BY DEJAN KOVACEVIC AND JOSH YOHE
Mario Lemieux and Ron Burkle have hired the financial firm Morgan Stanley to explore a sale of all or part of the Penguins, according to TSN’s Bob McKenzie.
More on this as we have it. We’re working it aggressively.
UPDATE 6:09 p.m. from Dejan: I can confirm, unequivocally, that Lemieux is exploring the sale, but it’s far from certain. Plain and simple, he’s 50, and he’s looking to take some equity out. He’d like to stay involved in some form, possibly within ownership.
But no action has been taken, and nothing appears imminent.
Also, Burkle has no intention to sell at the moment. That part of the TSN report is incorrect, and we’ve changed our headline here to reflect that by removing his name.
6:41 p.m. from Dejan: You’ll see a press release from the Penguins soon. It will contain a joint statement from both Lemieux and Burkle, and they’ll describe a ‘we’ in the process. That’s because these two do everything together, and Burkle will do everything he can to help Lemieux. But again, Burkle has no intention to sell at the moment.
Here’s the quote from Lemieux that will appear in that release, which I’ve obtained early: “Our goal all along was to solidify the franchise both on and off the ice. 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.”
6:50 p.m. from Josh: First, some quick background. Lemieux has been the face of Penguins ownership since 1999. I assure you that, in 1999, he never would have imagined still being involved in 2015. It was always a matter of time until Mario got out.
However, I can absolutely tell you this: Lemieux will remain part of the Penguins in some capacity, even if he does sell all or a portion of his share. He said it in the above quote, and he’s told the same thing to many who are close with him.
There have been whispers for many months that Lemieux was considering getting out of ownership. People in the organization are not surprised by this. Lemieux has never, ever been a hands-on owner, and he was around less than usual this season.
But still, he will be around in some capacity and will continue to reside in Pittsburgh. His youngest child will turn 18 this year, and he recently built a mansion in his native Quebec. But Pittsburgh is home to him, something he often makes clear.
7:25 p.m. from Dejan: Here is the Penguins’ aforementioned release.
The money line, so to speak, is the also-aforementioned joint statement: “We conduct periodic reviews of our business and, because we have received several inquiries about the franchise in recent years, we decided to engage Morgan Stanley for their insight and counsel. After buying the team out of bankruptcy, ensuring its long-term future in Pittsburgh and creating a strong foundation for continued success, we believe it is time to explore our options.
I will repeat: This is about Lemieux, not Burkle.
11:57 p.m. from Josh: Wanted to add a quick note before you all retire to bed for the evening. The Penguins, in no shape or form, are dealing with any financial problems. Generally when an owner explores the possibility of selling his share of a team, money problems are present. That isn’t the case here. It undeniably wasn’t a wonderful financial season for the Penguins during the 2014-15 campaign, as millions were forked over to Ray Shero and Dan Bylsma, even though they were no longer affiliated with the team. Also, tickets were clearly more difficult to sell down the stretch, as the Penguins faded badly and so, too, did the city’s interest.
But still, this is a franchise that is fiscally healthy. The Penguins have sold out 377 consecutive games. They annually spend to the salary cap. The completion of Consol Energy Center has made generating money a way of life. The Penguins benefit any time an event is held at Consol.
Very simply, Lemieux is looking to capitalize here while his team is most valuable. The guy who dropped out of high school in 10th grade at some point understood the concept of buying low and selling high. If the Penguins were in such an awful position, Lemieux wouldn’t be looking to sell. Not in this case. The truth is, the Penguins more valuable than ever. Lemieux owns a minority, non-controlling share of the Penguins. The exact percentage of the Penguins owned by Lemieux is unclear, though some estimates I have heard place the number around 25 or 30 percent. Even if he only sells a portion of his share, Lemieux likely could be looking at a nine-figure payoff. He’ll still retain a small share, should he sell.
