Penguins to Winnipeg offer

Discussion in 'The Business of Hockey' started by Round John, Jan 19, 2005.

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  1. Round John

    Round John Registered User

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    Don't know if this is old news or not but I still found it interesting.

    From the Saskatoon Star Phoenix newspaper.

    "The only thing I really know about (the MTS Centre) is the letter that was written to Mario (Lemieux) last year about moving the Penguins there." Saskatoon Blades General Manager and Head Coach Lorne Molleken who was an assistant coach with Pittsburgh at the time.

    If the lockout situation continues and a new building doesn't happen wouldn't it make sense for Lemieux to sell and turn his interest into cash? Right now no money is coming in either as a player or as an owner.
     
  2. CRUNK JUICE

    CRUNK JUICE Registered User

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    :deadhorse

    Give it up already, EVERYONE. The Pens are NOT going to Winnipeg.
     
  3. arnie

    arnie Registered User

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    First, no owner would sell during the lockout. A good CBA will dramatically raise franchoise vales.

    2. The Pens carefully prepared for thje lockout. Despite what many people think, they are in excellent financial shape right now.

    3. Should the Penguins actually move, they are heading straight to Houston. The owners of the arena & Rockwts have already said that they want to buy an NHL team to go with the NBA team. They further said that it doesn't even have to make money - just help pay for the arena.

    Houston is something like 4-5th biggest US city. Think the NHL would like a team there or in Winnipeg?
     
  4. Jacob

    Jacob Registered User

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    Winnipeg would be in the bottom half of the league in attendance even if they sold out every single night.
     
  5. cneely

    cneely Registered User

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    Ticket sales are but a small portion of NHL team revenues. What's more important are local media contracts, advertising, and luxury box receipts.

    With some sort of revenue sharing in the new CBA, and of course, a salary cap, Winnipeg could be a succesfull market, but don't hold your breath.
     
  6. nyr7andcounting

    nyr7andcounting Registered User

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    If their arena is smaller sure, but if the NHL wins than revenue differences throughout the league cease to exist. In a capped enviroment, especially as the NHL is talking about, every team is the same no matter what market they are in. Thus, a NHL team can easily survive in Winnepeg
     
  7. MmmBacon

    MmmBacon Registered User

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    The Canucks were just sold, weren't they?
     
  8. Jacob

    Jacob Registered User

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    Then why not just leave the team in Pittsburgh? Crumbling arena and all.
     
  9. Zoo

    Zoo Registered User

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    Sorry people the pens aren't going anywhere. :madfire:
     
  10. This is great news for the Assiniboine zoo! Penguins to go with their polar bears in the Arctic exhibit. Fantastic learning opportunity for the children of Winnipeg!
     
  11. Round John

    Round John Registered User

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    I am not suggesting the Pens are moving to Winnipeg or moving at all. What I find interesting is a feeler of some formality was put out about purchasing the Penguins before a new CBA has been negotiated.

    You would think an interested pursuer regardless of the team being looked at would wait until a CBA is in place and there is some idea of what the new landscape looks like.
     
  12. Jacob

    Jacob Registered User

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    It was the mayor of Winnipeg that wrote the letter. He didn't get a response.
     
  13. craig1

    craig1 Registered User

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    And the Pens publicly addressed the rumor (From a few months back nonetheless) . The team president said that that they did receive the letter, did not consider it.
     
  14. YellHockey*

    YellHockey* Guest

    So what tv networks are going to broadcast Winnipeg games? Sportsnet West already has Calgary and Edmonton games. TSN isn't going to split their network for Winnipeg games. Non-sports networks have pretty much gotten out of the regional sports business.
     
  15. Beukeboom Fan

    Beukeboom Fan Registered User

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    Didn't the Jet's leave the Peg when the average team salary was probably less than half of what the salary cap could be set at (30-35M)?
     
  16. craig1

    craig1 Registered User

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    Well, since you are fully aware of the situation, you know that Pittsburgh has one of the best local TV deals in the NHL (Fox Sports Pittsburgh is the carrier). The only thing that they are lacking according to you is the luxury box revenues....and you of course are aware of the many, many other threads where the new arena for the Pens, and the financing methods (slots liscense) are thoroughly discussed.
     
  17. Pavel

    Pavel Registered User

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    The NHL is not coming to Houston anytime soon.
     
  18. Lionel Hutz

    Lionel Hutz Registered User

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    arrgh.....

    Do a search, you'll find several threads on this very topic.
     
  19. Wetcoaster

    Wetcoaster Guest

    Here is some data that will give you some idea where the NHL will be looking (and why they have located franchises where they are). This is a survey of the Top 200 big cities in the US ranked on economic performance.

    If you click on the city you will get a snapshot of its economy and population. There are at lest 25 US cities (probably 50) in front of Winnipeg with its declining population of 650,000, stagnant economy and confiscatory tax regime.
    http://bestcities.milkeninstitute.org/bc200.html
     
  20. Le Golie

    Le Golie ...

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    It was not a mayor. It was a councillor, Dan Vandal. He is no longer in serving on city council.

    I want a team back in Winnipeg, but not at the expense of a franchise like the Penguins. It's a great city with good hockey fans and a great hockey history. I know the pain felt when a much loved hockey team leaves town and I wouldn't wish this on Pittsburgh. Surely there is another city out there that doesn't have the history, who could lose a team without losing an identity.
     
  21. Le Golie

    Le Golie ...

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    Just to clarify, Winnipeg's population is growing, not declining. Last year the city saw it's highest growth rate in over a decade.

    Also, the new mayor in Winnipeg ran and won on the platform that he would make the city a much more tax-friendly place for business. He's a self made millionaire/businessman and he will follow through on that.

    Not saying Winnipeg will get a team, just making sure facts prevail here.
     
  22. Wetcoaster

    Wetcoaster Guest

    Not according to the figures I have seen. Winnipeg is falling back and is expected to be overtaken by several other cities in the next few years.

    EDIT actually I am wrong, there is very slow growth. Last year the population rose by 5000 rather than the 3,500 plus of the past few years. Compared to Toronto, Vancouver, Montreal, Calgary and Edmonton - that is stagnant. Compared to the top 200 US cities it is abysmal.

    Over five years population growth per Stats Can

    Winnipeg 20,000
    Quebec City 19,000

    Toronto 550,000
    Montreal 170,000
    Vancouver 150,000
    Calgary 110,000
    Edmonton 60,000

    Hamilton 40,000
    Oshawa 36,000
    Kitchener 34,000

    As I said Winnipeg just will not work as an NHL market. It is not just population it is also has stagant economic growth, lack of significant corporate presence and a confiscatory tax regime. Read the latest reports from the Canadian Taxpayers' federation - it lays the whole thing out.
     
    Last edited by moderator : Jan 19, 2005
  23. me2

    me2 Calling out the crap

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    The problem for Winnipeg is not the number of hockey fans, its got more than many of the NHLs US cities. The problem is the number of hockey fans that can afford $40-50 a ticket and also the number of businesses that can afford boxes.
     
  24. cneely

    cneely Registered User

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    Rumor was that back when the "Save the Jets" campaign was on, the Asper family was somewhat interested. Global might be a fit.
    I was an accountant for CanWest for a while, they certainly could afford the team, and afford the losses as well. How well that would go over with the shareholders...
     
  25. cneely

    cneely Registered User

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    Actually, Winnipeg's economy has been doing quite well over the past 5 years, and the population is slowly increasing.

    Can't argue about the crappy tax situation, though.
     
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