Potential Sale Of Pittsburgh Penguins Progressing
PITTSBURGH (93-7 The FAN) - With a report from the Pittsburgh Business Times coming out yesterday stating that a group of investors is expected to make an offer to buy the Pittsburgh Penguins within a week, Chris Mueller was joined Tuesday by Mike Colligan, NHL Analyst at Forbes SportsMoney and Pittsburgh Penguins correspondent at The Hockey Writers.
The two discussed the future of the Penguins franchise as Mario Lemieux and Ron Burkle prepare to sell.
"I would actually be very surprised if it was that quick," Colligan said of the Pittsburgh Business Times Report. "But I'm not surprised we're starting to hear things leak."
The report went on to declare that "some who have done deals in the National Hockey League said the team could sell anywhere from $700 million to $850 million."
That amount of money equals approximately what Penguins stars Sidney Crosby, Evgeni Malkin and newly-acquired Phil Kessel could make from their current contracts, but, said Colligan: "There's no dollar value you can put on [the team]."
Forbes lists the Penguins team value at $565 million, a figure well below the likes of the Maple Leafs ($1.3 billion), Rangers ($1.1 billion) and Canadiens ($1 billion), but it may be skewed, as many have criticized the magazine's evaluation process of the Penguins.
According to the Tribune-Review, Vanderbilt University sports economist John Vrooman says the team could sell for $800 million.
Colligan noted the difference between a "rational" and "irrational" buyer or group of buyers. He said the Penguins might be a prime attraction for an owner or group of owners who seek enjoyment rather than profit, adding that former Texas Rangers managing partner and CEO Chuck Greenberg - a Pittsburgh native and Upper St. Clair High School graduate - would fit well atop the Penguins, but, Colligan proposes, "[Is he/Are they] going to have the revenues that supports a salary cap team every year?"
