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.

Push for the Playoffs: Flyers, Canadiens looking to keep playoff hopes alive

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Push for the Playoffs will run every morning through the end of the 2018-19 NHL season. We’ll highlight the current playoff picture in both conferences, take a look at what the first-round matchups might look like, see who’s leading the race for the best odds in the draft lottery and more.

The Philadelphia Flyers kept their slim playoff hopes alive on Sunday night when they stormed back against the Pittsburgh Penguins, stealing two points with two stunning late goals. It was a game they absolutely had to have if they are going to make up this ground in the Eastern Conference, and they have another game just like that on Tuesday night when they host the Montreal Canadiens.

This one might really be a win-or-be-done type of game for them when it comes to their playoff chances.

They do not just need a win, either.

They need to win in regulation.

The Flyers open the day still six points back of a playoff spot, and trail the Canadiens (who are the first team on the outside of the Eastern Conference playoff picture) by three points. A regulation win would at least bring them back to within a point of the Canadiens, and depending on what happens with the Columbus Blue Jackets in their game against the Calgary Flames, could close the playoff gap to as little as four points.

A loss could be devastating for what is left of their chances, especially if Columbus manages to win in Calgary.

The Canadiens can pull to within a point of the Blue Jackets with a win and a Columbus loss, while it would also pretty much leave the Flyers in their rear-view mirror the rest of the way.

Elsewhere in the Eastern Conference on Tuesday, the Penguins and Hurricanes meet in a pivotal game in the Metropolitan Division race as they both look to stay out of a wild card spot and what could be a potential first-round matchup against the Tampa Bay Lightning.

The Islanders (vs. the Bruins) and Capitals (vs. the Devils) are also both in action as they continue to fight for the top spot in the Division.

In the Western Conference, the Minnesota Wild have a chance to jump back over the Arizona Coyotes for the second Wild Card spot, while the Calgary Flames can extend their lead in the Pacific Division over the San Jose Sharks after they were blown out on Monday night.

IF THE PLAYOFFS STARTED TODAY
Lightning vs. Blue Jackets
Islanders vs. Hurricanes
Capitals vs. Penguins
Bruins vs. Maple Leafs

Flames vs. Coyotes
Jets vs. Stars
Sharks vs. Golden Knights
Predators vs. Blues

TODAY’S GAMES WITH PLAYOFF CONTENDERS
Bruins vs. Islanders (7 p.m. ET)
Canadiens vs. Flyers (7 p.m. ET)
Penguins vs. Hurricanes (7 p.m. ET)
Capitals vs. Devils (7:30 p.m. ET – NBCSN- livestream link)
Oilers vs. Blues (8 p.m. ET)
Maple Leafs vs. Predators (8 p.m. ET)
Avalanche vs. Wild (8 p.m. ET)
Panthers vs. Stars (8:30 p.m. ET)
Blue Jackets vs. Flames (9 p.m. ET)

TODAY’S CLINCHING SCENARIO
• The Sharks can clinch a playoff berth should the Wild lose to Colorado in any fashion.

Playoff Percentages (via Hockey Reference)
Lightning — Clinched
Bruins — 100 percent
Maple Leafs — 100 percent
Islanders — 100 percent
Capitals — 99.8 percent
Penguins — 98.2 percent
Hurricanes — 93.5 percent
Canadiens — 20.5 percent
Flyers — 4 percent
Panthers — 0.9 percent
Sabres — Out
Rangers — Out
Devils — Eliminated
Red Wings — Eliminated
Senators — Eliminated

Playoff Percentages (via Hockey Reference)
Flames — Clinched
Sharks — 100 percent
Jets — 100 percent
Predators — 100 percent
Golden Knights — 100 percent
Blues — 98.2 percent
Stars — 91.3 percent
Coyotes 48.6 percent
Wild — 29.4 percent
Avalanche — 17.6 percent
Blackhawks — 12.3 percent
Canucks — 1.2 percent
Oilers — 1.4 percent
Ducks — Out
Kings — Eliminated

JACK OR KAAPO? THE DRAFT LOTTERY PICTURE
Senators — 18.5 percent*
Kings — 13.5 percent
Red Wings — 11.5 percent
Devils — 9.5 percent
Ducks — 8.5 percent
Rangers — 7.5 percent
Sabres — 6.5 percent
Oilers — 6 percent
Canucks — 5 percent
Blackhawks — 3.5 percent
Avalanche — 3 percent
Panthers — 2.5 percent
Wild — 2 percent
Flyers — 1.5 percent
Canadiens — 1 percent
(*COL owns OTT’s 2019 first-round pick)

ART ROSS RACE
Nikita Kucherov, Tampa Bay Lightning — 117 points
Connor McDavid, Edmonton Oilers — 105 points
Patrick Kane, Chicago Blackhawks — 101 points
Sidney Crosby, Pittsburgh Penguins — 92 points
Leon Draisaitl, Edmonton Oilers — 91 points

ROCKET RICHARD RACE
Alex Ovechkin, Washington Capitals — 48 goals
Leon Draisaitl, Edmonton Oilers — 43 goals
Patrick Kane, Chicago Blackhawks — 41 goals
John Tavares, New York Islanders — 40 goals
Brayden Point, Tampa Bay Lightning — 38 goals
Alex DeBrincat, Chicago Blackhawks — 38 goals
Cam Atkinson, Columbus Blue Jackets — 38 goals

Adam Gretz is a writer for Pro Hockey Talk on NBC Sports. Drop him a line at phtblog@nbcsports.com or follow him on Twitter @AGretz.

