Terry Pegula Buys Buffalo Sabres
Looks like we have a tycoon on our hands, folks.
Penn State hockey benefactor Terry Pegula is now Buffalo Sabres owner Terry Pegula after the billionaire made his purchase of the team official on Tuesday.
It was a move long rumored to be in the works, so there are no real surprises here. It is kind of shocking, though, that in a matter of months, a Penn State alun has gone from being just your run-of-the-mill energy tycoon to one of the most powerful men in hockey.
It's all good for the new Nittany Lion program, too.
Not only can whomever is named the first head coach of the team sell the brand new facilities and Penn State brand, he can sell Pegula's NHL connections and clout. When recruits look at Penn State, they'll not only see a new and exciting place to play their college hockey, they'll see a path to the pros which, really, is what every young hockey player dreams of.
The Sabres might be Pegula's team, now, but the Lions are his baby, and having a guy like him at the NHL table promoting the Penn State brand can only do good things as it grows and develops in these first few years.
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Honestly, I could not think of a better foundation to build PSU hockey
great club team, new arena, big donor who owns an NHL team.
Any other college programs with ties to NHL teams?
Does he have any interest
in that game where you dribble the ball and throw it through a hoop?
by PSU Mudder on Feb 23, 2011 1:45 PM EST reply actions 1 recs
Awesome
You are also a fan of the ancient Babylonian game Bularok? I assume your favorite player is Cormedius the Elder, who once had 34 conversions in 521 BCE.
by swiggy04 on Feb 23, 2011 1:51 PM EST up reply actions 6 recs
So, uh, you like that game
with the roundish thing that the team on offense tries to put into the net while the other team defends the net, right? Yeah, there are usually 3 referees and the players not in sit on the bench. Oh, you do. OK, so you want to donate to the PSU program?? Yes?!? HAHA, you can write that check out to Ed DeChellis fool. I was talking about basketball. HAHAHAHA
I give Eddie and Co what I can
I have 6 season tickets even though I only get to 2-3 games a year. With all the discussion about PSU not supporting the program, I’m wondering why I support the program.
what do you do with your unused tickets?
I’ve often though about when I actually have money to just buy season tickets and donating the ones I don’t use to some group in the area that would actually use them (is there such a thing?)
by The JuggerNitt on Feb 24, 2011 12:55 PM EST up reply actions
I resell them through the ticket exchange
I don’t make back all of my investment, but I make back enough to keep it palatable to keep the tickets. The way I see it, I’m taking some risk off of their hands every year by guaranteeing them cash flow for 6 seats all year long.
Run of the mill energy tycoon, Pegula is/was not.
Pegula = the man. He founded East Resources, sold it to Shell for 4.7B and is now pimping all over the world.
@EpicTripod
SBN - Pittsburgh
Success With Honor
East Resources?
Did he work with my Dad at Genericon?
"Hi, I'm Bob Evil!"
by ReadingRambler on Feb 23, 2011 1:58 PM EST up reply actions
One of the largest O/G Exploration companies in western PA.
Which as you know unless you don’t live in western PA or live under a rock in western PA, is now rich with Marcellus money. Hence the 4.7B price tag, of which I’m sure he saw a boatload as founder (and president, I believe).
OT: Does your dad like Genericon? I heard they have great benefits, but the management structure leaves something to be desired.
@EpicTripod
SBN - Pittsburgh
Success With Honor
by Jeff Junstrom on Feb 23, 2011 2:17 PM EST up reply actions
They're ok.
They’re actually the other way around from what you heard. For instance, the dentist we had was some Indian guy who went to “Some University” (I think it’s in Indiana or maybe Iowa). Terrible.
"Hi, I'm Bob Evil!"
by ReadingRambler on Feb 23, 2011 2:24 PM EST up reply actions
Wait, no.
That school is in Central Florida. Because the only non-generic things in Central Florida are the fake gated communities for elaborate real estate scams.
"Hi, I'm Bob Evil!"
by ReadingRambler on Feb 23, 2011 2:25 PM EST up reply actions
initially I thought you were making a joke about "East Resources" being a generic name.
I’m not sure if this is funnier or not.
by The JuggerNitt on Feb 24, 2011 12:56 PM EST up reply actions
Not only explored, he was an O.G.
