How will the Penguins be different under Fenway Sports Group?

For Fenway Sports Group LLC, adding the Pittsburgh Penguins, a hockey team that takes pride in the value of its brand, would be another high-profile entity in their realm.

Led by billionaire businessman John Henry, Fenway Sports Group owns — to some degree — some of the most iconic sports franchises around the globe, including the Boston Red Sox, Liverpool F.C. and RFK Racing.

“It appealed to them very, very much,” said Ron Dick, an associate sports marketing professor at Duquesne’s Palumbo-Donahue School of Business. “You can’t get one of the ‘original six’ (NHL teams). I don’t think they’re available. If you can go to the next level, why wouldn’t you want the Penguins?”

The board of Fenway Sports Group on Friday approved a purchase of the Pittsburgh Penguins, sports business outlet Sportico reported.

The Penguins’ board formally approved the potential sale a few days ago, a source with the team told the Tribune-Review.

News of the purposed deal first emerged Wednesday. Fenway Sports Group did not respond to a request for comment Friday.

Fenway Sports Group is expected to take a controlling interest in the team while current co-owner Mario Lemieux will stay on as a minority owner. It remains to be seen whether Ron Burkle, Lemieux’s current co-owner, will stay involved with the franchise.

Lemieux and Burkle have been co-owners of the Penguins since they purchased the franchise out of bankruptcy in 1999.

The would-be purchase by Fenway Sports Group will bring an element of stability for a franchise that hasn’t always enjoyed stable footing. In their 50-plus years of existence, the Penguins have gone bankrupt twice and had a very public and very contentious battle with local lawmakers over funding for a new arena a decade and a half ago. Those disputes led to speculation of the franchise moving to a variety of cities throughout North America.

As it is, the Penguins have a lease for their current home, PPG Paints Arena, that does not expire until 2040. And the NHL has a policy that forbids new owners from moving a franchise for seven years after a purchase.

“The situation probably feels right for (current ownership) to kind of cash in their chips and take some money off the table,” said Dick, who has served in marketing capacities for the New Jersey Nets and Philadelphia 76ers of the NBA. “They have picked a very good organization to go with. John Henry is successful with the Red Sox. He’s shown that he’s going to spend money. Certainly, they’ll spend money up to the (salary) cap. And he doesn’t have a reputation for moving franchises. I know some people are concerned about that possibility, but I don’t see that happening.”

What may happen to leadership with the Penguins is up for debate. A source with the Penguins indicated senior management such as CEO David Morehouse will remain in place should the sale be completed.

But virtually everyone on the payroll likely will need to speak with new owners in order to stay with the team.

“You have to re-interview for your job,” said Dick, who also has been a consultant with the NFL’s Jacksonville Jaguars and NBA’s New York Knicks. “Some people survive, and some people don’t. That’s going to happen to every single employee with the Pittsburgh Penguins, whether you’re on the sports side … or you’re on the business side … if you’re in communications, sponsorships, sales, marketing, human resources, any of that. It’s not just the player, (general manager), coaches. It’s everybody.”

Fenway Sports Group’s presumed arrival comes in the midst of what can be described as a down time for the Penguins. The pandemic, which has impacted virtually every walk of life, has crippled revenue over the past 20 months. A sellout streak that lasted more than 14 years recently came to an end as a result of the pandemic, in the eyes of current management.

On the ice, the team has not won a playoff series in three years — which has led to limited postseason revenue — and its high-profile stars such as Sidney Crosby, Evgeni Malkin and Kris Letang are in their mid-30s.

“The change of ownership isn’t going to make Hall of Fame players any younger or any less injury-prone,” Dick said. “But the way you improve a team is drafting … trades … signing free agents. This group turned around the ‘curse’ of Babe Ruth with the Boston Red Sox (winning four World Series titles since 2004). They turned around their team in Liverpool that they purchased. And they are probably planning to do the same thing. They hope it’s with Sidney Crosby for the rest of his career, however long it is.”

Any sale would need formal approval by the NHL, but that is expected to be a formality.

Assuming a sale is finalized, what will fans be aware of should they attend a Penguins game under the Fenway Sports Group umbrella?

“You won’t notice anything,” Dick said. “You won’t notice a thing for six to 12 months. The employees will be evaluated, and they’ll be told whether you’re staying or going. When I say it’s going to be a good thing, it’s a good thing because they’re going to spend to the (salary) cap. And they’re not going to move the franchise. Long-term, five, 10, 15, 20 years, how can this be a bad thing? I don’t think you could pick a better group of owners to take over once this ownership has proven they want to move on.”