Mario: Balsillie deal is dead
PITTSBURGH — Pittsburgh Penguins owner Mario Lemieux said Monday that a deal to sell the team to a Canadian billionaire is "unequivocally" dead and that the club continues to focus solely on its relationship with Isle of Capri Casinos.
But if Isle of Capri doesn't get a slot-machine license from state gambling regulators on Wednesday — which would nix the gambling firm's offer to build the team a new arena — Lemieux said the Penguins would have to "consider all of our options."
Canadian billionaire Jim Balsillie last week withdrew his offer to buy the financially troubled Penguins for $175 million, but has said that he might still try to purchase the team.
Lemieux said the club will try to make Balsillie forfeit his deposit for what the team considers breach of contract. Lemieux declined to reveal the size of the deposit.
"We can say unequivocally that the deal with Mr. Balsillie is dead," Lemieux said.
"We were shocked and offended that Mr. Balsillie would back out of such an important deal at the last minute — and less than a week before a decision on the funding of a new arena that will have far-reaching implications on our franchise, our city and our region," he said.
A call seeking comment from a representative of Balsillie's company, BlackBerry maker Research In Motion Ltd., was not immediately returned Monday.
Since Balsillie withdrew his bid, others who may be interested in buying the team surfaced over the weekend, including Frank D'Angelo, a Toronto businessman who owns Steelback beer. D'Angelo said he and billionaire partner Barry Sherman might bid on the team.
D'Angelo said he does not want to move the team from Pittsburgh, a guarantee that Balsillie reportedly was unwilling to make before withdrawing his bid on Friday. D'Angelo also told news organizations that he and Sherman might also pay for a new arena for the Penguins, because they could make money off the naming rights as well as supplying beer and other beverages.
But Lemieux did not comment on those reports and said the Penguins will not negotiate with anyone until after the Pennsylvania Gaming Control Board awards a slot-machine license on Wednesday.
"We're not talking to anybody until the license is awarded," Lemieux said.
Lemieux did not rule out the possibility of his ownership group keeping the team, but spent most of the 10-minute news conference repeating his support for the exclusive deal the Penguins have with Isle of Capri.
The gambling company has promised to build a $290 million facility for the Penguins to replace the 45-year-old Mellon Arena — at no cost to taxpayers or the team — if it obtains a slot-machine license from the state. The company is one of three bidders competing for the sole Pittsburgh slot-machine license that is expected to be awarded Wednesday.
The two other applicants are Detroit casino magnate Don Barden and Forest City Enterprises Inc. of Cleveland. Both promise to contribute some money for a new arena over 30 years under a so-called "Plan B" being proposed by city and county officials that would include public funds. But that plan also calls for the Penguins to help pay for the arena and Lemieux had nothing good to say about it.
"I've never heard of a government turning down $290 million in private money to build a public facility," Lemieux said. "It's unheard of."
