News Article: Hoffmann Family Receives Unanimous NHL Approval to Acquire Pittsburgh Penguins

[DesertedPenguin]

Hoffmann Family of Companies (“HF Companies”), the U.S.-based family-owned firm, today announced it has received unanimous approval from the NHL Board of Governors to acquire the Pittsburgh Penguins, one of the National Hockey League's most storied and celebrated franchises. The transaction is expected to close imminently; financial terms were not disclosed.

Geoff Hoffmann, CEO of HF Companies' Private Equity arm will serve as Governor. Greg Hoffmann, CEO of the firm’s Real Estate arm; Kyle Dubas, General Manager & President of Hockey Operations of the Pittsburgh Penguins; and David Hoffmann, Founder & Chairman of HF Companies, will each serve as Alternate Governors.

"This is a defining moment for our family," said Geoff Hoffmann, incoming Governor of the Pittsburgh Penguins. "The Penguins represent everything Hoffmann Family of Companies stands for — community, excellence and long-term thinking. We look forward to building on the team’s success by providing support and resources to both Kyle Dubas and the hockey operations team, as well as the established leadership group on the business side. We're proud to represent this storied franchise and are eager to become an active, invested part of the Pittsburgh community."

Hoffmann Family Receives Unanimous NHL Approval to Acquire Pittsburgh Penguins | Pittsburgh Penguins

Family-Owned Firm Officially Adding Iconic NHL Franchise to Growing Portfolio

www.nhl.com

 

[eXile3]

Nervous.

 

[deakka]

So... internal cap incoming?

 

[BlindWillyMcHurt]

Boo

 

[blondu]

What changes? Im from Romania so don't judge the question.

 

[DesertedPenguin]

What changes? Im from Romania so don't judge the question.

It remains to be seen. It likely won't be anything noticeable right away, other than an increased possibility of former owner and legendary player Mario Lemieux being around more. For some reason, he had a frosty relationship with outgoing ownership group FSG.

For all of the understandable criticisms about FSG being more corporate and cold, they spent a lot of money making internal upgrades to PPG Paints Arena and building out the front office. The difference in the number of employees in hockey operations from late Jim Rutherford era to Kyle Dubas is staggering - it might be almost double the staff.

Some of us have concerns that the Hoffmann Family isn't as flush with cash as FSG. So, will they be able to support that increased staff load? Will they be able to spend to the cap every year? Will they cut costs elsewhere?

We don't have the answers to those questions, but those are the concerns. That said, the Hoffmanns are generally perceived to be a family-oriented group who love hockey, so they might be more visible and directly invested than FSG. Ultimately money talks in sports, though, so if they don't back up their enthusiasm with financial support, it could get rough in a few years.

 

[CheckingLineCenter]

I am rooting for them.

I don’t know them. As much as I try I admit don’t know hockey.

But I do know business. Their website makes me nervous. Owning a bunch of tiny little companies makes me nervous. Ferries and party rentals and e-bike tours are way too intensive and small-fry for a billionaire in terms of the man hours going in for the $ coming out. Wineries (Pausing investment into said wineries) super capex intensive, not a great business. Owning local journals and media. Everything concentrated heavily in a few regions. These feel like “owning the town/municipality” ego projects, not great companies/investments. Feels like it is DHR Global and a bunch of cobbled together shit. No one has a particularly impressive background, no one high up besides the kids has a particularly long history at the firm, and I dislike the amount of marketing people at the parent company. Completely unnecessary. You don’t need to market yourself in that sense to buy deals and companies. The companies themselves can have marketing people.

And even more than business- I really really know commercial real estate… and their RE “portfolio” makes them look like egotistical dipshits who once again just like the idea of owning a town. Most of it is self serving (as in some barn at the winery they already own or the Missouri office building they have an office in) in markets they are based in. I checked all the databases I have… they’re not super active, not constantly buying / selling like a good/smart RE operator would be.

But maybe that’s good for hockey—- just pour money in hold it forever and try to win haha.

I am just nervous this is like a Lerner style (Nats owners) family. Hope I’m wrong. I don’t know much about them.

 

[BlindWillyMcHurt]

I am rooting for them.

I don’t know them. As much as I try I admit don’t know hockey.

But I do know business. Their website makes me nervous. Owning a bunch of tiny little companies makes me nervous. Ferries and party rentals and e-bike tours way too small-fry for a billionaire. Wineries (Pausing investment into said wineries). Owning local journalists. Everything concentrated heavily in a few regions. These feel like “owning the town/municipality” ego projects, not great companies/investments. Feels like it is DHR Global and a bunch of cobbled together shit. No one has a particularly impressive background, no one high up besides the kids has a particularly long history at the firm, and I dislike the amount of marketing people at the parent company. Completely unnecessary. You don’t need to market yourself in that sense to buy deals and companies. The companies themselves can have marketing people.

