The sale of the Pittsburgh Penguins is close to being complete.
Fenway Sports Group has signed a purchasing agreement to take over as owner of the franchise.
Under the agreement, the high-powered Boston sports conglomerate will assume majority control over the team. Penguins co-owners Mario Lemieux and Ron Burkle each will retain a minority stake in the franchise they rescued from bankruptcy in 1999.
Mr. Lemieux, a Pittsburgh sports icon and hockey Hall of Famer, also will continue to have a say in the club’s operation.
The signing of the purchasing agreement was first reported by Sportico, a sports business website, and confirmed to the Pittsburgh Post-Gazette by a source with knowledge of the transaction.
No other details were available. A formal announcement was made Monday morning.
The sale still must be approved by the National Hockey League before it becomes official. Both the FSG and Penguins boards already have approved the deal.
While the sale will end Mr. Lemieux’s nearly 40-year dominance over the franchise as a player and an owner, he will continue to play a role in the hockey side of the team’ operations. The Penguins senior management, including CEO David Morehouse and chief operating officer Kevin Acklin, also are expected to remain in place.
Mr. Lemieux won two Stanley Cup championships with the Penguins as a player and three more as an owner after teaming with Mr. Burkle, a California billionaire.
That both will continue to have a minority stake in the team should offer some assurances to Penguins fans antsy about the team’s future under the new ownership.
At the same time, FSG, valued at more than $7 billion, has the financial resources to build upon the success that the club has had under Mr. Lemieux and Mr. Burkle.
Backed by billionaire John Henry, FSG owns the Boston Red Sox baseball team, the Liverpool Football Club of the English Premier League, Roush Fenway Racing of Nascar, and 80% of the New England Sports Network.
Mr. Henry, owner of the Boston Globe newspaper, has sought to own an NHL franchise since the 1990s.
While no details of the sales agreement for the Penguins have been announced, some experts have predicted that the deal could be worth as much as $700 million to $900 million. Forbes values the team at $650 million.
Besides the team itself, the deal is expected to include control over PPG Paints Arena, owned by the Pittsburgh-Allegheny County Sports & Exhibition Authority, and development rights to the 28-acre former Civic Arena site in the lower Hill District.
The SEA board also must approve the transaction.
Mark Belko: mbelko@post-gazette.com or 412-263-1262.
First Published: November 29, 2021, 2:54 a.m.