PHT Morning Skate: Pastrnak on injury; Nashville’s Turris problem

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Welcome to the PHT Morning Skate, a collection of links from around the hockey world. Have a link you want to submit? Email us at phtblog@nbcsports.com.

David Pastrnak on his thumb injury: “Obviously I let the guys down a bit. It’s a tough time. It’s not an injury that happened on the ice, so I took full responsibility for that. That’s what hurt me most. Could I have avoided it? I wish [that I had]. But obviously things happen. The fact that I could let somebody down, I definitely hate that. The first couple of weeks were tough.” [NBC Boston]

• Just in time as the playoffs approach, James Neal returns to the Calgary Flames after a 14-game absence, hoping to find his scoring touch again. [NHL.com]

• When the postseason does arrive, who will get the starting gig in net for the Flames? [Featurd]

• A good look at the teams playing well with the Stanley Cup Playoffs less than a month away. [TSN]

• Playoffs might be out of reach but the Vancouver Canucks are now acting as a spoiler. [Sportsnet]

• Meet the only female full-time Zamboni driver in the NHL. [ESPN]

• The younger members of the St. Louis Blues are really enjoying this playoff push. [Post-Dispatch]

• The San Jose Sharks are trying not to think too far into the future when it comes to a possible first-round matchup with the Vegas Golden Knights. [NBC Bay Area]

Mathew Barzal, Josh Bailey and Nick Leddy need to give more to the New York Islanders as the playoffs approach. [Islanders Insight]

• Examining who’s chasing and possessing the puck the most for the Columbus Blue Jackets. [1st Ohio Battery]

• The Nashville Predators have a Kyle Turris problem. [A to Z Sports]

• A product of the “Ovechkin Effect” in Washington D.C., the Capitals signed Yale product and local boy Joe Snively on Monday. [Japers’ Rink]

• Which AHL players could step up and make an impact with the Edmonton Oilers? [Oilers Nation]

• Finally, there were a good number of bloopers in the NHL over the last week:

————

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.

The Buzzer: Smith, Marchessault lead Shark slaughter; Connor helps Jets extend Central lead

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Three stars

1. Reilly Smith, Vegas Golden Knights

The Golden Knights are unlikely to catch the Calgary Flames or the San Jose Sharks, but if the Sharks don’t surpass the Flames then both Vegas and San Jose are going to meet in the first round of the playoffs and the Smith and his squad fired the first shot on Monday with a four-point game in a 7-3 win.

Smith had a goal and three assists to help lead the Golden Knights to their third straight win. Smith has 16 points now in his past 12 games and has been on fire since early February.

2. Jonathan Marchessault, Vegas Golden Knights

See the above preamble, substitute Smith for Marchessault, and you have pretty much the same thing.

Marchessault notched his own four-point game in their win against San Jose, scoring twice and adding two assists. Marchessault now has four goals and two assists in his past two games.

The 28-year-old had one goal in 14 outings prior to his current little heater. He’s well off the 75-point pace he set last season, but if he’s heating up heading into the playoffs, watch out.

3. Kyle Connor Winnipeg Jets

When Connor is using his speed, he’s dangerous and he’s a bona fide playmaker.

So when he rushed down the left side of the ice, wrapped the puck around the net and fed it to Kevin Hayes to open the scoring, it was the 22-year-old’s speed that started it all off.

He’d then score a goal just 1:05 later in the game on the power play, using his diminutive frame as a net-front presence, jamming his 28th past Jack Campbell.

The Jets moved three points clear of the idle Nashville Predators and Winnipeg still has a game in hand on their Central Division foes.

Highlights of the night

Jumbo Joe still has it:

Can’t defend this:

Myers picks his corner:

So close…

Factoids

Patrick Kane hit 100 points for the second time in his NHL career on Monday.

Pettersson does it in the arena that he was drafted in:

Scores

Lightning 4, Coyotes 1
Canucks 3, Blackhawks 2 (OT)
Jets 3, Kings 2
Golden Knights 7, Sharks 3


Scott Billeck is a writer for Pro Hockey Talk on NBC Sports. Drop him a line at phtblog@nbcsports.com or follow him on Twitter @scottbilleck

Sharks’ Haley tries to pull Golden Knights’ Reaves off bench for fight

Sportsnet
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Micheal Haley is a tough dude. There’s no question.

But wanting a piece of Ryan Reaves and go as far as trying to pull him off the bench to fight him? That’s ambitious.

Haley wasn’t happy after Reaves destroyed Melker Karlsson with a big hit right in front of the San Jose Sharks bench in the first period of Friday’s meeting with Reaves’ Vegas Golden Knights.

Reaves took a quick look at his handy work before going off on a line change. Haley, who was also on the ice, didn’t seem to care and went after Reaves, throwing a punch at one of the toughest — if not the toughest — men in the NHL.

Haley ended up taking a roughing penalty on the play. Reaves got a good laugh in, seeming quite amused at the whole ordeal.

This is a matchup that could feature in the first round of the Stanley Cup Playoffs, and judging by this one, it would be a fantastic series.


Scott Billeck is a writer for Pro Hockey Talk on NBC Sports. Drop him a line at phtblog@nbcsports.com or follow him on Twitter @scottbilleck