NHL and NHLPA “watching closely” decline of Canadian dollar

[MMC]

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[Mr Kot]

Yeah the Canadian government, IIRC, overblew their budget a huge amount this time. Plus, with increasing calls for Trudeau to step down, it's pretty damn tumultuous right now.

 

[1989]

Has the NHL committed to its cap raise already or is that now up in the air?

 

[Turin]

Canada is f***ed for at least a few years here. Maybe forever, but if the next government is committed to doing the hard work of fixing the problem it’s still going to take a while.

 

[SomeDude]

Ah, so this is how they’re going to keep the cap from rising as much as it should.

 

[ViD]

Matthews to Utah

E4

 

[KirkAlbuquerque]

Time to move all 7 teams to the Sun Belt!

 

[barkovcanfinnish]

That really sucks. Mostly for Canadians. Whether the NHL reaches record profits or not does not matter in the grand scheme of things

 

[dahrougem2]

Isn't this technically better for players on Canadian teams or am I misunderstanding things?

They get paid in USD, but likely have to exchange currency to CAD which will result in them having more money to spend inside of Canada.

Again, I could be completely misunderstanding things here.

 

[Three On Zero]

Isn't this technically better for players on Canadian teams or am I misunderstanding things?

They get paid in USD, but likely have to exchange currency to CAD which will result in them having more money to spend inside of Canada.

Again, I could be completely misunderstanding things here.

Lower Canadian dollar means that Canadian teams are paying $1.30 for each dollar they pay their players.

.30 cents on every dollar is A LOT of lost revenue for Canadian markets.

An American market players earns a dollar and gets paid a dollar.
A Canadian market players earns a dollar and gets paid a dollar thirty.

 

[DuklaNation]

Idiots desperately trying to save overextended borrowers has tanked the CAD. They will never learn a more stable interest rate policy is better for long term investments.

 

[dahrougem2]

Lower Canadian dollar means that Canadian teams are paying $1.30 for each dollar they pay their players.

.30 cents on every dollar is A LOT of lost revenue for Canadian markets.

Ahhhh there we go. Thank you.

 

[Channelcat]

Isn't this technically better for players on Canadian teams or am I misunderstanding things?

They get paid in USD, but likely have to exchange currency to CAD which will result in them having more money to spend inside of Canada.

Again, I could be completely misunderstanding things here.

Yes.

 

[Crow]

Is the Canadian finance administration (not sure what they call themselves) actively trying to reduce the value of their dollar or is this more of a market perception thing ?

 

[Luigi Lemieux]

Isn't this technically better for players on Canadian teams or am I misunderstanding things?

They get paid in USD, but likely have to exchange currency to CAD which will result in them having more money to spend inside of Canada.

Again, I could be completely misunderstanding things here.

Better for the players purchasing power, worse for the teams. They pay their players in usd but their gate revenue is in Canadian dollar.

 

[Jacob]

Temporarily relocating them to the US or Mexico until Canada gets its act together seems like the best bet. For the sake of tradition they can keep the same team names.

 

[DuklaNation]

Lower Canadian dollar means that Canadian teams are paying $1.30 for each dollar they pay their players.

.30 cents on every dollar is A LOT of lost revenue for Canadian markets.

An American market players earns a dollar and gets paid a dollar.
A Canadian market players earns a dollar and gets paid a dollar thirty.

If they had any brains, you execute a currency swap long term at an acceptable exchange rate. Personally would find it hard to believe they don't when exposed to currency spread risk between major revenue/expense lines.

 

[DistantThunderRep]

Not true, the Canadian dollar was under 70 cents in March of 2020.

 

[Albatros]

Canada is f***ed for at least a few years here. Maybe forever, but if the next government is committed to doing the hard work of fixing the problem it’s still going to take a while.

It's not like everyone in Canada gets paid in USD, even the NHL teams themselves have some income in USD and expenses in CAD.

 

[jigglysquishy]

Is the Canadian finance administration (not sure what they call themselves) actively trying to reduce the value of their dollar or is this more of a market perception thing ?

It's a threatened tariff by America thing as much as anything.

 

[Crow]

It's a threatened tariff by America thing as much as anything.

What are Canada’s main exports to the us?

 

[theVladiator]

If they had any brains, you execute a currency swap long term at an acceptable exchange rate. Personally would find it hard to believe they don't when exposed to currency spread risk between major revenue/expense lines.

This is a decision for individual teams to make, not NHL as a whole. The issue is revenue calculations for cap purposes. I do not think those are in any way affected by exchange rate hedging strategies of individual teams.

 

[miscs75]

Temporarily relocating them to the US or Mexico until Canada gets its act together seems like the best bet. For the sake of tradition they can keep the same team names.

The Tijuana Canadiens, Mexico City Maple Leafs, Monterrey Senators, Atlanta Thrashers and then who knows where else for the Canucks, Flames and Oilers.

 

[FriendlyGhost92]

Has the NHL committed to its cap raise already or is that now up in the air?

With the cap raise lagging significantly behind revenue increases due to escrow repayment from COVID, I seriously doubt it.

 

[DuklaNation]

This is a decision for individual teams to make, not NHL as a whole. The issue is revenue calculations for cap purposes. I do not think those are in any way affected by exchange rate hedging strategies of individual teams.

That's a flawed premise, no wonder they screw it up.