A controlling interest in the Penguins is about to be sold, according to multiple reports, from Fenway Sports Group to the Hoffmann Family of Companies, a Chicago-based investment firm. If that estimated $1.7 billion deal reaches completion, it will end a largely ignominious era for a once-proud National Hockey League franchise.
FSG, owners of MLB’s Red Sox, and the Premier League’s Liverpool FC, among several other assets, had high hopes for its entry into hockey when it purchased the Penguins in late 2021 from Ron Burkle and Mario Lemieux in a $900 million deal.
The four years since, however, have been marked by a significant retreat for a Penguins franchise that has consistently been one of the NHL’s top performers. The FSG era with the Penguins has included:
- Playoff absences and declining standings points totals in the three full seasons FSG had the team. The Penguins are also two points out of the final Eastern Conference playoff spot this season, and they are in the midst of a six-game losing streak heading into Thursday night’s game at Ottawa. Pittsburgh had a first-round playoff exit several months after FSG’s arrival, but the competitive slide is a significant reversal from a run of 16 straight postseason appearances and three of the Penguins’ five Stanley Cup titles.
- Attendance has declined each of the past two seasons, and a current pattern of playing to just 88.4% of capacity at PPG Paints Arena, the third-lowest percentage in the league behind the struggling Sabres and Sharks. Shortly before FSG’s arrival, the Penguins saw an end to a 633-game sellout streak, and local support has only ebbed further since then.
- A 38% decline in local television viewership last season on SportsNet Pittsburgh, the third-largest such drop behind the Blackhawks and Rangers. The regional sports network is now managed through the FSG-controlled NESN, but as the team has struggled, so, too, have audiences for Penguins games. The RSN is co-owned with MLB’s Pirates.
- A FSG relationship with Lemieux, a franchise icon and still part-owner, hovering somewhere between tense and distant, and nowhere particularly productive.
Such performance for the Penguins contrasts significantly with the Red Sox, who have won four World Series under FSG’s ownership, and Liverpool, which has two Premier League titles and several other trophies under the John Henry–led group.
Rebuilding Process
The Penguins have been in even tougher situations, though, as Burkle and Lemieux previously rescued the club from bankruptcy in the late 1990s. Since then, though, the Penguins have become a stalwart of the league, particularly in the era of star forward Sidney Crosby, still performing at a high level at 38 years old, and expectations have changed significantly.
The ownership change, when it happens, will be focused heavily on accelerating the on-ice rebuilding process and restoring the once-deep ties with the local fan base.
FSG, for its part, did not confirm or deny reports of the imminent sale. The team said earlier this year it was pursuing a minority partner in the Penguins, but the deal structure changed substantially with the Hoffmann group.
“There is no formal agreement in place to confirm or announce at this time,” the company said.