And even more than business- I really really know commercial real estate… and their RE “portfolio” makes them look like egotistical dipshits who once again just like the idea of owning a town. Most of it is self serving (as in some barn at the winery they already own or the Missouri office building they have an office in) in markets they are based in. I checked all the databases I have… they’re not active, not constantly buying / selling like a good/smart RE operator would be.

But maybe that’s good for hockey—- just pour money in hold it forever and try to win haha.

I am just nervous this is like a Lerner style (Nats owners) family. Hope I’m wrong. I don’t know much about them.

Yes indeed. I am not just hating on them because of their inevitable decision to yank the plug on Wheeling or because they aren't rolling in it like FSG... their portfolio is rinky dink as f***, man. I am far from an expert but even I can see that.

They have the feel of a like... splinter Christian fundamentalist group that has a ton of money and ideas on how things SHOULD be, darnit.

But I am a Penguins fan so obviously I hope this isn't a disaster because ownership drama is the worst.

 

[DesertedPenguin]

I am rooting for them.

I don’t know them. As much as I try I admit don’t know hockey.

But I do know business. Their website makes me nervous. Owning a bunch of tiny little companies makes me nervous. Ferries and party rentals and e-bike tours are way too intensive and small-fry for a billionaire in terms of the man hours going in for the $ coming out. Wineries (Pausing investment into said wineries) super capex intensive, not a great business. Owning local journals and media. Everything concentrated heavily in a few regions. These feel like “owning the town/municipality” ego projects, not great companies/investments. Feels like it is DHR Global and a bunch of cobbled together shit. No one has a particularly impressive background, no one high up besides the kids has a particularly long history at the firm, and I dislike the amount of marketing people at the parent company. Completely unnecessary. You don’t need to market yourself in that sense to buy deals and companies. The companies themselves can have marketing people.

And even more than business- I really really know commercial real estate… and their RE “portfolio” makes them look like egotistical dipshits who once again just like the idea of owning a town. Most of it is self serving (as in some barn at the winery they already own or the Missouri office building they have an office in) in markets they are based in. I checked all the databases I have… they’re not active, not constantly buying / selling like a good/smart RE operator would be.

But maybe that’s good for hockey—- just pour money in hold it forever and try to win haha.

I am just nervous this is like a Lerner style (Nats owners) family. Hope I’m wrong. I don’t know much about them.

My concern is that they're a friendlier version of the Nuttings.

They have the ability to leverage themselves for the purchase and the initial spending outlay, but not long-term unless the Pens suddenly become a huge success again. Since they're cash poor, they start cutting corners to make ends meet and it becomes hard to be competitive.

So, like you, I am rooting for them. I hope this works. I am just concerned. In this era of money making such a huge impact in sports, I think it's possible that Pens fans will eventually be missing the cold but deep pockets of FSG.

 

[Randy Butternubs]

Don't they also own HF Boards?

 

[DesertedPenguin]

Don't they also own HF Boards?

JFresh beat you to the joke.

 

[Malkinstheman]

Always thought it was ridiculous that people were clamouring for FSG to sell. 10% odds you get a better owner than them and 90% chance the next guys are much worse.

 

[DesertedPenguin]

Always thought it was ridiculous that people were clamouring for FSG to sell. 10% odds you get a better owner than them and 90% chance the next guys are much worse.

I think a lot of people let emotion get in the way of pragmatism.

FSG replaced Mario, a franchise icon. Mario and FSG apparently had a rift over the deal, so not only was he out as owner, but he disappeared from view for a while.

FSG was from Boston, a city this town's fans hate. FSG was cold and corporate, whereas everyone felt like they knew Mario because he'd been around for so long. FSG also wasn't visibly present. So there was no chance to form a connection, which fans in this city value.

So fans and some media members (Dejan, Yohe, etc.) got worked up about it, whipped others into a frenzy, and now FSG is the boogeyman instead of the distant ownership group with deep pockets.

I've always said I don't need my sports team owners to be visible cheerleaders. Just write the checks and hold people accountable to create a consistently competitive team. FSG was willing to do that during their time here. Hopefully the Hoffmanns will do that, too.

 

[eXile3]

My concern is that they're a friendlier version of the Nuttings.

They have the ability to leverage themselves for the purchase and the initial spending outlay, but not long-term unless the Pens suddenly become a huge success again. Since they're cash poor, they start cutting corners to make ends meet and it becomes hard to be competitive.

So, like you, I am rooting for them. I hope this works. I am just concerned. In this era of money making such a huge impact in sports, I think it's possible that Pens fans will eventually be missing the cold but deep pockets of FSG.

The NHL is not nearly as bad as the MLB but I’m still worried as the cap keeps going up.

 

[SEALBound]

I fully expect the Hoffmans to be the surrogate fathers for those of you that have abandonment issues with FSG.

 

[DesertedPenguin]

The NHL is not nearly as bad as the MLB but I’m still worried as the cap keeps going up.

