Canada's Newest NHL Team: Waterloo Penguins [Archive] - Page 5

waterloowarrior

Dec 17, 2006, 6:31 AM

Steelback brewer uncaps plan to buy Penguins

Matthew Sekeres, Ottawa Citizen

Published: Saturday, December 16, 2006

Frank D’Angelo is at it again.

Rejected by the Canadian Football League as a potential owner for a new Ottawa franchise, the flamboyant Toronto businessman said yesterday that he and billionaire partner Dr. Barry Sherman want to buy the NHL’s Pittsburgh Penguins.

D’Angelo said they discussed the situation during a six-hour meeting Friday and decided to pursue a purchase.

“We are going to be pursuing every avenue to get into the sports business, and what better way then to invest in a great franchise like the Pittsburgh Penguins,” D’Angelo said. “We want to go in there, buy the team, and make sure it has a proper home. The City of Pittsburgh deserves to keep its team.”

The fate of the Penguins was tossed back into the air Friday, when Canadian billionaire Jim Balsillie, chairman and co-chief executive officer of Research in Motion Ltd., the maker of BlackBerry wireless messaging devices, walked away from his proposed $175-million U.S. purchase of the club.

Balsillie balked over the NHL’s restrictions on relocating the franchise, presumably to Kitchener-Waterloo, where his company is based.

D’Angelo said he and Sherman, chief executive of drug maker Apotex Inc., were trying to set up a meeting with Penguins chief executive officer Ken Sawyer via Phil Esposito, the Hockey Hall of Fame inductee who has appeared in several advertisements for D’Angelo’s Steelback beer. If the group remains interested in going ahead after meeting with the Penguins, it intends to hold a news conference later this week.

“Steelback beer in Steeltown, what an incredible fit,” D’Angelo said.
D’Angelo also said that, regardless of his new fascination, he remained “absolutely” interested in pursuing a CFL franchise for Ottawa.

The league told D’Angelo last month it no longer wanted to negotiate with him, leaving former CFL player Bill Palmer and his consortium of mostly U.S. investors as the only group pursuing a team for the city.

A group led by former Penguins captain Mario Lemieux purchased the Pittsburgh franchise in U.S. bankruptcy court in 1999, but has been looking to sell for some time and believed a deal was done with Balsillie.

The future of the Penguins will become clearer on Wednesday, when the Pennsylvania Gaming Control Board awards a gaming licence for Pittsburgh. The team, the NHL and others are hoping that the Isle of Capri group is selected.

Isle of Capri has pledged to build a $290-million U.S. arena for the Penguins, at no cost to taxpayers or the team, if it’s awarded the slots licence.

The Penguins’ lease with 45-year-old Mellon Arena expires in June and the team could be free to relocate at that time.

“If the Isle of Capri is not granted the license on Wednesday, then an already volatile situation will be aggravated,” NHL commissioner Gary Bettman said Friday. “It is imperative that the Penguins have a new arena on economic terms that make sense for the franchise and for the team to remain in Pittsburgh.”

Allegheny County chief executive Dan Onorato has said that if Isle of Capri doesn’t win the gaming licence, an arena will be built with or without casino funding and that land near the Mellon Arena has already been acquired for such a project. In the past decade, Pittsburgh taxpayers have helped finance new stadiums for the Steelers football franchise and the Pirates baseball club.

Yesterday, D’Angelo seemed less concerned over who emerges as a potential arena builder, hinting he and Sherman might have their own plans.

Much like his Ottawa CFL model, D’Angelo would want pouring and naming rights for the facility, believing an investment in the team would be a good way to promote his company’s beer in a new market.

Waterlooson

Dec 17, 2006, 6:47 AM

Once a Canadian becomes a billionaire, they develop an irresistable urge to buy an NHL franchise - isn't that funny?

Gdoggy

Dec 17, 2006, 3:51 PM

Worst home attendance in NHL

Rank Team Games Attend. Average PCT
18 Los Angeles 21 343,589 16,361 88.4 %
19 Atlanta 16 251,574 15,723 84.8 %
20 Pittsburgh 17 265,424 15,613 92.1 %
21 Anaheim 19 291,169 15,324 89.2 %
22 Florida 16 234,638 14,664 76.2 %
23 Nashville 13 189,293 14,561 85.1 %
24 Phoenix 17 234,860 13,815 78.9 %
25 Boston 17 234,378 13,786 74.0 %
26 Washington 17 222,831 13,107 70.2 %
27 Chicago 14 179,536 12,824 62.6 %
28 New Jersey 15 191,274 12,751 67.0 %
29 NY Islanders 17 190,019 11,177 68.6 %
30 St. Louis 16 177,955 11,122 58.5 %

BTW, the only canadian team not to sell out is Edmonton at 98.5 %

Gdoggy

Dec 17, 2006, 4:16 PM

People will probably ask, so here's the stats for the Canadian teams
all rankings by average attendance (home game PCT included for those interested)

Home Attendance

Rank Team AVG PCT
1 Montreal 21,273 100.0 %
4 Toronto 19,420 103.3 %
5 Calgary 19,289 112.4 %
7 Ottawa 18,923 102.3 %
9 Vancouver 18,630 101.1 %
16 Edmonton 16,839 98.5 %

Road Attendance

Rank Team AVG
1 Calgary 17,608
6 Toronto 17,298
10 Vancouver 16,911
14 Ottawa 16,441
20 Edmonton 16,308
25 Montreal 16,007

canadian teams occupy half the top 10. take that bettman :tup:

question for flames fans, did Calgary add seats ? or more SRO ?

Greco Roman

Dec 17, 2006, 4:19 PM

People will probably ask, so here's the stats for the Canadian teams
all rankings by average attendance (home game PCT included for those interested)

Home Attendance

Rank Team AVG PCT
1 Montreal 21,273 100.0 %
4 Toronto 19,420 103.3 %
5 Calgary 19,289 112.4 %
7 Ottawa 18,923 102.3 %
9 Vancouver 18,630 101.1 %
16 Edmonton 16,839 98.5 %

Road Attendance

Rank Team AVG
1 Calgary 17,608
6 Toronto 17,298
10 Vancouver 16,911
14 Ottawa 16,441
20 Edmonton 16,308
25 Montreal 16,007

canadian teams occupy half the top 10. take that bettman :tup:

And it would be no different in Winnipeg :tup: :tup:

Dalreg

Dec 17, 2006, 5:22 PM

SteelTown

Dec 17, 2006, 5:25 PM

I'm predicting that St Louis will go bankrupt next year. There's a chance to take a franchise.

trueviking

Dec 17, 2006, 5:57 PM

those numbers are crap...the actual people in the building is nowhere near that in most of those american cities...i went to 2 games in atlanta and one in phoenix last year...announced crowds of over 15 000 for all three....i would guess no more than 8 000 in the atlanta games and maybe 10 000 in phoenix....atlanta was about half full and at least half of the luxury suites were dark and empty.

and i paid 15 dollars for lower bowl seats for two of the games...and got a scalper ticket for $3 for a saturday night game in atlanta against the stanley cup champions.

flar

Dec 17, 2006, 6:17 PM

Hockey isn't even on the radar in the US. The NHL isn't going to gain any US fans with its current "product" either. Even I used to be a huge hockey fan but I haven't even watched an NHL game since the canceled season. It's really horrible what Bettman has done to the league. I only hope that when Bettman is gone that the NHL hasn't fallen so far it can't reclaim its former glory.

Gdoggy

Dec 17, 2006, 6:51 PM

trueviking

Dec 17, 2006, 7:21 PM

no, it isnt...it is tickets distributed...the NHL is notorious for attendance padding....their numbers include promotional deals, corporate give aways, charitable donations....substantial amounts in some markets.

there is a big difference between an announced crowd of 15 000 in a canadian arena and 15 000 in altanta...nevermind the gameday revenue lost, but that number of people did not pay for their ticket in atlanta.

BlackRedGold

Dec 17, 2006, 7:27 PM

And it would be no different in Winnipeg :tup: :tup:

Winnipeg would be unable to be in the top half of the league in attendance until it got an NHL sized rink.

Only The Lonely..

Dec 17, 2006, 7:36 PM

Winnipeg would be unable to be in the top half of the league in attendance until it got an NHL sized rink.

Maybe, but a team in Winnipeg wouldn't be at the bottom end of the attendance scale either.

