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.

How Jets can continue to contend

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Right now, it’s probably almost all sadness and anger, but eventually, the Winnipeg Jets will look back at this season with mixed feelings.

[Golden Knights eliminate Jets in Game 5]

There are a ton of entries in the “Pros” column. After years of being betrayed by goaltending during the Ondrej Pavelec era, Connor Hellebuyck finished 2017-18 as a Vezina candidate and was mostly great during the 2018 Stanley Cup Playoffs. Winnipeg went from never winning a playoff game in its Thrashers – Jets iteration to making it to the third round. They finished the season with the second-best record in the NHL and dispatched the top-ranked Predators during the postseason. Budding stars like Patrik Laine and Mark Scheifele took their next steps, while Kyle Connor joined this team’s absolutely bursting list of impressive assets. The future is mostly bright, and so is the present, thanks in part to the patience of the past.

Still, it had to be gutting to lose to the Vegas Golden Knights as a considerable favorite, especially considering how frustrating it was to try – and mostly fail – to solve Marc-Andre Fleury.

It’s easy to assume that the Jets will be a fixture in the West’s top rankings for ages, yet the counterpoint is chilling: what if this was actually their best shot?

Overall, the Jets are in a great position to contend for years. That said, GM Kevin Cheveldayoff needs to churn out some more wins, and some breaks need to go their way. Let’s consider what the Jets need to do to contend next season and beyond, along with some of the bumps in the road that could derail such dreams.

Central casting

In 2017-18, the Central Division was the general pick as the toughest division in the NHL. It’s difficult to imagine it getting a lot easier.

The Nashville Predators pushed Winnipeg to seven games, and David Poile’s not shy about making bold moves to get better. The Stars and Blues have a strong chance to improve next season, while the Blackhawks could rebound. Colorado seems like a young, modern team while Minnesota is, if nothing else, scrappy enough to make playoff spots tougher to come by.

Even if Cheveldayoff makes all the right moves, the Jets may simply lose to some very tough competition in the opening two rounds as long as that’s the playoff format the NHL chooses.

The next steps

It’s up to the Jets to continue to cultivate this robust bounty of talented players.

Patrik Laine is already a deadly sniper; can he become a more well-rounded threat? Nikolaj Ehlers looks great, but he failed to score a single goal in the playoffs. Could Sami Niku round out Winnipeg’s defense and will Jack Roslovic be another breakthrough young forward?

Winnipeg players reaching the next level won’t be easy, but it’s crucial.

And if the Jets’ prospects and greener NHL players can really climb, they might be able to shrug off some of the biggest team-building conundrums …

Restrictions coming

The Jets possess one of the best bargain contracts in the league in Scheifele, a legitimate top-line center in the meat of his peak at 25, only carrying a cap hit a bit over $6 million through 2023-24. Despite postseason ups and downs, extending Ehlers at a precise cap hit of $6M through 2024-25 sure looks forward-thinking.

Cheveldayoff’s biggest tests are coming up during the next two summers. Will he be able to maintain this team’s deadly and versatile arsenal once bargains and entry-level contracts expire?

The most immediate tests come in two RFAs heading for big raises: Hellebuyck and underrated defenseman Jacob Trouba. Things seemed a little tense at times with Trouba, so don’t expect another cheap and strange structure for his next contract. (If the NHL wasn’t such a country club atmosphere, you’d almost wonder if someone might send an offer sheet to Trouba and/or Hellebuyck.)

Anyway, Hellebuyck and Trouba aren’t likely to be cheap. The key will be to find the right compromise, whether that means a shorter deal or lowering cap hits with riskier, longer terms.

July also represents the first opportunity to extend some very big names.

Patrik Laine and Kyle Connor will both see their rookie deals go away after 2018-19. Laine’s cap hit could very well reach the teens in millions, while Connor might not be easy to retain after coming off of a 30-goal rookie season.

Wheeler’s next deal

Maybe the most fascinating situation comes with a pending UFA in Blake Wheeler. The 31-year-old’s been an under-the-radar star at a manageable $5.6M cap hit for years now and should command a considerable raise. That could be a tricky situation, as he’ll be 33 when his next contract kicks in.

All of these factors make it tough to imagine the team bringing back soon-to-be free agent Paul Stastny, who was a seamless addition. That’s especially true as Bryan Little‘s extension could stand as regrettable.

Ultimately, Cheveldayoff must make the right calls. Can he leverage RFA statuses to keep the core together? Will Wheeler and other nice, veteran players be affordable? These questions are mostly a little off in the distance, yet sometimes teams feel the need to be proactive. Simply put, players getting raises means that the Jets will most likely be forced to make choices and tough cuts.

