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News Article: Lemieux, Burkle exploring possible sale of Penguins

djt153

Registered User
Dec 26, 2003
3,616
0
plaidchuck said:
So nothing new? Didn't they also meet with investors in July? Think they're having problems selling?
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do you think $800 million dollar deals to sell sports franchises happen after one meeting? think how long it takes to buy a $200,000 house.
 
Freeptop

Freeptop

Registered User
Jun 17, 2009
2,346
1,217
Pittsburgh, PA
Ugene Malkin said:
They say it is a steep price for the market, but they forget about the old Melon Arena acreage that goes with it.
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I'd noticed that the TSN article made absolutely no mention of that.

TSN can be great for hockey news, but this is a case where I'm not so sure they did a great job (possibly since this is business news rather than sports news, really). The TSN article says the Pens "face long odds of finding a buyer who’s willing to pay that much...".

Meanwhile the Post-Gazette followed up on that article, and reports: "A source said today that there currently appears to be more than one legitimate interested party interested in buying the Penguins who has gone through extensive due diligence, including participating in management meetings".
http://sportsblogs.post-gazette.com...asking-price-and-sale-could-heat-up-soon.html

Huh, I guess the odds weren't so long after all...

Oh, and previous reporting had a different set of experts who said the Penguins could potentially be worth $850 million! So apparently whether the Pens are worth more or less than $750 million depends on which set of financial experts you consult...
http://www.post-gazette.com/sports/...ve-up-value-for-Penguins/stories/201507210028
 

Sidney BrOSSby*

Locked in the Washer
Nov 28, 2007
4,148
1
Kampuchia
I get that some tire pumping is going on. I won't name names.


happy-gilmore_400x400.jpg
 
Freeptop

Freeptop

Registered User
Jun 17, 2009
2,346
1,217
Pittsburgh, PA
Mancouver said:
I get that some tire pumping is going on. I won't name names.
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If the Pens are only selling the team and not including the development rights to the Civic Arena property, I'd agree with TSN that the odds were long on them getting that price. If the development rights are included, though, $750 million is a pretty reasonable ballpark. Possibly even a bit low. All the talk in the TSN article about the danger of the value of the Canadian dollar would mean pretty much nothing with regards to those property rights, after all. Which is why I found it so strange that it didn't even come up. Well, except for the fact that it didn't fit the narrative they were trying to tell.
 
WickedWrister

WickedWrister

Registered User
Jul 25, 2008
9,313
4,066
Philadelphia
The Canadian dollar won't impact property values in Pittsburgh, but it's important to note the impact it will have on the TV deal money like the article mentioned. NHL's single largest revenue stream is the deal with Rogers. Comes out to around $10-15 million per club, which is like 25% of some cap floor teams budget. We're talking possibly 5 million dollars less per team just due to currency fluctuation. That's huge!
 
BobCole

BobCole

Registered User
May 21, 2014
1,728
1,371
WickedWrister said:
The Canadian dollar won't impact property values in Pittsburgh, but it's important to note the impact it will have on the TV deal money like the article mentioned. NHL's single largest revenue stream is the deal with Rogers. Comes out to around $10-15 million per club, which is like 25% of some cap floor teams budget. We're talking possibly 5 million dollars less per team just due to currency fluctuation. That's huge!
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Imagine Canadian teams whose earnings are virtually entirely in CAD while many of their expenses are in USD. With the Canadian dollar down something like 30% YoY, it will be tough for the NHL to maintain its revenue (and thus the salary cap) this year, let alone grow either.
 
Jacob

Jacob

as seen on TV
Feb 27, 2002
49,503
25,103
What's the deal with the Canadian dollar? I thought it was doing good? I don't understand finances.
 
Shady Machine

Shady Machine

Registered User
Aug 6, 2010
36,704
8,141
Jacob said:
What's the deal with the Canadian dollar? I thought it was doing good? I don't understand finances.
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http://www.cbc.ca/news/business/canadian-dollar-drops-to-lowest-level-since-2004-1.3163316

Oil prices are a bigger factor on Canada's economy than the US (although I'm certainly not an expert on the Canadian economy).

The last time the loonie was this low, the U.S. economy was in dire shape as well. This time around, Button says, Canada is likely headed into recession at a time when the U.S.economy and dollar is doing well — a volatile situation.

"Higher interest rates in the U.S. in 2015 will be a stark reminder of just how advanced the recovery is south of the border," CIBC said in a recent note on the loonie's outlook. "More of the same lies ahead."

"The U.S is thriving, while Canada is at best treading water," Button said.
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Jacob

Jacob

as seen on TV
Feb 27, 2002
49,503
25,103
I keep all my money ($135) in a cookie tin under my floorboards.
 
