I have been told that the deal was with the Oilers for Dion was in place. But the Leafs and Oilers could not agree how much of Dion's cap would eaten by the Leafs, which killed the deal.
Oilers Press Conference
The Oilers are having a press conference to announce the hiring of Peter Chiarelli. My source confirmed to me he will be President of Hockey Operations. It is common knowledge LaForge has been let go, on "a mutual decision."
MacTavish will have a diminished role, as both men will be sharing the general manager role. In reality, Peter will be MacTavish's mentor.