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Value Of The Canadian Dollar Will Impact NHL Revenues

from Sean Fitz-Gerald of the National Post,

A lower Canadian dollar has the potential to slow revenue growth in the National Hockey League, which would impact the salary cap. Small-market teams in Canada would face a host of familiar economic problems, with revenue earned in Canadian funds, and players being paid in U.S. currency.

“The Canadian currency conversion always has a direct impact,” established NHL player agent Anton Thun said on Thursday.

On Tuesday, the Canadian dollar closed at 94.80 cents U.S., its lowest level since October, 2011. In May, TD Bank released a report predicting the loonie would drop to 90 cents U.S. by the end of the year.

“It will have a huge impact,” Thun said. “At the end of the day, I would guess — and I’m just guessing — that the Canadian revenues probably total at least a third, if not 40% of the revenues in the NHL.”

read on

Filed in: NHL Teams, NHL Talk, | KK Hockey | Permalink
 

Comments

awould's avatar

I guess people need to be reminded? This happened before and really hurt the Canadian teams. I might not be remembering it exactly right, but wasn’t this a huge factor in both the Winnipeg-Phoenix and Quebec-Colorado moves?

Posted by awould on 07/06/13 at 12:42 PM ET

Down River Dan's avatar

“This has been a fascinating journey. When the Canadian dollars was in the 60s, it was a disaster. When the Canadian dollar was at $1.09 (US) it was a disaster because it meant everything else was out of sync. Our system is designed to account for the fluctuations of the Canadian dollar. It would make everybody’s life easier if it would stabilize, but it’s not a concern.”


That was a quote from the midget himself from a James Mirtle blog post in 2008.

“The system is designed to account for fluctuations of the Canadian dollar…”

This “design"includes locking out the players again, canceling the season against, imposing a 30% salary rollback again, and imposing a $40 million dollar salary cap.

sick

Posted by Down River Dan on 07/06/13 at 01:21 PM ET

Avatar

The American based teams should remember the “sympathy” the Canadian market had for the US teams that struggled through the recent recession with a similar concern for the CDN decline. A non-existent concern, that is.

Posted by timbits on 07/06/13 at 02:52 PM ET

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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.

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.

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