@EpicTripod
SBN - Pittsburgh
Success With Honor
by Jeff Junstrom on Feb 23, 2011 3:13 PM EST up reply actions
This taken from the East Resources company directory
@jtothemfp
"Cats been getting hookups on tatts since back in '01". - former buckeye Antonio Pittman
I mean
Before this, I doubt anyone outside the industry knew that, so my statement stands.
Adam
Black Shoe Diaries, SB Nation Pittsburgh, Daily Collegian Sports, BT Powerhouse, @fugimaster24
God Created the World Out Of Nothing, Paterno Built A National Superpower On Cow Fields...
by Adam Bittner on Feb 23, 2011 3:07 PM EST up reply actions
How long until Penn State hockey is elite?
This program sure is on the fast track, considering we’re not even D1 yet.
"God is great, beer is good, and people are crazy"
Who knows.
My feeling is it’s either going to rocket out of the gate or take a while.
Adam
Black Shoe Diaries, SB Nation Pittsburgh, Daily Collegian Sports, BT Powerhouse, @fugimaster24
God Created the World Out Of Nothing, Paterno Built A National Superpower On Cow Fields...
by Adam Bittner on Feb 23, 2011 3:08 PM EST up reply actions
I feel confident (Almost smugly confident) in saying it won't be the former.
Unless Pegula’s a cheater.
"Hi, I'm Bob Evil!"
by ReadingRambler on Feb 23, 2011 3:25 PM EST up reply actions
well
we’ve got a couple things going for us. First off, youth hockey in the US is growing rapidly and becoming more of a force than in the past. You used to have all the talent go and play in the Juniors in Canada, but now more and more guys are staying in the US and playing in the NCAA. Even some Canadians are coming to America to play here (Toews from the Blackhawks is an example).
Second, we’re a major university in the Northeast akin to a place like Boston College. We offer things the smaller hockey schools cannot. And our traditional alumnus bases like PA, NJ, NY, and to a lesser extent New England all have strong hockey backgrounds. A top talent from a place like Philly might have previously gone to another school because of a good hockey program, but now maybe they go to PSU instead.
And third, I doubt there are too many other schools with a tie in to the NHL as good as what we now have. I mean, that has to be a major selling point.
I think it all depends on the first coach and what he’s able to do to start things up. If we can get some good talent early on, we could turn into a good program within a few years. If we have trouble getting talent, it could be a lot longer. Personally I think we’ll have a pretty solid program sooner rather than later.
I'm on the Internet cause I'm an Internet thug.
Ok
But what you said doesn’t really sound like “rocketing out of the gate” to me.
"Hi, I'm Bob Evil!"
by ReadingRambler on Feb 23, 2011 4:10 PM EST up reply actions
Although I'm basically doing the Semantics Shuffle now.
"Hi, I'm Bob Evil!"
by ReadingRambler on Feb 23, 2011 4:10 PM EST up reply actions
Holy hell
Where have you been lately?
@jtothemfp
"Cats been getting hookups on tatts since back in '01". - former buckeye Antonio Pittman
At a monastery in the Andes
Studying Meaning.
well
if you look at most NCAA hockey rosters, there are many Canadiens on them. And any good player with D-1 offers is not coming from local high schools they are playing junior mostly in the USHL and some what less the EJHL in the new england area. These are 2 leagues I expect PSU to start getting the players from, and I’m sure there will be more than a handful of Canadiens once this thing gets going. They won’t truly get the players they want until the full move is complete..
First Coach
So what your’e saying Jay should coach the hockey team?
I don’t think we’ll do well for a while. Especially if we play in a Big Ten conference – the established schools (besides Ohio St) jsut have so much history and name recognition that it will be difficult to recruit against them. And someone has to finish last in the BTHC. I’d like our chances better in the short term if other schools like Illinois or Indiana decide to move up to varsity as well.
Our sports guy played in the USHL or NAHL (forget which)
so he knows a thing or two about high(er)-level hockey. He’s also a Sabres fan, so he’s been all over the PSU connection for a while. The first thing he said to me was, “Penn State will be a contender within three or four years.”
I believe him, he’s usually money when it comes to prognosticating hockey things.
