Despite Stanley Cup championship, Blackhawks were a financial loser last year

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rockywirtz1.jpgPerhaps there was a method to old “Dollar” Bill Wirtz’s madness and Scrooge-like ways. A story out of the Chicago Tribune by Melissa Harris claims that even in spite of the Blackhawks selling out the United Center on a nightly basis, reaching the playoffs and ultimately winning the Stanley Cup the team finished the season, financially speaking, deep in the red. No truth to the rumor that the sound of late owner Bill Wirtz saying, “I told you so” have been heard coming from the halls of United Center.

Wirtz first revealed that the team was not profitable in private. “It’s going to take four (or) five years before we can actually get back in the black,” Wirtz said at an April 19 forum at the Economic Club of Chicago, according to a transcript. “And right now we’re still supporting the Blackhawks with our other Wirtz organizations.”

In a follow-up interview this week, Wirtz said that the Blackhawks ran out of cash several times last season. Each time, he received a memo, known as an internal capital call, in which the team requested money from Wirtz Corp., the Blackhawks’ parent company, to cover operating expenses. And at the end of the season, Wirtz said he double-checked that the playoffs did not cover those losses; the franchise remained in the red, the team’s accountant told him.

“We have multiple businesses and obviously we want every one to stand on its own,” Wirtz said. “And what you don’t want to do is manage one business from the profit of the other one.”

One of the things the team is doing to counter the financial shortfall is to raise season ticket prices. After all, a team’s gains and losses can pass down to the consumer, this time to the tune of an average 20% raise across the board. What once used to be a comparatively cheap ticket to buy in the NHL is now one of the priciest. If you’re worried that this will cause current owner Rocky Wirtz to start conducting business the way his old man did, however, fear not.

“We’re going to do everything we can to win,” team President John McDonough said. “We want this to be a destination for free agents. We want this to be a place where players want to play. … We’re going to charter our players (to away games) and we’re going to stay in hotels that are going to be synonymous with a first-class operation. When Rocky and I first met, we talked about this commitment.”

At least the Blackhawks no longer have to worry about home games being blacked out on local television. Progress finds its way into Chicago at long last. But why have costs gotten so out of control for the Blackhawks even in spite of success? Perhaps you might want to sit down for this one. Escalating salaries are to blame.

Compared with professional basketball, baseball and football, the economics of hockey are difficult.

The league operates under a 2005 revenue-sharing agreement. The way it works is that the teams that rake in the most income, generally regardless of expenses, subsidize the teams that generate the least.

A drawback is that it disqualified the Blackhawks, because of the size of the Chicago market, from receiving revenue sharing dollars.

The primary benefit is that it capped players’ salaries — an owner’s largest expense.

“The collective bargaining agreement has been a major help, but by no means did it create a league where all teams were going to be profitable from that point forward, or even most of them, quite frankly,” said Marc Ganis, president of SportsCorp, a Chicago-based sports consulting firm.

Under the agreement, the more the Blackhawks earn, the more they have to share.

For instance, the Blackhawks keep ticket revenue from their regular-season home games. But for every playoff home game last season, the Hawks had to give the NHL at least 50 percent of what their gate receipts would have been at a regular-season United Center sellout.

And gate receipts are everything in hockey. Ticket sales typically account for up to half of a team’s income.

“You can technically lose money during the playoffs if you don’t raise your ticket prices” for them, Wirtz said.

Obviously the league’s tough position with television contracts play into this as teams aren’t earning nearly as much as the other professional leagues but that’s something all the teams have to deal with. Forgive my cynicism here, but hearing from a team that has a license to print money with a reinvigorated fanbase that’s going crazy for their team (and all the merchandise and ticket sales that entails) makes me feel that this claim of losing so much money feels out of place.  The team is pushing the limits of the salary cap and spending money that they were more than happy to do in order to win it all.

Granted, Rocky Wirtz isn’t playing the “woe is us” card through all this and comes off more as explaining that all is not as rosy as it appears. But isn’t that the point here? It comes off as finding a subtle way to complain about the system in place but doing so in a way so as to not offend anyone in particular. They’ve accepted what they’re doing and their role in everything but don’t want to upset the fans when those costs get passed along to them. Thankfully for Rocky Wirtz, the easiest way to make sure complaints about higher ticket prices are kept to a minimum is to win it all. Mission accomplished.

Video: Johansen, Fisher join in Predators’ conference title celebration

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After reaching their first ever Western Conference Final, the Nashville Predators topped that in a big way, advancing to the Stanley Cup Final for the first time in franchise history.

There were a lot of firsts and rarities along the way.

In ousting the Anaheim Ducks with a 6-3 victory in Game 6, GM David Poile’s team advanced to the championship round for the first time in his lengthy time as an executive.

Peter Laviolette also became the fourth coach in NHL history to bring three different teams to a Stanley Cup Final. The Predators are also the first 16th seed to make it this far.

