Pittsburgh Mayor Tom Murphy and County Commissioner Bob
Cranmer "are pressuring" the groups headed by Mario Lemieux
and SMG/FSN Pittsburgh (FSNP) "to come up with a single,
strong plan to bail the Penguins out of bankruptcy and have
enough capital remaining for the team's long-term operation
in Pittsburgh," according to Barnes & McNulty of the
PITTSBURGH POST-GAZETTE. Murphy and Cranmer emphasized that
they "want a deal that is fair to the team owners, the
creditors and taxpayers," and only when such an agreement is
reached will they consider using public funding for a new
hockey arena. Murphy called SMG/FSNP's involvement in the
team's bankruptcy proceedings "an integral part of making
the deal work," and said that Lemieux's plan by itself is
"insufficient" due to its failure to "address the lease
(with SMG)" and the TV contract. However, Murphy said that
between Lemieux's plan and the SMG/FSNP plan, "all the
elements are on the table to make a deal work." Murphy
noted the fact that Lemieux's plan could include public
funds to help pay the $30M debt owed to Lemieux. Murphy:
"We all love Mario, and he's been wonderful to Pittsburgh,
but I think most people would draw the line at taking tax
money and using it to pay the salary owed to him by a
private entity" (POST-GAZETTE, 5/20). FSNP VP & GM Jayne
Adair, on the two plans: "There is less for Mario in our
plan than there is in his own plan. Part of the problem
with the Lemieux plan is that there is so much up front that
goes to Mario. ... We're all suffering from the bankruptcy.
We can't afford to put into the Lemieux group money to
payback debts that are owed to him from someone else."
Adair said there has been "conversations" between the two
sides: "There were conversations before the last couple of
days" (FSNP, 5/19). But Lemieux "rebuffed" efforts by SMG
and FSNP to join their group, issuing a statement saying,
"Under no circumstances will I consider working for SMG, Fox
or anyone else. That approach is not in the best interest
of the Penguins franchise or myself" (POST-GAZETTE, 5/20).
A WINNER: In Pittsburgh, Bill Modoono writes that the
SMG/FSNP plan "has the look of a winner. Even better, it's
being put together by the losers" (TRIBUNE-REVIEW, 5/20).
OUT-FOXED? NHL attorney Jeffrey Levitan said yesterday
at a hearing in U.S. Bankruptcy Court that FSNP "may not be
an acceptable owner of the Penguins" because of its share in
the NHL Rangers. But FSNP attorney Eric Schaffer told U.S.
Bankruptcy Judge Bernard Markovitz that the company "would
consider restructuring its proposed investment in the
Penguins to comply with NHL rules" (POST-GAZETTE, 5/20).
NHL PLAN TOO VAGUE? Penguins creditors at the hearing
"faulted" the NHL's plan to dissolve and relocate the
franchise for its "vagueness about details such as what they
would be paid if the Penguins are sold or players moved
out." But Markovitz said that "he is inclined to present"
the NHL plan to the team's 200 creditors for a vote, with
the other two plans, possibly by June 24 (AP, 5/20).
CAT IN THE BAG? When Levitan told Markovitz that the
league had held talks with several other suitors interested
in acquiring the Penguins for $85M, Markovitz replied, "You
don't have the $85 million now. You have a bag and you're
hoping to put a cat in it." Levitan said he didn't want to
reveal the name of any potential buyer because of potential
media scrutiny (PITTSBURGH POST-GAZETTE, 5/20).
