The Pittsburgh Penguins are now one step closer to new ownership.
The Sports and Exhibition Authority of Pittsburgh and Allegheny County has approved for the lease to PPG Paints Arena to be transferred from the Fenway Sports Group to the Hoffman Family of Companies.
The Sports and Exhibition Authority says their solicitor has reviewed all of the necessary documents and the deal is now awaiting approval from the National Hockey League.
Alongside its approval for the transfer of the arena lease, board members from the Sports and Exhibition Authority said the Fenway Sports Group failed to deliver on promises it committed when purchasing the team and has called on the organization to donate profits back to the lower Hill District redevelopment projects.
“FSG leaves Pittsburgh on a path of broken promises,” said Allegheny County Executive Sara Innamorato in a statement. “They alienated allies and fans and wrung every dollar out of a public asset and public land to make a $800 million profit with little investment back into the community and Penguins’ fans. FSG is able to get away with that because when leases are negotiated, the public is often forced to choose between keeping their team in Pittsburgh or protecting precious tax dollars. We will make every effort to negotiate better leases going forward.”
Innamorato said she welcomes the Hoffman Family as a new ownership group.
“We’ve had positive initial meetings, and as a new owner I hope they’ll approach the franchise with a spirit of community investment and partnership,” Innamorato said.
The Chicago-based Hoffman group announced an agreement to purchase the Penguins from FSG late last year.
The expected sale price of the organization is expected to be in the ballpark of $1.7 billion.
The Fenway Sports Group purchased the Pittsburgh Penguins for $950 million in 2021.
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