Premature playoff exit would crush Red Wings
Economist: Team, city could lose $60 million
By Ted Kulfan / The Detroit News
ANAHEIM, Calif. -- A first-round playoff loss would be a financial disaster to the Red Wings and could hurt the team in its quest to retain and sign free agents.
If the Wings' playoff run ends in California, with no further home games in Detroit, the loss to the team and its hometown will be $60 million, David Littman, Comerica Bank's chief economist, predicted Tuesday.
"With the elevated ticket prices for playoff games," Littman said, "and the enthusiasm of the fans and their willingness to spend in anticipation of victory, each home playoff game is worth about $4 million to the team. A victory parade brings another $16 million to the city.
"Last year, the Wings had 13 home playoff games (most in the NHL). So far this time, they've had two. If they lose now, it's over -- playoff revenue is truncated at $8 million instead of going the full shot to the Stanley Cup and making $68 million."
Jimmy Devellano, senior vice president of the Wings, wouldn't comment on how an economic fallout would affect the team's operation.
"It's premature," Devellano said. "We haven't lost yet. I was part of a team (1975 New York Islanders) that won four consecutive games. Our season isn't done yet."
Before the season, though, Devellano said a long playoff run is important financially to the team.
"Right now, our salaries are just under $70 million, second-highest in hockey, behind only the Rangers," Devellano said before the season. "But if we're a successful playoffs team, we can handle it."
The question is whether owner Mike Ilitch would be willing to accept a loss and keep the payroll high for next season.
The financial situation could jeopardize the future of a number of Wings players, including:
* Star center Sergei Fedorov. He will be an unrestricted free agent at season's end. He has already turned down the Wings' offer of a five-year. $50 million contract. If the Wings lose the Anaheim series, they will not go any higher. Fedorov, who reportedly is seeking $12 million a year, might have to decide between taking less money to stay in Detroit or going to a big-spending team such as the Rangers.
* Forward Darren McCarty. The fan favorite is also an unrestricted free agent and will be seeking a salary in the $2 million to $3 million per-year range. He is one of the few physical players on the team, but with his age (31) and lack of offensive output, the Wings might not be willing to meet his price.
* Center Igor Larionov. He is a locker-room leader and an inspiration to the team's other players. But at $1.5 million per year for a 42-year-old player, the Wings might decide he is a luxury they can't afford.
* Forward Luc Robitaille. After a subpar regular season in which he was benched on one occasion, the Wings won't bring him back.
* Defenseman Jason Woolley. He has been a good find, adding depth on the blue line. But at $1.3 million for Woolley, the Wings could decide to trim costs and go younger at the position, possibly 2000 first-round draft pick Niklas Kronvall.
* Captain Steve Yzerman. After a remarkable recovery from knee surgery, Yzerman has said he wants to play one more year. He probably would want the $8 million he received this season.
A quick ouster also might prevent the Wings from being very active in the free-agent market. Two years ago, the team signed Brett Hull and Robitaille and acquired a high-priced Dominik Hasek. This past season, the big free-agent catch was goalie Curtis Joseph.
This year, the Wings might be on the sideline when players such as Teemu Selanne, Joe Niewendyk and Derian Hatcher are available.
The Wings, whose ticket prices range from $22-$85 in the regular season, also might have to raise ticket prices again.