Into the Great Wide Open...
Mario Lemieux and Penguins officials will meet with members of local and state government this afternoon in downtown Pittsburgh. I am hoping that both sides come ready to negotiate in good faith. Dan Onorato, Allegheny County Executive, has been the most vocal leading up to the meeting and has stated that he is "cautiously optimistic" about the prospects of coming to an agreement.
As we know, the Penguins were in Kansas City over night and have met with Tim Leiweke, president of Anschutz Entertainment Group. They were given the opportunity to see the $276 million Sprint Center that would be available for the start of the 2007-08 season. Is the KC deal very enticing? I am sure it is to some extent, however, the potential earnings in a new arena in Pittsburgh could be more lucrative.
In Kansas City, the Penguins would have to buy in with $27 million dollars. That would get them 50 percent of all revenue generated by the Sprint Center, with AEG getting the rest. The officials in Pa are dangling all of the revenue generated by a new facility in Pittsburgh to keep the Penguins viable. Some experts are saying that could be upwards of $20 million per year. Whatever the total ends up being, getting all as opposed to half of the pie is always a bit more attractive. In the end, the yearly revenues received by the Penguins from a new facility in Pittsburgh would more than offset the contribution to construction costs over the 30 years called for in Plan B. Will that be enough to entice the team to stay? That is yet to be determined. (Penguins contribution in Pittsburgh: $8.5 million up front, $4 million yearly for 30 years, with $1.1 coming from naming rights bringing Pens yearly contribution to $2.9 million.)
The main difference between the two situations right now is getting a free arena in Kansas City, as opposed to having to contribute to one in Pittsburgh. With KC boasting more Lemieux business associates and Pittsburgh offering more possible revenue. What will win out? Will Mario's connection to "Boots" Del Biaggio give KC an advantage? These are all questions that will be answered in the coming weeks.
The Penguins have stood firm by their statement about examining all of their options, and may still look at some other locations such as Oklahoma City, Houston, Portland, Winnipeg, Las Vegas and Hartford.
Hartford Mayor, Eddie A. Perez, has written a two-page letter to Mario Lemieux expressing his desire to have the Penguins relocate to his town.
The Penguins seem to be the belle of the ball and have no shortage of suitors at this point. This is going to get a lot more interesting before it is resolved. Let’s hope that when the Penguins youth gets to raise their first banner, which seems like a good bet in the near future, that it is on Pittsburgh.
*****
The Penguins have finally ended their silence in regard to Nils Ekman. He has been diagnosed with a dislocated elbow and is expected to miss extensive time with the injury. The MRI that he had this week revealed significant damage to the elbow. No surgery is scheduled at this point, but he may be lost for the season.
As we know, the Penguins were in Kansas City over night and have met with Tim Leiweke, president of Anschutz Entertainment Group. They were given the opportunity to see the $276 million Sprint Center that would be available for the start of the 2007-08 season. Is the KC deal very enticing? I am sure it is to some extent, however, the potential earnings in a new arena in Pittsburgh could be more lucrative.
In Kansas City, the Penguins would have to buy in with $27 million dollars. That would get them 50 percent of all revenue generated by the Sprint Center, with AEG getting the rest. The officials in Pa are dangling all of the revenue generated by a new facility in Pittsburgh to keep the Penguins viable. Some experts are saying that could be upwards of $20 million per year. Whatever the total ends up being, getting all as opposed to half of the pie is always a bit more attractive. In the end, the yearly revenues received by the Penguins from a new facility in Pittsburgh would more than offset the contribution to construction costs over the 30 years called for in Plan B. Will that be enough to entice the team to stay? That is yet to be determined. (Penguins contribution in Pittsburgh: $8.5 million up front, $4 million yearly for 30 years, with $1.1 coming from naming rights bringing Pens yearly contribution to $2.9 million.)
The main difference between the two situations right now is getting a free arena in Kansas City, as opposed to having to contribute to one in Pittsburgh. With KC boasting more Lemieux business associates and Pittsburgh offering more possible revenue. What will win out? Will Mario's connection to "Boots" Del Biaggio give KC an advantage? These are all questions that will be answered in the coming weeks.
The Penguins have stood firm by their statement about examining all of their options, and may still look at some other locations such as Oklahoma City, Houston, Portland, Winnipeg, Las Vegas and Hartford.
Hartford Mayor, Eddie A. Perez, has written a two-page letter to Mario Lemieux expressing his desire to have the Penguins relocate to his town.
The Penguins seem to be the belle of the ball and have no shortage of suitors at this point. This is going to get a lot more interesting before it is resolved. Let’s hope that when the Penguins youth gets to raise their first banner, which seems like a good bet in the near future, that it is on Pittsburgh.
*****
The Penguins have finally ended their silence in regard to Nils Ekman. He has been diagnosed with a dislocated elbow and is expected to miss extensive time with the injury. The MRI that he had this week revealed significant damage to the elbow. No surgery is scheduled at this point, but he may be lost for the season.
posted by Bmetzer66 at 1:51 PM
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