Listen in Gov. Ed Rendell comments on ongoing talks with the Pittsburgh Penguins: Still hopeful for a deal The NHL's position A joint venture between casino operator Don Barden and the Penguins The importance of a professional sports team Finding a fiscal balance Ron Burkle -- the businessman

Even as state and local politicians and the Penguins haggle over an arena deal, Gov. Ed Rendell disclosed today that he talked to team co-owner Ron Burkle last night and expressed confidence that an agreement can be reached to keep the franchise in Pittsburgh.

A day after threatening to take his case directly to the National Hockey League if the Penguins try to leave town, Mr. Rendell said this morning that he still believes an agreement is within reach. He said Allegheny County Chief Executive Dan Onorato and Pittsburgh Mayor Luke Ravenstahl also have talked to Mr. Burkle over the last few days.

"We're all optimistic that we can reach an agreement," he said after an appearance at an Oakland hospital.

"We want to reach an agreement. We think we're getting closer. We're hopeful."

Mr. Rendell said he and Mr. Burkle talked about "some of the issues that need to be narrowed a little bit and we both agreed to work on them." He said he expects to talk to him early next week about the Penguins situation. He said no formal negotiating sessions have been scheduled between the two sides.

Of the Plan B formula for funding a new arena, the governor said state and local officials "can still tweak this a little bit" but added that the deal, as now constituted, is better than any other professional sports team in Pennsylvania has received.

Despite the heated rhetoric over the negotiations the past few days, Mr. Rendell said his conversation with Mr. Burkle "was friendly" and that they "discussed everything."

"Look, Mr. Burkle is a great businessman. You don't accumulate the type of resources that he's accumulated without being a smart businessman. He's trying to get every advantage . . . We want to make sure the resources we devote to this are appropriate, not too much, not too little," he said.