News Article: Lemieux, Burkle exploring possible sale of Penguins

[Snooki Stackhouse]

Doesn't have the immense wealth to be an owner. I don't blame him. As far as this moving from Pittsburgh? He has local charities and you can't do that from Montreal.

And I don't think his Quebec home is in Montreal. It's about 1.5-2 hr away in Mt Tremblant. It seems like a pure vacation home.

 

[gordie]

He can absolutely do that from Montreal.

Most people that are involved beyond just giving money usually live in the area or region where the charities are located. Maybe his wife wants to go back to Quebec? If that's the case I expect his involvement with those charities fade away.

 

[flaneur]

well that is intriguing news that makes sense. from everything i've read it seems like lemieux mainly took on the ownership role to recuperate the money owed to him and to stabilize the franchise. If that is the case, then mischief managed. The team is now profitable, has a new arena, and is on solid footing. They've also developed a fairly strong fanbase with good grassroot youth hockey growth. Honestly, if being an owner was never in his long-term plan, then selling now is the perfect time.

Also, this news doesn't necessarily mean a sale is taking place any time soon... just that they are exploring the option and getting a clearer picture of what the team's situation is.

 

[SwordofStMichael]

There is one possible huge downside to consider and that is if ONLY Mario sells off his stake.

In that case the FoM (Friends of Mario) faction, the "win at hockey" guys, fade away and the Burkle-Morehouse faction, the "win at business" guys, gain complete control.

By all accounts B-M focus is on developing the old arena land, securing more corporate partnership revenue and entrenching themselves in the local political community. You don't think DM wants to be mayor one day? As long as the team makes it through a playoff round or two each year B-M make money.

 

[Ogrezilla]

what evidence is there that Mario was doing anything different than Burkle before?

 

[Zero Pucks]

Good. Pens need to clean house from top to bottom. Hopefully we get some owners and executives that are interested in building a hockey team and not a mickey mouse club.

 

[billybudd]

I'm as skeptical of Morehouse as anybody, but the idea that he's "entrenched the Penguins in the local political community" is something I don't know to be true (past the arena deal) and suspect is not true. He's got his hands in a lot of cookie jars as Pens CEO, but involving the team in politics is something I've never seen or heard alleged (after the arena deal). With redevelopment of the Civic Arena site, that's a case of local politics involving itself with the Penguins, not the other way around.

Don't mistake "running a team's marketing like that of a political candidate" for "involving it in politics." They're two very different things. If there's any team that's in bed with "the local political community," it's the Steelers, not the Pens.

 

[Contender]

Morgan Stanley is overseeing the review of strategic options.

http://penguins.nhl.com/club/news.htm?id=769802&cmpid=pit-fb-penguins

 

[ColePens]

Alright.... so the boneheaded comments are out of the way. Here is my take:

1) It's a great business decision for the two. NHL is trending downward and the leading goal scorer got ****ing 80 some points this year. Mario is smart to recognize that. Burkle is smart to recognize that. People don't want to watch that hockey. Mario has said his peace and it's going nowhere. From a business decision - selling now is huge.

2) Now.. from a hockey fan standpoint. This is the worst thing to hear. The Bylsma/Shero era took us backward and now we are trending even further down. I can't recall the last piece of good news. This has been a disaster of a 6 year span post Cup win. Some good news would be welcomed at this point. Personally I am so ****ing sick of saying "OUR CORE IS YOUNG AND GREAT!" Wellllllll not really. You're going to have to sell me on winning, eventually.

 

[WayneSid9987]

Because neither one is a committed owner and they want to get out and get their money while Crosby & Malkin are still here as valuable assets.

BINGO!
This isn't surprising at all with the downward trend the Pens have been on.

 

[ObsessedCreative*]

Forget Mark Cuban. Has nothing to do with Pittsburgh, just like Joe Namath or Stan Musial. Their home became somewhere else and in this case Cuban's home is Dallas.

He constantly trumpets about being from pittsburgh and is very proud of that...

Then again I guess I should have considered the source when i read this post.

 

[SwordofStMichael]

I'm as skeptical of Morehouse as anybody, but the idea that he's "entrenched the Penguins in the local political community" is something I don't know to be true (past the arena deal) and suspect is not true. He's got his hands in a lot of cookie jars as Pens CEO, but involving the team in politics is something I've never seen or heard alleged (after the arena deal). With redevelopment of the Civic Arena site, that's a case of local politics involving itself with the Penguins, not the other way around.

Don't mistake "running a team's marketing like that of a political candidate" for "involving it in politics." They're two very different things. If there's any team that's in bed with "the local political community," it's the Steelers, not the Pens.

Exactly Budd.
Morehouse idolizes the Rooney's, especially the elder Dan, so one can't fault him for wanting the same clout or prestige they hold in the region.

Now with the beloved and venerable Dan Rooney stepping out of the local spotlight and the disliked (at least that is the perception) heir Art Rooney II in control of the Steelers one might say now is the time for an ambitious leader of one of the other major teams to make a move.

With the shifting demographics the Steelers are no longer the undisputed #1 team in terms of fandom, especially among the younger set the Penguins and Pirates are a close 2A-2B.

 

[Shaftception]

This could end up quite entertaining if the new owner(s) value spending to the cap every year less than the current one's do. You think you're depressed about their lack of youth and draft picks now?

 

[billybudd]

1) It's a great business decision for the two. NHL is trending downward and the leading goal scorer got ****ing 80 some points this year. Mario is smart to recognize that. Burkle is smart to recognize that. People don't want to watch that hockey. Mario has said his peace and it's going nowhere. From a business decision - selling now is huge.

