Junior hockey team declares bankruptcy during pandemic

There are some troubling times ahead for the Canadian Hockey League and one hit hard on Tuesday. 

Bob McKenzie explained on the last Insider Trading on TSN that Portland Winterhawks of the Western Hockey League were forced to fill for bankruptcy after failing to make several payments to a money lender, which has now taken over the team.

“Well it could be both over the long term. In the short term, the news that the Portland Winterhawks were part of a filing for bankruptcy came as a huge shock to the Western Hockey League and all of junior hockey. This is one of the most well-heeled franchises. Or at least historically has been one of the most successful on the ice. One of the most successful of the ice. But this bankruptcy has more to do with owner Bill Gallacher’s issues in the gas and oil industry and having to file Chapter 11 for his parent company than anything to do with the Winterhawks. Now, listen. Junior hockey needs to put people in the stands for people to see the games and for junior hockey to be successful. If there’s no fans in the stands for 2021, there may not be any junior hockey to speak of that could dramatically financially impact a lot of owners then. But, for now, it’s a one off.”

The Winterhawks had the most points in the league with a 45-11-0-7 record last season and have had a winning record each season since 2008-09. They last won the WHL in 2013.

As McKenzie points out, Junior hockey needs to put people in the stands for people to see the games and for junior hockey to be successful, but some fans in smaller NHL markets are getting worried about what might happen to their favourite teams in the shutdown last much longer…