The potential sale of the Pittsburgh Penguins by Mario Lemieux and Ron Burkle is set to take a step forward this week. According to a report from Patty Tascarella of Pittsburgh Business Times, a bid is expected to come from unknown investors sometime in the very near future, possibly even before the week is out.
"A group of investors expects to make an offer to buy the Pittsburgh Penguins within the week, sources told the Business Times. Their identities of the bidders and size of the bid were not disclosed, although some who have done deals in the National Hockey League said the team could sell anywhere from $700 million to $850 million."
As Tascarella notes, Forbes priced the NHL's Pittsburgh-based franchise at $565 million last fall, though that price was considered to be low based on its equity in the real estate development that has gone on at the former Civic Arena site.
Despite the hefty price tag, it sounds like Lemieux and Burkle shouldn't have any problem fielding a very generous offer.
"Given the short supply of NHL teams that are on the block and as financially stable as the Penguins franchise, 'This is unusual and it's not like there are five teams for sale,' said a professional sports investor who asked not to be identified."
It was first reported by TSN's Bob McKenzie in early June that Lemieux and Burkle had hired Morgan Stanley to "explore the possibility of selling some or all" of the Penguins franchise.
Lemieux released a statement via the team's website shortly thereafter to address the fact that the team had engaged Morgan Stanley in order to "review strategic options."
"Our goal all along was to solidify the franchise both on and off the ice," he said. "Our star players are signed to long-term contracts and they've got a deep and passionate fan base to support them, and I believe the Penguins are well-positioned for the future.
"Regardless of what happens, I plan on staying involved with the team in some capacity, and Ron and I plan to retain an ownership stake."
At least Penguins fans don't have to worry about relocation - their lease at the Consol Energy Center runs through 2037.