We certainly wouldn't have to give away tickets to fill the place.

Greco Roman

Dec 17, 2006, 8:46 PM

Winnipeg would be unable to be in the top half of the league in attendance until it got an NHL sized rink.

Blah blah blah.

Not if the current attendance in certain US markets keep up at their current pace. Do you not get it?

SHOFEAR

Dec 17, 2006, 8:49 PM

Frank D’Angelo's intent is pretty interesting. You would have to imagine the profit off beer sales would be astronomical.

vid

Dec 18, 2006, 6:13 AM

Blah blah blah.

Not if the current attendance in certain US markets keep up at their current pace. Do you not get it?

The MTS centre is incapable of holding a crowd large enough to make a game profitable. If there are 10 stadium with more than X in attendence, it will not crack the top 10.

X=the number of seats in MTS centre (I forget right now)

Berklon

Dec 18, 2006, 3:22 PM

The MTS centre is incapable of holding a crowd large enough to make a game profitable. If there are 10 stadium with more than X in attendence, it will not crack the top 10.

X=the number of seats in MTS centre (I forget right now)

According to Wikipedia, the capacity for hockey is 15,000:
http://en.wikipedia.org/wiki/MTS_Centre

I've seen pictures of this arena and it really is quite nice, but I don't understand why they wouldn't have made it large enough to accomodate 18,000 seats in case there's another chance at the NHL.

zerokarma

Dec 18, 2006, 4:55 PM

http://img186.imageshack.us/img186/7923/cheetahsob1.jpg

BlackRedGold

Dec 18, 2006, 5:05 PM

Blah blah blah.

Not if the current attendance in certain US markets keep up at their current pace. Do you not get it?

Which US markets? Looking at ESPN's attendance ratings, and keep in mind these are early in the season and attendance tends to increase towards the end of the season in markets that don't sell out every game, a Winnipeg team that sold out the MTS Center would be 22nd in attendance.

Now some teams might be inflating their numbers. But most of those teams would be behind Winnipeg anyways. Of the teams that have higher attendance then the MTS Center's capacity, I'd list only Anaheim, Atlanta and Carolina that might be inflating their numbers. That would leave Winnipeg at 19th, and that's if they sell out the building for every game which certainly didn't happen when the Jets were still in town.

So if everything were to go right for a Winnipeg team, it would still be a well below average franchise in terms of attendance if everything goes well but with no upside potential. Clearly, the MTS Center is not a viable NHL rink.

Arriviste

Dec 18, 2006, 5:11 PM

I'm sure Winnipeg could support a team initially, but what about ten years from now, when the team has had a few possibly bad seasons in a row, maybe not made the playoffs? If in the ten years they pulled off an Edmonton in the 80's act, I could see sustained attendance for a while. All speculation of course.

Waterlooson

Dec 18, 2006, 5:13 PM

Why did Winnipeg lose their professional hockey team in the first place? Can anyone answer that?

Arriviste

Dec 18, 2006, 5:14 PM

Are you being sarcastic?

I believe that it was not profitable. Thats it really, just not viable. I could be wrong though.

Dalreg

Dec 18, 2006, 6:04 PM

Which US markets? Looking at ESPN's attendance ratings, and keep in mind these are early in the season and attendance tends to increase towards the end of the season in markets that don't sell out every game, a Winnipeg team that sold out the MTS Center would be 22nd in attendance.

Now some teams might be inflating their numbers. But most of those teams would be behind Winnipeg anyways. Of the teams that have higher attendance then the MTS Center's capacity, I'd list only Anaheim, Atlanta and Carolina that might be inflating their numbers. That would leave Winnipeg at 19th, and that's if they sell out the building for every game which certainly didn't happen when the Jets were still in town.

So if everything were to go right for a Winnipeg team, it would still be a well below average franchise in terms of attendance if everything goes well but with no upside potential. Clearly, the MTS Center is not a viable NHL rink.

Capacity wise Winnipeg would be the smallest arena at its current capacity. Hamilton would be in the bottom 5 as well. With a capacity of roughly 17000. So it would obviously not be any more viable than Winnipeg.

For either city to get a team, the arena would have to be renovated and expanded. As well as corporate support would have to step up for the luxury suites.

Sad day but no Canadian city will be getting a NHL team any time soon.

SteelTown

Dec 18, 2006, 6:11 PM

During the 2005 Exhibition game there was over 18,000 people at Copps.

http://i16.photobucket.com/albums/b2/Bonaducci1/DCP_1973.jpg

For a full-scale event Copps can hold 19,000.

Dalreg

Dec 18, 2006, 8:11 PM

SteelTown

Dec 18, 2006, 8:21 PM

Only The Lonely..

Dec 18, 2006, 8:23 PM

According to Wikipedia, the capacity for hockey is 15,000:
http://en.wikipedia.org/wiki/MTS_Centre

I've seen pictures of this arena and it really is quite nice, but I don't understand why they wouldn't have made it large enough to accomodate 18,000 seats in case there's another chance at the NHL.

What's the point? Only a handful of Canadian cities and a few select American towns (Chicago, Boston, Detroit) can fill an 18,000 seat arena anyways.

Look at St. Louis, they have averaged in the neighbourhood of 5,000 people a game, does it really matter that they have the capacity for 17,000?

You bring up a good point and one that many Winnipeggers were angry about. Yes the arena shoulda been built bigger, but in fairness to True North they couldn't fit a bigger arena at that site.

drew

Dec 18, 2006, 8:24 PM

For either city to get a team, the arena would have to be renovated and expanded. As well as corporate support would have to step up for the luxury suites.

ummm - "check" for corporate support in Winnipeg. The 46 corporate boxes at MTS centre have been at capacity since the facility opened.

I doubt very much that a cost increase per box (if the NHL came back) would push any corporations out of the building.

Waterlooson

Dec 18, 2006, 8:24 PM

Are you being sarcastic?

I believe that it was not profitable. Thats it really, just not viable. I could be wrong though.

No, I wasn't being sarcastic.

Only The Lonely..

Dec 18, 2006, 8:32 PM

Why did Winnipeg lose their professional hockey team in the first place? Can anyone answer that?

Because the city would not pay for a new arena. At the last minute Izzy Asper of Canwest Global fame had organized a ownership group but by then it was too late.

For all those who dismiss Winnipeg's ability to fill the place let me start by telling you that when the Jets left Winnipeg it was the same as if the Oilers left Edmonton, the city was devasted.

We didn't realize what we had till it was gone. In the end the Jets left because the old arena only had 7 luxery boxes. Attendance wise the team averaged 13,500 - 16,000 a game ..

It was always about luxery boxes. The new MTS centre addresses that need and I think the Jets could be a viable team in a new NHL.

Berklon

Dec 18, 2006, 8:33 PM

I looked it up for hockey 17000+ max. A full scale event is considered a major concert with ice level seating. Pretty hard to play hockey with a thousand or two people in your way.
If you want to go with those figures MTS Center has a capacity for full scale events of 17200.

http://www.hecfi.on.ca/pdfs/CoppsColiseum%20Technical%20Information.pdf

The smallest seating capacity in the NHL is 16,297 (Islanders). With Copps currently at 17,500 seating capacity for hockey, that would make it higher than 7 other arenas in the NHL. And as Steeltown mentioned, Copps is designed to be upgraded so adding at least another 500 seats (not including all the luxury boxes that can be added) it would rank closer to the middle of NHL seating capacity.

15,000 for Winnipeg is quite a bit behind the smallest capacity arena in the NHL. As nice as the MTS Centre is (and it does look great), the capacity is too small for the NHL.

Only The Lonely..

Dec 18, 2006, 8:36 PM

The smallest seating capacity in the NHL is 16,297 (Islanders). With Copps currently at 17,500 seating capacity for hockey, that would make it higher than 7 other arenas in the NHL. And as Steeltown mentioned, Copps is designed to be upgraded so adding at least another 500 seats (not including all the luxury boxes that can be added) it would rank closer to the middle of NHL seating capacity.

15,000 for Winnipeg is quite a bit behind the smallest capacity arena in the NHL. As nice as the MTS Centre is (and it does look great), the capacity is too small for the NHL.

But what does it matter when a lot of Sun Belt teams are only averaging 10,000 or under for paid attendance?

As I mentioned earlier, The Blues have averaged about 5,000 for their last few home games. I don't see why a 20,000 seat arena is important when the vast majority of U.S teams can't sell those seats.