Mario Lemieux emerged as the Penguins' owner out of bankruptcy proceedings in 1999. -- GETTY
June 3, 2015
Coverage: Lemieux exploring sale
by Dejan Kovacevic • Coverage • Penguins
BY DEJAN KOVACEVIC AND JOSH YOHE
Mario Lemieux and Ron Burkle have hired the financial firm Morgan Stanley to explore a sale of all or part of the Penguins, according to TSN’s Bob McKenzie.
More on this as we have it. We’re working it aggressively.
UPDATE 6:09 p.m. from Dejan: I can confirm, unequivocally, that Lemieux is exploring the sale, but it’s far from certain. Plain and simple, he’s 50, and he’s looking to take some equity out. He’d like to stay involved in some form, possibly within ownership.
But no action has been taken, and nothing appears imminent.
Also, Burkle has no intention to sell at the moment. That part of the TSN report is incorrect, and we’ve changed our headline here to reflect that by removing his name.
6:41 p.m. from Dejan: You’ll see a press release from the Penguins soon. It will contain a joint statement from both Lemieux and Burkle, and they’ll describe a ‘we’ in the process. That’s because these two do everything together, and Burkle will do everything he can to help Lemieux. But again, Burkle has no intention to sell at the moment.
Here’s the quote from Lemieux that will appear in that release, which I’ve obtained early: “Our goal all along was to solidify the franchise both on and off the ice. 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.”
6:50 p.m. from Josh: First, some quick background. Lemieux has been the face of Penguins ownership since 1999. I assure you that, in 1999, he never would have imagined still being involved in 2015. It was always a matter of time until Mario got out.
However, I can absolutely tell you this: Lemieux will remain part of the Penguins in some capacity, even if he does sell all or a portion of his share. He said it in the above quote, and he’s told the same thing to many who are close with him.
There have been whispers for many months that Lemieux was considering getting out of ownership. People in the organization are not surprised by this. Lemieux has never, ever been a hands-on owner, and he was around less than usual this season.
But still, he will be around in some capacity and will continue to reside in Pittsburgh. His youngest child will turn 18 this year, and he recently built a mansion in his native Quebec. But Pittsburgh is home to him, something he often makes clear.
7:25 p.m. from Dejan: Here is the Penguins’ aforementioned release.
The money line, so to speak, is the also-aforementioned joint statement: “We conduct periodic reviews of our business and, because we have received several inquiries about the franchise in recent years, we decided to engage Morgan Stanley for their insight and counsel. After buying the team out of bankruptcy, ensuring its long-term future in Pittsburgh and creating a strong foundation for continued success, we believe it is time to explore our options.
I will repeat: This is about Lemieux, not Burkle.
11:57 p.m. from Josh: Wanted to add a quick note before you all retire to bed for the evening. The Penguins, in no shape or form, are dealing with any financial problems. Generally when an owner explores the possibility of selling his share of a team, money problems are present. That isn’t the case here. It undeniably wasn’t a wonderful financial season for the Penguins during the 2014-15 campaign, as millions were forked over to Ray Shero and Dan Bylsma, even though they were no longer affiliated with the team. Also, tickets were clearly more difficult to sell down the stretch, as the Penguins faded badly and so, too, did the city’s interest.
But still, this is a franchise that is fiscally healthy. The Penguins have sold out 377 consecutive games. They annually spend to the salary cap. The completion of Consol Energy Center has made generating money a way of life. The Penguins benefit any time an event is held at Consol.
Very simply, Lemieux is looking to capitalize here while his team is most valuable. The guy who dropped out of high school in 10th grade at some point understood the concept of buying low and selling high. If the Penguins were in such an awful position, Lemieux wouldn’t be looking to sell. Not in this case. The truth is, the Penguins more valuable than ever. Lemieux owns a minority, non-controlling share of the Penguins. The exact percentage of the Penguins owned by Lemieux is unclear, though some estimates I have heard place the number around 25 or 30 percent. Even if he only sells a portion of his share, Lemieux likely could be looking at a nine-figure payoff. He’ll still retain a small share, should he sell.