U.S. Bankruptcy Judge Bernard Markovitz yesterday
granted Mario Lemieux an extra 10 days "to work out the
funding deal he needs to buy" the Penguins, plus an
additional 10 days to "finalize" all of the team's
contracts, according to Ann Belser of the PITTSBURGH POST-
GAZETTE. Meanwhile, Lemieux "agreed to put up" an extra $5M
from his investors -- $55M total in new capital in the team
-- as part of a deal he reached in June with the Public
Auditorium Authority, which owns Civic Arena. Lemieux's
initial reorganization plan "called for his purchase of the
team to be substantially completed by tomorrow or the plan
would be null and void." Lemieux's attorney Doug Campbell
said that Lemieux needs more time in order for the NHL to
approve the investors in his ownership group, and that the
investors "have been delayed" by their attorneys
"researching all of the provisions of the deal and the state
of the hockey team." Campbell has declined to reveal how
much of the $55M pledged by the Lemieux group has been
raised (PITTSBURGH POST-GAZETTE, 7/15). In Pittsburgh,
Mamula & Starkey write that Lemieux "is expected" to assume
control of the team "by the first week of August."
Campbell, on the delay: "It is not a source of anxiety."
But Penguins Exec VP & COO David Andrews said that the
extension "will hobble team marketing, advertising and
season-ticket sales" (Pittsburgh TRIBUNE-REVIEW, 7/15).
NEW LEASE ON LIFE: In other news, specifics of the
Penguins' new lease with SMG were released, and the team is
slated to generate annual revenue of around $2.95M through
2007, when the lease is returned to the team. The
breakdown: revenue of $1.7M from the sale of luxury suites;
$850,000 from arena advertising; 5% of concession sales
(estimated at $175,000); $135,000 from Igloo Club fees; and
$90,000 from TV hookup fees (PITTSBURGH POST-GAZETTE, 7/15).
The team will pay SMG about $1M per year to play in the
arena (Pittsburgh TRIBUNE-REVIEW, 7/15).