I'm not a die-hard hockey fan
I’m extremely excited for on-campus PSU hockey (and if they let students (god, it is painful to have to strike that out) people skate on the rinks when there aren’t games, that would be a great thing to do when you’ve got some free time). Did they ever give a max attendance capacity for the new facility? Just curious.
This may be a long shot, but I’m also excited at the rising popularity of “minor” sports that aren’t the “Big 2” (and yes I still consider BB to be a major sport at PSU, at least in terms of revenue even though FB still is king).
I don’t have any idea of the numbers, so I may be way naive to think this, but with the rise in popularity of the soccer team, wrestling, continued popularity (and sheer dominance) of W volleyball, and now hockey, it could really take some of the pressure off of football to fund the rest of the sports at PSU. As much as I’d hate to have to start buying more expensive tickets to see PSU sporting events that aren’t football, they are a beyond fantastic deal right now, and something you can just usually walk in and see without worry of being sold out.
Sorry.
Popularity and national titles and ticket sales mean nothing in terms of revenue. What matters for revenue is one thing, and one thing only: MONEY FROM A TELEVISION DEAL.
Until companies start shelling out $12M per team to attend the Barbasol Ice Hockey Bowl, presented by Ro-Tel, or ESPN starts getting mad crazy ad revenue from broadcasting collegiate wrestling, all of the other sports besides football & basketball will continue to operate at a loss.
One minor exception: donors picking up some of the slack. Say for example, Pegula’s $88M for hockey, or Lubert’s undisclosed $$$ for a new wrestling coach.
by Tailgate Shogun on Feb 23, 2011 5:44 PM EST up reply actions
Hey, Shogun
Are you able to expound any on Lubert’s undisclosed donation? The rumors are just too tough to believe. For example:
The rumors have Sanderson inking a three-year contract for $500K per year, PLUS a $1 million signing bonus. Contrast that with his $137K base salary at Iowa State (making him one of the highest-paid wrestling coaches in the country) and it’s not hard to understand why he accepted Penn State’s offer. (That sound you heard was the nation’s collegiate wrestling coaches screaming for joy at the game-changing nature of Sanderson’s contract.)
Regardless of the amounts, how would a donated coaching salary be structured contractually? Would it be a private contract, in addition to a base salary provided by the University?
@jtothemfp
"Cats been getting hookups on tatts since back in '01". - former buckeye Antonio Pittman
Don't know the details, and I don't know Ira well enough
to ask. I did hear it was a small group of donors each kicking in some portion. What they paid vs. what the athletic department paid is also a mystery, although it certainly seems the $1M bonus screams “donation”.
It would have to be a University contract. He can’t work under two arrangements. The donors wrote a check to PSU, with intentions of it being used to fund the money that Sanderson would command. PSU turns around and puts their contrib into the budget to start paying the salary.
Does start to get dicey – what happens if the university wants to fire him, and the donors still want him around? High stakes game, but what can you do.
by Tailgate Shogun on Feb 23, 2011 6:33 PM EST up reply actions
Got it, thanks
That’s what was confusing me.
That Bill Koll musta been a good life teacher back in the 60s-70s. Joyner and Lubert sure have been successful post graduation.
@jtothemfp
"Cats been getting hookups on tatts since back in '01". - former buckeye Antonio Pittman
Probably an endowment for the coaching position,
Not just Cael, except for the signing bonus. If donors are paying part of the salary, I would think that they have some sort of long-term endowment established contractually with the university.
This is BSD, the crazy stirs itself.
by Paige2PSU on Feb 23, 2011 8:46 PM EST via mobile up reply actions
Lubert has already endowed the head coach position ($1M gift) for wrestling
But as an endowment, that only throws off only 5% per year. Either the NLC gave him credit for the endowment and let the money go in the bonus, or the bonus/salary money came from additional gifts or other donors.
Who knows….
by Tailgate Shogun on Feb 23, 2011 8:58 PM EST up reply actions
Say what?
Shogun, bear with me; I don’t speak Donations so good.
But as an endowment, that only throws off only 5% per year.Can you expound? Is 5% a standard annual percentage of total Endowment gifts? Does ‘Endowment’ have some exclusive meaning in financial/legal circles or, separately, at Penn State in particular?
@jtothemfp
"Cats been getting hookups on tatts since back in '01". - former buckeye Antonio Pittman
Surely.
