Jim Balsillie, whose company makes the BlackBerry wireless messaging device, signed an agreement Thursday to buy the Penguins from Hall of Famer Mario Lemieux's group for approximately $175 million.
Balsillie promised he is committed to keeping the Penguins in Pittsburgh -- the NHL had all but mandated that the franchise cannot move as long as a new arena is built. Mellon Arena, opened in 1961, is the NHL's oldest and least fan-friendly, a 1950s design still in use a half-century later.
In the past few years, city of Pittsburgh has used substancial taxpayer money to build new stadiums for the Pirates and the Steelers. The people of that city cannot withstand year of taxdollars being spent on sports rather than infrastructure.
So how will the stadium be paid for?
The Penguins' agreement with the Isle of Capri casino chain to build a $295 million arena at no expense to the team or taxpayers. To build the arena, Isle of Capri must gain the rights to build a new slots machine parlor in downtown Pittsburgh, and the state agency that will award the license is not expected to make a decision until the end of the year at the earliest.
Now if Balsillie is serious about keeping the team in Pittsburgh, he has a significant sum of money he can pump into the lobby effort in order to get the license awarded. In other words, a payoff.
If Balsillie does NOT want to really keep the team in Pittsburgh, he can do the same thing and simply spend money to ensure the license is rejected. Then he can say he tried his best and ship the team off to its new home, which would lost likely be somewhere in Texas.
Bilsillie and the casion are two huge financial resources. They can get a state-of-the-art modern sports facility built in that city withing a short period of time. The city would rake in tax dollars from the casino. The city would draw visitors to sporting events, concerts, and conventions held at the arena. The citizens of Pittsburgh would keep thier team. Everyone wins.
So whats the holdup? Some low level politicians are afraid that they might lose future votes if they approve a new casino. A few loud members of the moral minority could derail this entire deal.
Then the question becomes this: Can Penguins survive in Houston?
