The Pittsburgh Penguins are worth more than $850 million in the Fenway Sports deal


According to people familiar with the matter, Fenway Sports Group, owner of Liverpool Football Club and the Boston Red Sox baseball team, will acquire the Pittsburgh Penguins of the National Hockey League for more than $850 million.

The addition of the five-time Stanley Cup champion will expand the FSG’s growing sports empire at the helm of commodity trading billionaire John Henry, as franchise owners increasingly hope to accumulate various sports on both sides of the Atlantic.

One of the people familiar with the matter said that the transaction is expected to be approved as early as Thursday. FSG declined to comment. A spokesperson for the Penguins did not respond to a request for comment.

The anticipated acquisition came a few months after basketball star LeBron James and former Goldman Sachs banker Gerry Cardinal’s RedBird Capital acquired a minority stake in FSG.

This brings the corporate value of the Liverpool Football Club and the Boston Red Sox to 7.35 billion US dollars. Fenway accepted a minority equity investment in order to make acquisitions and expand its sports team holdings.

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Due to the increasing value of television broadcasting rights and the ability to monetize brand and advertising revenue streams, global investors have made sports teams their investment targets, and Fenway’s acquisition follows.

In addition to direct sales, private investment companies such as Dyal Capital Partners and Arctos Sports Partners have also set up multi-billion dollar tools to purchase minority stakes in the team. The alliance provides new capital.

For the Penguins, the sale may mark the end of more than two years of ownership by Beverly Hills-based investor Ron Burkel and Penguin Hall of Fame center Mario Lemieux. The two rescued the Penguins from bankruptcy in 1999 and reportedly paid $107 million for the team that was in a bad situation at the time and turned the situation around. It is unclear how many continuing shares the couple may have in the franchise under the FSG acquisition.

During their ownership, the Penguins have become one of the NHL’s most successful teams, winning the league championship trophy Stanley Cup in 2009, 2016 and 2017. Most of the team’s success came from the 2004 selection of superstars Yevgeny Malkin and Sidney Crosby in 2005 and 2005, respectively. They spent their entire careers with the Penguins.

As NHL enters its first year of record-breaking TV deals, the valuation of franchise rights continues to rise. In March, it reached a seven-year broadcast agreement with ESPN, reportedly 400 million U.S. dollars per year, and a month later reached a similar length agreement with Turner Sports, paying $225 million to broadcast the Stanley Cup playoffs. And winter classic outdoor games.

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