With values of sports teams going up "exponentially over the past decade," the reported sale of the Penguins has been "slow going," according to Michael Brown of THE STREET. Sources said that co-Owners Ron Burkle and Mario Lemieux have "little wiggle room" in lowering their asking price, and that it is the NHL "holding them back." The owners are seeking "north of" $750M from a would-be buyer. Sources said that with the NHL looking for a $500M expansion fee, it would "look bad if Burkle and Lemieux took anything less" than $750M. The sources added that there "seems to be subtle pressure being put on the owners by the league to attain that asking price and not muddy the sale of the expansion franchise." But the league "denies the claim." NHL Exec VP/Communications Gary Meagher said franchise transactions are "negotiated privately between buyers and sellers." A lawyer who has worked with the NHL on franchise sales asked, "How are they going to ask $500 million for a team whose fate is still up in the air if they can't attain $750 million for one of the cornerstone franchises in the league?" Brown wrote the Penguins are a "marquee franchise." But an investment banking source who has worked with the Penguins said that they are "barely profitable." And Brown noted other NHL teams that are currently up for sale or were recently sold are "seeking far lower valuations" (THESTREET.com, 2/20).