(On the bright side, there’s some cap relief on the horizon as well. Toby Enstrom‘s deal is done. Tyler Myers‘ contract ends after next season. It’s not all bad.)

Backup plan?

When the Jets signed Steve Mason, it seemed like they’d either install him as the starter or as a platoon mate for Hellebuyck. An injury-ravaged season essentially pushed Mason out of the picture, and it’s reasonable to wonder what happens considering that his $4.1M cap hit runs through 2018-19.

Do the Jets try to move Mason and shuffle in Michael Hutchinson or a different backup?

Hellebuyck, even a richer version, is likely to be “the guy.” The modern NHL’s shown how valuable a good backup can be, especially during the 82-game grind of the regular season.

***

Few, if any, NHL teams are constructed to compete in both the present and future as well as the Jets right now. They’re likely to get better merely as the likes of Laine come into their own. (Laine still can’t drink legally in the U.S. at 20 years old, after all.)

On the other hand, promising things can go splat in a hurry, especially in sports. Injuries can happen. Bad contracts can gum up the works. Marc-Andre Fleury could stand on his head again.

It’s up to the Jets to prove that this past run was the beginning of something great rather than their best swing at the fence. They have the power to do just that, but it won’t be an easy task.

MORE:
• Conference Finals schedule, TV info
• NBC’s Stanley Cup Playoff Hub

James O’Brien is a writer for Pro Hockey Talk on NBC Sports. Drop him a line at phtblog@nbcsports.com or follow him on Twitter @cyclelikesedins.

Golden Knights enjoying ride to Stanley Cup Final, but remain unsatisfied

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When the Pittsburgh Penguins won the Eastern Conference Final in 2008, captain Sidney Crosby and his teammates decided to stick to superstition and not touch the Prince of Wales Trophy. It didn’t work as they fell to the Detroit Red Wings in the Stanley Cup Final. A year later, as well as in 2016 and 2017, they put their mitts all over it and success followed in those Cup Finals.

So after the Vegas Golden Knights defeated the Winnipeg Jets 2-1 to claim the Clarence S. Campbell Bowl in their first year of existence, goaltender Marc-Andre Fleury, who was a part of those Penguins teams, told de-facto captain Deryk Engelland to pick up the trophy.

This entire Golden Knights season has been unbelievable, so might as well tell superstition to be damned, right?

***

The ride continues for the “Vegas Golden Misfits,” as they so affectionately have dubbed themselves. It’s May 20, 2018 and an expansion franchise will be competing for the Stanley Cup within the week. No one saw this coming. Not after the expansion draft last June. Not after the team finally started playing together during training camp. Not even after their hot start in October.

When did the Golden Knights starts believing this year could be something special?

“I think once we hit Christmas we had the belief in the room,” Vegas defenseman Nate Schmidt told NBCSN afterward. “We knew we had the guys, it was whether or not we could continue to do it. We believed that we could do that. We believed in that room, all the guys it took, and however many lineup changes, that we had the guys in there that could pull something like this off.”

[Golden Knights’ incredible run continues to Stanley Cup Final]

Head coach Gerard Gallant started to believe during a back-to-back road trip to Nashville and Dallas in early December. 

A 2-0 lead against the Predators on Dec. 8 evaporated with Nashville firing off three straight and taking the lead with 5:04 to play. Doubting Vegas would be a mistake all season, which explains Erik Haula tying the game with 40 seconds to play and Reilly Smith winning it in the sixth round of the shootout. The following night was another tough win, with the Stars keeping things tight until the very end and the Golden Knights coming out on top 5-3.

“We come out of those games, we outplayed both of those teams, played great hockey,” Gallant said. “That’s when I said to myself, this is a special team, the character on this team, they believe they can beat anybody. Going into those two buildings at that time was a big, big boost for us. It was a confidence builder for me, too.”

Those two victories were part of an 11-1-1 month to close out 2017 as the questioned about the Golden Knights’ legitimacy began to disappear.

***

“There’s no partying with me,” Gallant said after Game 5 when asked if he’s going to celebrate this accomplishment.

The quest isn’t over. The Vegas Golden Knights have evolved from bunch of expansion “misfits” to a nice story to a playoff team to a legit Stanley Cup contender over the course of six months. No one saw this coming, but the players inside the dressing room developed a belief over that period of time and that belief has manifested in reality. 

Vegas will now have a few days off as they await the winner of the Eastern Conference Final between the Tampa Bay Lightning and Washington Capitals. After 82 regular season games and 15 playoff games, it’s time for some rest as the mission is far from accomplished.

“It’s been an awesome ride so far. We’ve won three series. We’re going to the Stanley Cup Final, but this isn’t what we want,” Gallant said. “We want to win.”