Berklon

Dec 18, 2006, 9:00 PM

But what does it matter when a lot of Sun Belt teams are only averaging 10,000 or under for paid attendance?

As I mentioned earlier, The Blues have averaged about 5,000 for their last few home games. I don't see why a 20,000 seat arena is important when the vast majority of U.S teams can't sell those seats.

While it's true that there are many US teams with poor attendance (the worst average this year is St. Louis according to ESPN: http://sports.espn.go.com/nhl/attendance?year=2007 ), if only one Canadian team could get an NHL team - Hamilton would be more attractive than Winnipeg with respect to seating capacity. In a perfect world, teams would go to cities that have a high interest in NHL hockey - but that's not the reality so it would be tough enough for one Canadian city to get a team as it is.

Greco Roman

Dec 18, 2006, 9:37 PM

Same old same old:
Winnipeg can't, isn't big enough, can't afford it, arena is too small, and my personal favorite: "Hamilton is more viable and profiable" (eyes rolling far in the back of my head) and on and on and on and on.

Maybe it won't happen, but here is the thing Hamilton;

IT WON'T HAPPEN THERE EITHER. Hamilton is no more important to American's than Winnipeg, and none of them care about either city. So all you Hamiltonians need to get this through your heads.

HAMILTON, YOU ARE NO MORE IMPORTANT OR VIABLE TO AMERICANS THAN WINNIPEG !!!!!!!

Dalreg

Dec 18, 2006, 10:28 PM

Copps was built with the intention of getting an NHL franchise so it has room to add more seats, you can throw in a thousand temporary seats. The roof of Copps can be raised to include more luxury boxes.

But hey I'll shut up since you clearly know more about Copps than I do.

Any arena can be expanded/renovated. Including Copps and MTS. As long as it is in its current configuration it would be near the bottom of the list.

You could push capacity to 20 000 with enough time and money. That isn't the point. All I was saying is currently it would be one of the smallest rinks in the NHL.

Don't get your panties in a knot, as you don't have to worry about it now.

Dalreg

Dec 18, 2006, 10:30 PM

ummm - "check" for corporate support in Winnipeg. The 46 corporate boxes at MTS centre have been at capacity since the facility opened.

I doubt very much that a cost increase per box (if the NHL came back) would push any corporations out of the building.

Thats good for Winnipeg. How much of an increase would there be if it was NHL not AHL hockey? Most of the newer NHL rinks have as many if not a lot more suites. So can Winnipeg add if they need to?

I would think for a Canadian arena to host NHL one should look for 18 000 seats and 75 suites. That would compete with 99% of the teams.

SteelTown

Dec 18, 2006, 10:38 PM

Any arena can be expanded/renovated. Including Copps and MTS. As long as it is in its current configuration it would be near the bottom of the list.

Are you sure it can be expanded? I'm pretty sure True North said they couldn't get a bigger arena in the site that they picked.

Dalreg

Dec 18, 2006, 10:41 PM

With enough money anything is possible. They can always build out over the streets if they have to.

ldoto

Dec 19, 2006, 12:36 AM

Canadian Press

12/18/2006 6:24:06 PM

PITTSBURGH (CP-AP) - Owner Mario Lemieux says the Pittsburgh Penguins are finished with Jim Balsillie, criticizing the Canadian billionaire for backing out of a deal to buy the NHL team.:koko:

Balsillie, co-chief executive officer of BlackBerry maker Research In Motion Ltd (TSX:RIM), was quoted over the weekend saying he still might try to purchase the team despite pulling the plug on his agreement Friday. But Lemieux says that won't happen.

''We were shocked and offended that Mr. Balsillie would back out of such an important deal at the last minute - and less than a week before a decision on the funding of a new arena that will have far-reaching implications on our franchise, our city and our region,'' Lemieux said in a statement Monday.

''As a result, we intend to retain Mr. Balsillie's deposit because we believe him to be in breach of our agreement. We can say unequivocally that the deal with Mr. Balsillie is dead.''

Related Info
Lemieux statement on Penguins ownership
D'Angelo announces bid for Penguins
While one potential owner is gone, another buyer has appeared. Toronto brewery owner Frank D'Angelo officially declared his interest in the Penguins on Monday.

Confirming what he told The Canadian Press on Sunday, the president and CEO of Steelback Brewery and D'Angelo Brands issued a statement Monday saying he is putting together an offer for the Pens in the wake of the Balsillie deal falling through.

D'Angelo said former hockey legend Phil Esposito was to co-ordinate a meeting with Penguins president Ken Sawyer. D'Angelo also repeated he has no interest in moving the Penguins.

''Absolutely not,'' he said in the statement. ''Pittsburgh has a rich history of championship hockey with an established fan base in the world's premier league. This team isn't going anywhere.''

Balsillie's deal fell through, according to sources, due to his unhappiness with the NHL's conditions in the final sale agreement that would see him make every effort to keep the team in Pittsburgh.

D'Angelo, whose bid for a CFL franchise in Ottawa was recently turned down, says he and billionaire partner Barry Sherman were teaming up to make an offer.

This is a big week for the Penguins. Isle of Capri Casinos Inc., has promised to build a US$290-million arena to replace the 45-year-old Mellon Arena - at no cost to taxpayers or the team - if it obtains a slot machine licence from the state.

A decision on the licence is expected Wednesday. Isle of Capri is one of three bidders for the licence, the others being Detroit casino magnate Don Barden and Forest City Enterprises Inc. of Cleveland.

Both have said they'll contribute some money for a new arena over 30 years under a so-called ''Plan B'' being proposed by city and county officials that would include public funds. But that plan also calls for the Penguins to help pay for the arena.

D'Angelo told CP on Sunday that he and Sherman could build their own rink if Isle of Capri loses out on the slot machine licence, benefiting from the building's naming rights and supplying the beverages there.

If Isle of Capri doesn't get a slot-machine licence, Lemieux said Monday the Penguins would have to ''consider all of our options.''

Dallas Mavericks owner Mark Cuban is also believed to have renewed interest in looking at the hockey club.

Only The Lonely..

Dec 19, 2006, 12:40 AM

Ugggh, the NHL is a joke..:yuck:

That's why there's football.

vid

Dec 19, 2006, 1:06 AM

That would compete with 99% of the teams.

DAMN that unbeatable one fifth of the Canadiens!!!

If there are only 30 teams, I think you meant to say '95%' of the teams. :P

*doesn't really care about hockey*

Gdoggy

Dec 19, 2006, 1:17 AM

''As a result, we intend to retain Mr. Balsillie's deposit because we believe him to be in breach of our agreement. We can say unequivocally that the deal with Mr. Balsillie is dead.''

hmmm then can't Balsillie say the same about the NHL being in breach... since they changed the rules at the last minute

if Balsillie wants to be a prick, this could be in the courts for years and Lemieux will be stuck with the team... and he won't be able to sell the team in the meantime...

he'd better just give him his money back before it costs him every cent he has...
he should be angry with the NHL, not Balsillie
:shrug:

SteelTown

Dec 19, 2006, 2:21 AM

Nobody should mess around with Balsillie. That guy has probably sued well over 20 different people or companies since the start of RIM. If you create a cell phone that somewhat looks like a Blackberry WHAM! You get sued the next day. Looks at Samsung BlackJack, Balsillie is suing Samsung.

I would be cautious with Balsillie.

SHOFEAR

Dec 19, 2006, 2:35 AM

Granted I have been doing nothing but studying for exams the last little bit, but it seems like there is a lot of stuff that was done behind closed doors and has not/will not make it's way into the media. Speculating on legal action seems way to premature.

Dalreg

Dec 19, 2006, 3:21 AM

I can't see a lawsuit happening. Jim was the one to back out of the deal. As for the NHL changing the rules what did they do? They never came right out and said the team wouldn't be able to move did they? They would just do everything possible on their part to prevent such a move.

As for Jim being all powerful, maybe in his part of the world but obviously not in the NHLs world.

Archiseek

Dec 20, 2006, 2:58 PM

Balsillie balked at last-minute conditions
League wanted to restrict team's move until 2013

Theresa Tedesco, Chief Business Correspondent, National Post
Published: Wednesday, December 20, 2006

Canadian billionaire James Balsillie withdrew his US$175-million offer to buy the National Hockey League's Pittsburgh Penguins after a dispute over 24 last-minute conditions imposed by the league, which would have prevented the new owner from moving the team for at least seven years.

