Penguins co-Owner Roger Marino "has lost millions of
dollars since joining the Penguins' ownership 15 months ago,
but should he decide to declare bankruptcy, he could also
lose the franchise," according to Dejan Kovacevic of the
PITTSBURGH POST-GAZETTE. Kovacevic reported that NHL
Commissioner Gary Bettman "is strongly opposed" to any such
move, as an owner "risks forfeiture" of a franchise that
goes through bankruptcy. Marino said Friday: "There has
been no decision to seek court protection under Chapter 11
-- yet." Kovacevic added that if the NHL were to seize the
Penguins, "it would sell the franchise to a buyer who would
keep the team in Pittsburgh and assist the team in its
recovery." The bankruptcy issue is the "main obstacle
preventing the team from settling" the ownership
differences, which "have become increasingly sharp in recent
weeks," between Marino and co-Owner Howard Baldwin, as
Baldwin "has refused to cede his half" of the team without
guarantees it would not declare bankruptcy. Baldwin: "As
long as I am co-managing director of this team, that will
not happen. That is not a solution" (POST-GAZETTE, 8/8).
THE LOW DOWN: The Penguins have reported losses of
$37.5M the past two seasons and have two pending lawsuits
against them. Much of the team's "red ink" stems from the
$33M they owe to retired C Mario Lemieux, who sued Marino
and the team two months ago. In addition, the team is also
being sued by SMG, which runs the Civic Arena, for failure
to pay a $545,000 installment on a $1M promissory note in
June. Kovacevic added that "the most obvious way for the
Penguins to escape" its SMG lease would be "a move out of
the Civic Arena," and, to that end, Marino "continues to
hold out hope that the team can become a late addition to
Plan B," the local plan that includes the construction of
new baseball and football stadiums (POST-GAZETTE, 8/8).
