Kukla's Korner Hockey
by Alanah McGinley on 08/19/08 at 02:53 PM ET
Tom Benjamin at Canucks Corner responds to a reader question on the impact of the latest exchange rates on league revenue, the salary cap and revenue sharing.
First, I don’t think the Canadian dollar will necessarily stay where it is. The value of the dollar is tied to oil prices and I expect energy prices to rise, not fall. Second, even if the Canadian dollar continues to fall, the impact next year will not be enough to actually drop NHL revenues. If all other things remain more or less equal - the league “enjoys” a small increase in real revenues - the salary cap would still go up a little bit. Third, any adverse impact of the changing Canadian dollar will fall mostly on the Canadian teams. It will mostly help the revenue challenged teams in the United States if the salary cap level stabilizes.
Read on for more, including how the American economy may continue to negatively affect the NHL this coming season.
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Paul Kukla founded Kukla’s Korner in 2005 and the site has since become the must-read site on the ‘net for all the latest happenings around the NHL.
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