According to sources close to the negotiations, Mr. Balsillie balked at a "side deal" that would have required him to agree, among other things, to allow the NHL to take over the hockey team if it was unhappy with arena negotiations, or if it became disenchanted with his ownership. The league also wanted to restrict the new owner from contemplating a move out of Pittsburgh under any circumstances until 2013 at the earliest.

Sources say Mr. Balsillie was "totally blindsided" because the new conditions were presented "without any warning or discussion" on Dec. 8 as part of the NHL's consent to his offer.

At the same time, sources say, Mario Lemiuex and the Penguins' ownership group refused to grant a 30-day extension to allow Mr. Balsillie to deal with the NHL's new requirements. As a result, Mr. Balsillie, co-chief of the company that manufactures the popular Black Berry wireless e-mail device, pulled his offer last Friday morning.

Yesterday, he indicated his termination notice was not final. "All it takes is a five-minute call between three motivated parties to restart this," he wrote in an e-mail.

Officials with the NHL and the Pittsburgh Penguins did not return requests for comments yesterday.

However, Mr. Lemieux said on Monday that the Penguins' current owners were "shocked and offended that Mr. Balsillie would back out of such an important deal at the last minute."

During a news conference, the Canadian hockey legend said he was angry the deal collapsed "unequivocally" after months of pushing an arena-funding deal for the team with Isle of Capri, a local gaming company, as well as state and local officials.

The casino company pledged US$290-million toward the construction of a new arena if the city also awards it the coveted slots casino licenses. A decision is expected today.

Until that happens, Mr. Lemieux said the current owners would not decide the fate of the money-losing franchise. But the bad blood has clearly spilled over.

For one, Mr. Lemieux has not spoken with Mr. Balsillie since the deal fell apart on Dec. 15. And yesterday, he said his ownership partners intend to keep Mr. Balsillie's down payment -- estimated at US$10-million and held in escrow -- because "we believe him to be in breach of our agreement."

Mr. Balsillie responded by saying that Mr. Lemieux and his partners' decision "to not unilaterally extend the contract 30 days, as was their right under the preexisting agreement" was a "negotiating tactic." He added: "I simply had to deal with the consequences of their decision."

The problems began to percolate about six weeks ago. Sources say Mr. Balsillie had become increasingly annoyed by the slow pace of the NHL's approval process.

It had been weeks since he formally announced his intention to buy the Penguins for US$175- million on Oct. 5. At the time, the 45-year-old chief executive could barely contain his glee.

"What Canadian boy wouldn't do it [buy an NHL team] if he could?" he said at the time.

But that enthusiasm soon gave way to frustration. Sources say Mr. Balsillie and his lawyers "tried everything to get consent."

With the deal set to become final on Dec. 12, they were apparently "cajoling," even "begging" the league to act in "good faith" and provide a timely response.

Finally, on Dec. 5, Mr. Balsillie was formally presented to the NHL's Board of Governors, which is comprised of representatives from the league's 30 teams.

Sources familiar with the events of the meeting in New York say Mr. Balsillie received "enormously positive feedback" and was told his bid would be essentially "rubber stamped."

With that, the Penguins' suitor expected the deal to close on schedule and waited for a draft of the NHL's consent agreement. Three days later, on Dec. 8, Mr. Balsillie received the long-awaited document by fax at his Waterloo office at around 7:00 p.m.

Attached to the league's consent agreement was a new document listing two dozen additional conditions that had to be met. Apparently, Mr. Balsillie had never seen the restrictions before.

Sources say he was livid, complaining to colleagues that he had been "sucked in" by the league and Mr. Lemieux's partners. Even so, Mr. Balsillie spent the next two days with his lawyers trying to find a solution.

On Dec. 11 -- the day before the offer was set to expire -- Gary Bettman, commissioner of the NHL, held a conference call with Mr. Balsillie and other league officials. During the conversation, Mr. Balsillie is said to have called the new last-minute conditions "crazy" and "unreasonable."

He also accused the group of reversing a decision made during intense negotiations last August with Mr. Lemieux and his partners as well as a bevy of lawyers, bankers and league officials.

At the time, it was believed Mr. Balsillie was "given very clear agreements they [issues] would not" be raised again because he had dismissed them outright.

In fact, a source at the August meeting said that Mr. Balsillie sought assurances from the league that he would be able to move the hockey club if the arena funding did not materialize and after all other viable options were exhausted.

Mr. Bettman is said to have agreed, saying, "I'll be the first to help you pack your bags."

But three months later, the NHL commissioner tried to explain the eleventh-hour conditions, including the restrictions on owning the team, were commonly sought by the league before it approved new owners.

As a result, Mr. Balsillie's negotiating team asked for a 30- day extension on their offer -- to close on Jan. 12, 2007 -- but that request is believed to have been denied by Mr. Lemieux's ownership group.

When that happened, Mr. Bettman is said to have set aside any discussions about the controversial clauses until after the Penguins sorted out the arena financing.

But that would not happen until a week after Mr. Balsillie's offer was set to expire.

With only hours left before that deadline, Mr. Balsillie is also believed to have received notice from Mr. Lemieux's camp that unless he sorted out his dispute over the controversial conditions imposed by the league, his deal to purchase the Penguins would become void.

According to sources, the Canadian businessman felt he was in an untenable position: he desperately wanted to close the deal but refused to accept the limits being imposed on his ownership.

"It was like the NHL was saying, 'write your cheque and be screwed' and the sellers were saying, 'hurry up and concede on everything or we'll cancel the deal,' " said a source close to the discussions.

In the end, Mr. Balsillie could not agree to the NHL's demands -- which were not included in his purchase agreement with the Penguins' current owners --and especially under the time constraints imposed on him by the league and Mr. Lemieux.

Sources say he put it in writing on the morning of Dec. 15 in a letter to Mr. Lemieux, saying the deal on the table was not what he "signed up for" and as a result, he had "the right to walk away from it."

HomeInMyShoes

Dec 20, 2006, 4:11 PM

^How can Lemieux be shocked that a businessman doesn't want to be tied into a losing arena battle for seven years. Frankly, good luck to the Penguins ever getting an arena and ever turning around their fortunes. Pittsburgh could be a great hockey town, but someone needs to step up from the Pittsburgh area itself because I don't see anyone outside of the area wanting those conditions.

When can we fire Bettman? Why wasn't he gone after the whole lockout fiasco was figured out?

Archiseek

Dec 20, 2006, 5:35 PM

From the Pittsburgh Sports Insider:

"Pittsburghsportsinsider.com has learned the reason billionare Jim Balsillie has backed out of a deal to buy the Penguins.

Just because billionare Jim Balsillie backed out of a deal to buy the Penguins this weekend, that doesn’t mean Balsillie won’t eventually buy the team. Pittsburghsportsinsider.com has learned why Balsillie dropped his bid to buy the Pens. We’ve been told that Balsillie was informed this week that he wouldn’t be awarded the IOC license. Being the smart businessman, Balsillie decided to withdraw his bid of $175 million with the intentions of submitting another bid for alot less money once Plan B talk is made official. Balsillie was willing to put up $175 for the team as long as it included the arena from the IOC. But he isn’t willing to spend $175 million plus contribute millions of dollars annually for the construction of an arena. From what we understand, Balsillie will put in another bid for the Pens but for a lot less than $175 million but with the understanding that he’ll also be responsible for paying some part of a new arena. Once Plan B becomes the Penguins only option to stay in Pittsburgh, the selling price on the team will no doubt come down from $175 million and that’s when Balsillie can and probably will submit a second bid. So while, he’s being written off right now, it’s Pittsburghsportsinsider.com’s guess that Jim Balsillie will once again emerge as the likely owner of the Penguins."

Archiseek

Dec 20, 2006, 5:40 PM

Penguins' casino gamble folds
Gaming board's decision means no new arena from Isle of Capri Casinos Inc.
Last Updated: Wednesday, December 20, 2006 | 12:37 PM ET
CBC Sports
The Pittsburgh Penguins' future became even more uncertain Wednesday when the Isle of Capri Casino, which had promised to build the team a new arena, was denied a slot licence.

Isle of Capri Casinos Inc. was one of several candidates that was bidding for a casino licence for a new downtown Pittsburgh slot machine parlour. The company had agreed that if it got the licence, it would build a new $290-million US arena to replace the 45-year-old Mellon Arena, the oldest arena in the NHL.

