Fenway Sports Group set to cash out on Penguins investment
Fenway Sports Group is on the verge of a sale.
No, not that team.
According to ESPN, FSG has reached an agreement in principle to sell the Pittsburgh Penguins to the Chicago-based Hoffmann family, a deal that is now awaiting formal approval from the NHL’s Board of Governors.
While the final number has not been confirmed publicly, league sources tell ESPN that they expect the sale price to land between $1.7 and $1.8 billion - nearly double what FSG paid to acquire controlling interest in the franchise just four years ago.
Hockey insider Frank Seravalli was the first to report Fenway’s agreement to sell, marking a significant shift in ownership for a franchise that has undergone multiple transformations over the past quarter century.
The Penguins’ modern era began in 1999, when Ron Burkle and Mario Lemieux stepped in to purchase the club and pull it out of bankruptcy - a move that kept the team in Pittsburgh and preserved its long-term future. That ownership group oversaw one of the most successful stretches in franchise history, winning three Stanley Cups between 2009 and 2017 behind a core of Sidney Crosby, Evgeni Malkin, and Kris Letang.
Lemieux has remained involved with the organization since FSG took over in 2021, and it remains unclear what role - if any - he may hold under the new ownership structure.
FSG’s decision to sell comes at a time when NHL franchise valuations are exploding. According to Sportico, the average NHL team is now valued at $2.1 billion, a staggering increase of more than 100% since 2022. Commissioner Gary Bettman said last week that league revenue is projected to reach $6.8 billion this season, underscoring why private equity groups and billionaire investors are increasingly circling the sport.
And as we all know, live sports is what drives the bulk of television viewership in the modern age of media. Being attached to live rights in any capacity is quickly becoming a rich man’s game, if it wasn’t already.
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The Hoffmann Family of Companies fits squarely into that trend.
Led by billionaire CEO David Hoffmann, the family’s private equity portfolio spans more than 100 brands across industries including real estate, manufacturing, agriculture, and media. The group already owns the ECHL’s Florida Everblades, and Hoffmann has previously expressed interest in acquiring a major professional franchise, whether in the NHL or NBA.
For FSG, the Penguins sale represents another example of FSG thinking with their wallet - something we’re all too familiar with here in Boston since the 2018 World Series.
The group still maintains ownership stakes in (obviously) the Red Sox, Liverpool FC, Fenway Park, NESN, RFK Racing, and Boston Common Golf, among other ventures. Earlier this year, ESPN reported that FSG was exploring the sale of a minority stake in the Penguins - a now-common strategy across all sports as valuations soar - before ultimately agreeing to a full sale.
The NHL’s Board of Governors is not scheduled to meet again until June, but the league could convene a special session to approve the sale sooner.
If finalized, the transaction would stand as another landmark deal in a rapidly inflating sports marketplace - and a reminder that, for ownership groups like FSG, timing the exit can be just as important as making the initial investment.
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Tom Carroll is a contributor for Roundtable, with boots-on-the-ground coverage of all things Boston sports. He's a senior digital content producer for WEEI.com, and a native of Lincoln, RI.