PITTSBURGH -- One day after the state rejected a gaming license application that would have guaranteed a new arena for the Penguins, the head of the team's ownership group said he will consider moving the team out of Pittsburgh.

"Recent developments... have convinced us that it is time to take control of our own destiny. Starting today, the team is off the market, and we will begin to explore relocation options in cities outside Pennsylvania," Mario Lemieux said in a written statement Thursday.

Lemieux did not dismiss the option of staying in Pittsburgh, saying "we will also begin discussions with local leaders about a viable Pittsburgh arena plan."

Still, it's a drastic change in rhetoric for Lemieux, who has repeatedly said his priority was to keep the team in town.

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More: Read The Entire Lemieux Statement

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Mellon Arena is the oldest facility in the National Hockey League. For years, Lemieux has been asking for a new building, which he said is essential if the Pens are to stick around.

"After seven years of trying to work out a new arena deal exclusively in Pittsburgh, we need to take into consideration the long-term viability of the team and begin discussions with other cities that may be interested in NHL teams," Lemieux said in his statement.

Mayor Luke Ravenstahl got no warning from the Penguins. He first heard Lemieux's statement when WTAE Channel 4 Action News reporter Bob Mayo read it aloud from an e-mail on his BlackBerry.

"I am surprised and a little bit frustrated, to be honest with you," Ravenstahl said. "For them to express interest in talking to other cities or other places without talking to us here is unfortunate.

"I think Penguins fans should put the pressure on the Penguins at this point to say, hey, look, let's talk to Mr. (Allegheny County Chief Executive Dan) Onorato, let's talk to Mr. Ravenstahl, and see if we can get a deal done to keep the team here. Give us that opportunity. That's all we're asking for."

Late Thursday afternoon, Ravenstahl and Onorato had a conference call with National Hockey League Commissioner Gary Bettman.

"We all knew that the possibility of moving existed, because the lease (at Mellon Arena) expires in 2007. They were just restating the obvious," Onorato said. "He (Bettman) reassured us today, our goal collectively here is to get the arena and to make it financially viable for the franchise to stay here."

Even though Kansas City has a new arena, Onorato thinks Pittsburgh can offer a good deal on rent and arena revenue and negotiate on the Penguins' financial contribution to building an arena here.

"Nothing I do, nothing anybody does, Penguins fans or the like, can stop them from moving if they really want to go out and try to do that," Ravenstahl said. "But we would hope that the loyalty the Penguins fans and the city of Pittsburgh has shown them over the years would at least give us the opportunity to sit down at the table."

Isle of Capri's proposal to build a slot machine casino in Pittsburgh included the promise of a $290 million arena. As part of that bid, IOC had a deal with the Penguins that would have required the club to stay in the city for 20 years.

But on Wednesday, the state Gaming Control Board denied IOC's application and gave Pittsburgh's only slots license to PITG Gaming, led by Don Barden.

PITG pledged to contribute some money for a new arena but will not shoulder the entire financial burden, as IOC had said it would.

Under the proposed terms of a so-called "Plan B" -- which has yet to be fully defined -- the cost of building an arena would be covered by a mix of money from Barden, the Pens and public funds.

Lemieux is also stinging from Jim Balsillie's sudden decision last week to terminate an agreement to buy the Penguins.

Balsillie's move was "shocking," Lemieux said earlier this week. The team is keeping Balsillie's down payment, believed to be in the range of $10 million.

Through a spokesman, Gov. Ed Rendell said Thursday that he is "working with city and county officials and reaching out to the Penguins and the NHL to begin a process to ensure the Penguins remain in Pittsburgh."

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