Dec. 19: The Penguins announced the Hoffmann family has entered a definitive agreement to purchase a majority stake in the team from Fenway Sports Group.
Dec. 17: According to insider Frank Seravalli, the Fenway Sports Group has agreed to sell the NHL’s Pittsburgh Penguins to the Chicago-based Hoffmann Group. The sale is reportedly pending approval from the NHL’s Board of Governors. Multiple other outlets have confirmed the sale.
The Hoffmann Group, led by David Hoffmann, has been interested in purchasing the Penguins for several months. In August, it was reported that Hoffmann had emerged as a contender for a minority stake in the Penguins, competing with franchise legend Mario Lemieux, who had expressed interest in reacquiring the team. Instead of a minority piece, Hoffmann will be acquiring the whole pie.
FSG originally purchased the team in 2021 for a reported value of $900MM, and is selling it only a few years later. According to Forbes, the Penguins are the 22nd most valuable franchise in the league with an estimated value of $1.75B. TSN’s Pierre LeBrun believes that the final price will land between $1.7B and $1.8entB.
As for the new owners, there is little known about the Hoffmann Group, primarily David. Forbes projected his net worth to be around $2B, though there’s no confirmation of that. Additionally, the group’s only other venture into hockey has been their ownership of the ECHL’s Florida Everblades.
Regardless, they’re acquiring the team at an interesting time in their franchise history. Being one of the most successful teams since the turn of the century, the Penguins are nearing the end of the Sidney Crosby and Evgeni Malkin era. Without another player on the roster or in the system even close to that level of superstardom, the Hoffmann Group will be tasked with guiding the franchise through a turbulent time.
The speed of the sale is fairly status quo for FSG. Despite owning the team for only five years, they will have doubled their original investment of $900MM. In 1999, FSG purchased the MLB’s Miami Marlins for $150MM, and sold the team in 2002 for $158.5MM.
Dang, sucks no longer having cheapskate Henry owning a direct rival.
Oh, a long suffering Red Sox fan then?
“We’ve only won 4 World Series in the last 25 years, our owner is cheap…”
Recently? Yes, he’s proven he’s not going to spend to win.
Guy’s become a cheapskate recently.
I don’t know if cheapskate is the right word. It’s more like he’s a financial vampire that drains his US franchises to fund spending for Liverpool. He’s the reverse Glazer.
You obviously don’t follow the red Sox. The issue isn’t being cheap, it’s poor asset management, spending in stupid places and not spending where it counts, also piss poor fan relations and straight up lying constantly.
You mean when he signed Devers to a $330M contract? Or when he signed Crochet to a $170M contract? Or when they signed Roman Anthony to a $130-230M contract? Spending $730M on three players does not satisfy the definition of “cheap” (and yes, they were lucky to get out from under Devers, who is likely to be 300 lbs when that contract winds down)… if you want to see cheap check out the Pirates or Marlins
That’s why I said cheap isn’t the issue. You cherry picked 2 very good contracts for young players. The issue is they don’t support the young players with anyone else and they sign horrible contracts like yoshida.
LOL, Yoshida’s $18M/per contract isn’t exactly a franchise breaker, like Rendon’s was to the Angels. And they put $40M into Bregman last year and another $10+ into Chapman, who did a fantastic job supporting young players. The team plays in a good division, which has had five different winners in the last 10 years. Can’t win ’em all.
It’s not and that’s the point. They act like it is and they make numerous stupid moves that add up to significant dead money like Hicks and then they cry poor.
Shame, was hoping Mario would take control again.
@Gbear — Wouldn’t it be interesting to hear his take on owning a team today vs. when he first started?
@Mac – You and me could’ve bought the Penguins when Mario broke into the league with them. :D
@Gbear — I was hesitant to return your call back then, as my phone company was a bit lax in implementing proper Caller ID. Sorry, my bad! 😄
Don’t forget, Mario only got the team because they owed him so much $$$ in back salary that they couldn’t pay him!
Why sell now? The imminent demise of Crosby & Malkin?
Sounds like FSG bought the Penguins to make some more money off it. A 100% ROI seems like a good time to sell.
You seem new to the business realm.
@Cooperalls — @coloredpaper’s idea may not be as far-fetched as you think. If that was true, and I don’t expect FSG to ever admit it in public, then it might be seen by other groups that the NHL is ripe for “easy money”. And, potentially, overall ownership chaos. Can you imagine a league that is populated with 50% rogue ownership groups? Bettman would find out first-hand what David Andrews said about the AHL when he stepped down: “It’s like herding cats!” He wasn’t smiling when he said that, either. Even though Bettman and the other owners have all the say in who joins the league, if FSG can get in, others can too.