Kukla's Korner

Loonie business

David Shoalts of the Globe and Mail looks at the plummeting Canadian dollar and its impact on NHL franchises north of the border.  I think the Montreal Canadiens president, Pierre Boivin, however, goes a bit too far with the Chicken Little act with this line:

“We’ll have to see what kind of growth the U.S. teams have, but it’s not impossible that NHL revenue will be flat this year,” Boivin said. “Of course we’re concerned by the dollar’s drop. To be competitive, we need a dollar at par.”

The term “at par”, means of course an exchange rate of 1 to 1, a situation which has existed for only a few months in the last several decades.  While currency risk is an issue that the NHL could certainly handle better as a league, methinks Mr. Boivin is waxing melodramatic here.

Canadian and US dollar exchange rate, 5 year chart
5 year exchange rate, Canadian $/US $

Filed in: NHL Commentary, | On the Forecheck | Permalink
 

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