Pittsburgh Penguin owner Mario Lemieux received some bad news Wednesday when the Isle of Capri Casino was denied a slot licence.
(Andrew Rush/Associated Press) Last week, after Canadian billionaire Jim Balsillie withdrew his offer to purchase the hockey club, NHL commissioner Gary Bettman acknowledged that the Penguins' future in Pittsburgh was dependent on the granting of the Isle of Capri licence.

The Penguins say the state Gaming Control Board in Harrisburg, Penn., approved PITG Gaming Majestic Star of Detroit over Isle of Capri on Wednesday.

Forest City Enterprises was the other bidder for the slots licence.

SteelTown

Dec 20, 2006, 6:12 PM

YAY!! hehehe

okay it's bad news for Pittsburgh but good news for us lol

Watch a flood of bidders coming in now since now Pittsburgh has no strings attached.

drew

Dec 20, 2006, 7:54 PM

What is the NHL going to do if the highest bidders are from Canada? Can they further block attempts to move a team into Canada?

There is Balsillie, and also a deep pocket ownership group from Winnipeg in the hunt...

Archiseek

Dec 20, 2006, 8:02 PM

they'll block it

i think canadian investors need to call their bluff and stand up and say we'd like to buy your team and move it to blahblah ON and see what the NHL says

harls

Dec 20, 2006, 8:07 PM

There is Balsillie, and also a deep pocket ownership group from Winnipeg in the hunt...

The owner of the Dallas Mavericks too, I read somewhere..

SteelTown

Dec 20, 2006, 8:13 PM

Now that the Penguins are opened up with no strings attached they'll be loads of potential bidders making an offer. Ultimately whoever offers the highest price tag wins. A bidder no longer has to make a promise to keep it in Pittsburgh now, Isle of Capri. There is a Plan B but it can be ignored, Balsillie ignored Plan B.

Goes to show how two face Bettman is, he'll do whatever it takes to protect Pittsburgh even though the team is losing money, attendance isn't great and has an old outdated arena, but he wasn't generous to Winnipeg, Quebec City or Hartford.

drew

Dec 20, 2006, 8:16 PM

Well then, may the largest bid win. Hopefully it comes from Canada.

Gdoggy

Dec 20, 2006, 11:48 PM

They may have postponed a team moving to Canada, but there's enough teams, that in a few years there will be no where else for them to go to... Hockey is lucky to be top 7 sport in most cities down south...

flar

Dec 21, 2006, 12:40 AM

Too bad for Pittsburgh. If the team can't be moved to Canada I was hoping it would stay there. Now it'll probably end up in Kansas City.

SteelTown

Dec 21, 2006, 12:46 AM

"The decision by the Gaming Commission was terrible news for the Penguins, their fans and the NHL," Bettman said in a statement. "The future of this franchise in Pittsburgh is uncertain and the Penguins now will have to explore all other options, including possible relocation. The NHL will support the Penguins in their endeavors."

I just had to quote that.

mr.John

Dec 21, 2006, 1:35 AM

It seems to me that the NHL is paying a heavy price in the pursuit of the mighty American dollar. Check the attendance for 2006 and you'll find that there are at least 12 teams (all located in the U.S.) that are drawing under
16,000. The Waterloo Penguins is sounding less and less crazy

mersar

Dec 21, 2006, 2:27 AM

Personally I don't see another Canadian team soon... especially to ontario, but out of any of the possible places they could be moved, I'm thinking the rumor of someone else wanting to move the penguins to Portland may be more likely (Kansas City doesn't strike me as much of a hockey city, and I'd have doubts about Houston as well). Portland doesn't have any teams too close to them, and they'd be able to toss Minnesota back to one of the eastern divisions where they should be.

SteelTown

Dec 21, 2006, 5:16 PM

NHL admits Penguins may have to move

Joe O'connor, National Post
Published: Thursday, December 21, 2006

Sidney Crosby and the Pittsburgh Penguins could be coming to a town near you, for good.

The Pittsburgh franchise, up for sale and in desperate need of a new arena, suffered a possible death blow yesterday when the Pennsylvania Gaming Control Board voted unanimously to award the city's only slot-machine licence to Don Barden and PITG Gaming Majestic Star.

"The decision by the Gaming commission was terrible news for the Penguins, their fans and the NHL," commissioner Gary Bettman said in a statement. "The future of this franchise in Pittsburgh is uncertain and the Penguins now will have to explore all other options, including possible relocation."

Mario Lemieux and the rest of Pittsburgh's embattled ownership group had been counting on the Isle of Capri--a gaming company committed to building a new US$290-milllion arena for the team--landing the slots licence.

Mr. Barden's winning proposal now calls for the construction of a US$450-million, 400,000 square-foot casino on the banks of the Ohio River. The Detroit businessman has also pledged US$7.5-million a year over 30 years to help fund a new arena.

But by then Crosby and company could be almost anywhere.

Mr. Bettman's mention of "relocation" comes a day after the National Post reported that Jim Balsillie's US$175-million offer to buy the Penguins was withdrawn after the NHL attempted to add two-dozen last-minute conditions to the purchase, including one that would have prevented moving the franchise until at least 2013.

The current Plan B in Pittsburgh involves an injection of public money. Local government officials have stated that the city would potentially be willing to build a new arena, but the team owners would have to agree to contribute as much as $100-million to its construction over a 30-year period.

Mr. Lemieux has been publicly critical of this scenario. He has tried for several years without success to get civic leaders to make a firm financial commitment to a new building.

Penguins chief executive Ken Sawyer, like Mr. Bettman, struck a gloomy chord yesterday.

And one of those options might be Jim Balsillie. The Black Berry king told the Post on Tuesday a five-minute phone call between himself, the NHL, and Mr. Lemieux could be enough to put his offer back in play.

Yesterday, Mr. Balsillie had kind words for Mr. Lemieux, who he described as "an icon and a decent person." He said the hockey legend has provided great service to the Penguins and their fans for seven years as an owner " in a difficult situation he didn't ask for. He should have been able to get his money out."

It is unknown whether, after watching Balsillie step away from the table once already, Lemieux, the league, and the 29 other NHL owners would welcome the Canadian back.

"I am not going to speculate," a league source said. "I don't know if he's burned bridges."

SteelTown

Dec 21, 2006, 6:15 PM

The floodgate is now officially open....

Lemieux to investigate moving Penguins

TSN - The Sports Network

12/21/2006

PITTSBURGH (CP) - The Pittsburgh Penguins may be on the move.

Owner Mario Lemieux says the team is off the market and he will investigate relocating the Penguins outside Pennsylvania.

"It is time to take control of our own destiny," Lemieux said Thursday in a statement issued by the team.

Lemieux said he needs to take into consideration the long-term viability of the team and begin discussions with other cities that may be interested in an NHL franchise.

But he also said he'll continue to investigate an arena plan in Pittsburgh.

"As soon as we are no longer restricted by our agreement with Isle of Capri from negotiating an arena deal here, in the next few weeks, we will also begin discussions with local leaders about a viable Pittsburgh arena plan," he said.

The team's future in Pittsburgh is in doubt after the state Gaming Control Board denied Isle of Capri Casino a slots licence on Wednesday.

The licence was critical to the team's survival in Pittsburgh as Isle of Capri had promised to spend US$290 million to build the team an arena.

Lemieux's comments also come less than a week after a deal to sell the team to Canadian billionaire Jim Balsillie fell through.

Kansas City, Las Vegas, Houston, Portland, Hamilton and Winnipeg are among the cities hoping to lure an NHL team.

flar

Dec 21, 2006, 7:13 PM

It's looking more and more like the Penguins are moving. I still think Hamilton and Winnipeg are out of the running, first because of Bettman, second because one arena's too old and the other's too small, and third, because of the other options:

Kansas City, 1.95 million, has arena, had the NHL before and failed (Scouts), weak media, just a few hours down the road from larger St. Louis (horrible attendance). By the NHL's logic (the same people that put a team in Raleigh, NC) they should get a team.

Houston: 5 million+, largest city without a team, has arena, big media, in the sunbelt (more NHL logic). Do they care about sports in Houston? Still a better choice than KC.

