Chuck Greenberg, attorney for Penguins Owner Howard
Baldwin, told THE DAILY that the Penguins are "exasperated"
by an article in Friday's Pittsburgh Post-Gazette based on a
confidential Public Auditorium Authority memo which
scrutinized financial losses by the team (See 12/9 of THE
DAILY). He said the article "grossly overstated" team
operating losses and that "even more disturbing" is the fact
that Pittsburgh and Allegheny County officials contacted for
the article "did not come to our defense." Greenberg said
nine months ago, the Penguins volunteered to give financial
information to show city and county authorities that the
team needs $12.9M in funding from a county-wide sales tax to
make improvements to the Pittsburgh Civic Arena. Greenberg
said that the team was "slightly profitable" during the
first three years of Baldwin's ownership, '91-94, but did
show a $12.9M loss during the strike-shortened season of
'94-95, and a $3.5M loss last year. However, Greenberg says
the figures in the article "distort" actual operating
performance due to accounting factors, and the fact that
they lump the Penguins with other Pittsburgh Sports
Associates ventures, including the CISL Stingers.
NEXT STEP: Greenberg said renovation talks "have to be
concluded by January" as failure to do so would "send a very
dangerous message." Greenberg: "Howard Baldwin has always
been committed to putting a first class product on the ice
in Pittsburgh and the fans have reciprocated. However, it
will not be possible to keep that commitment if this does
not get resolved" (THE DAILY).
