U.S. Bankruptcy Judge Bernard Markovitz denied the
NHL's request to move up a June 24 hearing on Mario
Lemieux's refinancing plan for the Penguins, according to
Ann Belser of the PITTSBURGH POST-GAZETTE. Markovitz
instead granted the league a "faster track" for an initial
hearing on its own plan to reorganize the team's finances,
which "could involve" selling the Penguins for $85M to an
"unidentified party who would move the franchise to another
city." That hearing is scheduled for next Wednesday. NHL
Senior VP/Legal Affairs William Daly argued that waiting
until June 24 for a hearing "may be too late for a potential
buyer to make arrangements to put a hockey team on the ice
next season," but Markovitz responded, "Why didn't you file
something back in March?" The NHL "reiterated" yesterday
that its proposal to sell the team to out-of-town buyers
"represented a fallback position" should Lemieux's plan
fail. But Pittsburgh Mayor Tom Murphy "assailed the league,"
saying that while MLB "worked actively with the city to save
the Pirates, the NHL has done nothing for the Penguins."
Murphy called the NHL floating a mystery bidder "a ploy."
U.S. Bankruptcy Judge Bruce McCullough said that the NHL was
"preparing" three scenarios for the team next season -- one
with the team in Pittsburgh, one with the team on the West
Coast and another without it at all (POST-GAZETTE, 5/12).
IS ALLEN INTERESTED? The anonymous bidder has been
rumored to be Seahawks/Trail Blazers Owner Paul Allen, who
would relocate the team to Portland, but his staff "declined
comment when asked whether he was interested in the
Penguins." NHL Commissioner Gary Bettman, when asked if
Allen was the mystery bidder: "I'm not sure why you would
invoke his name. We're talking to a variety of parties
about what our alternate plan would be" (PITTSBURGH POST-
GAZETTE, 5/12). Allen told the OREGONIAN: "I don't have any
comment right now. Hockey is something we've looked at many
times. We've always said we'd be interested if it was the
right situation." Trail Blazers Dir of Corporate &
Community Affairs Melinda Gable said that "nobody has bid on
the Penguins" (Portland OREGONIAN, 5/12). The $85M bid
represents $35M more than the Lemieux group's $50M offer,
but Lemieux's attorney Chuck Greenberg noted that the
assumption of debt by Lemieux "will eventually make his bid
more attractive." Also rumored as a prospective owner is
Rockets Owner Les Alexander (ESPN.com, 5/12). The NHL's
Daly would only say, "We're fairly comfortable with who
we're dealing with" (TRIBUNE-REVIEW, 5/12). Bettman
dismissed speculation the league would like to shut down a
franchise to send a message to the Players Association on
fiscal difficulties facing some teams: "Our first preference
is to keep the team [in Pittsburgh]. But we want to put
(the mystery bid) on the same track as the Lemieux plan. We
aren't looking to send a message" (TORONTO SUN, 5/12).
STILL TALKING WITH THE CUBANS: Meanwhile, Brian Cuban,
brother of Broadcast.com co-Founder Mark Cuban, met again
with Lemieux group reps yesterday, and Greenberg said that
more meetings were scheduled (Pitt. TRIBUNE-REVIEW, 5/12).
MIXED SIGNALS: While the court hearing was going on,
the city was presenting team officials with a "Let's Go Pens
Day" declaration, while players were preparing for Game
Three of their series against the Maple Leafs. Penguins VP
Tom McMillan called the situation "unbelievable": "On one
side the city council is giving a proclamation and on
another the players are trying to win the Stanley Cup and,
in the middle, the team is fighting for its life in
bankruptcy court. ... This morning sums up our year in a
nutshell" (Rachel Alexander, WASHINGTON POST, 5/12).
REAX: In Pittsburgh, Bill Modoono writes that the
league is trying to save the Lemieux plan "by presenting one
of its own. If there's a viable alternative to Lemieux --
especially one that includes selling the team to an owner
who would move it out of town -- it will force all parties
to sit down and mediate their difference swiftly"
(Pittsburgh TRIBUNE-REVIEW, 5/12). In Toronto, Stephen
Brunt calls the Penguins' situation "messy" and
"embarrassing," and asks, "Why did the NHL let things
deteriorate to the point where all remaining options are to
some degree unpalatable?" (Toronto GLOBE & MAIL, 5/12).
