PITTSBURGH (AP) — A family-owned, Chicago-based investment company has reached a "definitive agreement" to purchase a controlling interest in the Pittsburgh Penguins from Fenway Sports Group.
The Penguins announced Friday that Hoffmann Family of Companies and FSG have come to terms on a sale that would signal Hoffmann's initial foray into major professional sports. Any purchase would need to be approved by the NHL's Board of Governors, though that is often merely a formality.
The financial details of the agreement were not released, though the Penguins were valued at around $1.7 billion recently by Forbes.
"Hockey has always been a meaningful part of our family's story, which makes this an incredibly special opportunity," Geoff Hoffmann, CEO of Hoffmann Family of Companies, said in a statement. "We've long admired the Pittsburgh Penguins — not just for their championship legacy and history, but for the culture, passion, and loyalty that define the organization."
The sale, if completed, would end FSG's brief run as stewards of the five-time Stanley Cup-winning franchise. FSG, which owns Major League Baseball’s Boston Red Sox and Liverpool of the Premier League, agreed to purchase the Penguins from Ron Burkle and Hall of Famer Mario Lemieux in late 2021.
The terms of that sale were not announced, though the team was valued at around $845 million by Sportico at that time.
The Hoffmann Family, a private equity enterprise of more than 125 global brands that counts the ECHL's Florida Everblades among the many entities it runs, will pay considerably more than that to become the team’s third owner in a half-decade.
The Penguins said FSG will remain a minority shareholder for a period of time to continue its support in key business areas, including sponsorship sales and regional sports network management, as part of a phased transition.
"From our earliest conversations, (the Hoffmanns) love of the sport and their commitment to doing things the right way made it clear they would be thoughtful stewards of the franchise, which is why we chose to seriously consider their interest," FSG CEO Sam Kennedy said in a statement. "We plan to work closely with them to ensure a smooth transition and to carry forward the momentum that’s been built."
The sale comes with the Penguins in a bit of a transitional period as the era defined by stars Sidney Crosby, Evgeni Malkin and Kris Letang nears its end. The trio — who are playing their 20th season as teammates — have guided the club to three Stanley Cups (2009, 2016 and 2017), though Pittsburgh has not reached the playoffs since 2022 and hasn’t won a postseason series since 2018.
The Penguins are in the midst of an overhaul orchestrated by general manager Kyle Dubas. They parted ways with two-time Stanley Cup-winning coach Mike Sullivan last spring and are off to a better-than-expected start under first-year coach Dan Muse, though they are currently riding a seven-game losing streak.
Attendance has dipped since the club's 633-game sellout streak ended in October 2021. The Penguins are currently playing to about 88% capacity this season at PPG Paints Arena, the third-lowest percentage in the league.
What's unclear is where Lemieux might fit in. The franchise icon's role during FSG's tenure was nebulous, though he has been around more frequently of late as Crosby neared Lemieux's franchise points record.
Crosby has 1,722 career points entering Saturday night's game in Montreal, one shy of Lemieux’s total of 1,723.
Lemieux, who led the team to a pair of Stanley Cups in 1991 and 1992, remains beloved in Pittsburgh, where a statue of him sits outside one of the gates at PPG Paints Arena, which was built during his tenure as one of the club’s majority owners.
