Fenway Sports Group has agreed in principle to a sale of the Pittsburgh Penguins to the Chicago-based Hoffmann family, sources confirmed to ESPN. The deal is pending approval by the NHL’s Board of Governors.
While the exact sale price was not immediately confirmed, league sources expect the deal to land between $1.7 and $1.8 billion for the Penguins. FSG bought controlling interest of the Penguins in 2021 for $900 million.
Hockey journalist Frank Seravalli was the first to report on Fenway’s agreement to sell.
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. That group helped keep the Penguins in Pittsburgh, then the club went on to win three Stanley Cups from 2009 to 2017 with its current core player group of Sidney Crosby, Evgeni Malkin and Kris Letang. Lemieux has remained involved with the team after the sale to Fenway and his role with the new ownership group remains to be seen.
FSG’s portfolio includes several sports properties, such as Liverpool of the EPL, the Boston Red Sox of MLB, Fenway Park, NESN, RFK Racing of NASCAR and Boston Common Golf of TGL. In January, ESPN reported that Fenway was taking the Penguins to market to explore selling a minority stake — which is increasingly a common practice as NHL valuations continue to increase. Hoffmann has been in discussions with the Penguins since at least this summer, sources told ESPN.
The Hoffmann Family of Companies is a multi-generational family-owned private equity firm, whose CEO is billionaire David Hoffmann. Their broad portfolio includes more than 100 brands in real estate, manufacturing, media and agriculture among other sectors.
The group also owns the ECHL Florida Everblades, and David Hoffmann said publicly in recent years he wishes to own either an NHL or NBA franchise.
The NHL’s BOG is not scheduled to meet again until June after convening last week in Colorado Springs. However, the NHL could call a BOG meeting to vote on the sale earlier.
The Penguins have missed the playoffs in each of the past three seasons as GM Kyle Dubas embarks on a rebuild. Crosby, 37, remains one of the game’s most complete players and biggest draws; the Canadian captain has re-affirmed his commitment to Pittsburgh several times in recent years. Crosby’s current contract expires at the end of next season. Malkin, 39, is on the final year of his contract.
One of the biggest business decisions for a new owner would be how to handle the regional sports channel that broadcasts Penguins games locally. FSG and the Pittsburgh Pirates co-own and operate the current provider, Sportsnet Pittsburgh.
According Sportico’s report in October, the average NHL franchise is now worth an estimated $2.1 billion. That’s a 17 percent increase in one year and more than a 100 percent increase from 2022. The NHL projects that revenue for this season will be about $6.8 billion, commissioner Gary Bettman said last week .
After their 633-game sellout streak ended in 2021, the Penguins have seen decreased attendance in each of the past three seasons.
