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Update on Penguins Ownership Situation...

July 29, 2006, 12:56 PM ET [ Comments]

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My wakeup call this morning, 7:30am, was courtesy of Andrew Murstein...millionaire many times over and leader of one of the groups interested in purchasing the Penguins (his group includes Dan Marino and Mark Cuban). Listen up, NHL fans because he had some interesting things to say.

First, since Sam Fingold has signed a letter of intent, nobody else can negotiate for 30 days and Fingold will try to close the deal within that window. Interestingly enough, Murstein informed me that there was a bidder higher than Fingold but the Penguins current ownership decided against that party for whatever reason. Murstein still thinks there is something fishy going on with the Fingold group...all the talk about wanting to move the club seems like an odd way to start a negotiation to him. Publically, Fingold now says he'll keep the team in Pittsburgh if they build a new rink. Murstein questions his loyalty to the city.

Murstein gave Fingold only a 50/50 chance of closing the deal, due in large part to the massive equity needed up front. He says, more often than not, having to write a $175 Million cheque can disuade a buyer very fast. His group remains interested but has reached the peak of what they are willing to pay. If the Fingold deal falls through, he expects to be next in line. His plan would be to get a new arena in place and develop sports-themed hotels and restaurants around the new rink. His profit would come from the developments around the club and rink rather than from the club itself.

Now, here's where it gets interesting. When Murstein initially inquired about owning an NHL franchise, he asked Gary Bettman about 2 clubs: Pittsburgh...and Edmonton. He was informed immediately that Edmonton would not be for sale. He loves the market in Edmonton (and had planned to keep the team where it is) because, as he says, "in niches, there are riches." Since Edmonton isn't up on the block and Pittsburgh might be sold to another buyer, Murstein was contacted by another NHL owner about the possibility of buying a franchise. He wouldn't tell me much except that he intends to sign a confidentiality agreement within the next couple days and that the team is located in an American market.

From my 20 minutes talking to this guy, a couple things are clear. He has lots of money and friends with lots of money. He also has a passion for the game and is a brilliant mind when it comes to marketing strategy. If he ever does acquire an NHL franchise, I think the league will be better for it.

***NOTE: You can hear the interview Monday night on 630 CHED Radio in Edmonton (8p-11p on Inside Sports). The interview will be archived on 630CHED.com immediately after the show.***
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