The primary objective of the Penguins’ sale, according to two sources involved in the process, is this simple: Get Mario Lemieux the payday of his lifetime.
And that means, according to both of those sources, that Lemieux’s friends and closest associates — including current co-owner Ron Burkle — are clearing a path to make that happen rather than putting in their own bids.
In other words, look for this buyer eventually to come from the outside.
And to come with a blow-the-lid-off offer.
And, in all likelihood, to assume majority control of the franchise.
Let me rewind a bit for background: When word of the sale was broken June 3 by Canada’s TSN, I reported that Burkle has no intention of selling his share. Suffice it to say, without divulging the source for that information, I wasn’t exactly guessing at that. Burkle has genuinely enjoyed being a co-owner, and nothing about that view changed even with the word of the sale and the subsequent Lemieux statement.
That remains the case six weeks later. Burkle wants to stay on, and he’d prefer to preserve his existing stake, if possible. He’d even be open to expanding the stake.
But the broader position being taken now by those closest to Lemieux who have the wherewithal to participate in a bidding of this magnitude — and again, that includes Burkle — is that they’re backing off because they want to do what’s best for Lemieux. If they were bidding, the thinking goes, they’d be tugging at both ends of the rope in trying to take care of themselves and Lemieux.
So not only are they out, but they’re also willing — and yet again, that includes Burkle — to team up with Lemieux to ensure that the potential buyer can gain majority control of the franchise. That alone, in the sports business world, ensures an exponentially larger price. Some will pay just about anything to own a professional franchise, as was witnessed recently with the sale of the NBA’s Los Angeles Clippers to former Microsoft CEO Steve Ballmer for a previously unimaginable $2 billion.
The most reasonable projections for the Penguins’ current value is in the range of $600 million-$700 million, but hey, all it takes is one Ballmer, one buyer who so values being that owner that he or she will spend just about anything to get it, to blow up any estimates.
So who will it be?
Let’s start with who it won’t be.
It won’t be Mark Cuban. He’s sworn off buying an NHL team, and he’s reiterated that since word of the Penguins being for sale. In emphatic terms, too.
It won’t be Chuck Greenberg. He’s a longtime friend of Lemieux who helped save the Penguins out of bankruptcy, and he’s owned several minor-league baseball franchises as well as arranging a 2010 purchase of Major League Baseball’s Rangers. But he’s sitting this one out, in part for reasons stated above.
It won’t be, at least from what I can gather, anyone local.
The way this is shaping up, per those aforementioned sources, is simple as can be: Morgan Stanley, the financial firm enlisted by the Penguins to conduct this sale, is the same firm that last year navigated the sale of the NFL’s Bills to Terry Pegula for $1.1 billion even with Donald Trump involved. Pegula was the hometown and sentimental favorite, already owning the Sabres, but he still had to pony up big-time to seal the deal.
So yeah, kind of like that.
No names have yet emerged, but that’s to be expected: Buyers at this level prefer to lay low and watch the situation play out, then — if they have the means — show up with thunder and lightning to try to whittle down the field. That tends not to happen quickly, and I’m told the Penguins’ ownership is in no rush at all.
• No one with the Penguins will rule out a Brandon Sutter trade. Still. That’s a little strange, this close to the season and with the top nine forwards seemingly set.
• Don’t be surprised in the slightest if management tries to form a young-legs line up front, inspired in part by the Lightning’s barely-twentysomething Triplet Line of Ondrej Palat, Tyler Johnson and Nikita Kucherov. Heard that brought up more than once early in the ongoing development camp. The field of candidates isn’t in the same solar system as the Tampa Bay trio, but Oskar Sundqvist could center, and other youngsters such as Conor Sheary, Scott Wilson, Tyler Biggs, even Dominik Simon — who has really impressed so far — are among those who could bring some energy.
• Speaking of potential fourth-line energy, here’s what newly re-signed human firecracker Bobby Farnham told Josh Yohe when Farnham brought up needing to upgrade his skill to compete for a job (and our intrepid reporter retorted with disbelief): “Oh, God. No, don’t worry. Trust me, don’t worry at all. Trust me, that kind of stuff comes totally naturally to me. It’s my gift, I guess. I’m always going to be the guy taking runs at people, getting into fights, making people mad. I live for that stuff, man. That’s always going to be part of my game. I know I need to improve in other areas, that’s all. But I’ll still be the same guy.”
Andrew McCutchen and the Pirates retake the diamond Friday night in Milwaukee. — JARED WICKERHAM / GETTY
• Piecing together multiple observations from people inside the Pirates’ front office, I’ve got one significant bench bat arriving at the July 31 deadline, and that’s pretty much that. It will be an outfielder who ideally but necessarily could play center, one that will allow Gorkys Hernandez to mercifully get shipped back out. From there, it can be a waiting game for Josh Harrison to return while Travis Ishikawa holds down the other bench spot. In the interim, if there are injuries in the next six weeks, the Pirates will have until the Aug. 31 waiver deadline to make another move without having spent all their bullets.
