Kukla's Korner Hockey
Hockey Economics
by Alanah McGinley on 08/19/08 at 02:53 PM ET
Comments (0)
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.
Filed in: NHL Talk, NHL Business of Hockey, | KK Hockey | Permalink
Tags: salary+cap
Comments
Be the first to comment.
Add a Comment
Please limit embedded image or media size to 575 pixels wide.
Add your own avatar by joining Kukla's Korner, or logging in and uploading one in your member control panel.
Captchas bug you? Join KK or log in and you won't have to bother.
Most Recent Blog Posts
The New Landscape For Minor League Hockey
Video- Duncan Keith Goal Or Not?
Video- An Almost Bad Goal Of The Night For Jake Allen
About Kukla's Korner Hockey
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.
From breaking news to in-depth stories around the league, KK Hockey is updated with fresh stories all day long and will bring you the latest news as quickly as possible.
Email Paul anytime at pk@kuklaskorner.com