Penguins Declare Impasse On Arena Talks, Will Explore Moving

Penguins Exploring Relocation After Declaring Impasse In Arena Talks

The Penguins have declared an impasse in arena talks with Pittsburgh officials, saying the team will now “aggressively explore relocation,” according to Mark Belko of the PITTSBURGH POST-GAZETTE. The decision “surprised” Pittsburgh Mayor Luke Ravenstahl and Allegheny County (PA) CEO Dan Onorato, who “insisted they thought the two sides were close to a deal to keep the team in Pittsburgh.” In a letter to Ravenstahl, Onorato and Pennsylvania Gov. Ed Rendell, Penguins co-Owners Mario Lemieux and Ron Burkle said that they “still haven’t been able to reach a deal even though they have agreed to pay $4[M] a year toward a new arena –- the same amount demanded by public officials nearly a year ago.” Sources said that the Penguins would “not rule out further talks with state and local officials.” Ravenstahl added they are “prepared to sit back down as soon as possible” (PITTSBURGH POST-GAZETTE, 3/6).

ADVERSARIAL TONES: Sources said that it is “not so much the financial terms as it is a perceived lack of collaboration from public officials that has led to the impasse.” The “tone from the public side has been unduly adversarial for the last two months, including a table-pounding outburst” by Rendell during a meeting January 18. The “last straw ... came Friday, when state officials refused to share interest rate information with the team regarding the financing of the arena.” Onorato said that the officials “have sensed the same adversarial tone from the Penguins.” Onorato: “I just assumed that’s part of negotiation and you ultimately get to a point where both sides agree” (POST-GAZETTE, 3/6). Pittsburgh-Allegheny County Sports & Exhibition Authority Board member Wayne Fontana said, “I don’t think there’s any question you’re trying to get more when you declare an impasse. I don’t know how much more the government can do.” Allegheny Institute for Public Policy President Jake Haulk said, “If I were the Penguins and I really meant I was leaving, I would have already called Kansas City. The fact they haven’t tells me they’re still willing to talk” (TRIBUNE-REVIEW, 3/6).

REAX AT POTENTIAL CITIES: In K.C., Randy Covitz reports the development was “greeted with guarded optimism.” K.C. Mayor Kay Barnes said, “AEG has put a very attractive offer on the table, and I know they will now aggressively pursue the opportunity” (K.C. STAR, 3/6). Oregon Sports Authority CEO Drew Mahalic said that Portland stands “head and shoulders” above any other possible relocation site. In Portland, Helen Jung reported while the city “has an NHL-ready arena and a sizable population with a high hockey IQ,” it does not have a “clear ownership group ready.” She added it is “not likely” Paul Allen would want to add an NHL team to his current portfolio, which includes the Seahawks and Trail Blazers (OREGONLIVE.com, 3/5).