When you endow a scholarship, the idea is that it would live on in perpetuity, earning interest/dividends along the way. Therefore, only 5% of the principal from the endowment is paid out per year, so that the funds don’t get exhausted too quickly or faster than the market can grow the fund. 5% is a common payout amount from an endowment, although some institutions pay out more/less on an annual basis from their endowments.
If you endow a $50,000 scholarship (currently the minimum for an ongoing endowment), it pays out no more than $2,500 per year. You can continue to give to the endowment, so that the payout amount increases each year.
Think of it this way. The money I pay for tickets, or my NLC donation goes to pay whatever expenses come up this year. New shoulder pads, plane tickets, etc. An endowment is meant to be a long-term, permanent gift that lives on beyond this year.
Now, everyone go out and buy some Powerball tickets so we can endow scholarships and coaching positions at Penn State!
by Tailgate Shogun on Feb 24, 2011 10:39 AM EST up reply actions
Got it
Concise and thorough. You’re clearly a good teacher.
Thanks again, man.
@jtothemfp
"Cats been getting hookups on tatts since back in '01". - former buckeye Antonio Pittman
That's the nicest thing anyone has ever said to me.
I will now endow a scholarship to PSU in your honor to repay your kindness!
(assuming, of course, that you can loan me $49,975 or so)
by Tailgate Shogun on Feb 24, 2011 12:29 PM EST up reply actions
Hey, that's $25 more than I've got!
@jtothemfp
"Cats been getting hookups on tatts since back in '01". - former buckeye Antonio Pittman
I wasn't trying to say that football will no longer fund the rest of the athletic programs
And you’re never going to have anything network other than BTN pick up those minor sports, but my point was that even if it’s just a small bit of revenue, sure the programs may still operate in the red, but I’d still think that small bit of income would take a little edge off, even if in the big picture it’s largely insignificant.
Was curious, so I looked it up
football brings in 45% of the revenue. Donations bring in 15%. Mens hoops brings in 3%. All other sports combined bring in 2%. Expenses are a different story.
Rest can be found here:
http://grfx.cstv.com/photos/schools/psu/sports/c-lionclub/auto_pdf/2009-NLC-Annual-Report.pdf
by Tailgate Shogun on Feb 23, 2011 9:07 PM EST up reply actions
Woah
Cool Link Katie Holmes. Thanks man!
@jtothemfp
"Cats been getting hookups on tatts since back in '01". - former buckeye Antonio Pittman
Until companies start shelling out $12M per team to attend the Barbasol Ice Hockey Bowl, presented by Ro-Tel, or ESPN starts getting mad crazy ad revenue from broadcasting collegiate wrestling, all of the other sports besides football & basketball will continue to operate at a loss.
Ice Hockey makes a profit at some schools, no? I think at some of the Big Ten schools in particular. Mostly, it’s a money loser but it’s not unheard of to make money. Furthermore, if a Big Ten hockey conference forms and leverages the big names in the conference to a solid TV deal (which would pretty much be the reason to form such a conference) then that could make ice hockey profitable at all the participating Big Ten schools, including PSU.
FWIW, baseball and women’s basketball make a profit at some schools as well.
Wouldn't the Big Ten Network
automatically include hockey as part of their world, assuming an official Big Ten Conference comes to fruition?
Can’t speak for hockey at other schools, but I would agree that places where it’s a huge deal (same for women’s basketball or baseball) those sports could come out in the black. Not to the degree of football profits, but in the black.
by Tailgate Shogun on Feb 23, 2011 9:59 PM EST up reply actions
they already air hockey on the BTN
and they’re not even “conference” games (though the aired games do tend to be between two Big Ten schools). I think it’d be a lock to continue on it.
Fire Dan Snyder
They have Air Hockey on the BTN?
Damn! I wanna see the match between Cael and SR HS recruit Nico Megaludis. Cael says Nico’s scorekeeping is suspect.
@jtothemfp
"Cats been getting hookups on tatts since back in '01". - former buckeye Antonio Pittman
Srlsy, tho
The BTN will continue to get better every year. I can’t imagine that next year’s wrestling coverage won’t be leaps and bounds better than this past year’s.
@jtothemfp
"Cats been getting hookups on tatts since back in '01". - former buckeye Antonio Pittman
Huh?