• Probably not a great idea to invest a ton of thought in the Pirates adding a starting pitcher. They really like Vance Worley. A lot. And they’ve been taking care of him — he can be a bit volatile — all summer to make sure he doesn’t lose perspective on how important he could be in the No. 6 role to a contender.
• This might have gotten lost in all the fuss over the past weekend, but it shouldn’t: Starling Marte isn’t 100 percent. I asked him after the Sunday game, in which he was pulled late in favor of Sean Rodriguez, if his previously injured side was hurting again. “A little,” he replied. It had been fine beforehand. At some point, that thing needs to fully heal.
• The concern that Jung Ho Kang will wear out over a 162-game schedule — 30 more than in South Korea — isn’t limited to management, much to my surprise. His teammates share that. I’m not sure why. The man seems to be holding up just fine.
• Bonus podcast, anyone?
Here’s one of Josh and Matt Gajtka going really in-depth on Pirates for The River’s Edge.
• With the Steelers’ significant but hardly surprising signing of Cam Heyward to a six-year, $59.25 million extension, next in line would appear to be Kelvin Beachum, with all due acknowledgement to those later-denied waves made by Antonio Brown earlier this year.
Beachum has only one year remaining, and it’s at a thrifty $1.542 million. That allows Kevin Colbert and staff the luxury of using that low, locked-in salary as leverage toward getting an extension done now, as Beachum could reap an immediate windfall.
That’s one reason to prioritize him. The other, of course, is that he plays left tackle and, thus, protects the $99 million just invested in Ben Roethlisberger.
Brown, by contrast, still has three years left on his contract. And if the Steelers could make Roethlisberger wait up until he had one year left, they can do it with AB, as well.
One catch here: AB was above-and-beyond all through OTAs and minicamp, smiling and laughing and denying he ever threatened to holdout and saying all the right stuff. Call me cynical on this count, but that left me feeling someone had promised something.
Meghan Klingenberg, one of 21 Sports Illustrated covers this week. — GETTY
• In addition to the other reason I’ve invited subscribers to Highmark Stadium this Saturday — Lunatic Bash details here — the Riverhounds will recognize Meghan Klingenberg on the pitch at halftime of their match with a special gift commemorating the American women’s World Cup championship. I’ve been asked by the event sponsor to introduce her to the crowd, and it’ll be an honor.
Mario Lemieux and Ron Burkle announced last month they'll explore a sale of the Penguins. -- GETTY
July 17, 2015
Friday Insider: Mario will make his money
by Dejan Kovacevic • Friday Insider • Penguins, Pirates, Riverhounds, Steelers
The primary objective of the Penguins’ sale, according to two sources involved in the process, is this simple: Get Mario Lemieux the payday of his lifetime.
And that means, according to both of those sources, that Lemieux’s friends and closest associates — including current co-owner Ron Burkle — are clearing a path to make that happen rather than putting in their own bids.
In other words, look for this buyer eventually to come from the outside.
And to come with a blow-the-lid-off offer.
And, in all likelihood, to assume majority control of the franchise.
Let me rewind a bit for background: When word of the sale was broken June 3 by Canada’s TSN, I reported that Burkle has no intention of selling his share. Suffice it to say, without divulging the source for that information, I wasn’t exactly guessing at that. Burkle has genuinely enjoyed being a co-owner, and nothing about that view changed even with the word of the sale and the subsequent Lemieux statement.
That remains the case six weeks later. Burkle wants to stay on, and he’d prefer to preserve his existing stake, if possible. He’d even be open to expanding the stake.
But the broader position being taken now by those closest to Lemieux who have the wherewithal to participate in a bidding of this magnitude — and again, that includes Burkle — is that they’re backing off because they want to do what’s best for Lemieux. If they were bidding, the thinking goes, they’d be tugging at both ends of the rope in trying to take care of themselves and Lemieux.
So not only are they out, but they’re also willing — and yet again, that includes Burkle — to team up with Lemieux to ensure that the potential buyer can gain majority control of the franchise. That alone, in the sports business world, ensures an exponentially larger price. Some will pay just about anything to own a professional franchise, as was witnessed recently with the sale of the NBA’s Los Angeles Clippers to former Microsoft CEO Steve Ballmer for a previously unimaginable $2 billion.
The most reasonable projections for the Penguins’ current value is in the range of $600 million-$700 million, but hey, all it takes is one Ballmer, one buyer who so values being that owner that he or she will spend just about anything to get it, to blow up any estimates.
So who will it be?
Let’s start with who it won’t be.
It won’t be Mark Cuban. He’s sworn off buying an NHL team, and he’s reiterated that since word of the Penguins being for sale. In emphatic terms, too.
It won’t be Chuck Greenberg. He’s a longtime friend of Lemieux who helped save the Penguins out of bankruptcy, and he’s owned several minor-league baseball franchises as well as arranging a 2010 purchase of Major League Baseball’s Rangers. But he’s sitting this one out, in part for reasons stated above.
