Sports

 

 

 

Canucks Ownership Battle Comes toa Close

_..for NOW

By Garth McLennan

Te 60-day trial that decided the fate
of the Vancouver Canuck’s ownership
has finally ended. Current Canucks owner
Francesco Aquilini will retain ownership
of the franchise he purchased from John
McCaw in 2004 for $250 million.

The trial was a vicious fight,
with both sides tearing into the other’s
credibility. The origins of the lawsuit,
which was started by Tom Gaglardi
and Ryan Beedie suing Aquilini for
ownership of the Canucks, originally
arose in November 2003.

At the time, Gaglardi and
Beedie, two local businessmen, alleged
that they had a partnership with Aquilini,
and that together the three men had
made a plan to buy the team. However
Aquilini later had a supposed falling out
with Gaglardi, causing him to abandon
the group. Gaglardi and Beedie say that
this removed Aquilini from the bidding
process.

Gaglardi and Beedie continued
to pursue their attempts to acquire the
Canucks franchise after Aquilini left the
partnership in March 2004. From that
time until November 2004, the Gaglardi
and Beedie in tandem negotiated with
McCaw for ownership of the team.
Meanwhile, Aquilini, after failing to
reconcile with Gaglardi and Beedie,

18

entered into talks with McCaw to obtain
20 percent of the team. McCaw did not
inform Gaglardi and Beedie that he had
begun talks with Aquilini. He later upped
his offer to 50 percent, and, after McCaw,
Gaglardi and Beedie were unable to come
to terms on an agreement, purchased
half the Canucks from McCaw. Aquilini
would later procure the other half as well
in November 2006.

of their negotiations were informal at
best. Therefore, he had no obligation to
inform Gaglardi and Beedie of his desire
to buy the team.

The bulk of the trial was spent
with both sides discussing numerous
meetings, emails, and other forms of
communication between the two parties.
Aquilini, 46, is most likely going to seek

all of his costs to be

Gaglardi ¢ paid for by Gaglardi
and Beedie claimed In the end, Wedge and Beedie. He also
a ht une ruled that no part- aa rule : out a
chief lieutenant Stan . : possible defamation
McCammon, and Mership existed be- jawsuit against the
Aquilini had acted i oye ir.
bad faith, and in their (WEEN AQuiliniand ™ 5. 44
lawsuit demanded that the other two.” Gaglardi and Beedie

McCaw accept their
October, 2004 proposal.

Aquilini and his legal team, for
their part, painted Gaglardi and Beedie
as sore losers who were unable to close
the deal for the Canucks and were suing
out of spite.

The majority of the trial
was based on establishing whether
or not Aquilini had a real partnership
with Gaglardi and Beedie. Aquilini
maintained, and Justice Catherine Wedge,
who presided over the trial, eventually
agreed, that he had no firm agreement
with Gaglardi and Beedie, and that all

appeal the decision,
which is anticipated, the total bill,
including court costs, lawyer fees and
other expenses, is expected to be around
a hefty $10 million.

In the end, Wedge ruled that no
partnership existed between Aquilini and
the other two, and even if there was one,
it officially ceased when Aquilini left the
group to pursue the team on his own, and
he therefore had no legal responsibility
to inform Gaglardi and Beedie of
anything.

“I have concluded that the
relationship among Gaglardi, Beedie,

and Aquilini was not one of partnership
or joint ventures,” said Wedge.

Gaglardi and Beedie have said
that McCaw should have told them he
was considering selling the team to other
parties. In August of 2004, Gaglardi and
Beedie signed an agreement with McCaw
that stipulated that McCaw would
negotiate exclusively with Gaglardi
and Beedie. The agreement expired on
October 1, 2004. Soon after, negotiations
between McCaw and Aquilini heated
up.

McCawstatedrepeatedlyincourt
that he never breached this agreement
by negotiating with Aquilini , before
it ran its course and wasn’t extended.
Gaglardi and Beedie questioned how it
was possible for McCaw and Aquilini to
put a deal together so quickly when they
endured months of fruitless talks with
McCaw.

Gaglardi and Beedie are
members of two of the wealthiest families
in Vancouver. Beedie, 39, and his family
is the largest landlord of industrial space
in British Columbia. Gaglardi, 40, and
his family own a number of profitable
businesses including the Sandman
Hotel chain, Moxie’s, a number of
Denny’s restaurants, and the Shark Club
nightclubs.