MORE:
• Conference Finals schedule, TV info
• NBC’s Stanley Cup Playoff Hub

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Sean Leahy is a writer for Pro Hockey Talk on NBC Sports. Drop him a line at phtblog@nbcsports.com or follow him on Twitter @Sean_Leahy.

PHT’s Three Stars: Reaves’ goal helps Golden Knights reach Cup Final

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1st Star: Ryan Reaves, Vegas Golden Knights

A year ago, “Ryan Reaves scored the goal that helped send the Vegas Golden Knights to the Stanley Cup Final” is totally the sentence we all expected to read in May 2018. Well, here we are after Vegas eliminated the Winnipeg Jets in Game 5 with a 2-1 victory.

2nd Star: Marc-Andre Fleury, Vegas Golden Knights

Fleury continued his march toward the Conn Smythe trophy with a 31-save effort as he helped ensure his chance to win a third straight Stanley Cup.

[Golden Knights’ incredible run continues to Stanley Cup Final]

3rd Star: Connor Hellebuyck, Winnipeg Jets

After a tough couple of games, Hellebuyck did all he could to keep the Jets in Game 5. He finished with 30 saves, including  a pair late in the third period that helped keep the Jets’ deficit to one goal.

Highlight of the Day:

Thank you, Deryk Engelland, for touching the Clarence S. Campbell Bowl:

Factoid of the Day:

Monday’s schedule: Tampa Bay Lightning at Washington Capitals, 8 p.m. ET, NBCSN (Lightning lead series 3-2)

MORE:
• Conference Finals schedule, TV info
• NBC’s Stanley Cup Playoff Hub

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Sean Leahy is a writer for Pro Hockey Talk on NBC Sports. Drop him a line at phtblog@nbcsports.com or follow him on Twitter @Sean_Leahy.

Golden Knights’ incredible run continues to Stanley Cup Final

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Want to capture the unlikely story of the Vegas Golden Knights advancing to the 2018 Stanley Cup Final in their first season? Consider that Ryan Reaves was the person who scored the goal to punch their ticket.

(It’s OK if you need a second just to stare at your screen in disbelief.)

Remarkably, the Golden Knights only needed one chance to dispatch the Winnipeg Jets, who sported the NHL’s second-best record (and who eliminated the top team, Nashville, in the previous round). With a 2-1 win in Game 5, Vegas beat Winnipeg 4-1 in the series.

[PHT’s Three Stars.]

Quite a few storylines carried over from earlier games in the 2018 Western Conference Final.

As usual, Marc-Andre Fleury‘s work was just about spotless. Fleury won his fourth consecutive game, and he needed to make 30+ saves for the fourth time in a row as well, stopping 31 out of 32 shots.

It says a lot about how excellent Fleury has been that Connor Hellebuyck‘s absorbed all sorts of heat during this series, as Hellebuyck’s rarely allowed bad goals, even amid relative struggles during this third round. Hellebuyck made some key saves down the stretch of Game 5, but it wasn’t enough.

Game 5 felt a little different than Winnipeg’s last few losses because Fleury didn’t need the same Herculean effort during the third period. You can get away with making a bad joke about the Jets running out of gas/fuel, because at least compared to previous pushes, it seemed like Winnipeg sputtered a bit after that Reaves tally.

Winnipeg had generated a shots on goal advantage for six straight periods (the last two of Game 3, all three in Game 4, and the first in Game 5), yet the two teams were tied at 32 shots on goal by the end of this one, as Vegas took the final 40 minutes from that standpoint. You wonder if Fleury’s excellent play truly “broke” Winnipeg, at least once it became clear that they’d need to fight back from another deficit following that Reaves-winner.

The Jets were dominant at times during this series, yet it’s sobering for this mighty group to realize that they didn’t just drop four games in a row … they also failed to grab a single lead after Game 1.

Speaking of remarkable stats, consider this: the Golden Knights still haven’t faced elimination during this Cinderella run. They swept the Kings in the first round, beat the Sharks in six games, and then passed by the Jets in five. Now they’ll get to watch Game 6 of the 2018 Eastern Conference Final to see if the Tampa Bay Lightning advance or if the Washington Capitals force a Game 7 (thus giving Vegas a nice rest advantage, as well).

The Golden Knights may root a little extra for that East series to go the distance if Fleury’s a bit hampered by injury issues, as some speculated during Game 5. Fleury wasn’t bothered enough to allow Winnipeg to get back in the contest, and chances are, he’s not too worried about that right now.

Really, the biggest concern is trying to top Elliotte Friedman’s joke:

Ante up.

MORE:
• Conference Finals schedule, TV info
• NBC’s Stanley Cup Playoff Hub

James O’Brien is a writer for Pro Hockey Talk on NBC Sports. Drop him a line at phtblog@nbcsports.com or follow him on Twitter @cyclelikesedins.