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Interesting side to that song

I had not realized the connection.
You inspired me to spend a couple of hours tracking down some references,
as well as taking some enjoyable cyber-side-trips along the way.

snopes.com only denies that...

"'They stab it with their steely knives' was a swipe at Steely Dan, with whom, according to rumor, the Eagles were having an ongoing feud."

Without giving any further explanation.

More info came to light in a Jan./89 issue of Metal Leg...

" What's the link between Steely Dan and the Eagles? Well, in an issue of Rolling Stone last September, Glenn Frey, discussing the song Hotel California, admitted Steely Dan's influence on the Eagles at the time. He said, "We liked the way Steely Dan would say anything (in a song). Steely Dan referred to the Eagles in Everything You Did so we decided to send them a message back. That's why we used the words, 'They can stab it with their steely knives, but they just can't kill the beast.' "

As well this from a Detroit Free Press interview with Henley/Frey...

Frey:
"'They stab it with their steely knives, but they just can't kill the beast' was a little Post-It back to Steely Dan. Apparently, Walter Becker's girlfriend loved the Eagles and she played them all the time. . . . We just wanted to allude to Steely Dan rather than mentioning them outright, so 'Dan' got changed to 'knives.'

On an AOL chat room interview in '94 Becker says...
"As I recall, at the time we had referred to them in a song lyric ("Everything You Did") and I was delighted that they returned the compliment!"

Here's a fine review of The Royal Scam by Robert Whyte
A little earlier in my search I had discovered the meaning of "The Fez" (who knew! lol)
I tend to agree with the reviewer...
"It might be goofy but I prefer the idea of a deviant Don Juan who will not take off his turkish hat to a paean on the virtues of prophylaxis."

It's interesting to note the different reactions of the characters in 'Everything You Did' and 'My Rival' when faced with a similiar situation.

Cheers
k