Arena deal stalled

[Iced Tea]

Impasse declared over Penguins arena

TSN.ca Staff

3/5/2007 5:24:39 PM

The on-going negotiations between the Pittsburgh Penguins and government officials over the building of a new arena are not going as well as hoped.

The Penguins have declared an impasse and will aggressively explore moving the franchise to a new city. Kansas City is the favourite to land the Penguins as they have a brand new arena that is missing a tenant.

Penguins co-owners Mario Lemieux and Ron Burkle told Pennsylvania governor Ed Rendell, Allegheny County chief executive Dan Onorato and Pittsburgh mayor Luke Ravenstahl about their decision in a letter on Monday.

According to the Pittsburgh Post Gazette, the Penguins had agreed to pay $4 million annually in rent and capital expenses to contribute to a new area, as well as an additional $500,000 for a parking garage, but the two sides have not been able to reach an agreement. The Penguins had originally offered to pay $2.86 million annually in the offer that was presented by state and local leaders at a meeting January 4.

''Unfortunately, we still don't have a deal and are faced with mounting uncertainty that an agreement can be reached in a time frame that is realistic for our organization,'' the letter states. ''Therefore, we have no choice but to declare an impasse and to notify NHL Commissioner Gary Bettman that we will aggressively explore relocation.

''A project of this scope, with so many complex issues, can ill afford further delays that add more risk and more uncertainty. The risk has been magnified by what we perceive as a lack of collaboration from the public sector in the negotiations.

''Our good faith efforts have not produced a deal, however, and have only added more anxiety to what we thought at best was a risky proposition for us moving forward.''http://www.tsn.ca/nhl/news_story/?ID=198872&hubname=

The Steelers and Pirates both pay at lot less per year on their deals yet the government continues to play hardball with the Penguins.

As for moving to Kansas City; I think it's a big mistake, not what I would consider a strong hockey market. But then Bettman won't allow this move to happen anyways because it doesn't fit into his plan of a 50 team league with 6 Canadian teams. Unless the Penguins want to move to Bettman's hometown of Moronsville.

Mario and co. have played from a position of weakness in negotiations from the start. Even now that the team is exciting and could be back in the hunt for the cup, Mario and co. are still pussyfooting around. But it could be Bettman just won't allow them to leave Pittsburgh, something that sounds very much like what Bettman would do.

I say establish a hard deadline, if it passes, leave Pittsburgh.

[The Insider]

What are the odds this team actually moves to a hockey market?

I figure it's gotta be about, 1000-1

I mean we all know this team is going to whoever throws the most money at the NHL and it will end up in some southern state which will care for the first little while since the team is pretty good and then when the team goes south...

[Iced Tea]

What are the odds this team actually moves to a hockey market?

I figure it's gotta be about, 1000-1

I mean we all know this team is going to whoever throws the most money at the NHL and it will end up in some southern state which will care for the first little while since the team is pretty good and then when the team goes south...The business people who throw money at the NHL and then when the team sucks and the fans aren't showing up, the business people will cry about losing money.

Bettman could care less about legitimate hockey markets when someone opens up their checkbook and says they want a team in the Southern US. When asked why the NHL should go somewhere that hockey isn't played on any level, Bettman just talks about growing hockey in non traditional hockey markets. Then when things go down the crapper, Bettman blames the game for not being exciting enough because it could never be Gary's fault, he's never wrong. No, it must be a boring game because people in Alabama just can't get into hockey which is strange because it is so similar to Nascar and bass fishing. So the game should be butchered to increase viewership in areas were the only ice is in drinks. :rolleyes: :rolleyes:

Bettman needs to go before the NHL goes down the drain.

[Iced Tea]

I'm watching Prime Time Sports with Bob McCown on Sportsnet and they are discussing the Penguins moving. I just learned something I had no idea had occurred.

One of Bob's guests, David Shoalts, sports guy for the Globe and Mail, just said that when the City of Pittsburgh, Allegheny County and the State of Pennsylvania were figuring out the funding for the Pirates ballpark and the Steelers stadium, the officials came to then Penguins owner Howard Baldwin and asked if he wanted money to renovated the Igloo or make the drive for new stadiums a three way deal with the Penguins, Pirates and Steelers all getting new arena. Baldwin took the renovatioin money. :mad:

Found a good article on the entire Penguins sage, here is the relevant part to what I'm talking about:
The Pittsburgh Penguins future remains tied directly into the team getting a new arena to replace the aging Mellon Arena. Built in 1961, the Mellon Arena is the oldest facility in the NHL and lacks most of the revenue generating amenities most current NHL buildings feature. It is well worth remembering one of the biggest mistakes Howard Baldwin made when he owned the Penguins was his decision to accept $18 million in taxpayer money for renovations to the Mellon Arena in 1992.

When Baldwin made his choice, the Steelers and the Pirates where fighting for new taxpayer driven stadiums, they weren’t interested in renovations to Three Rivers Stadium, their home at the time. Baldwin was told by city officials if he accepted the offer to renovate the Mellon Arena the door to any taxpayer built arena would be closed to him. That short sighted decision has led to the Penguins uncertain future in Pittsburgh.The entire article:http://sportsbiznews.blogspot.com/search/label/Jim%20Basillie

I don't remember that many years ago. This changes my entire perspective and I no longer feel the city, county and state are a-holes. Frankly, at this point with the tax increase to pay for the Steelers and Pirates new stadiums, I can understand why the officials are reluctant to raise taxes again.

Both sides in the issue have been screwed over by Baldwin and his money grubbing ways but in the end, the Penguins need a new arena and I hope things can be worked out.

Boy I feel like a tool for blaming the officials but at the time Baldwin took the money, I wasn't watching a lot of hockey. :o

[9korona]

nice to see the pens get to stay in their home i really didn't want to see them move