PITTSBURGH -- Penguins owner-captain Mario Lemieux said he doubted the NHL team will remain in Pittsburgh after its Mellon Arena lease expires in 2007, citing a lack of progress on a new arena.

The Penguins are projecting a $7 million loss this season, a figure that assumes the team will draw near-capacity crowds and advance to the second round of the playoffs.

"I think we're really running out of time," Lemieux said on Saturday. "We probably ran out of time already. It's been unfortunate that the city and the county haven't been willing to work with us over the last two or three years."

Lemieux has said for several years that the Penguins would not be able to survive in Pittsburgh without a new arena. Mellon Arena is the oldest and smallest arena in the National Hockey League.

The lease allows the team to solicit offers for the franchise beginning in June 2006. Kansas City is among the cities that have expressed interest in the team.