Hockey fans are obviously aware of the plight of the Pittsburgh Penguins. For those not aware the quick version (feel free to scroll past the next three paragraphs if you're already familiar):
Team plays in a dilapidated old arena, but receives great fan support, excellent TV ratings and has a young nucleus that most likely will lead to a Stanley Cup or two (or maybe three) in the next few years. City/County say they have no $ for new arena for last 7 years, then the state passes legislation to start slots parlors/casinos. Penguins owner, Mario Lemieux, Hall of Fame hockey player, two-time Stanley Cup winner, multiple MVP, cancer survivor and all-around OK guy, then partners with a casino (Isle of Capri, known as IOC) company. If IOC wins Pittsburgh's lone slots license, they will pay for the arena (yes, including the urinals.)
IOC's partnering with the Penguins forces the politicians to, in turn, force the other two casino companies vying for Pittsburgh's slots license to ante up and contribute $7.5 mill over 30 years to a new arena, if either of them win. Of course, being that we live in Pennsylvania and our politicians and government couldn't possibly accept a free arena, the benevolent idiots on the State Gaming Board choose one of these companies - Majestic Star, owned by Don Barden - for the slots license.
The Penguins ownership then goes to Kansas City, which has almost finished a sparkling brand-new arena. They're offered a lease for free and the opportunity to invest in a 50% stake in the new arena. Meanwhile, our politicians realize, like most of the characters on Arrested Development at one time or another, that they've made a terrible mistake, and begin to negotiate a deal to build a new arena and keep the Pens in town. Everything seemed to be going well, until, at least reports say this, the aforementioned Mr. Barden decided to stick his nose in and try to get development rights around the current arena site as well as parking. Our fearless leader, Gov. Rendell, also started shooting his mouth off about how this deal is the best deal any PA team has ever gotten and that the Pens want $10 mill to pay off IOC since they didn't get the license (probably a poison pill to keep the Pens from negotiating before the license was awarded.) Too bad Kansas City isn't in PA. Mario Lemieux then states they're disappointed in the current deal and will examine all their options, including relocation - this week's candidate is Houston.
The issues appear to be the following:
1. The Pens $10 million payment to IOC. They want some relief from the state on this.
2. The state's insistence that Barden get the bulk of the development and parking revenue from the current arena site.
Notice I didn't say anything about an arena? Ok. Good.
My strongly held belief is that the arena deal itself is near-complete. The problems revolve around who gets the revenue from developing the old Mellon Arena site. If this is the case, it should come down to a simple negotiation between Barden and the Pens ownership. Without the Pens, a new arena does not get built. Without a new arena, Barden doesn't get to redevelop the old arena site as he promised. The solution is simple. Barden either has to put up more money for the arena, meaning the Pens put up less OR Barden has to cave to the Pens demands for revenue from the old arena site and parking revenue. The politicians and SEA need to step away from the situation and allow this negotiation to happen.
A lot of people have a lot to lose if this falls through and the team leaves town. Here's my rundown:
1. Barden - If he breaks his promise to redevelop the Hill, he will lose credibility among Hill District residents and the region-at-large, not to mention the backlash that will surely hurt his business if the Pens leave town.
2. Pittsburgh Mayor Luke Ravenstahl - This poor kid's political career will be toast before he's 28.
3. County Executive Dan Onorato - Speculation says he plans to run for governor in 2010. If this is the case, the western half of the state (his supposed home base) will be pretty unhappy if the relocated Pens have brought Kansas City or Houston a couple Stanley Cups by then. Hell, he may have trouble just being re-elected to his current job.
4. Governor Ed Rendell - Yeah. Ed can't run again. For governor anyway. I believe if he doesn't get on the presidential ticket next year, he might want to run for Senate. (Let's face facts: Arlen Spector isn't getting any younger.) I believe this is why he's trying so hard to keep the team here. Plus if people don't go to Barden's casino, the state's take goes down, which means it will be harder to lower property taxes (the whole point of the slots), which will hurt the biggest proponent of slots casinos: Ed Rendell.
5. Sports & Exhibition Authority - Yeah. These guys want to be stuck with an arena that's falling apart with no anchor tenant. I doubt the AHL would ice a team there if the Pens leave.
So here we are. I didn't even mention the weaknesses inherent in moving to team to either Kansas City or Houston. Mainly that negotiations to sell the team would be with one buyer in either city, killing any leverage for the current ownership. And I highly doubt there'll be a bidding war at this point or it would've started by now. Plus I doubt Les Alexander (owner of the Houston Rockets) and Boots DelBiaggio (the only guy authorized to own a NHL team in KC) are dumb enough to get into one.
Lemieux will go to Houston at the end of the week and check out their arena and this will put the pressure on the politicians and Barden to meet again. However by the end of next week (Groundhog Day folks), I believe a deal will be completed. I have no inside info to confirm this; just my intuition based on what I know about the situation. In the end, everyone, including Lemieux, is out to maximize revenues and cover their own behinds.
And that's why I think the Pens will stay in Pittsburgh.
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