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: On Hockey Day in America, Auston Matthews did this . . .

TORONTO, ON - NOVEMBER 11:  Auston Matthews #34 of the Toronto Maple Leafs skates against the Philadelphia Flyers at the Air Canada Centre on November 11, 2016 in Toronto, Canada. The Maple Leafs defeated the Flyers 6-3.  (Photo by Bruce Bennett/Getty Images)
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Born in Scottsdale, AZ., Auston Matthews has taken the NHL by storm in his rookie season as an elite talent headlining an impressive freshman class.

Taken first overall last June, Matthews made history with four goals in his debut, surely a dizzying experience for Maple Leafs fans accustomed to heartbreak and frustration. And he really hasn’t slowed down since.

On Sunday against the Carolina Hurricanes — and on Hockey Day in America — the 19-year-old Matthews once again put on a show, scoring his 28th goal of the season. That gave Toronto a two-goal lead.

As he’s often done in his brief time in the NHL, this goal was of the spectacular variety, as he broke in off the left wing and, as he was getting hauled down to the ice, slid the puck five-hole on Cam Ward.

Related: Auston Matthews is having a rookie season for the ages

Video: After a slow start, Evander Kane is on a roll for the Sabres

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For about a month now, Evander Kane has enjoyed a particularly productive stretch for the Buffalo Sabres.

Kane scored with 5.6 seconds remaining in the first period of Sunday’s game versus the Chicago Blackhawks, converting on a nifty pass from Jack Eichel and going top shelf on Scott Darling.

He now has goals in three straight games, and 15 points in 14 games as the Sabres have fought their way back into the playoff race in the Eastern Conference.

Of course, this latest run comes just before the trade deadline, and Kane’s name has consistently been in speculation about a possible move — in addition to off-ice issues. While GM Tim Murray has said earlier this month that he’s not actively shopping Kane, he also didn’t absolutely rule out trading the 25-year-old left winger, now into his second season in Buffalo.

(Murray: “Is there a crazy deal that somebody could throw at me that would force me to do it? I guess there is.”)

Most impressive about Kane’s numbers — remember he missed time earlier this season with a rib injury and then had a slow start, which drew the ire of the coach — is that he’s done the vast majority of his scoring, 20 of 21 goals, at five-on-five.

WATCH LIVE: Bruins at Sharks

BOSTON, MA - FEBRUARY 9: Dominic Moore #28 of the Boston Bruins defends Brent Burns #88 of the San Jose Sharks during the first period at TD Garden on February 9, 2017 in Boston, Massachusetts. (Photo by Maddie Meyer/Getty Images)
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The Boston Bruins are back from their bye week, looking to continue a three-game winning streak since Bruce Cassidy took over as head coach from Claude Julien.

The Bruins can extend their streak Sunday, when they visit the San Jose Sharks (8:30 p.m. ET). You can check out the game on NBCSN or online with NBC Sports’ Live Extra.

CLICK HERE TO WATCH LIVE

Here are some links to check out for tonight’s game:

The NHL’s bye week experiment is still a work in progress

Pre-game reading: Are the Bruins and Avalanche on verge of trade?

Sharks have reason to wait on Thornton, Marleau extensions

Video: Trouba called for a hit to the head on Stone

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Jacob Trouba could be getting a call from the NHL Department of Player Safety for a hit to the head of Ottawa Senators forward Mark Stone.

The incident occurred during the third period of Sunday’s game, as Stone was passing the puck after he entered the zone. Trouba stepped up and delivered a high hit, resulting in only a minor penalty for an illegal check to the head.

Stone, who dealt with a concussion that was reported in September, remained down on the ice before eventually going to the dressing room.

As you can see from the video, Senators coach Guy Boucher was furious officials on the ice decided this was only worth a minor for Trouba.