from Mike Ozanian of Forbes,

Mario Lemieux has done a spectacular job turning around the Pittsburgh Penguins. But the NHL Hall of Fame owner is not going to get the $850 million for his hockey team that some claim he might.

Part perhaps even more clever than the way he engineered his team on the ice is the deal Lemieux struck with the government that gave he and co-owner Ron Burkle the building rights to about 29 acres of land where the old arena was located. That land is now being developed into valuable property where companies like U.S. Steel will have a long-term lease.

The timing could not have been better for the comeback of real estate. Borrowing is cheap. Great time for Lemieux and Burkle to get out.

I still say the team and their lease at Consol Energy Center is worth about $565 million. This is the number you use when looking for comparable multiples of revenue (four times for Penguins) to value hockey teams. You only way you get to $850 million by adding in the Civic Arena development.

a bit more...