Yep, that’s a long list of milestones (and not a comprehensive one). And, to think, the Predators haven’t even been on the brink of elimination during the postseason yet.

It’s special stuff, so don’t be surprised by the boisterous celebration you can see in the video above this post’s headline.

P.K. Subban: No city in the NHL ‘has anything on Nashville’

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If there’s one thing we can agree upon about the Stanley Cup Playoffs, it’s that these months have really cemented just how hockey-mad Nashville has become for its Predators.

(Yes, you can call it “Smashville” if you’d like.)

The scene at Bridgestone Arena was as boisterous as ever in the Predators’ 6-3 Game 6 win against the Anaheim Ducks, with legions of fans packing and surrounding the building.

Sights like these have becoming resoundingly normal for a hockey market that was once questioned by media and other fan bases:

Yeah, wow.

As the Predators advanced to their first-ever Stanley Cup Final, plenty of people were making jokes at the expense of the Montreal Canadiens for trading P.K. Subban. Of course, Subban wouldn’t take a shot at the Habs during such a great moment, but his praise for puck-nutty Predators fans says a lot in itself.

“I played in an A+ market my whole career,” Subban said, via Jeremy K. Gover of the Nashville Predators Radio Network. “There’s not a city in the league that has anything on Nashville.”

Whether their opponent is the Pittsburgh Penguins or Ottawa Senators, we already know that Nashville will begin the Stanley Cup Final on the road. That’s OK … Predators fans might need some time to get their voices back and recover from celebrating, so waiting until Games 3 and 4 might be a blessing in disguise.

Ducks’ Cogliano just doesn’t think Predators were the better team

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The Anaheim Ducks battled their way to Game 6 of the Western Conference Final, but Colton Sissons and the Nashville Predators ended their season on Monday.

The Ducks are processing that disappointment – being just two wins away from a trip to the championship round – and some of their reactions might spark a little controversy.

Specifically, it sounds a bit like Bruce Boudreau believing that his Minnesota Wild were superior to the St. Louis Blues despite falling in that series.

Andrew Cogliano, it must be noted, was spurned by Pekka Rinne on some early chances in Game 6. He likely feels as frustrated as any Ducks player right now.

Sisson’s hat-trick goal, making it 4-3 before two empty-netters cemented the 6-3 finish, was the dagger that finally put the hard-working Ducks down.

One can understand some of those feelings from Anaheim, especially considering the frustration of a) getting over Jonathan Bernier‘s early struggles to make a very real game of this and b) occasionally carrying the play in a dramatic way, including in Game 6.

Still, the Predators got the right combination of great stretches of play from Rinne and strong work from the expected and the unexpected, such as Sissons.

For an aging star like Ryan Getzlaf – a player who produced some of his best work late in the season and during the playoffs – you have to wonder how many chances remain.

Predators eliminate Ducks, reach first Stanley Cup Final in franchise history

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Colton Sissons made a serious argument that the Nashville Predators do, indeed, still have a No. 1 center.

At least, he certainly played that way on Monday, generating a hat trick as the Predators eliminated the Anaheim Ducks via a 6-3 win, taking the series 4-2.

In doing so, the Predators advanced to their first Stanley Cup Final in franchise history.

That 6-3 score is very misleading. While Nashville managed 2-0 and 3-1 leads, there was plenty of drama in this one, as the Ducks did not go down easily. Cam Fowler tied it up 3-3 in the third period, briefly stunning a rowdy crowd in Nashville.

Sissons was up to the task, however, settling down a bouncing puck on an otherwise stupendous Calle Jarnkrok pass to score the game-winner, notching a hat trick in the process. Sissons continues to be an unlikely hero for a Predators team dealing with the absence of Ryan Johansen (not to mention Mike Fisher, Craig Smith, and others).

Two empty-netters inflated the score, and they also sapped drama from the closing moments, which must have been quite the relief considering how much resolve Anaheim showed.

Peter Laviolette distinguishes himself as one of the NHL’s most underrated bench bosses, becoming just the fourth coach in league history to take three different teams to a Stanley Cup Final. He couldn’t win it all with the Philadelphia Flyers, but he does have a ring thanks to his time with the Carolina Hurricanes. Perhaps he’ll take another one this spring?

It’s quite the moment for GM David Poile, too, after trading Shea Weber for P.K. Subban and Seth Jones for Johansen, among other pivotal moves.

The Ducks might wonder what could have been if John Gibson played instead of Jonathan Bernier. Bernier struggled early, allowing two goals on the first three shots he faced and generally having a tough Game 6. Pekka Rinne, meanwhile, maintained his mostly great run in the playoffs; he protected a Predators lead even when the Ducks dominated long stretches of play.

Now the Predators get a nice rest, as the Eastern Conference Final continues with a Game 6 on Tuesday (and possibly a Game 7 on Thursday).

They’ll limp a bit toward that final round, but the Predators seem to be embracing new territory. And sometimes new heroes.