
The owners of the Boston Red Sox are in “advanced talks” to buy the NHL Pittsburgh Penguins, according to a report from the Pittsburgh Post-Gazette on Tuesday.
Talks with Fenway Sports Group have been taking place for at least a couple of months, according to reports. The team was not officially on the market for sale, according to a Post-Gazette source, and it was FenÂway Sports Group that initiated the discussion.
Ron Burkle, who teamed with franchise icon Mario Lemieux to purchase the team out of bankruptcy in 1999, intends to sell his controlling stake in the franchise to Fenway Sports Group; he could also stay in for a small percentage, according to Post-Gazette sources.
Lemieux is expected to be part of the ownership group in some capacity, likely a minority ownership role, as well as be involved on the hockey side. The club’s senior management is also expected to remain intact.
The Wall Street Journal and Sportico were the first to report the possible sale. Fenway Sports Group could vote on the deal as soon as Thursday.
The agreement will also need approval from the NHL and the Pittsburgh-Allegheny County Sports & Exhibition Authority, which owns PPG Paints Arena and leases it to the team.
Terms of the deal, including how much FenÂway Sports Group will pay for its stake, have not been revealed.
“We are aware of the reports but have no comment on the speculation,” a Fenway Sports Group spokesperson told the Post-Gazette in an email.
The NHL has a standard agreement that prevents new owners from applying for relocation for seven years, so even if the Penguins are sold, they’ll stay in Pittsburgh.
The team’s lease at the arena keeps the Penguins in Pittsburgh until at least June 30, 2040.
The sale is not expected to have any affect on the community benefits and other agreements related to the redevelopment of the 28-acre former Civic Arena site, where the Penguins control the development rights.
Fenway Sports Group, backed by billionaire John Henry, has built a sports-centric portfolio that includes the Boston Red Sox of MLB, Liverpool of the English Premier League and Roush Fenway Racing of NASCAR, the Post-Gazette reported. The NBA’s LeBron James also has a stake in the company.
FenÂway Sports Group, which also owns real esÂtate like FenÂway Park, has reÂcently exÂpressed an inÂterÂest in exÂpandÂing furÂther.
Lemieux and BurÂkle iniÂtially acÂquired the PenÂguins in 1999 out of bankÂruptcy durÂing a crossÂroads moÂment in the franÂchise’s hisÂtory, when the team was flounÂderÂing on the ice and atÂtenÂdance was hurtÂing.
Seven years later, the PenÂguins and state and loÂcal poÂlitÂiÂcal leadÂers battled over conÂstrucÂtion of a new arena, even exÂplorÂing reÂloÂcaÂtion opÂtions, beÂfore reachÂing a deal that kept the franÂchise in Pittsburgh. PPG Paints Arena opened in 2010.
The PenÂguins won three more StanÂley Cup tiÂtles, bringÂing their toÂtal to five, and have beÂcome one of the NHL’s marÂquee franÂchises under Lemieux and BurÂkle’s ownership. The team was valÂued at $845 milÂlion by SporÂtico, rankÂing 15th in the league.
The Associated Press reported that FenÂway Sports Group received a reported $750 million investment from RedBird Capital Partners in March that valued the sports conglomerate at $7.35 billion.
The PenÂguins, like most proÂfesÂsional sports teams, have taken a hit durÂing the COVID-19 panÂdemic, but the club reÂmains one of the most popÂuÂlar NHL franÂchises by many metÂrics.
The PenÂguins’ have 1.9 milÂlion folÂlowÂers InÂstaÂgram, the most of any NHL club, plus a following of 1.8 milÂlion on TwitÂter. Last seaÂson, the team had the highÂest loÂcal ratÂings share of any NHL team. An avÂerÂage of 7.8% of PittsÂburgh TV homes tuned in for PenÂguins games on AT&T SportsÂNet.