Mario Lemieux announced yesterday "revisions" to his
refinancing plan for the Penguins that add up to an offer of
$85M for the team, according to Ann Belser of the PITTSBURGH
POST-GAZETTE. Under the new proposal, Lemieux would
"convert" $27.5M that the Penguins owe him in his contract
into an equity stake of $20M, "forgiving" $7.5M in debt.
His previous plan "called for him to receive" a $10M stake
in the team, with the rest of his money paid to him over
time. He also proposes to raise $65M in new capital from
other investors, up from the $50M in his first plan. The
additional $15M would go to buying out SMG's lease at Civic
Arena, "although [SMG] would be retained to manage" the
arena. SMG officials said yesterday that they are "not
interested" in selling their lease at the facility "but
remain open to the idea of making adjustments to it." But
Lemieux's new proposal is still $10M less than the $95M that
the team's creditors would receive under the NHL's plan to
dissolve and relocate the franchise. NHL Senior VP/Legal
Affairs William Daly called Lemieux's plan "the only viable
basis upon which this franchise can continue in Pittsburgh."
Daly pointed out that the SMG/FSN Pittsburgh plan "was
unacceptable" to the league due to Fox's ownership stake in
the Rangers. Belser writes that Lemieux's new proposal
"reflects the results" of his meeting Monday with Penguins
co-Owner Roger Marino "that apparently thawed some of the
ill will between the two men." Lemieux agreed to drop his
$32.5M lawsuit against Marino seeking lost wages. The NHL
plan, along with SMG/FSN Pittsburgh's, will both be reviewed
Friday by Judge Bernard Markovitz during a hearing in U.S.
Bankruptcy Court (PITTSBURGH POST-GAZETTE, 5/26).
ROGER AND ME: Marino attorney Harry Manion III, on
Lemieux's new plan: "Wow. We support (Lemieux) fully." The
plan gives Lemieux a 34% stake in the team (TRIBUNE-REVIEW,
5/26). FSN Pittsburgh's Guy Junker, on the proposal: "I
think there are some real positives here. One, that Mario
and Roger Marino sat in the same room for two hours [Monday]
is a major miracle from the venom they've spit at each
other. ... And I think the fact that Mario is willing to
commit almost all of his money to equity in the team shows
the confidence he and his group have" ("Sports Beat," 5/25).
