December 20, 2006

Pens' choice loses out on slots license

As Brooklyn's arena plans took a step forward, those of the Pittsburgh Penguins were thrown into turmoil today, as the Pennsylvania Gaming Control Board voted to give the city's slot casino license to Detroit casino operator Don Barden, not Isle of Capri, which had promised to build a hockey arena if it won the license. (Quote of the day, from Barden's CFO Michelle Sherman: "Oh my God, I'm crying, oh my God. I'm overwhelmed. Mr. Barden is the consummate visionary and entrepreneur.")

While Barden has committed to help fund an arena under Gov. Ed Rendell's "Plan B" - essentially, the casino operator kicks in $7.5 million a year, the state about matches it, and the team puts in less than either - the Penguins owners haven't signed on to that plan, and had previously said they'd "evaluate all of our options" once today's vote was done.

First option up is likely to be lots and lots of saber-rattling about moving the team - there are already rumors of Kansas City, Houston, and Portland being interested,, and NHL commissioner Gary Bettman issued a statement today that "the future of this franchise in Pittsburgh is uncertain and the Penguins now will have to explore all other options, including possible relocation. The NHL will support the Penguins in their endeavors." All this because the state of Pennsylvania, in deciding who will get a monopoly on casino gambling in the state's second-largest city, ignored the bid of the guys who would build its hockey team a free arena in favor of the guys who would make the hockey team pay about a quarter of the arena costs. Never play hardball against guys with no teeth.