Las Vegas: 1.7 million plus tourists. LV is exploding with development, but there's also a lot of competition for the entertainment dollar there. Might be hard to build team loyalty if the rink if half full of Canadian tourists and the rest of the city doesn't care. Would be more gimmicky than the Mighty Ducks of Anaheim.

Portland: 2 million, has arena, I don't know much about this city, maybe it's not really on the media radar, and Bettman et al are lusting after media deals.

Smron

Dec 21, 2006, 7:14 PM

Other than Hamilton and Winnipeg, the only American city on that list that I would support having a team is Portland.

Edit - Interestingly, the TSN article and CBC article have different ideas of which cities are trying to lure an NHL team. CBC's list does not have Hamilton and Winnipeg on it.

http://www.cbc.ca/sports/hockey/story/2006/12/21/penguins-lemieux.html

Mister F

Dec 21, 2006, 7:47 PM

Another plus of having a team in Hamilton is it would give Leafs management some incentive to be more competitive. The rivalry would make the Flames and Oilers look like best friends!

SteelTown

Dec 21, 2006, 8:57 PM

That's the part I don't understand. Having a team in Hamilton wouldn't hurt the Sabres it could actually help the Sabres. Rivalry between Hamilton, Toronto and Buffalo would be fantastic.

Dalreg

Dec 21, 2006, 10:27 PM

So if Mario applies to move the team to Canada, will the NHL let him?

As for US cities there are quite a few to choose from

Houston
Portland
Seattle
Kansas City
Oklahoma City
San Antonio
Milwaukee
Indianapolis
Cleveland
Memphis
Salt Lake City
Las Vegas
etc.
So Hamilton, Winnipeg or Quebec City would have to offer a sweet incentive to lure the Pens.

SteelTown

Dec 21, 2006, 10:57 PM

It would be really stupid if the NHL relocated it to Kansas City, it lost a team, Scouts, and it failed with 3 other neighbours Denver, Minneapolis and Atlanta.

cornholio

Dec 21, 2006, 10:59 PM

Hamilton will not get a team because it would nearly imposibel for them to pay the amount that both Toronto and Buffalo would demand for them infringing on their teritory.
Winipeg would have the best shot in Canada but it wont get a team because its just to small of a market.

Houston unfortunetly is a strong posibility if someone is comes up with the money to move them there and build a arena since its one of the bigest markets in north america.
Portland would be by far the best choice in america since its (from what i hear) already some what of a hockey city(american standards). It also has a decent market and the ex Seattle owner of the Canucks is availabel though Seatle is out of the question because of teritorial rights with Vancouver.
Kansas city would be a horibel decision but its deffenitly a front runer, though i dont know why.
Las Vegas another front runer doesnt have a major sports team and is a decent sized market which is growing quick. Though im not sure how sucesful hockey would be but I do think its posibel that it could take of being the only major sport. So I guess that would be a alright choice, though the one reason that no major sports league want to venture to vegas from what i hear is because of its reputation.

Waterlooson

Dec 21, 2006, 11:03 PM

Hamilton will not get a team because it would nearly imposibel for them to pay the amount that both Toronto and Buffalo would demand for them infringing on their teritory.

Those demands may well be illegal or unenforceable.

SteelTown

Dec 21, 2006, 11:04 PM

Waterlooson

Dec 21, 2006, 11:09 PM

^ Two words.....Competition Act.

When Ron Joyce wanted a team to Hamilton he didn't have the Competition Act. Now since the Act was brought in since 1990 a bidder can use it to not pay anything to Toronto or Buffalo.

It would be particularly asinine to have to pay Buffalo for the right to put a team in Hamilton.... that's another country for C. sakes.

Perhaps the Government of Canada should take legal action against the NHL for restraint of trade by blocking Balsillie's wishes to move a team there?

cornholio

Dec 21, 2006, 11:31 PM

It would be particularly asinine to have to pay Buffalo for the right to put a team in Hamilton.... that's another country for C. sakes.

Perhaps the Government of Canada should take legal action against the NHL for restraint of trade by blocking Balsillie's wishes to move a team there?

Lets make this simple...when someone buys in to to the nhl they agree to a big lengthy contract that states what they and what they cant do, just like a McDonalds franchise or a Tim Hortons Franchise. If a NBA league team or a NFL league team or a hockey team from any other league that is run by different managment wants to move to Hamilton or Toronto or Buffalo then they have every right to do so and no one can say anything....but a NHL team is a different story because Toronto and Buffalo both bought their NHL teams but not just their NHL teams but the rights to show their NHL games in their selected teritories, and no other NHL team can move or show their games within them unless they come to a seperate agreement with the others about compensation for lost revenue and there is nothing anyone can do. Just like a McDonalds franchise sells McDonald burgers in a location that is pre aproved by McDonalds, if there is another franchise in the area before them then they have to come to agreement about fair compensation or els McDonalds will refuse to grant the McDonalds franchise and if they dont then they would be breaching a contract with the other franchise and they would get sued big time and loose(which obviously wouldent hapen). Just like Hamilton would have to pay compensation to Toronto or Buffalo or els they would not be able to buy a NHL franchise or operate under or within the NHL, if Bsal(?) buys the team he too will be required to sign a contract with the NHL which will mean there will be clear rules he will have to folow. This as you might have guesed is perfectly within the law, so no there is nothing that Canada can do. funy.

Wooster

Dec 21, 2006, 11:54 PM

If Metro New York and LA can have two teams, why can't Toronto-Hamilton. These territory rules should be illegal. Why should anyone get geographic monopoly in any business?

with this arena though. KC must be the front runner. stunning. I've been in Copps, what a shithole. It would basically have to be rebuilt.

http://www.sprintcenter.com/images/gallery1-2.jpg

vid

Dec 22, 2006, 12:22 AM

==

Looks nice.

Waterlooson

Dec 22, 2006, 12:51 AM

This as you might have guesed is perfectly within the law, so no there is nothing that Canada can do. funy.

How do you know? Are you a lawyer? Canada (through Parliament and the courts) has all the say about what is legal and illegal in this country not the NHL. If the NHL can't follow our rules, then maybe Bettman should be shackled up in chains and thrown in prison. ;)

Toronto would have had a better argument for restricting Hamilton 30 years ago when the population of the Golden Horseshoe was perhaps half of what it is now, and Buffalo? Give me a break!

Waterlooson

Dec 22, 2006, 1:04 AM

These territory rules should be illegal. Why should anyone get geographic monopoly in any business?

There are legitimate reasons in some cases. Let's say you sold your architecture business (pretend you have one) in Red Deer for millions of dollars. The reason why is was worth so much was because you and your firm had a fantastic reputation. In the contract you agreed not to open another architectural firm within 100 km to compete with the new owners. This is perfectly reasonable and I believe it would be enforceable, but if the contract said you couldn't practice architecture anywhere in Canada, it would likely be deemed illegal and unenforceable.

I agree that Hamilton should be able to have a team without paying a cent to Toronto or Buffalo.

Dalreg

Dec 22, 2006, 2:42 AM

It would be really stupid if the NHL relocated it to Kansas City, it lost a team, Scouts, and it failed with 3 other neighbours Denver, Minneapolis and Atlanta.

All three of these cities got a second chance so why couldn't Kansas City?

If you can't get a second chance lots of cities would be excluded including Hamilton. Back in the early years of the NHL Hamilton had a team and lost it, does that eliminate Hamilton?

SteelTown

Dec 22, 2006, 2:52 AM

Thankfully Hamilton isn't located in a region where NASCAR is almost 10 times more popular than Hockey.

I was trying to point out that it would be stupid for the NHL to give Kansas City another chance when like you already said three other neighbouring cities failed more than once with the NHL. They all failed because of miserable ratings and attendance. Maybe the NHL ought to rethink their strategy.

At least with the Hamilton Tigers it died with great attendance, there was talks to build a bigger arena to fit in more fans. But September 22, 1922 the NHL league revoked the team and off the team went to New York.

Dalreg

Dec 22, 2006, 3:13 AM

Personally I think 30 years ago in Kansas City things were a lot different than today in Kansas City. A team would do as well there as any other city. A brand new building a Metro population in the 2 million range and nothing to compete against it. The NFL as 8 home games a year and is over by Jan. Baseball doesn't start till the end of March/ beginning of April, so all they have is NASCAR.

If the team were to move and didn't come to Canada I would vote for Portland.

SteelTown

Dec 22, 2006, 3:18 AM

If the team can't relocate to Canada I would support Portland.

