Fenway Sports Group Explores Selling Minority Stake in Pittsburgh Penguins
In a move that has caught the attention of the hockey world, Fenway Sports Group (FSG) is taking the Pittsburgh Penguins to market this week to explore selling a minority stake, multiple sources told ESPN on Monday. This development has sparked a flurry of reactions and speculations among fans and analysts alike.
While the exact percentage of the team that Fenway is looking to sell remains undetermined, sources have confirmed that FSG still expects to retain its position as the controlling owners. This strategic move is reminiscent of FSG’s previous decision in 2023 when they sold a minority stake of Liverpool, their English Premier League team, to New York-based sports investment firm Dynasty Equity.
Fenway Sports Group, which acquired controlling interest of the Penguins in 2021 for a whopping $900 million, has a rich history with the team. The Penguins were previously owned by Ron Burkle and franchise legend Mario Lemieux, who had bought the team and saved it from bankruptcy in 1999. Under their stewardship, the Penguins not only remained in Pittsburgh but also clinched three Stanley Cups from 2009 to 2017, thanks to the stellar performances of core players like Sidney Crosby, Evgeni Malkin, and Kris Letang. Lemieux has continued to be involved with the team even after the sale to Fenway.
FSG’s portfolio is nothing short of impressive, encompassing several sports properties, including Liverpool of the EPL, the Boston Red Sox of MLB, Fenway Park, NESN, RFK Racing of NASCAR, and Boston Common Golf of TGL. This diverse range of investments highlights FSG’s strategic approach to sports ownership.
Any change in the ownership structure within the NHL requires approval from the league’s board of governors. However, the potential sale of a minority stake by Fenway Sports Group is not considered unusual, especially in today’s era where private equity involvement in sports ownership is becoming increasingly common.
In fact, just last year in October 2024, Tampa Bay Lightning owner Jeff Vinik sold a majority stake of his team to a new group of investors, setting a precedent for such transactions.
As of now, the Penguins are navigating a challenging season. Through 51 games, they hold a record of 20-23-3 and sit in eighth place in the Metropolitan Division. This position puts them at risk of missing the Stanley Cup playoffs for a third consecutive season, a scenario that FSG is keen to avoid. Publicly and privately, FSG has expressed its desire to help Crosby win more Stanley Cups in Pittsburgh. Crosby, now 37, signed a two-year extension with the Penguins in September, carrying an $8.7 million cap hit.
With the March 7 NHL trade deadline approaching, the Penguins are expected to be active in the market. The team aims to transition to a younger roster while maintaining competitiveness, a strategy that could be crucial in turning their fortunes around.
- FSG’s potential sale of a minority stake in the Penguins is part of a broader trend of private equity involvement in sports ownership.
- The Penguins’ current performance and playoff prospects are a significant concern for FSG and fans alike.
- Sidney Crosby’s recent contract extension underscores FSG’s commitment to building a competitive team around their star player.
As the situation unfolds, fans and analysts will be watching closely to see how this potential sale impacts the Penguins’ future both on and off the ice.
Originally Written by: ESPN.com