I doubt this entered into it. The Clipper's sale, new CBAs and low interest rates has created a bubble for sports franchise values.

From a business standpoint, there's probably never been a better time to invest in sports teams, NHL included. Consequently, if you're on the fence about selling, there's never been a better time to do that, either.

It used to take years to find buyers (Craig Leipold was trying to sell the Preds for, like, 5 years), but now we're seeing teams get gobbled up after spending mere months on the market (Devils, Isles, Panthers).

 

[PensFan68]

While I agree I don't like the way things are run sometimes, this is sad news. I grew up watching Mario in the late 80s and 90s and still having him such a big part of this team is amazing to me. I really feel an even more sense of pride having him own the team.

As others have said though, taking my feelings out its probably a good thing. Mario never likes (or liked) the spotlight and attention, so it's not like we hear from him much anyway. Personnel decisions have been horrible, and Mario most likely just bought the team to get his money. I'm sure he felt a part of it and wanted to keep it here too though. At this point there's nothing left for him to help hockey here. He got us out of bankruptcy, made us profitable, and got us a new arena. What more could he possibly do for us?

I wish him the best of luck and just hope he still has ties to the Pittsburgh area. Not too many athletes play somewhere and are a part of that city for decades.

And while it won't happen, I'd love Cuban to own us. Not only would a local person bring us that sense of pride, but a character like him is needed in the NHL. He may be outspoken, but he is entertaining and a fanatic about his team. Didn't he say he was interested in the Pirates a few years ago? Why not the Pens?

 

[djt153]

Morgan Stanley is overseeing the review of strategic options.

http://penguins.nhl.com/club/news.htm?id=769802&cmpid=pit-fb-penguins

MS got a record price for the bills, but im surprised that this isnt a goldman effort

 

[Iffyiffiffer]

yawn

 

[cheesedanish87]

Not really sure how to feel about this.

If they do sell i hope they sell to a owner who's main goal is to win, if the new owner plans on running it like a business they probably wouldn't spend to the cap.

 

[Shady Machine]

I'm not saying Lemieux feels this way, but a part of me is worried he is looking at this team and thinking they have peaked. I don't see this franchise as a growth business over the next 5 to 10 years. They won a cup, shored up the business side of things, and have had several years of playoff disappointment since. I guess if I'm Lemieux I'm looking at this team from an investment standpoint and thinking 'this might be the peak value of my investment'.

That doesn't mean the team will suck going forward, it just seems like curious timing.

 

[Human]

Mark Cuban ????

This...

 

[DegenX]

Posted this in the thread on the main board, but I'll add it here, too ...





Make of it what you will.

 

[Al Smith]

Alright.... so the boneheaded comments are out of the way. Here is my take:

1) It's a great business decision for the two. NHL is trending downward and the leading goal scorer got ****ing 80 some points this year. Mario is smart to recognize that. Burkle is smart to recognize that. People don't want to watch that hockey. Mario has said his peace and it's going nowhere. From a business decision - selling now is huge.

2) Now.. from a hockey fan standpoint. This is the worst thing to hear. The Bylsma/Shero era took us backward and now we are trending even further down. I can't recall the last piece of good news. This has been a disaster of a 6 year span post Cup win. Some good news would be welcomed at this point. Personally I am so ****ing sick of saying "OUR CORE IS YOUNG AND GREAT!" Wellllllll not really. You're going to have to sell me on winning, eventually.

Agree for the most part, but I wouldn't characterize the last 6 years as a "disaster". More like a major disappointment. 1977-83 was a disaster if you're looking for ugly 6-year periods.

Still, the team barely made the playoffs this year and will have more trouble making them next year, because the roster probably won't change much between now and then. So he's getting out at the right time as far as the team goes. That in addition to the market being good for pro sports franchises - as others have pointed out - and it's a great decision for him.

 

[clefty]

"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."

He's not 'getting out' he's forming an exploratory review of possibly selling an unknown part of his ownership stake.

Which as far as I know, was always his intention 16 years ago when he took control in the first place, but there have been a lot of things in the way over the years. He'll probably still sit on the board, perhaps serve as a non-executive chairman or the like.

This isn't the first time he's broached the idea of selling. Not even close.

I don't know that this is particularly earth shattering stuff.

Ease up on the hysterics.

This was always the end game for Lemieux. He bought the team to salvage the money he was owed. Making sure it didn't leave Pittsburgh, which he grew to really love, was a big secondary concern.

But he was willing to sell the team in 2005. He's never been a visible owner. He's allowed those underneath him to be the visible face of the franchise during major news announcements. He and Burkle preferred to stay in the shadows.

It was only a matter of time until Lemieux decided he'd recovered enough of his capital and that the Pens were stable. He'll sell most - probably not all - of his shares, keep an emeritus position on the board or something, and kick his feet up back home.

Burkle's a businessman. If he's looking to sell his portion, it's probably because he's eying a new venture and wants the capital.

Whoops, missed this post. Basically what I'm saying, just I didn't say it as eloquently.

 

[Penguinator]

"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."

He's not 'getting out' he's forming an exploratory review of possibly selling an unknown part of his ownership stake.

Which as far as I know, was always his intention 16 years ago when he took control in the first place, but there have been a lot of things in the way over the years. He'll probably still sit on the board, perhaps serve as a non-executive chairman or the like.

This isn't the first time he's broached the idea of selling. Not even close.

I don't know that this is particularly earth shattering stuff.

When you put it this way... Yeah.

 

[Honour Over Glory]

I can just imagine how moronic the main board thread for the same topic, is.