Could Penguins relocate to Kansas City?
By Randy Covitz
McClatchy Newspapers

KANSAS CITY, Mo. - Now that the Pittsburgh Penguins are officially looking for a new home, Boots Del Biaggio III wants Kansas City to show it can support an NHL franchise.

Penguins owner Mario Lemieux announced Thursday that he was taking the team off the market while he explores relocation options in the aftermath of a state gaming board's rejection of a casino's offer to build a $290 million arena for the club.

Del Biaggio, who has a contract to own any NHL team that operates in the Sprint Center, plans to be in Kansas City after the first of the year to launch a drive for season-ticket deposits and solicit corporate support as the first steps in convincing his close friend Lemieux to move the club to the $276 million arena that is scheduled to open in October.

"It's exciting news that Mario made that statement," said Del Biaggio, a San Jose-based businessman and limited partner in the NHL's San Jose Sharks. "It means the Kansas City market and other markets are now an option, where before they weren't.

"This is now going to be a beauty contest with other cities that want a team. Now, more than ever, it's important that Kansas City can show the kind of support an NHL team needs."

Besides Kansas City, other markets that may be interested in the Penguins include Houston; Seattle; Las Vegas; Portland, Ore.; Winnipeg, Manitoba; and Hamilton, Ontario. And the Penguins haven't given up on striking a deal with the city and state on a new arena to replace antiquated Mellon Arena, where the club's lease expires at the end of the season.

Only The Lonely..

Dec 22, 2006, 6:41 AM

As far as American cities go, I could see the NHL coming to Seattle before any of those other places. Kansas City is football country.

flar

Dec 22, 2006, 6:53 AM

Bettman, Balsillie discussed Hamilton NHL team

PAUL WALDIE

Globe and Mail Update

Canadian billionaire Jim Balsillie approached the National Hockey League about locating a franchise in Hamilton last March, but was told he would have to build a new arena, according to several sources.

Balsillie and a team of bankers met with NHL commissioner Gary Bettman in New York to discuss a possible franchise in the Ontario city. At the time, sources say, Balsillie planned to run an NHL club out of Copps Coliseum.

According to several people familiar with the meeting, Bettman said the league would have to explore the idea, but he added that the NHL did not want to "pile franchises on top of each other." Bettman also said the league would not even consider putting a team in the Copps arena, which seats about 17,000. Instead, Balsillie would have to build a new arena.

When Balsillie put in an offer to buy the Pittsburgh Penguins a few months later, league officials asked him whether he planned to move the team to Hamilton. Sources say Balsillie had dropped the idea by then and told Bettman he had no plans to pull the Penguins out of Pittsburgh.

Sources also say Balsillie has no plans to build an arena in the Kitchener-Waterloo area. Balsillie co-runs Research In Motion Ltd., based in Waterloo, Ont.

Balsillie withdrew his $175-million (all figures U.S.) offer for the Penguins last week, citing last-minute conditions imposed by the league restricting his ability to control the club. Bill Daly, the league's deputy commissioner, rejected that characterization and said the conditions "were all things that had been discussed with Mr. Balsillie and his representatives repeatedly throughout the process."

Complicating matters for the Penguins was a decision this week by a Pennsylvania state gaming agency that rejected an application for a slot machine licence from a company called Isle of Capri. The company had promised to build a new arena for the Penguins if it won the licence. The club's lease at its current venue, the Mellon Arena, will expire next summer. With Isle of Capri's application gone, state officials said they are ready to pursue "Plan B," which involves the government and the Penguins financing construction of a new building.

The club's owners, who include Mario Lemieux, said Thursday that Balsillie's withdrawal and the gaming commission decision "have convinced us that it is time to take control of our own destiny.

"Accordingly, starting Thursday, the team is off the market, and we will begin to explore relocation options in cities outside Pennsylvania," Lemieux said in a statement.

Balsillie could not be reached Thursday, but he has said he is still interested in making another bid for the team and working on Plan B. Sources say the league is prepared to deal with Balsillie again and that he is trying to mend fences. But the current owners may not be as eager. Lemieux said this week he was "shocked and offended" by Balsillie's withdrawal.

http://www.globesports.com/servlet/story/RTGAM.20061221.wsptwaldie21/GSStory/GlobeSportsHockey/home

SteelTown

Dec 22, 2006, 1:22 PM

So basically with that report he's only interested in Hamilton and no other Ontario city.

But hey if Balsillie wants to blow Copps down and build another one, than go for it. Just do whatever to get a team here. Hamilton had an agreement with Balsillie that it would hand over Copps to him.

Gdoggy

Dec 22, 2006, 1:29 PM

FYI

Balsillie has bought a tract of land off the 401 in K-W located just over 50 miles from Toronto...

you can read into that what you may...

Waterlooson

Dec 22, 2006, 1:46 PM

RIM just announced blow out earnings and higher than expected revenues (last night after the market closed). After market trading boosted the value of RIM stock by about 6%. I estimate that this will increase Balsillie's worth by around $100 million - in just one day.

SteelTown

Dec 22, 2006, 2:21 PM

Imagine what an arena Balsillie would build. He's loaded rich and very techno savvy.

BlackRedGold

Dec 22, 2006, 3:23 PM

Bettman also said the league would not even consider putting a team in the Copps arena, which seats about 17,000. Instead, Balsillie would have to build a new arena.

I hope people in Winnipeg don't think that the 15,000 MTS Center is an acceptable NHL venue after a statement like this.

Forget it Winnipeg, you're not getting the Jets back unless you build an NHL sized rink.

Taller Better

Dec 22, 2006, 3:48 PM

Berklon

Dec 22, 2006, 4:08 PM

According to info at the Copps website, the arena can hold 17,500 for hockey... so if that's not enough, would renovations help?

I know there's talk that they can renovate and add many luxury boxes, but can they also increase seating capacity?

The thought of building a new arena to replace one that's only 20 years old and (in my opinion) underused seems a little drastic.

If renovations will be done to the Copps, I hope they do something about the exterior look. I didn't have a problem with it's look 20 years ago, but today the exterior just looks like oversided house-siding slapped around the place. It looks so bland and lacks any character.

Dalreg

Dec 22, 2006, 6:35 PM

Jim burnt his bridges with the Penguins. What are the odds of Mario even taking a phone call from him now? He had an agreement and at the last minute pulls out, now he might want to come back to the table?

If I'm Mario one of two things happens, 1 tell him to take a flying leap or 2 soak him for a lot more money. Say $250 million.

SteelTown

Dec 22, 2006, 6:52 PM

After casino setback, Lemieux open to moving Penguins
Owner says he'll retain team, discuss Plan B, but consider other cities; Balsillie makes new purchase overture
Friday, December 22, 2006

By Dave Molinari, Pittsburgh Post-Gazette

Mario Lemieux says the Penguins aren't for sale anymore, but he isn't done shopping them around.

Mr. Lemieux said yesterday that he and his partners plan to retain control of the franchise, but will entertain offers from any city interested in serving as its home.

He added that the team is willing to discuss any "Plan B" proposal state and local elected officials formulate to finance an arena, with the intent of keeping the franchise here.

Meanwhile, after withdrawing his bid to buy the Penguins last Friday, Canadian billionaire Jim Balsillie yesterday reached out to the team in an attempt to get the sale back on track.

In a letter sent to Mr. Lemieux and CEO Ken Sawyer, with copies to Allegheny County Chief Executive Dan Onorato and Pittsburgh Mayor Luke Ravenstahl, Mr. Balsillie apologized for any offense he might have caused and said he has "a team ready to immediately start negotiating Plan B" to get funding for a new arena.

Mr. Balsillie praised Mr. Lemieux as "a hero to the people of Pittsburgh" and said selling the team to an out-of-town interest would be "a tragedy."

Mr. Lemieux's announcement came a day after the state Gaming Control Board rejected a slots-license bid from Isle of Capri, which had pledged $290 million for a new arena if it was awarded that license.

"Recent developments, including yesterday's decision by the PGCB, and the recent termination of the purchase agreement by Jim Balsillie, have convinced us that it is time to take control of our own destiny," Mr. Lemieux said in a statement.

"Accordingly, starting today, the team is off the market, and we will begin to explore relocation options in cities outside Pennsylvania. After seven years of trying to work out a new arena deal exclusively in Pittsburgh, we need to take into consideration the long-term viability of the team and begin discussions with other cities that may be interested in NHL teams.

