A few days ago, a report from Sportsnet’s Elliotte Friedman suggested that a new prospective owner for the Pittsburgh Penguins had emerged in the Hoffmann Family of Companies. In a subsequent report from Jason Mackey and Matt Vensel of the Pittsburgh Post-Gazette, the two allege that there’s much more smoke than previously believed.
According to the article and the multiple sources listed, the Hoffmann Family has a decisive lead on the other interested group led by Mario Lemieux, and may have already encouraged the Fenway Sports Group (FSG) to sell their entire stake in the Penguins since the Hoffmann Family is willing to pay the $1.75BB, on line with Forbes’ valuation of the franchise. There has been considerable secrecy throughout the sale process. Still, the sources listed by Mackey and Vensel believe that the Hoffmann Family has already signed a letter of intent with FSG.
It’s important to note that a letter of intent doesn’t necessarily confirm a sale. It simply allows the interested party an exclusive negotiating window and allows them a deeper look into the organization’s financials in good faith. Still, if the Hoffmann Family is seriously considering the full $1.75BB price for the Penguins, it’ll be hard for another buyer to come forward with a better offer.
Additional snapshots:
- Drawing nearer to the start of training camp and preseason, the Vancouver Canucks announced a few changes to their Hockey Operations department. In a public announcement, General Manager Patrik Allvin revealed three significant staff changes: Brian Hamilton has been promoted to Head Equipment Manager, Ian Beckenstein has been appointed as the Video Coach, and Taylor Phillips has taken on the role of Executive Assistant of Hockey Operations. In terms of outside hires, the team brought in Evan Mathias as the Assistant Video Coach.
- Recent draft pick of the Detroit Red Wings, Michal Pradel, will remain with the USHL’s Tri-City Storm for another year rather than join the WHL’s Regina Pats. According to a report from Kevin Allen of DET Hockey Now, Pradel will stay with the Storm so that he can play under the tutelage of former Red Wings Assistant Coach John Torchetti, who was named Tri-City’s new head coach this offseason. Although he spent much of the year in his native Slovakia, Pradel appeared in 14 games for the Storm last season, securing a 9-4-0 record with a .899 SV% and 2.41 GAA.
Looking more and more like Mario got hosed when he sold the team. The team has basically doubled in value since then. Some sort of analyst or consultant probably needs to get fired.
The Penguins were sold in the wake of Covid, so it would have been a distressed asset at the time. People were still wearing masks at the time and having to show your shot records everywhere like hall passes. Mario and Burkle didn’t get hosed, they just didn’t have the risk tolerance, so they sold low.
Not like Mario paid much for the team in the first place. He basically bought out of bankruptcy it with money the franchise already owed him.
So you’re saying fans not having to wear a mask is worth hundreds of millions of dollars in entity value? That’s just silly. Regardless of what he paid for the team, he clearly didn’t sell it for nearly as much as he could have.
Are you so dense as to acknowledge the impact that COVID had on the league and projected future revenues? There was a flat cap for 4 years as a result and if you don’t recognize that business valuation is based on future cash flows then I don’t know what to tell you
I’m so sorry to disappoint you