Penguins on verge of sale to Fenway Sports Group; Mario Lemieux would stay on as minority owner

Fenway Sports Group LLC, which owns the iconic Boston Red Sox and Fenway Park, is in advanced negotiations to purchase the Pittsburgh Penguins.

Sources familiar with the Penguins and Fenway Sports Group confirmed the nature of the negotiations, which were first reported by the Wall Street Journal on Tuesday afternoon.

According to both sources, under the proposed deal, which could be finalized this week, Mario Lemieux would remain a minority owner. Whether co-owner Ron Burkle will also stay on as a minority owner is unclear.

Red Sox President Sam Kennedy confirmed on Wednesday that Fenway Sports Group has been working on a deal for the professional hockey club.

Lemieux Group LP has owned the Penguins since purchasing the franchise out of bankruptcy in 1999. Lemieux, one of the greatest players in NHL history, and Burkle, a business owner from California, are the most prominent members of the group, which includes several minority investors.

The future of those investors with this proposed deal is unknown.

Senior management of the Penguins, such as CEO and president David Morehouse, is expected to remain intact following the potential purchase.

A request for comment from a Penguins spokesperson was not returned.

Via email, a Fenway Sports Group spokesperson told the Tribune-Review, “We are aware of the reports and have no comment related to the speculation.”

Any deal would have to be approved by the NHL, but that is considered a minor formality in the process.

According to a Penguins source, Fenway Sports Group targeted the Penguins and approached the Lemieux Group about a potential purchase.

Such a transaction would occur at a time when the Penguins and the NHL have struggled to maintain revenue streams as a result of the pandemic.

Last month, a sellout streak that ranged over 14 years came to an end. Morehouse cited the pandemic as the reason.

Aside from their home opening game Oct. 16, the Penguins have not sold out a game this season.

In addition to the Red Sox and Fenway Park, Fenway Sports Group owns regional broadcaster New England Sports Network (NESN), Liverpool F.C. (a soccer team that competes in England’s Premier League) and Roush Fenway Keselowski Racing (which competes in NASCAR).

Businessman and investor John Henry is the principal owner of Fenway Sports Group. Partners include NBA superstar LeBron James and Pittsburgh native Larry Lucchino, the longtime MLB executive.

This is not the first time the Lemieux Group has been approached about a purchase in the 22 years it has owned the Penguins. In June of 2005, Silicon Valley venture capitalist William “Boots” Del Biaggio III signed a letter of intent to purchase the Penguins and become the majority owner of the franchise. That proposal fell apart by August of the same year.

Then in October of 2006, Jim Balsillie, a Canadian businessman who owned Research in Motion, the company that makes Blackberry smartphones, signed a purchase agreement to buy the team. That agreement dissipated by December of the same year.

In June of 2015, Lemieux and Burkle hired Morgan Stanley to explore the possibility of a sale. In October of 2016, Morehouse said the team was no longer on the market.

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