"As soon as we are no longer restricted by our agreement with Isle of Capri from negotiating an arena deal here, in the next few weeks, we will also begin discussions with local leaders about a viable Pittsburgh arena plan."

The Penguins' relationship with Isle of Capri extends through the 30-day period during which the Gaming Control Board's slots-license decisions can be appealed.

There is no indication Isle of Capri is considering an appeal of the decision that awarded the license to PTIG Gaming.

Penguins officials declined to elaborate on Mr. Lemieux's statement, although it left several questions unanswered. It is not clear, for example, when he plans to begin entertaining offers from other cities, or whether he plans to aggressively seek those proposals or wait for interested parties to approach him.

NHL officials would not discuss Mr. Lemieux's announcement, which reflected the frustration that has been building since he got the franchise out of bankruptcy and was assured by elected officials that they would investigate methods of financing a new arena.

"I just hope that Mario doesn't hold his frustration of the past seven years against myself, Dan Onorato and the Penguins fans," Mr. Ravenstahl said.

Several cities have expressed varying degrees of interest in securing an NHL franchise.

Whether Mr. Lemieux actually will have time to engage in serious discussions with all, or even most, of those places is conjecture, because settling on a base of operations for the team is not an open-ended process. Although no formal deadline is in place, several factors dictate that a decision be reached by late winter or early spring.

The NHL, for example, must know where the team will be based so it can put together its schedule for the 2007-08 season, and the front office needs time to develop and implement things like marketing plans, as well as to sell season tickets and arrange corporate sponsorships.

Even after Mr. Lemieux announced that the team was off the market, Mr. Balsillie, who called off an agreement to buy the team last week after Mr. Bettman imposed some 11th-hour conditions -- including one that would have compelled him to keep the team in Pittsburgh, regardless of the circumstances -- reiterated his interest in buying it.

"We've fully studied the situation and are prepared to complete the purchase and immediately commence good faith 'Plan B' negotiations with the government officials to keep the team in Pittsburgh," he said in an e-mail yesterday. "This is an urgent situation, and we support an urgent plan of action."

In his letter, Mr. Balsillie referred to NHL consent agreement and asked Mr. Lemieux to "go arm and arm with me to the commissioner [Mr. Bettman of the NHL] and make one last effort to get our deal done."

Mr. Balsillie, of Waterloo, Ontario, is chairman and co-CEO of Research in Motion, which makes the popular wireless BlackBerry devices. He signed a purchase agreement in October to buy the Penguins for about $175 million.

In a statement released Monday in conjunction with a news conference held by Mr. Lemieux, the team owner said the Penguins were "shocked and offended" by Mr. Balsillie's late withdrawal.

flatlander

Dec 22, 2006, 7:58 PM

KANSAS CITY, Mo. - Now that the Pittsburgh Penguins are officially looking for a new home, Boots Del Biaggio III wants Kansas City to show it can support an NHL franchise.

It'll be a cold day in hell before i allow anyone named "Boots" to be associated with anything hockey.

Greco Roman

Dec 22, 2006, 8:29 PM

I hope people in Winnipeg don't think that the 15,000 MTS Center is an acceptable NHL venue after a statement like this.

Forget it Winnipeg, you're not getting the Jets back unless you build an NHL sized rink.

And I hope you get an education, a clue and a life. :koko:

The hatred for Winnipeg portrayed by some of you people will never cease to amaze me !

raisethehammer

Dec 22, 2006, 8:33 PM

Gary Bettman is an idiot...I hope the league folds on his watch. go back to watching basketball you nerdy moron.

trueviking

Dec 22, 2006, 8:54 PM

I hope people in Winnipeg don't think that the 15,000 MTS Center is an acceptable NHL venue after a statement like this.

Forget it Winnipeg, you're not getting the Jets back unless you build an NHL sized rink.

i dont think he was refereing to the number of seats as the reason copps needs to be upgraded.

ibz

Dec 22, 2006, 9:37 PM

Cool your boosters, Pens are staying south
Try as they might, Winnipeg's hard-lobbying fans will never lure an NHL club

Dan Barnes
The Edmonton Journal

Friday, December 22, 2006

Even the most optimistic fan in Winnipeg must admit the game is over.

The Jets took off for Phoenix in 1996, the Nordiques slithered out of Quebec City for Denver in 1995, and the excruciating two-pronged exodus will not be offset by a Penguin migration.

The National Hockey League is not coming back to Winnipeg. Not with the Pens. Not with an expansion team. Not ever.

It's a shame. And it's a reality being faced, finally, by Winnipeg's single biggest proponent of the campaign to repatriate the Jets, Darren Ford.

"It has become clear that the NHL will do everything in its power to retain U.S. franchises or, at the very least, steer them towards other U.S. markets for relocation," Ford wrote Wednesday on his altruistic website, jetsowner.com.

Granted, that thought should have smacked him upside the head years ago, but the man was blinded by his devotion to the cause, so we ought to cut him a

little slack, particularly since he was smarting from news out of Pittsburgh.

Canadian Jim Balsillie had backed away from an agreement to buy the Pens, a defensive position he assumed once the NHL insisted on contract

language that ensured he keep the team in Pittsburgh with or without a new rink. Balsillie wanted the freedom to move the team to Canada, perhaps Kitchener-

Waterloo, if it couldn't make money in the dilapidated Mellon Arena.

"What I want to know, as rhetorical as it may be, is where this kind of clause was for Winnipeg?" Ford wrote.

"Where was the NHL saying that any new owner in 1995 would have to keep the team in Winnipeg? This country, and especially Winnipeg, should be outraged at the amount of backing the NHL is

giving an American city, and how clearly it is sending the message that it wants to continue this hopeless dream of making hockey thrive down south."

Lumping Pittsburgh into the "hopeless dream" category isn't wise or accurate, but again, we'll excuse the hyperbole.

The Pens play to good crowds, 92 per cent of capacity last year, and the numbers promise to grow much larger and more stable after Sidney Crosby leads them back to the playoffs. Hockey works just fine in Pittsburgh and will thrive in a new rink.

Admittedly, the franchise is in a state of flux today and could be in another state all together, like Missouri, by summer's end.

But I doubt it.

Owner Mario Lemieux claims the team is off the market and is threatening relocation, a disingenuous strategy that has already received the tacit approval of NHL Commissioner Gary Bettman. This means they both have a hand on the gun pointed at the taxpayers and politicians of Pittsburgh and Pennsylvania.

It's the oldest dodge in the sports business and it works almost every time. Give the Penguins a new cage or watch them fly. Already the mayor of Pittsburgh and a high-ranking county official have pledged support, both political and

financial, for a new rink under the so-called Plan B option. The only snag there is the fact the Pens are required to ante up as well. Thus the relocation threat. Give the Penguins a new cage, for free, or watch them fly.

So the Pens will probably get their new $300-million US barn, or a new owner, or both.

There are businessmen in Hartford, Columbus and New York ready to talk. There is Mark Cuban, the Pennsylvania ex-pat with money and National Basketball Association ties. There is a Lemieux associate who owns the lease on a new rink in Kansas City, ready to drop the puck. There is Balsillie, who wants back into the fray. And if they can't get it done, Portland and Houston are on the horizon.

Winnipeg is not an option, at least in the minds of those NHL owners and officials who see no point in casting their gaze past the 49th parallel when so many rich American TV markets await.

"The NHL cringes at the thought of the Atlanta Thrashers having to play the (Kitchener-Waterloo) Kodiaks or the Winnipeg Jets, destroying the ageless struggle to make people love hockey in non-traditional markets," Ford continued. "Never mind that we have rabid fans, no other sport to compete with hockey's market share and sold-out buildings night after night.

"We just aren't in the U.S., where many buildings remain at least half empty, the sport is considered niche and there are half a dozen sports or more that eat into the sports-market share, leaving hockey somewhere between Ultimate Fighting Challenge and the Seniors Bowling Tour."

Wow. Ford has been, without doubt, a fount of unbridled and unfounded optimism for years. For him to admit the obvious now is to know that resignation has settled upon all Winnipeggers. They loved their team. They showed up in droves to an outdated building and had the rug pulled out from under them.

The NHL let the Jets fly south 10 years ago. They are not coming back as Penguins.

dbarnes@thejournal.canwest.com