PITTSBURGH — Gov. Ed Rendell pitched his plan for a new Pittsburgh sports arena Thursday, saying his proposal should help ensure that the Penguins remain in the city no matter which group wins the city's casino license.

Rendell is proposing a combination of funding that matches casino company Isle of Capri's $290 million plan for a new venue to replace the 45-year-old Mellon Arena.

Under Rendell's plan, financing for a new arena would come from a new state slot machine fund, an annual contribution by whichever company wins Pittsburgh's casino license, money from the NHL team and money from naming rights and stadium revenues.

"What this plan is is an insurance policy," Rendell said. "It gives the people of Pittsburgh insurance — whether or not a gaming license is obtained — we can in fact have major league hockey here in Pittsburgh. We can build a new arena."

Penguins president and CEO Ken Sawyer said the team needed a better understanding of the governor's proposal. The team owners are trying to sell the team, and Sawyer said he wasn't ready to commit to staying in the city.

"Anytime you have serious, multiple plans in front of you, that is encouraging," Sawyer said. "I have to make sure this deal is bullet proof."

Rendell's proposal comes one day after Republican gubernatorial candidate Lynn Swann backed the plan submitted by Isle of Capri, calling it a "win, win, win." The gambling company says it will build a new arena for the Penguins if it wins a state gambling license.

Dubbed "Pittsburgh Arena Now," Rendell's plan makes a number of assumptions and requires a number of contributions:

• The Penguins are required to make an upfront contribution of $8.5 million and annual lease payments of $2.9 million.

• Whichever casino company wins the slots license — with the exception of the Isle of Capri, which would foot the whole bill — would make a voluntary $7.5 million contribution per year.

• The Gaming Economic Development and Tourism Fund would contribute $7 million per year.

• The team would pay $1.1 million annually from naming rights and other arena revenue.

Conversely, under the Isle of Capri plan, the Penguins wouldn't have to pay anything for the arena.

Speaking with Mayor Bob O'Connor and Allegheny County Chief Executive Dan Onorato, Rendell said his proposal is a backup if Isle of Capri is not awarded a gaming license. The governor said it will help guarantee the Penguins stay in Pittsburgh and play in a new arena that doesn't cost taxpayers. He said it was "risky" to wait for the gaming board to make its decision.

"It's a risk the city of Pittsburgh does not need to take," Rendell said. "This plan is fair, it's reasonable and it works."

Onorato said he's confident the two other groups vying for a casino license, Forest City Enterprises and PITG Gaming, will have a "positive response" to the proposal. He said he anticipates receiving written confirmation from the companies.

Sawyer disputes Rendell's idea that the cost to the Penguins is the same as in 2003, when the team said it was willing to pay the same upfront amount and annual lease fee. Without specifically mentioning the naming rights and arena revenues proposal, Sawyer said the deal would cost the team $1.1 million more.

Sawyer pointed out that Rendell called the Isle of Capri deal "fabulous" and his own plan "very good." He restated his belief that the gaming company's proposal was the best because it didn't require money from the gambling fund and promised redevelopment of the Hill District.

Swann said under Rendell's plan taxpayers will be paying for the new arena until 2037 and will be forced to pay more than $200 million.

"Ed Rendell's plan includes not one cent for Hill District redevelopment, it would force the Penguins further into debt, and cost the taxpayers $210 million," Swann said in a statement. "Plan B is a lose, lose, lose for Pittsburgh."

But Rendell's spokeswoman, Kate Philips, said the plan uses no taxpayer money.

"Clearly Mr. Swann does not understand Pennsylvania law, particularly Act 71, which created the Economic Development and Tourism Fund, which is fueled by gaming proceeds and not taxpayer dollars," she said. "This plan uses no taxpayer money. That's the beauty of it."

Swann's statement did not say how he calculated the figure. A representative of his campaign could not immediately be reached for comment Thursday night.