Lemieux Seeks to Be Owner of the Penguins

Mario Lemieux will take a significant step today toward owning and running the team he led to successive Stanley Cup championships in 1991-92.

Lemieux, who retired in 1997 after winning the sixth scoring title of his brilliant 12-year career, will attend a hearing in Pittsburgh to present U.S. Bankruptcy Judge Bernard Markovitz a business plan designed to rescue the Penguins from Chapter 11 bankruptcy. Lemieux met with NHL Commissioner Gary Bettman last week to outline his plan, in which he would have a large stake in the team and assume a major administrative role.

“He would be the general partner. He would clearly be the guy running this, the owner in control,” said Lemieux’s agent, Tom Reich. “We’re raising $50 million in fresh equity. We do have a group lined up.”

A single investor would provide a sizable portion of the money needed to pay the club’s debts and provide operating capital, but Reich would not identify him because of a confidentiality agreement. However, Reich squelched rumors the mystery backer is a celebrity such as Michael Jordan--a sometime golf partner of Lemieux’s--or Pittsburgh-born actor Michael Keaton. “It’s somebody substantial,” Reich said. “The guy is not inexperienced in sports investment, but that’s not what he’s known for.”

Bettman could not be reached for comment Wednesday, but he is known to be very supportive of Lemieux’s plan.

The Penguins filed for bankruptcy in October, citing $127 million in debts--including $28.67 million owed to Lemieux. They met their first two payrolls with two $2.5-million loans from co-owner Roger Marino and paid their third with money obtained in a trade with the New York Rangers; a $20-million loan from a French bank has since enabled them to pay players and meet day-to-day expenses.

Lemieux, 33, has lived in the suburbs of Pittsburgh since he retired. His celebrity status hasn’t dimmed, giving him a potential edge over rivals in raising money and gaining community support. Another group, led by Michigan trucking executive Harvey Gainey, has said it will file a reorganization plan. Marino, who has cited huge losses, is not expected to file a plan.

Lemieux’s group is likely to include Howard Baldwin, a minority owner of the club and longtime friend of Lemieux’s. Sources said Baldwin’s role would be advisory rather than providing financial support.

The approval process in bankruptcy court will take several months. Would-be owners will try to renegotiate the club’s lease at the Civic Arena with landlord SMG and its TV deal with Fox in an effort to increase revenues. The Penguins long ago gave up in-arena advertising revenues in exchange for up-front payments that kept them afloat.

“Things are going well, but we’ve still got a lot of hoops to go through,” Reich said. “The response by investors, the city, fans and the whole western Pennsylvania region has been great. People are fired up. There’s a lot in front of us, but we’re optimistic.”