Yes. Honestly, the Hoffmanns remind me of the Lemieux/Burkle group.

20 years ago, they're in great position to own and run a team to a high standard.

But the cost to run a successful sports franchise, even in the less expensive NHL, has skyrocketed. Do they have the capability to do it well now?

 

[eXile3]

Geoff was pretty much handed good jobs from day one by the looks of his LinkedIn. Usually you see some kind of entry level position but he just jumped right into management.

 

[CheckingLineCenter]

Yes indeed. I am not just hating on them because of their inevitable decision to yank the plug on Wheeling or because they aren't rolling in it like FSG... their portfolio is rinky dink as f***, man. I am far from an expert but even I can see that.

They have the feel of a like... splinter Christian fundamentalist group that has a ton of money and ideas on how things SHOULD be, darnit.

But I am a Penguins fan so obviously I hope this isn't a disaster because ownership drama is the worst.

Yeah it just feels like ego stuff all over the site and then they stretched themselves for the ultimate ego notch in your portfolio- a big 4 NA sports team.

My concern is that they're a friendlier version of the Nuttings.

They have the ability to leverage themselves for the purchase and the initial spending outlay, but not long-term unless the Pens suddenly become a huge success again. Since they're cash poor, they start cutting corners to make ends meet and it becomes hard to be competitive.

So, like you, I am rooting for them. I hope this works. I am just concerned. In this era of money making such a huge impact in sports, I think it's possible that Pens fans will eventually be missing the cold but deep pockets of FSG.

I think my hope is maybe they’re not super $$$$ driven (I mean who could be return driven owning what they own lol) and the franchise is about feeding their ego and winning. Which great. We all win.

Hey man. Steve Cohen and David Tepper are no f***ing joke in maybe the most cold, cutthroat, meritocratic field there is and also pretty much have endless pockets (and it’s liquid). They’d probably run laps around this Hoffman guy mentally. Yet both are absolutely awful owners who can’t win squat. So who knows.

 

[Ryder71]

Mario will be part of this, Burkle might, to what degree remains a question.

 

[DesertedPenguin]

Hey man. Steve Cohen and David Tepper are no f***ing joke in maybe the most cold, cutthroat, meritocratic field there is and also pretty much have endless pockets (and it’s liquid). They’d probably run laps around this Hoffman guy mentally. Yet both are absolutely awful owners who can’t win squat. So who knows.

The trick is to find owners with deep pockets who also don't let their egos get in the way of operations. They hire good people and let the good times roll, only stepping in when needed.

Cohen and Tepper think they know better than everyone. Jerry Jones is the same way - he's been the GM of the Dallas Cowboys for decades and they haven't won a damn thing he took over more control.

I think the reality is that sports are cyclical. You need an owner who understands that there will be highs and lows, and that can have patience to rebuild/reload when necessary, to offer support to player development and personnel to make those periods as painless as possible, and then ramp up to support acquisitions when the team is ready to compete again.

Not everyone is willing to be patient.

 

[CheckingLineCenter]

The trick is to find owners with deep pockets who also don't let their egos get in the way of operations. They hire good people and let the good times roll, only stepping in when needed.

Cohen and Tepper think they know better than everyone. Jerry Jones is the same way - he's been the GM of the Dallas Cowboys for decades and they haven't won a damn thing he took over more control.

I think the reality is that sports are cyclical. You need an owner who understands that there will be highs and lows, and that can have patience to rebuild/reload when necessary, to offer support to player development and personnel to make those periods as painless as possible, and then ramp up to support acquisitions when the team is ready to compete again.

Not everyone is willing to be patient

I’m not convinced it’s no ego that’s important. Everyone has an ego. These guys all have huge ones to even buy a team in the first place.

I think it is more a) ability to hire the right people and TRUST them and b) willingness to spend money and reinvest what little profits there are.

 

[Big Friggin Dummy]

What a forgettable era of this team's history, the FSG era. Dry fart playing out over the course of five years.

As for the stuff about cap/spending, I don't think the NHL would greenlight the deal if there were any real concerns they'd be unable to meet potential needs financially.

 

[Peat]

As of today, I am less worried about how much money they'll put in (which is not to say I'm not worried) and more worried about how much they'll wanted to be involved and pushing things as the bigshot owners. Nothing kills a team's hopes quicker than a dipshit owner.

 

[CheckingLineCenter]

As of today, I am less worried about how much money they'll put in (which is not to say I'm not worried) and more worried about how much they'll wanted to be involved and pushing things as the bigshot owners. Nothing kills a team's hopes quicker than a dipshit owner.

Yeah I want to be clear. Money is less my concern here. Competency is.

 

[eXile3]

What a forgettable era of this team's history, the FSG era. Dry fart playing out over the course of five years.

As for the stuff about cap/spending, I don't think the NHL would greenlight the deal if there were any real concerns they'd be unable to meet potential needs financially.

FSG made buck though.