Lemieux receives return on investment from Pens

By Rob Rossi
TRIBUNE-REVIEW
Saturday, October 20, 2007

Mario Lemieux scored huge this week.

A recent refinancing of debt by the Penguins resulted in Lemieux receiving $21 million from the club over which he presides as chairman and a majority co-owner. That amount is as a return of Lemieux's $25 million investment into the team in 1999.

Penguins' chief executive officer Ken Sawyer said Friday the team's positive financial outlook -- thanks partly to a new arena deal reached in March -- allowed Lemieux, fellow majority co-owner Ron Burkle and other partners to "finally get something to show for their investment after all these years."

Sawyer said all members of Lemieux's ownership group have received payments, though he would not identify names and amounts. Lemieux and Burkle, a California-based billionaire, own a majority stake in the Penguins.

"We refinance every few years," Sawyer said. "It was coming up. We said, 'Now that all these things are behind us, it is time to finally offer some return for our investors and pay back Mario the money he was owed."

Lemieux was not available for comment. He has maintained a low profile around the Penguins since retiring during the 2005-06 season.

Lemieux was the lone remaining unsecured creditor from when the franchise came out of bankruptcy in 1999. The Penguins paid their other unsecured creditors "100 cents on the dollar" (in 2005), Sawyer said.

Sawyer said Lemieux is no longer considered an unsecured creditor after receiving his recent payment.

Ownership structure of the team will not change, Sawyer said. Lemieux would still profit from any future sale, though the Penguins are not on the market.

Lemieux, a franchise icon, invested in the Penguins when his group purchased the club out of bankruptcy. Sawyer said the payment Lemieux received this week was the team's way of "just settling up."

Lemieux originally was owed $32 million in deferred salary on a contract dating to when he first retired in 1997. He forgave $7 million of that total during the club's bankruptcy, and accepted a $20 million stake in the franchise and $5 million, which he then put into the club, as well.

Rob Rossi can be reached at rrossi@tribweb.com or 412-380-5635.