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.

Canadiens lose in San Jose for 10th straight time

ANAHEIM, CA - NOVEMBER 29:  Carey Price #31 of the Montreal Canadiens looks on during the third period of a game against the Anaheim Ducks at Honda Center on November 29, 2016 in Anaheim, California.  (Photo by Sean M. Haffey/Getty Images)
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A bad first period was enough to send the Montreal Canadiens to a 2-1 loss to the Sharks on Friday night, extending the franchise’s losing streak in San Jose to 10 consecutive games going back to the 1999 season.

Brent Burns, scoring his team-leading 10th goal of the season, and Joe Pavelski provided all of the offense the Sharks would need in the win.

The star of the game has to be Sharks goalie Martin Jones for his 31-save effort, including a couple of highlight reel saves throughout the night. One of his best came in the first period when he absolutely robbed Alex Galchenyuk with a fancy glove save.

The Sharks really needed Jones to be on top of his game to get the win.

For as good as they looked in the first period, when they seemed to be on the verge of running the Canadiens out of the building, they were not able to maintain that level of play in the second and third periods and allowed Montreal to turn the tables on them a little bit.

Things really started to get a little tense for them with four minutes to play in the third period when Logan Couture was assessed a double-minor for high-sticking Alexander Radulov, resulting a nasty cut to Radulov’s face that left a trail of blood on the ice as he skated to the bench.

Montreal was able to cut the deficit to one when Artturi Lehkonen scored his third goal of the season but were never able to get the tying goal.

After a 13-2-1 start to the season the Canadiens have hit their first slump of the season and are now 3-5-1 in their past nine games.

The Sharks on the other hand are starting to hit their stride a little bit and have won six of their past seven games to open up a three-point lead over the Anaheim Ducks and Edmonton Oilers in the Pacific Division.

Flames, Johnson continue hot streak with win over Wild

CALGARY, AB - NOVEMBER 30: Chad Johnson #31 of the Calgary Flames in action against the Toronto Maple Leafs during an NHL game at Scotiabank Saddledome on November 30, 2016 in Calgary, Alberta, Canada. (Photo by Derek Leung/Getty Images)
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The Calgary Flames’ recent turnaround continued on Friday night with a 3-2 shootout win over the Minnesota Wild.

The win improved the Flames to 7-3-1 in their past 11 games, and featured another strong performance from goaltender Chad Johnson as he continues to make his case to be the team’s No. 1 goaltender.

He stopped 23 of the 25 shots he faced through regulation and overtime, and then two of the three shots he faced in the shootout. Johnson has been on a roll for the Flames since the middle of November, starting nine of the team’s 11 games since Nov. 15.

During that stretch he has a .948 save percentage and a 7-2-0 record. His save percentage for the season remains over .930.

The crazy thing about that number is that it isn’t that far off from what his career numbers look like. Granted, most of that has come in a backup role, but in 40 starts with the Buffalo Sabres a year ago he finished the year with a .920 save percentage. He was at .925 a few years ago in Boston. Really, the only time in his career his performance dipped significantly below that was during a 19-game sample size in 2014-15 with the New York Islanders.

The win moved the Flames into a wild card position in the Western Conference for the time being. It is worth pointing out their 27 games played are more than any other team in the league at the moment, and are five more than the Nashville team they temporarily jumped over in the standings on Friday.

Still, considering where the Flames were just a couple of weeks ago when they were 5-10-1 through the first 16 games.

Sean Monahan scored the winning goal in the shootout for the Flames.

One thing that stood out in the shootout from a Minnesota perspective was the fact coach Bruce Boudreau did not use Zach Parise or Mikko Koivu.

Boudreau said after the game that he had intended to use Koivu if the shootout had been extended to a fourth round, and that his decision to use Charlie Coyle ahead of him came down to something he saw in the way Johnson was defending the first two shooters.

When it came to Parise, who only played 24 seconds in the overtime period, Boudreau said he wanted to talk to the team’s trainers to see if he was fully healthy, adding that he thought Parise looked sluggish and methodical for most of the game.

Video: Martin Jones robs Alex Galchenyuk with fancy glove save

COLUMBUS, OH - OCTOBER 15:  Martin Jones #31 of the San Jose Sharks stops a shot by Cam Atkinson #13 of the Columbus Blue Jackets during the third period on October 15, 2016 at Nationwide Arena in Columbus, Ohio. San Jose defeated Columbus 3-2. (Photo by Kirk Irwin/Getty Images)
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Alex Galchenyuk has been one of the Montreal Canadiens best players this season and entered play on Friday night with nine goals in his first 23 games.

In the first period against the San Jose Sharks he had himself in a great position to score goal No. 10 when he had a wide open look right in front of the net.

Sharks goalie Martin Jones, however, had other ideas and absolutely robbed the Canadiens’ star forward.

Have a look.

Jones took over as the Sharks’ starting goaltender a year ago after he was acquired in an offseason trade with the Boston Bruins. He was a key piece in their run to the Stanley Cup Final.

He has been on quite a run for the Sharks over the past couple of weeks and entered play on Friday having allowed just six goals in his past five starts.

Senators will be without Bobby Ryan for at least next two games

CALGARY, AB - OCTOBER 28: Bobby Ryan #9 of the Ottawa Senators in action against the Calgary Flames during an NHL game at Scotiabank Saddledome on October 28, 2016 in Calgary, Alberta, Canada. (Photo by Derek Leung/Getty Images)
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The Ottawa Senators were without forward Bobby Ryan during their 3-2 loss to the Philadelphia Flyers on Thursday due to a hand injury that he aggravated on Tuesday against Buffalo. That injury resulted in him being placed on injured reserve by the team, which means he will miss at least the next two games, and potentially more.

On Friday, Senators general manager Pierre Dorion said the team received some positive news regarding Ryan’s injury and that it is possible he could accompany the team on its upcoming four-game road trip that begins on Monday in Pittsburgh. But he will still not be eligible to return until Wednesday when the team visits the San Jose Sharks.

That means he will be sidelined for Saturday’s home game against Florida as well as Monday’s game against the Penguins.

Dorion said on Friday, via NHL.com, that there is a 50-50 chance he accompanies the team on the upcoming road trip that also includes games against the Los Angeles Kings and Anaheim Ducks.

“I’ve got to give Bobby a lot of credit. People don’t know how many injuries he’s played through here, getting his hand frozen and playing through pain,” Dorion said via NHL.com.

Ryan initially injured his finger back on Nov. 17 against Nashville, forcing him to miss the next two games. After returning to the lineup he eventually had to leave Tuesday’s game against Buffalo.

After scoring 24 goals for the Senators a year ago he has just three goals and five assists in 21 games this season.

The Senators are 14-8-2 and in second place in the Atlantic Division, four points behind the Montreal Canadiens.