It won’t be, at least from what I can gather, anyone local.
The way this is shaping up, per those aforementioned sources, is simple as can be: Morgan Stanley, the financial firm enlisted by the Penguins to conduct this sale, is the same firm that last year navigated the sale of the NFL’s Bills to Terry Pegula for $1.1 billion even with Donald Trump involved. Pegula was the hometown and sentimental favorite, already owning the Sabres, but he still had to pony up big-time to seal the deal.
So yeah, kind of like that.
No names have yet emerged, but that’s to be expected: Buyers at this level prefer to lay low and watch the situation play out, then — if they have the means — show up with thunder and lightning to try to whittle down the field. That tends not to happen quickly, and I’m told the Penguins’ ownership is in no rush at all.
• No one with the Penguins will rule out a Brandon Sutter trade. Still. That’s a little strange, this close to the season and with the top nine forwards seemingly set.
• Don’t be surprised in the slightest if management tries to form a young-legs line up front, inspired in part by the Lightning’s barely-twentysomething Triplet Line of Ondrej Palat, Tyler Johnson and Nikita Kucherov. Heard that brought up more than once early in the ongoing development camp. The field of candidates isn’t in the same solar system as the Tampa Bay trio, but Oskar Sundqvist could center, and other youngsters such as Conor Sheary, Scott Wilson, Tyler Biggs, even Dominik Simon — who has really impressed so far — are among those who could bring some energy.
• Speaking of potential fourth-line energy, here’s what newly re-signed human firecracker Bobby Farnham told Josh Yohe when Farnham brought up needing to upgrade his skill to compete for a job (and our intrepid reporter retorted with disbelief): “Oh, God. No, don’t worry. Trust me, don’t worry at all. Trust me, that kind of stuff comes totally naturally to me. It’s my gift, I guess. I’m always going to be the guy taking runs at people, getting into fights, making people mad. I live for that stuff, man. That’s always going to be part of my game. I know I need to improve in other areas, that’s all. But I’ll still be the same guy.”
Andrew McCutchen and the Pirates retake the diamond Friday night in Milwaukee. — JARED WICKERHAM / GETTY
• Piecing together multiple observations from people inside the Pirates’ front office, I’ve got one significant bench bat arriving at the July 31 deadline, and that’s pretty much that. It will be an outfielder who ideally but necessarily could play center, one that will allow Gorkys Hernandez to mercifully get shipped back out. From there, it can be a waiting game for Josh Harrison to return while Travis Ishikawa holds down the other bench spot. In the interim, if there are injuries in the next six weeks, the Pirates will have until the Aug. 31 waiver deadline to make another move without having spent all their bullets.
• Probably not a great idea to invest a ton of thought in the Pirates adding a starting pitcher. They really like Vance Worley. A lot. And they’ve been taking care of him — he can be a bit volatile — all summer to make sure he doesn’t lose perspective on how important he could be in the No. 6 role to a contender.
• This might have gotten lost in all the fuss over the past weekend, but it shouldn’t: Starling Marte isn’t 100 percent. I asked him after the Sunday game, in which he was pulled late in favor of Sean Rodriguez, if his previously injured side was hurting again. “A little,” he replied. It had been fine beforehand. At some point, that thing needs to fully heal.
• The concern that Jung Ho Kang will wear out over a 162-game schedule — 30 more than in South Korea — isn’t limited to management, much to my surprise. His teammates share that. I’m not sure why. The man seems to be holding up just fine.
• Bonus podcast, anyone?
Here’s one of Josh and Matt Gajtka going really in-depth on Pirates for The River’s Edge.
• With the Steelers’ significant but hardly surprising signing of Cam Heyward to a six-year, $59.25 million extension, next in line would appear to be Kelvin Beachum, with all due acknowledgement to those later-denied waves made by Antonio Brown earlier this year.
Beachum has only one year remaining, and it’s at a thrifty $1.542 million. That allows Kevin Colbert and staff the luxury of using that low, locked-in salary as leverage toward getting an extension done now, as Beachum could reap an immediate windfall.
That’s one reason to prioritize him. The other, of course, is that he plays left tackle and, thus, protects the $99 million just invested in Ben Roethlisberger.
Brown, by contrast, still has three years left on his contract. And if the Steelers could make Roethlisberger wait up until he had one year left, they can do it with AB, as well.
One catch here: AB was above-and-beyond all through OTAs and minicamp, smiling and laughing and denying he ever threatened to holdout and saying all the right stuff. Call me cynical on this count, but that left me feeling someone had promised something.
Meghan Klingenberg, one of 21 Sports Illustrated covers this week. — GETTY
• In addition to the other reason I’ve invited subscribers to Highmark Stadium this Saturday — Lunatic Bash details here — the Riverhounds will recognize Meghan Klingenberg on the pitch at halftime of their match with a special gift commemorating the American women’s World Cup championship. I’ve been asked by the event sponsor to introduce her to the crowd, and it’ll be an honor.