Penguins’ Future in Pittsburgh Now in Serious Doubt
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The Penguins bet the house on Isle de Capri, hoping they’d get a new, $290 million arena for free if the casino-operator got a license to operate in Pittsburgh. But yesterday, the Pennsylvania gaming board voted unanimously to instead award the license to Detroitbased developer Don H. Barden’s PITG Gaming. And as a result, the Penguins must decide whether they want to attempt to negotiate a deal with PITG and/or the city of Pittsburgh, or whether they want to start exploring their options in other cities.
The board’s decision came less than a week after Blackberry CEO Jim Balsillie pulled out of a $175-million deal to buy the 40-year-old franchise. The NHL reportedly came to the table with a number of 11th hour conditions that Balsillie wasn’t prepared to meet, likely dealing with his options for moving the team out of Pittsburgh.
Balsillie — a Canadian — would have probably considered his options north of the 49th Parallel. An NHL team in Hamilton or Winnipeg would have an immediate fan base, and the path to profitability would be relatively short, especially with the opportunity to promote Penguins star Sidney Crosby to an adoring Canadian public.
But the NHL would likely want the Pens to remain in America, and preferably in one of the larger television markets without an NHL team. Houston and Kansas City (where a new arena has been built but doesn’t yet have a full-time tenant) would both be viable options.
“The decision by the Gaming Commission was terrible news for the Penguins, their fans and the NHL,” Bettman said in a statement. “The future of this franchise in Pittsburgh is uncertain and the Penguins now will have to explore all other options, including possible relocation.”
But while the Pens certainly do need a new arena, moving is far from their only option.
A preliminary proposal from Governor Rendell calls for the Penguins to contribute about $8 million upfront and $4.5 million a year for 30 years for an arena that would be built near Mellon Arena. PITG has committed to contributing $7.5 million a year toward this plan, and an additional $7 million would come from a state development fund.
The site has been purchased, and officials said a groundbreaking ceremony could be held within days of a deal being struck. But if there are other cities offering a free arena, it’s a better bet that the Pens won’t be in Pittsburgh anymore when the puck drops on the 2007–08 season.
