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The wait is over

NHL approves sale of Penguins to Lemieux

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Posted: Wednesday September 01, 1999 10:28 PM

On thin ice: Mario Lemieux and his group were fortunate to receive approval shortly before the start of training camp on Saturday. AP

NEW YORK (AP) -- Mario Lemieux is making a comeback, and bringing the Pittsburgh Penguins with him.

Lemieux's takeover of the bankrupt Penguins was approved Wednesday by the NHL's board of governors, climaxing a long struggle by the former hockey great and his associates to keep the team in Pittsburgh.

"There have been a few difficult moments and a lot of frustration, but I was always optimistic we would get it done," Lemieux said.

Only court approval remained to finalize the deal, and that's expected to be taken care of by a bankruptcy judge during a closing hearing Friday in Pittsburgh.

"I'm very excited about the opportunity to come back," said Lemieux, a Hall of Famer who led the Penguins to Stanley Cups in 1991 and 1992 before retiring after the 1997 season. "This is a dream come true, after 10 months working on the deal.

"I had no idea it would be this difficult. I'm glad we were finally able to put this together."

Until Lemieux came into the picture, there was still some doubt whether the Penguins would remain in Pittsburgh, or even in the NHL. The team went into bankruptcy last season and was only able to meet its payroll with the help of a bank loan.

With approval of Lemieux's takeover, the Penguins made it just under the wire. They're due to open training camp on Saturday and will play their first exhibition game on Sept. 11 against the New York Islanders.

Lemieux said he and his group of investors, numbering more than a dozen, have put together $52 million so far and hope to raise more money. He said the market value of the Penguins is currently $85 million, or the price of an expansion team.

Lemieux has the largest stake in the team, most of it coming from the $25 million in deferred salary the Penguins owed him.

Lemieux said the hockey operation would remain in the hands of general manager Craig Patrick, and that he would take care of the business side with the help of others.

"I need to surround myself with smart people," Lemieux said. "This is all brand new to me."

For one thing, Lemieux said the Penguins would need to keep player salaries and ticket prices as low as possible. And they would need a new arena "to be viable." The Penguins play in the 38-year-old Civic Arena, which is run by Philadelphia-based SMG.

It is not the first time that Lemieux helped to save the Penguins franchise. Before he joined them as a player in 1984, the Penguins had dire financial problems. The Penguins were losing games, fans and money.

Attendance plunged to the bottom of the NHL, and there was talk the team would be moved out of town. Lemieux's reputation as a can't-miss Canadian junior star from Montreal brought hockey back to life in Pittsburgh. With Lemieux grabbing the imagination of the public, attendance soared and the Penguins eventually became a solvent and winning team.

It has been a long road for Lemieux in his attempt to buy the team.

The arena lease accounted for much of the delay in Lemieux's takeover. Under the lease, SMG will continue to control the Civic Arena until 2004, when it will revert to Lemieux, with SMG as the arena manager.

The Penguins blamed the high cost of their lease with SMG to play at the Civic Arena for helping push the franchise into bankruptcy.

"It was very important for me to keep the Penguins in Pittsburgh," Lemieux said. "That's why I decided to put the group together. I have spent more than 15 years of my life in Pittsburgh, and I have a good relationship with the fans."

Lemieux is the first retired player to take over ownership in one of the four major North American pro sports leagues.

"He has so much character, it's going to be a thrill to work with someone like that," Patrick said of Lemieux, whom he once coached. "It's a great that it is over. Now we can get to work."

Lemieux's approval came during a board of governors meeting that was otherwise devoted to general business. Lemieux received a warm reception from the owners when he stepped into the room.

"There was a lot of respect for Lemieux as a player," NHL commissioner Gary Bettman said. "They were delighted that the effort was made, as he had done it, to keep hockey in Pittsburgh."

 

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