Thursday, June 08, 2006

Can't Put a Price on the Penguins

It's the offseason for a lot of teams and the Penguins are getting their house in order. Starting with finding new management, the Penguins are setting the next thing on the "to do list" is by researching potential bidders to become a new owner.

But according to the series of articles by the Trib-Review, the sale might be a daunting task when the Arena deal is still up in the air. To put a value on the team is quite pinned on the way the new arena will be built and how. There are several good plans out there, but should the arena be made on the cost of the team, it may scare away some people.
Several groups have talked publicly about buying the team: Ohio businessman Jim Renacci, who is a part owner of the Columbus Destroyers arena football team; Lawrence Gottesdiener, CEO of Massachusetts-based real estate developer Northland Investment Corp.; and Toronto-based real estate developers David and Sam Fingold.
Here is the list of the "tire kickers" with Jim Renacci leading the way being on record for wanting to keep the team in the city.

Without the bluebook value, the Penguins are shopping their club with prices comparable to the most recent sales of the teams in St. Louis, Anaheim, and Buffalo. So, the current owners believe the team is worth $130 million, but worth $150 with a new arena deal and one of the NHL's best players.
Before the strike, Forbes valued the Penguins at $114 million -- the 22nd most valuable franchise out of 30 teams. Even now, that remains about right without a new arena.
I'd say that is a pretty significant jump in value.

Also, the city of Pittsburgh, when compared to other cities that are now courting the franchise, are better market values and larger per capita population than most of the other potential cities according to the Tribune-Review.

[Via: Pittsburgh Tribune-Review & Pittsburgh Tribune Review]
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