Pens Put Their Feet Down
We’ve heard it before. The Pittsburgh Penguins are seriously considering relocation. Is this time different though?
The co-owners of the Pens, Mario Lemieux and Ron Burkle, have declared an impasse in new arena negotiations with PA state officials and will now actively explore relocation opportunities.
“We have made a single-minded effort to bring this new arena to a successful conclusion and keep the team in Pittsburgh,” owners Mario Lemieux and Ron Burkle said in a letter to Rendell and local government officials. “... Our good-faith efforts have not produced a deal, however, and have only added more anxiety to what we thought at best was a risky proposition for us moving forward.”
PA Governor Ed Rendell seems to be holding out hope and has invited the Penguins back to the table to continue talks once again. It seems that this time is indeed different - The Pens are hesistant to come back and talk, even though they will do so later today.
Instead Lemieux and Burkle have been traveling. Traveling to the two locations that will most likely be the Pens new home should they decide to move: Kansas City and Las Vegas.
KC’s offer has been on the table for quite a while now. They are offering the Pens the ability to play in the brand new $262 Sprint Center rent free. They also have guaranteed the team half of all revenues generated from the arena.
Despite how intriguing KC is sounding, the Pens may need to sit down and think before they sign that dotted line. We all know what happened to the Scouts in the 70’s, but doubts are even arising more than 30 years after an NHL team last touched ice in the city.
Prominent city businessman Jim Nutter isn’t so sure that things would work out:
One sports-savvy Kansas Citian who is entirely uninvolved in the Sprint Center believes that might—might—make long-term success a possibility.
“If the team could be immediately competitive, and with star players for everybody to get behind, then I think it would have a chance,” said Jim Nutter, a lifelong Kansas Citian and prominent businessman.
“I would not have said that two years ago.”
There are questions, however, about whether the Kansas City market can handle another pro franchise.
A bizjournals.com survey from 2006 ranked Kansas City as the nation’s fifth-most overextended sports market, declaring its nearly $61 billion collective annual income too small to adequately support its existing teams.
The fourth-most overextended market? Pittsburgh, with just more than $65 billion.
Nutter, who was part of an investment group that once tried to buy the Royals, believes even an attractive young team like the Penguins would face a “tough, tough process under the best of circumstances.”
“It could be done. But it would be a tough road.”
Vegas is actually a newer venture for the Pens.
The city was long rumored to be one of the top destinations for the team to go to but has just now become a major player this past week. Mayor Oscar B. Goodman met with the two owners yesterday for what were “pleasant discussions” between both sides.
One thing that crossed my mind while reading about everything that was going on was the current status of the other two cities heavily rumored to be making a push for the Pens - Houston and Winnipeg. It turns out that things are looking so good for those two…
Houston has actually quietly taken their name out of the hat this week, stating that can’t compete with Kansas City in a bidding war.
“We can’t compete with free rent,” said Michael Moore, chief of staff for Mayor Bill White, speaking for the city and the Houston Sports Authority. “We’re not going to get into a bidding war with (Kansas City).”
Winnipeg is still apparently in the hunt, but the general feeling in the area is that the chances of the Pens even considering the city at this point are slim to none, especially with the money that the other cities are throwing around.
Another cause of those feelings may have also come from the success of the city’s AHL franchise, the Manitoba Moose. The Moose are currently one of the hottest teams in the league and are well on their way to a divisional title. Co-owner of the MTS Centre, the proposed arena where the Penguins would play, and the Moose, Mark Chipman has been very slow to comment on the whole matter.
Why? It’s obvious that he doesn’t want to take any of the attention away from the Moose who are quickly winning the hearts of a city that once bled Jets’ red and blue.
Sounds to me like Winnipeg is out of the question too..
Back to the negotiations - What happened?
Rendell was extremely confident that Pittsburgh would be able to retain the franchise. On Tuesday, the same day that Lemieux and Burkle cut off discussions, Rendell said that there was “an exceptionally attractive offer on the table.” Obviously that offer wasn’t good enough.
Not good enough? The proposed offer thrown at the Pens was reportedly better than both of the deals the state struck to build new stadiums with their fellow city sports teams, the Pirates and Steelers.
The team also actually agreed to the majority of the deal, saying yes to paying $4 million a year in rent and $500,000 for a new parking garage to be built, totaling up to approximately $120 million over 30 years toward the $290 million arena.
It’s being thrown around that one of the biggest reasons why the Pens are not deciding to stay is because of proposed monetary support from local casinos falling apart.
The Penguins originally had an agreement with Isle of Capri Casinos which offered to build a brand new arena at no expense to the team, the state, or residents. In return, the casino company wanted a license to build a casino in downtown Pittsburgh. Ultimately the state chose another bid from Jim Balsillie. We all know how that went…
It seems that the team is willing to come to terms to another agreement with Isle of Capri Casinos once again in order to finally strike a deal. The problem is that the company is now involved in a lawsuit against the state because they were not awarded their license.
Things have now gotten so bleak that Rendell has now said he will go to Gary Bettman and the board of govenors to try and stop the Pens from flying west…
Later in the day, Rendell told reporters, “If they don’t take it, we’re going to be up in New York asking the NHL to bar the Penguins from moving.”
What do I think Mario and company should do? I think they should stay in Pittsburgh…
It really doesn’t make any sense to leave now, especially with a team full of young stars that include the best player in the world and a town that absolutely loves hockey. (The Mellon Arena has been sold out for just about every home game this season.)
Lemieux and Burkle need to sit down with Rendell one more time today and try to bang out a deal. It would probably be for their own good…
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