bad as Chiarelli, he also made questionable decisions like giving Darnell Nurse an eight-year contract with a $9.25 million cap hit with a full no-movement clause, after signing him to two separate bridge deals. Now, the Oilers are looking to get out of that deal. That contract is the biggest reason why the Oilers haven’t won the Stanley Cup in the McDavid era.

Before hiring Holland, the Oilers had a lengthy interview with Bill Zito for that vacancy. Unfortunately, Edmonton didn’t go that route, and it proved costly. Zito was eventually hired by the Florida Panthers and built an absolute juggernaut, winning two Stanley Cups, defeating the Oilers both times, and appearing in three straight Cup Finals. That was a monumental miscue by the ownership group. Oh, what could have been.

Finally, Katz hired Jeff Jackson as the new CEO in 2023, and Jackson, as acting GM, was responsible for signing free-agent forwards Viktor Arvidsson and Jeff Skinner before hiring Stan Bowman in July 2024. Those signings failed, and Bowman was an extremely questionable hire given his history.

Bowman was the Chicago Blackhawks’ GM during the 2010 sexual assault scandal involving Kyle Beach and the team’s video coach. He mishandled and neglected that situation. Despite that, the Oilers still hired him, which caused online backlash. This was a headache that the organization didn’t need. On top of that, he hasn’t been a good GM in many years. He has whiffed on a few big trades since taking over, including that horrendous Tristan Jarry deal.

The Oilers haven’t had the proper people in place since Katz bought the team, and they can’t seem to get their hires right. Nicholson, Jackson and the people they brought in have actively harmed the organization, and that falls on the owner. Katz has the final say, and he continues to fail this team.

Katz Is Too Involved

While Katz has had poor hires, he doesn’t even trust the people in charge. It’s becoming obvious that he’s too involved in the day-to-day operations. Katz was the driving force to get Paul Coffey back behind the bench after the Olympic break, following the team’s defensive struggles. Coffey’s job title was the special advisor to ownership and hockey operations, meaning that he directly reports to Katz. He was the eyes and ears in that room and is the owner’s right-hand man. Things weren’t going well, so he needed his guy to help right the ship.

Katz also played a significant role in Kris Knoblauch’s firing, more so than Bowman and Jackson. On the 32 Thoughts podcast, NHL insider Elliotte Friedman shared some knowledge regarding the coaching change back in May.

“I think it’s ownership-driven. I think this is right from the top. I think he’s angry at the result this year. I think he’s angry at the way they played this year, and I think he made his displeasure clear. I think he was so upset at the way this season ended. I think he was a driving force. I don’t think you can underestimate the role he played in making his feelings clear that significant change needs to happen. There is significant organizational pressure to win now for many reasons, including the fact that Connor McDavid is under contract for only two more years. So I think the owner’s feelings were a very, very big part of this,” Friedman stated.

Then there’s the Mike Babcock situation. Babcock is the frontrunner to land the Oilers’ head coaching job, which would be a colossal mistake, given his history. He has developed an awful reputation around the league because of his own actions. He resigned from his last head coaching job with the Columbus Blue Jackets before even stepping behind the bench due to behind-the-scenes events. If the Oilers hope to hire him, the NHL must conduct a thorough investigation. For that reason, the Oilers should stay away. Also, Babcock is an outdated coach and hasn’t won a playoff series since 2013. Plus, he hasn’t coached in the NHL since the 2019-20 season. The Oilers want to win now, but Babcock hasn’t won anything in over a decade, and he brings unnecessary drama to the organization. Why would Katz want to hire that guy?

Sources have indicated that Babcock has spoken directly with the owner, who has the ultimate say, but why not let the people you hire within the front office make this decision? Hiring the coach should be Bowman’s decision since he’s the GM. Why hire these people in the first place if you don’t allow them to make these important decisions? Katz clearly doesn’t trust the people he employs, which is problematic. Whoever replaces Knoblauch will be the 12th head coach in the 18 years he’s owned the franchise. He needs to take a step back and let his employees do their jobs. He’s actively harming the team with his terrible decision-making process.

Katz is the biggest problem with the Oilers. Until he sells the team, the Oilers will continue being a terribly run franchise. It’s unlikely he will change his ways anytime soon.

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