Ugene Magic

Ugene Magic

EVIL LAUGH
Oct 17, 2008
54,351
18,776
Pittsburgh
Tasty Biscuits said:
Translation: now is the time to visit Canada when you'll get the best bang for your buck. :sarcasm:
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I wonder how much it has effected the bottom line when people had to now purchase passes to cross the border?

You use to be able to cross on a smile and a drivers licence. Now you have to go through screening at your post office, your entire family, and it costs to get your passes.($55.00 adult(lasts 10 years)/$40.00 children(lasts 5 years) My wife let things go until it was way too late to even bother with these and go to Canada this year as our vacation. Believe me, it's not as easy as one would think for a family. *Schedule* You just don't go in and pop out with your cards. It's a drawn out process.

Our vacation plans changed to just hitting the finger lakes at Walking Glen, Darien Lake theme park and the American side of Niagara Falls.

So my tip is don't let it go until it's too late.

I wonder how many people just don't go because of the cost which is pretty much the price to go to a theme park for a day? And the before Post Office screening.

FYI, you must have all birth certificates with a raised seal and "both" parents signatures.
 

vikingGoalie

Registered User
Oct 31, 2010
2,902
1,327
Ugene Malkin said:
I wonder how much it has effected the bottom line when people had to now purchase passes to cross the border?

You use to be able to cross on a smile and a drivers licence. Now you have to go through screening at your post office, your entire family, and it costs to get your passes.($55.00 adult(lasts 10 years)/$40.00 children(lasts 5 years) My wife let things go until it was way too late to even bother with these and go to Canada this year as our vacation. Believe me, it's not as easy as one would think for a family. *Schedule* You just don't go in and pop out with your cards. It's a drawn out process.

Our vacation plans changed to just hitting the finger lakes at Walking Glen, Darien Lake theme park and the American side of Niagara Falls.

So my tip is don't let it go until it's too late.

I wonder how many people just don't go because of the cost which is pretty much the price to go to a theme park for a day? And the before Post Office screening.

FYI, you must have all birth certificates with a raised seal and "both" parents signatures.
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Getting the passports is a bit of a pain. and yes you better plan that ahead. I had to go THREE times. I had a birth certificate, they didn't like that one. I talked to my mother, and I got the ORIGINAL from umpteen years ago. That wasn't good enough, had to go get another birth certificate issued. :rant: Rest of the family made it through the process first go.

Oh and some here go to the court house, and they say that is much easier / faster. My experience at my local post office was text book of government employee in-efficiency in action.

But crossing the border into Canada was fairly easy. Only thing was waiting in the line of cars. Basically just show'd him our passports/cards asked where we were going, told him and off we went. I think it took maybe a couple of minutes with the border guard.

Coming back into the US I didn't even show him my kids cards. We pulled up, my kids are all asleep, my wife is asleep. I show him my passport (didn't even hand it to him), and start to grab theirs and he just waves me through, didn't even ask me any questions...
 
Jacob

Jacob

as seen on TV
Feb 27, 2002
49,503
25,103
The Penguins' ineptitude might actually lead to US Steel leaving Pittsburgh lol

http://www.bizjournals.com/pittsbur...teel-abandons-plan-to-build-headquarters.html

United States Steel Corp. has dropped plans to build a new headquarters at the former Civic Arena site in the Lower Hill District, a source from within the company told the Pittsburgh Business Times on Thursday.

The uncertainty surrounding the pending sale of the Penguins played a role in the decision, according to the source, who also confirmed U.S. Steel had no advance notice when it was announced last June the Penguins were being put on the block.
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I'm not too upset though, that building they were proposing was pretty rinky-dink. If the once-mighty US Steel can only muster a 5 story HQ that looks like a suburban call center, they can take their business out of Pittsburgh for all I care. But Morehouse was really patting himself on the back for landing that deal in the first place, so this is probably sad news for the team.
 

djt153

Registered User
Dec 26, 2003
3,616
0
Jacob said:
The Penguins' ineptitude might actually lead to US Steel leaving Pittsburgh lol

http://www.bizjournals.com/pittsbur...teel-abandons-plan-to-build-headquarters.html



I'm not too upset though, that building they were proposing was pretty rinky-dink. If the once-mighty US Steel can only muster a 5 story HQ that looks like a suburban call center, they can take their business out of Pittsburgh for all I care. But Morehouse was really patting himself on the back for landing that deal in the first place, so this is probably sad news for the team.
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whatever embarrasses morehouse works for me. that building was an architectural abomination, so happy to see it scrapped.

the fondly remembered never forgotten icedcapp seemed to really hit the nail on the head when saying there was next to nothing progressing regarding the sale.
 
DegenX

DegenX

¯\_(ツ)_/¯
Aug 14, 2011
14,622
5,683


Seems to me that's less than what was reported when they announced they were 'exploring the possibility of a sale'
 
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