I thought they were going to air basketball games from ‘70s, women’s basketball games, and “campus programming” instead?
"Hi, I'm Bob Evil!"
by ReadingRambler on Feb 24, 2011 11:42 AM EST up reply actions
They mostly air hockey on Friday nights and I think that would continue. No basketball that night during conference play, so it’s good to get a higher profile sport on the network.
On Saturdays (the other day when ice hockey games typically are), there is a lot of basketball inventory to broadcast, so it would be tougher to fit games onto the BTN. My guess is that the conference would sell the rights to Saturday games to a third party (Versus?).
Received (via email) an online survey from the Athletic Dept. on Monday night
About the “soon-to-be constructed Pegula Ice Arena.” They asked for our thoughts on what interested us in ticket ticket opportunities and overall event experiences… ie: did we want a luxury suite with that NLC donation.
Got one of those too.
Short of them moving the ice hockey arena to the western Philly suburbs, the great likelihood is that I may never see the inside of the new facility.
by Tailgate Shogun on Feb 23, 2011 8:13 PM EST up reply actions
You wouldn’t make a weekend trip sometime? Personally, if they start doubling up hockey and hoops – ice hockey games Fri and Sat night and a basketball game Sat afternoon – I’ll go up for the weekend to watch games. Right now, I’m not that inspired to make the big trip (3.5 hours) for basketball games, but I’d be much more willing if there was a second sport I wanted to watch. YMMV.
I think they already have some winter/spring sports weekends
with a bunch of different sports events in one w/e – bball, vball, gymnastics, wrestling, etc. It would be great to throw hockey in that mix. I would definitely love to attend a total PSU sports weekend, mixed with a bar tour or 2.
"God is great, beer is good, and people are crazy"
I thought about doing one of those winter weekends this year
but none of them were worth it, IMO. It feels like the packages & scheduling were much better, and more conducive to these trips, 10-15 years ago (when my family would do this once a winter). We would be able to go up and see both mens & womens bball, women’s gymnastics, and wrestling, all in one weekend. And I remember there were always a few options of which weekend to go up, so that we could easily fit it into our schedule…now it seems like if there is mens & womens bball, there’s no wrestling; if there’s wrestling & women’s bball, there’s no gymnastics, etc.
Fire Dan Snyder
That's a shame
It would be a great way to bring some people, enthusiasm, and cash into State College in the winter/spring. I only get to one football game/year if I’m lucky, but a trip to SC in the duldrums of winter could be a blast.
"God is great, beer is good, and people are crazy"
Agreed
I’m def getting it on the schedule for next winter. A wrestling/Vball weekend would be the bees knees, ankles and gastrocnemius.
@jtothemfp
"Cats been getting hookups on tatts since back in '01". - former buckeye Antonio Pittman
Yeah, I see this improving as well
May be the optimist in me, more than the pragmatist, but yeah, wrestling had this issue as well. Home on Fri night, away on Sun, instead of a Fri/Sun home package for fans who want to catch two meets.
@jtothemfp
"Cats been getting hookups on tatts since back in '01". - former buckeye Antonio Pittman
I don't trust the Big Ten to make this change.
The way they set up the divisions and their names has just ruined my confidence.
"Hi, I'm Bob Evil!"
by ReadingRambler on Feb 24, 2011 11:42 AM EST up reply actions
You're probably right
I historically have an over-inflated sense of the power of the Voice of the People.
We need a good bean counter, tho. To let us know if wrestling is actually growing enough in popularity such that some changes might occur.
@jtothemfp
"Cats been getting hookups on tatts since back in '01". - former buckeye Antonio Pittman
If I could bundle a game with basketball, I might
I tend to get to one, maybe two, basketball games per year. The challenge is that I spend 7 weekends in SC in the fall, plus Blue White, plus I’m in town for business, plus PSU meetings – I think I calculated that I was in State College for 23 nights last year.
Hard to cram additional trips into town sometimes.
by Tailgate Shogun on Feb 24, 2011 10:02 AM EST up reply actions
Pegula brings an honest passion to
this sort of endeavor. He broke down and cried upon the sight of Gilbert Perrault during the presser announcing that the Sabres were his.
"Never mistake motion for action." - Ernest Hemingway

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