• Loading stock data...
Monday, February 10, 2025

How Lemieux Turned a 1999 Salary Deal Into $350M

  • Mario Lemieux turned a 1999 negotiation over $26 million in deferred salary into a Pittsburgh Penguins equity stake.
  • He will pocket over $350 million in the team’s sale.
Mario-Lemieux-Penguins
Christopher Hanewinckel-USA TODAY Sports/Design: Alex Brooks

Mario Lemieux was a human highlight reel for much of the 1990s, but his best move may have come off the ice.

As part-owner of the Pittsburgh Penguins, Lemieux will receive over $350 million from the team’s sale to Fenway Sports Group for around $900 million. In doing so, he is profiting from negotiations over his player salary from 1999.

  • The Penguins declared bankruptcy in 1998, citing losses of $37.5 million over the previous two seasons and deferred payments still owed to certain players, namely Lemieux.
  • Lemieux signed a seven-year, $42 million contract in 1992. He agreed to deferred payments to help the team through a difficult financial period caused in part by a lockout at the start of the 1994-95 season.
  • Still owed $26 million in 1999, Lemieux and the team struck a deal in which he received $20 million in equity and became part of a new ownership group.

Playing The Long Game

Lemieux purchased the team with Ron Burkle for $107 million, charting a course to pay off the team’s debt of $114 million.

Lemieux and Burkle nearly cashed out for $175 million in 2006 in a deal with businessman Jim Balsillie, but he walked away when the Penguins missed out on being awarded a casino license.

Lemieux will now pocket twice that amount while retaining a minority stake in the team.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

U.S. Soccer Federation president Carlos Cordeiro (left) and Sunil Gulati (center) and MLS commissioner Don Garber (right) pose for a photo.

Billionaire Who Chaired NASL Admits He Used Burner Account to Attack MLS,..

Rocco Commisso, the Mediacom founder, compared the MLS commissioner to Harvey Weinstein.

Liverpool Denies Elon Musk Sale Rumors

Musk’s father said his son is interested in buying the club.
Sponsored

How Sportradar and the NBA Are Shaping the Future of Immersive Fan..

By transforming raw data into tailored, interactive content, Sportradar helps turn the NBA’s enormous fanbase into active participants.
Nov 24, 2024; Los Angeles, California, USA; South Carolina Gamecocks center Sakima Walker (35) and UCLA Bruins forward Angela Dugalic (32) jockey for rebounding position during the fourth quarter at Pauley Pavilion presented by Wescom. Mandatory

Players Era NIL Tourney to Add Women’s Basketball in 2025

Get ready for a South Carolina–UCLA rematch.

Featured Today

Brady and Mahomes

Chiefs Fatigue Is Real. It’s Nowhere Near Patriots Hate Yet

People who have covered both teams say the difference is stark.
Nov 24, 2024; Inglewood, California, USA; Philadelphia Eagles quarterback Jalen Hurts (1) celebrates with running back Saquon Barkley (26) after the Eagles defeat the Los Angeles Rams during the first half at SoFi Stadium.
February 7, 2025

How the Eagles Reinvented Championship Roster Construction

Philadelphia is one of the most innovative franchises in the NFL.
February 3, 2025

‘Ultimate Throwback’: The Unimpeachable Cool of Hartford Whalers Gear

Nostalgia and street cred have driven a consistent frenzy for merch.
January 20, 2024; Santa Clara, CA, USA; Kristin Juszczyk, wife of San Francisco 49ers fullback Kyle Juszczyk (44), before a 2024 NFC divisional round game against the Green Bay Packers at Levi's Stadium.
February 1, 2025

The New WAGs: Sports Wives Building Business Empires

Athletes’ wives and girlfriends are bucking stereotypes and cashing in.
exclusive

Talor Gooch Using LIV Golf Fortune to Start Building Sports Empire

The golfer has made more than $43 million individually from LIV.
November 13, 2024

Why Liberty Media Spun Off Assets, Shook Up Leadership

Longtime CEO Greg Maffei is stepping down at the end of the year.
December 4, 2024

U.S. Firm Makes $310M Bet on Soccer by Forming Superagency

The U.S.-based investment company makes a significant play in international soccer.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
Oct 27, 2024; Seattle, Washington, USA; Buffalo Bills quarterback Josh Allen (17) passes against the Seattle Seahawks during the second quarter at Lumen Field.
October 30, 2024

Buffalo Bills in Talks to Sell Stake to PE Firm Arctos: Report

Arctos already has a slice of Paris Saint-Germain and the PGA Tour, among other assets.
Jul 7, 2021; Tampa, Florida, USA; Tampa Bay Lightning owner Jeff Vinik hoists the Stanley Cup after the Lightning defeated the Montreal Canadiens 1-0 in game five to win the 2021 Stanley Cup Final at Amalie Arena.
October 25, 2024

Lightning Sell at $1.8B Valuation, Nearly Double Prior NHL Record

The Lightning unveiled a multistep and multiyear sale process.
May 24, 2024; Minneapolis, Minnesota, USA; Dallas Mavericks owner Mark Cuban celebrates after defeating the Minnesota Timberwolves in game two of the western conference finals for the 2024 NBA playoffs at Target Center.
October 9, 2024

Why Mark Cuban Sold the Dallas Mavericks When He Did

Cuban sold his majority stake to the Adelson family in December 2023.
Young fans look over Michigan State sports equipment on display during the Spring Showcase on Saturday, April 20, 2024, at Spartan Stadium in East Lansing.
October 2, 2024

Private Equity Firms Buy Rival Hockey Brands CCM and Bauer

Both brands have been around for decades and changed ownership in the same week.