Fenway Sports Group, the conglomerate that owns the Boston Red Sox and Liverpool Football Club, is exploring the sale of a minority stake in the NHL’s Pittsburgh Penguins, multiple sources told ESPN on Monday. The move comes after FSG sold a partial stake in Liverpool to a private equity firm last year, and reflects the growing trend of investment groups taking ownership positions in professional sports franchises.
Fenway Looks to Sell Piece of Penguins
According to sources familiar with the matter, Fenway Sports Group is taking the Penguins to market this week to gauge interest from potential buyers for a minority share of the storied NHL franchise. The exact percentage of the team FSG is willing to part with has not been determined, but the group still intends to maintain a controlling interest in the Penguins.
FSG executed a similar maneuver with Liverpool FC in 2023, selling a minority stake in the Premier League club to New York-based sports investment firm Dynasty Equity. That deal allowed Fenway to retain operational control of Liverpool while bringing in additional capital and expertise.
Penguins’ Winning Legacy
Fenway Sports Group acquired the Penguins in a $900 million transaction in 2021 from the previous ownership group led by Ron Burkle and Mario Lemieux. That duo had purchased the team out of bankruptcy in 1999 and oversaw a renaissance for the franchise.
With a core of generational talents in Sidney Crosby, Evgeni Malkin, and Kris Letang, the Penguins captured three Stanley Cup championships between 2009-2017 and cemented their status as one of the premier teams in the NHL. Lemieux, a Hall of Fame player and franchise icon, has remained involved with the organization after the sale to FSG.
FSG’s Growing Sports Empire
In addition to the Red Sox, Liverpool, and Penguins, Fenway Sports Group boasts an impressive portfolio of sports properties that includes the NESN TV network, RFK Racing in NASCAR, and the new Boston Common Golf venture launched with Tiger Woods as part of TGL.
This potential stake sale in the Penguins aligns with FSG’s strategy of unlocking value in their teams while maintaining control and bringing in new partners to help drive growth.
– Sports investment banker
NHL Approval Process
Any proposed changes to the Penguins’ ownership structure would need to be vetted and approved by the NHL Board of Governors before being finalized. However, the trend of private equity firms and investment consortiums acquiring stakes in sports teams has become increasingly common in recent years.
Just last year, Tampa Bay Lightning owner Jeff Vinik sold a majority share of the franchise to a group led by investment manager Doug Steinhour and RBM Advisors. That transaction valued the Lightning at over $1 billion.
Penguins at a Crossroads
The news of the potential stake sale comes as the Penguins find themselves in an unfamiliar position – fighting for their playoff lives. After 51 games, Pittsburgh sits in 8th place in the Metropolitan Division with a 20-23-3 record and is in danger of missing the postseason for the third year in a row.
FSG has publicly stated its intention to provide the resources necessary to help Sidney Crosby win another championship in Pittsburgh before the 37-year-old superstar hangs up his skates. Crosby affirmed his commitment to the Penguins by signing a two-year extension in September.
With the March 7 NHL trade deadline looming, the Penguins are expected to be active in the market to upgrade their roster with an eye toward transitioning to a new, younger core while still remaining competitive in the near term. How a potential ownership shakeup might impact those plans remains to be seen.
One thing is clear – Fenway Sports Group is offering the opportunity to buy a stake in one of the NHL’s most iconic franchises, even if the on-ice product is struggling at the moment. For the right investor, it could be a chance to align with a proven ownership group and breathe new life into a team and fanbase desperate to return to championship glory.
