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FSG Reassures Penguins Employees, ‘Multiple Groups’ Interested in Minority Investment

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PPG Paints Arena Pittsburgh, PA (Photo- Owen Krepps/National Hockey Now)

The swirling rumors and reports of Mario Lemieux’s interest in re-acquiring the Pittsburgh Penguins have taken a life of their own. The speculation launched Wednesday shortly after the club introduced new head coach Dan Muse could not be tamed by a statement from owner Fenway Sports Group.

The initial report by TSN’s Pierre LeBrun stated that former owners Lemieux, Ron Burkle, and former team president David Morehouse were interested in establishing ownership. Pittsburgh Hockey Now was able to confirm part of the report, but also acknowledges FSG’s statement denying the team was available.

“FSG is currently engaged in a process to explore a potential minority investment in the Pittsburgh Penguins,” wrote the ownership on Wednesday. “The focus is on identifying a small, passive partner, and that is the current framework under discussion with potential investors.”

However, the firestorm of speculation and interest in the story has continued. Thursday, FSG sought to quell internal unease over the situation.

Pittsburgh Hockey Now has learned that ownership communicated with upper management and emailed all staff regarding the reports on Thursday. In the email, obtained by PHN, Penguins alternate governor and FSG senior advisor Teddy Werner sought to reassure employees and affirmed the capital group is looking for “minority” investors, and by inference that the team is not for sale.

Werner told staff that the ongoing process of finding limited partner capital has generated strong interest from “multiple groups.”

The general tone of the email was cautionary, and an attempt to soothe any tensions while warning that leaks and public information are a part of the process when seeking LP capital. Warner also cautioned that some of the information coming out could be inaccurate, though he did not specifically state the initial report by LeBrun or subsequent confirmations, including by PHN, were incorrect.

FSG completed the purchase of the Penguins in late 2021 for a reported $900 million. That same year, the Seattle Kraken’s expansion fee was $650 million. However, expansion fees for future clubs will be in the $1.7 to $2.5 billion range, according to NHL commissioner Gary Bettman, who spoke this week at the Stanley Cup Final.

As of 2024, valuations by Forbes Magazine placed the value of the Penguins at $1.75 billion.

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