Shortly after Jim Balsillie, chairman of Blackberry maker Research in Motion Ltd., withdrew his offer for the National Hockey League's Pittsburgh Penguins, backup plans were put into effect and a new bidder surfaced.
Penguins owner and hockey legend Mario Lemieux announced the dissolution of the $175 million deal on Monday. In addition, Lemieux announced the team expects to keep
Balsillie's down payment as it searches for a new deal.
In the meantime, Lemieux also reiterated the team's support for the Isle of Capri plan to invest $290 million in a new arena, should the gaming company win a license to operate slot machines in Pennsylvania. The state is expected to announce the winner of the license on Wednesday. The team currently plays in the 45-year-old Mellon Arena. In the event Isle of Capri doesn't receive the license, the state has offered to help subsidize a new stadium, but the Penguins would probably have to pay $100 million toward the financing.
Balsillie backed out of the offer because the NHL sought to insert a provision into his ownership agreement that would have forced the team to remain in Pittsburgh regardless of any arena financing deals. Although Balsillie, who reportedly was weary of paying for a Pittsburgh arena, reportedly attempted to negotiate with the NHL over the issue, the league reportedly remained steadfast, according to a Globe & Mail story.
As soon as Lemieux announced the end of the deal with Balsillie, another Canadian business man, Frank D'Angelo, the president and CEO of Steelback Brewery and D'Angelo Brands, declared his interest in the Penguins. D'Angelo said he's enlisted retired hockey star Phil Esposito to co-ordinate a meeting with Penguins team president Ken Sawyer, and added he would "absolutely not" move the Penguins, according to The Toronto Star.—Matthew Wurtzel
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