Venue Detail
Pittsburgh Penguins
Revenues From Sports Venues Pro Facilities Report
February, 2012
Pittsburgh Penguins
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300 Auditorium Pl Pittsburgh, PA 15219-3516 Phone: 412-642-1300 Fax: 412-642-1859 URL: www.pittsburghpenguins.com Owner: Mario Lemieux and an investment group League: National Hockey League, Conference A
Venue
Consol Energy Center, 1001 Fifth Ave, Pittsburgh, PA 15219 Owner: Sports & Exhibition Authority Managed by: SMG Facility Management Built: 2010 Capacity: 18,087 Concessionaire: Aramark Suite caterer: Aramark Soft drink: RC Cola
Naming rights
Sold to: Consol Energy Inc. Term: 21 years Expires: 2029
Ticket prices
Season tickets range from $924 to $3,234 Single tickets range from $59.00 to $215.00
Attendance
2009 average attendance: 17,992 2010 average attendance: 17,078 2011 average attendance: 19,457
Suites
Quantity: 66 Term: 5 to 10 years Price: $115,000 to $250,000 Seats: 12 to 24
Club seats
Quantity: 2,000 Term: 5 to 10 years Price: $8,600 to $8,600
Financing
The arena was financed through a $290 million state bond issue. The Penguins supplied $4.2 million a year for 30 years toward repayment, with $400,000 annually generated through a parking surcharge.
Another $15 million a year for 30 years will come from two gambling-related pots – $7.5 million annually from Pittsburgh casino developer Don Barden and $7.5 million a year from a slots-financed state economic development fund.
The Penguins' total is $200,000 more than Gov. Ed Rendell originally proposed in his funding formula. The $7.5 million from the state fund is $500,000 more than initially offered.
The team agreed to pay an additional $200,000 a year under an arrangement with the Sports & Exhibition Authority. In return for those payments, the Penguins will be able to use the former Mellon Arena site for parking and future development.
Rendell said the state also would kick in another $10.5 million in recognition of delays the team suffered while it was negotiating for a new arena. Of that, $8.5 million went toward construction and $2 million for marketing.
The Penguins also received $8.5 million for the sale of the team-owned former St. Francis Central Hospital to the Allegheny County-city Sports & Exhibition Authority, which is part of the site needed for the arena. The team bought the property for $8 million. The Penguins and the state agreed to split the cost of any additional costs exceeding $290 million, up to a maximum of $310 million.
The Pittsburgh Penguins reached an agreement with city and Allegheny County officials in 2007 for a new $321 million arena that will keep the team in town for 30 years.
Consol Energy Inc. will pay millions to the Pittsburgh Penguins to put its name on the new arena. The naming-rights deal is for 21 years, but neither Consol nor the Penguins would say precisely how much money will change hands.
Under lease terms, the Penguins will keep all the revenue generated by the new arena. It also is responsible for the management, operation and maintenance of the arena.
A fund similar to those set up for PNC Park and Heinz Field will be established for capital repairs. The first $3 million will come from the bond issue to finance the construction. Another $400,000 a year will come from a parking surcharge. The team will have control over parking in the lease.
The Penguins will get all parking revenue. They also can recoup some lost parking revenue from the Mellon Arena site if they follow through with plans for a parking garage next to the new arena. The team has pledged $500,000 a year toward the garage.
The team will receive all revenues from the new arena. Team owner Mario Lemieux said the access to such revenue would allow the team to compete and retain much of its young talent.
As part of the agreement on development rights, the Penguins must redevelop 2.8 acres of the 28-acre Mellon Arena site each year. Whatever they do not develop will be forfeited to the Sports and Exhibition Authority, which then would have the right to seek other developers.
The new arena will have about 18,500 seats, some 1,500 more than Mellon Arena. The seats are larger, with more leg room in the aisles. There will 66 luxury suites compared with 50 at Mellon Arena. The suites are larger than the current suites and closer to the ice. The suites also have Internet access, concierge service and other amenities.
The team declined to disclose its club seat prices. (Facilities, Financial, Ice Hockey, NHLNHL, Professional Sports)