The city of Pittsburgh and Allegheny County officials
are "demanding a thorough review" of the Penguins' financial
condition before giving the team $12.9M in public funds,
according to Jon Schmitz in a front-page piece in the
PITTSBURGH POST-GAZETTE. The Penguins have lobbied for
money to refurbish the Civic Arena and get reimbursed for
past improvements. But city and county officials want a
"new review" of the team's financial situation after
learning it "may be much worse than team owners had
indicated." A confidential memo from the Public Auditorium
Authority (PAA) obtained by the Post-Gazette cites Penguins'
financial statements showing a $13.7M loss for '95-96 and a
$24.7M loss for the previous season, which had been cut
short by a labor dispute. Penguins' Owner Howard Baldwin
said in October that the team lost $3-4M last year and
losses for '94-95 had been reported at $4-5M. City
Councilperson Bob O'Connor, PAA Vice Chair, on the Penguins:
"They're on shaky ground" (PITTSBURGH POST-GAZETTE, 12/6).
Team President Donn Patton said the $12.9M in public funds
would "restore the Penguins' financial help." He also
"challenged the validity" of loss figures quoted in the PAA
memo, saying the team had operating losses of $3.5M in '95-
96 and $12.9M in '94-95. But when asked to comment on the
team's financial help, he admitted, "We need help" (Jon
Schmitz, PITTSBURGH POST-GAZETTE, 12/7).
