Mario Lemieux and his investors will unveil a new plan
for the Penguins today "that calls for removing broadcast
rights from" FSN Pittsburgh, "ousting" SMG as the team's
Civic Arena landlord and paying Lemieux "substantially less
money than originally proposed," according to Ann Belser of
the PITTSBURGH POST-GAZETTE. Lemieux's plan, along with the
ones submitted by the NHL and SMG/Fox, are scheduled to be
heard by U.S. Bankruptcy Judge Bernard Markovitz on
Thursday. The changes that Lemieux's group will introduce
today "reflect progress that Lemieux has made" in the
bankruptcy proceedings with the Penguins' unsecured
creditors and team co-Owner Roger Marino. The revised plan
for the team includes ending its broadcasting agreement with
FSNP and reaching an agreement with "a broadcaster not named
in the paperwork but believed" to be with PA-based Armstrong
Cable Systems. But Fox will meet with Lemieux's group today
in "one more chance to renegotiate its contract with the
team." The new plan would also rule out a new lease with
SMG, and calls for SMG "to return control of the arena to
the Penguins when any money that is owed by the team is paid
to the company." Lemieux would be paid "substantially less
money" than in his initial plan by receiving $5M instead of
$12.5M that he is owed and converting another $20M into an
ownership stake (PITTSBURGH POST-GAZETTE, 6/21).
NEW LEASE ON LIFE: Markovitz ruled Friday that the
Penguins' lease with SMG "was actually a loan" to team co-
Owner Howard Baldwin when he bought the team in '91 and not
a lease. That means that if the team pays SMG the remainder
of the loan, SMG "will have to return control" of Civic
Arena to the Penguins (PITTSBURGH POST-GAZETTE, 6/19). In
Pittsburgh, Bruce Keidan examined whether SMG can "continue
to thrive" in the city: "Probably not -- unless it gets its
corporate head out of its backside and does a very prompt,
very public about-face regarding its relationship with the
Penguins" (PITTSBURGH POST-GAZETTE, 6/20).
MUSIC TO MARIO'S EARS: In Atlanta, Jeff Schultz wrote
that Canadian singer Celine Dion is among Lemieux's
potential investors (ATLANTA CONSTITUTION, 6/20).
THAT'S THE TICKET: The Penguins sold their 500th new
season-ticket plan for next season last week, a number they
didn't reach last year until the end of August. The team
has also received renewals from 2,400 of its 8,200 season-
ticket holders with only 19 cancellations. Penguins
VP/Ticket Sales Mark Anderson: "We're in very encouraging
shape" (Pittsburgh TRIBUNE-REVIEW, 6/19).
