Yinzer

Or anyone interested in the Penguins relocation/new arena situation.

http://www.post-gazette.com/pg/06199/706586-61.stm

Roadblock impedes Penguins' exit
Tuesday, July 18, 2006

By Shelly Anderson, Pittsburgh Post-Gazette

Penguins fans can breathe a little easier. It looks as if the NHL and state and local politicians have gone a long way toward ensuring that the team will stay put.

According to people familiar with the sale process, the Penguins were ready to sell to the high bidder, a Canadian entity or group that offered $175 million or more, but that bidder backed out over the weekend based on what it learned about the NHL's stance and the state's "Plan B" for arena funding. That leaves four bidders standing.

Any buyer will be obligated to join the Penguins' agreement with the Isle of Capri, which will donate $290 million toward a new arena if it is awarded the city's slots license sometime around December.

The Penguins' owners, a group that includes Hall of Fame player Mario Lemieux, would like to complete the sale by around the start of the season in October.

There has been concern that if the Isle of Capri does not get that license, the new owner of the Penguins might move the team to another city once the team's lease in aging Mellon Arena expires next June.

Those behind the Canadian bid, who have been careful to keep their identity secret, had been thought to have ties to Hamilton, Ontario. Instead, they might have been open to the idea of keeping the Penguins in Pittsburgh but wanted options if the Isle of Capri deal falls through or Plan B didn't seem suitable.

What they found was that the NHL probably would have blocked a move.

The NHL's bylaws are not public documents, but they contain a passage that defines many conditions that need to be exhausted before a team would be allowed to move, NHL spokesman Frank Brown said yesterday.

Since the Penguins' major problem is its facility, the NHL probably would not approve relocation as long as there is an active plan for a new arena.

Plan B was proposed by Gov. Ed Rendell in case one of the other two contenders -- Forest City Enterprises and PITG Gaming LLC -- are granted the city's slots license.

Those plans have escalated recently. City and county officials announced last week that Forest City and PITG Gaming have made written commitments to the state to provide $7.5 million per year for 30 years toward arena construction.

The Penguins would commit $8.5 million up front, then contribute $4.1 million per year. The state has $7 million per year earmarked from a slots-backed development fund.

Rendell, Allegheny County Chief Executive Dan Onorato and Mayor Bob O'Connor also are using $26.5 million in state funds to start acquiring and preparing land in Uptown for a new arena.

The people behind the Canadian offer apparently were concerned that costs for Plan B could climb, with no recourse if the NHL intended to block a move. For example, team owners often are responsible for construction cost overruns.

It's believed the four remaining bidders -- whose offers are in the $150 million range -- are more willing to work with Plan B if the Isle of Capri does not get the slots license, although at least one of them might be holding out hope that if Plan B falls apart the team could still be moved.

Allen and Company, the New York firm brokering the Penguins' sale, contacted the remaining four bidders yesterday to inform them of the development with the Canadian bid.

The remaining bidders are:

Toronto native and Hartford businessman Sam Fingold, who has ties to Kansas City and its new arena but has said Plan B might be workable. He is partnered with his father and brother and would buy the team as a family venture.

Boston area businessman Lawrence Gottendiener, who has no known partners. He has talked of wanting to keep the Penguins here or move them to Hartford.

New York businessman Andrew Murstein, who has lined up a host of local investors, including Dallas Mavericks owner Mark Cuban and Hall of Fame quarterback Dan Marino. Murstein has pledged to keep the team in town.

Ohio businessman and Arena Football team owner Jim Renacci, a Ringgold High School graduate who also wants to keep the team here. He has lined up Western Pennsylvania native George Karl, the coach of the Denver Nuggets, among his partners.

 

The NHL's bylaws are not public documents, but they contain a passage that defines many conditions that need to be exhausted before a team would be allowed to move

Intriguing. Do they let the potential buyers see them? I may make a phoney bid.

 

I have a phoney mustache if it will help.

 

The Cuban/Marino group had their latest offer rejected and are out of the running. Reports say it was for around $170 mil. Fingold is expected to sign a letter of intent in the next few days. Would have preferred a Pittsburgh connection from the buyer. Is Fingold jewish?

 

Mark Cuban and Dan Marino are partners? Well shit on a brick and call it a fuckin hot dog. It would be cool if Cuban would buy the Pirates, then maybe he would put some money into having a winning team on the field, rather than the mess that has littered Three Rivers/PNC for the last 14 years, since the deal for the Penguins fell through.

 

Business partners, not Phartners. They should turn PNC into a giant ice rink IMGDMFO.