Pittsburgh Post-Gazette
Penguins' sale plans pick up speed
By Shelly Anderson and Mark Belko
June 29, 2006

While city and Allegheny County leaders craft a proposed lease to accompany Gov. Ed Rendell's Plan B for a new arena, former Pitt and Miami Dolphins Hall of Fame quarterback Dan Marino yesterday confirmed that he has joined New York businessman Andy Murstein's quest to keep the Penguins in town.

Murstein, president of Medallion Corp., has asked Marino and billionaire Dallas Mavericks owner Mark Cuban to join his group, which also includes Walnut Capital, a Shadyside real-estate company.

Marino and Cuban apparently have aligned themselves with Murstein as a way to help keep the Penguins from leaving town and not because they are interested in investing much if any money.

Allen and Company of New York, which is brokering the sale, is expected to field bids the next several days to weeks.

Any new owner will be bound to the team's partnership with Isle of Capri, a gaming company that has pledged to put $290 million toward a new arena if it beats out two other bidders for the city's slots casino license.

If it's not Isle of Capri, County Chief Executive Dan Onorato said officials hope to finalize the draft lease on a new arena to show bidders so they might be more likely to keep the team in town.

"We're trying to get it done quickly, so that potential bidders have a chance to see what they're bidding on and what [the lease] would look like," Onorato said.

The lease would be based on Rendell's formula for a new arena, which calls for the new owner of the team to pay $8.5 million up front and about $4 million a year toward construction.

The lease would cover such areas as development rights, revenue dispersal, maintenance and operation, as well as cost overruns on construction.

"It would all be subject to negotiation anyway, but, at least, it would give them an idea of what it looks like," Onorato said.

He said it would be patterned after what the Pirates and Steelers have at PNC Park and Heinz Field, respectively. Those teams get to keep virtually all revenue from the stadiums, with nominal rent. Both teams were responsible for construction cost overruns

Unlike Mellon Arena, which is run by a private operator, the Steelers and the Pirates operate their own facilities. Onorato wouldn't say whether he's willing to give the new owner control over all the revenues generated by a new arena. A separate lease would have to be developed if Isle of Capri builds the arena.

Murstein has said he will keep the Penguins in town regardless of who gets the slots license. He added on the Nightly Sports Call last night on UPN Pittsburgh that he had "upped his offer in the last couple of hours to the Penguins."

Cuban said by e-mail Tuesday that he was willing to help Murstein's group.

Walnut Capital president Todd Reidbord knows Cuban from Mt. Lebanon High School. The two recently became partners on another Pittsburgh investment -- a nine-story Downtown building overlooking Allegheny River and PNC Park that they plan to develop.

Marino yesterday issued a statement through the Dolphins.

"Growing up in Pittsburgh, I've always been a fan of the Penguins, dating back to the days when the team colors were blue and white," he said. "I know what the Penguins mean to the city and, as a native, I want to do everything I can to help keep them here.

"I was contacted by Andy Murstein, whose priority is to keep the team in Pittsburgh, and I told him I would be happy to help him in any way I could."

Neither Marino nor Cuban has indicated whether he would invest in the Penguins or how much that might be, and a couple of people close to the situation said it's more a matter of the two prominent Western Pennsylvania natives lending their names in the hope of making Murstein's bid stronger.

It's believed the Penguins will be sold for upward of $150 million.

Onorato said he was "cautiously optimistic" about the chances of the team remaining in Pittsburgh under new ownership.

"I'm confident that we can build a new arena now using gaming money and get the Penguins, regardless of who the ownership is, into a 30-year lease and make it work for them and the franchise, too, here. That's our goal," he said.

Others identified as potential buyers include the Fingold family of Hartford and Toronto, and Ohio businessman and small-town mayor Jim Renacci, who owns an Arena Football team.

Fingold has the option of moving the club to Kansas City if there is no deal for a new arena. Renacci has said he would like to keep the Penguins in town.

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