NHL and NHLPA “watching closely” decline of Canadian dollar
- Thread starter MMC
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The Devils should file for trademark on their "Hat" hats before Canada is renamed.
SomeDude
Registered User
The league and PA are going to negotiate on that as the cap should be rising drastically next year. Speculation is they will spread it out over a couple of years to keep it from spiking so quickly.
Hence this news. The league needs an explanation why revenue didn’t actually go up as much as it did. Bettman is nothing if not a weasel.
Hire Sather
He Is Our Star
You mean the cap isn't gonna go up as much as they claimed?
Same story for 15 years. It NEVER happens
Same story for 15 years. It NEVER happens
So cap next year is now $55 million with 6 compliance buyouts per team
SomeDude
Registered User
Don’t forget, Ottawa will also be forfeiting a 2nd round pick.
Randy Butternubs
Registurd User
I don't think it's that big of an issue.
For one, for an export economy like Canada, you actually don't want a strong dollar as that's a net negative.
Secondly, Trump will likely try to devalue the US dollar some himself to make the US more competetive for exports as well.
So the CAD could start rising again as soon as the new year.
For one, for an export economy like Canada, you actually don't want a strong dollar as that's a net negative.
Secondly, Trump will likely try to devalue the US dollar some himself to make the US more competetive for exports as well.
So the CAD could start rising again as soon as the new year.
Golden_Jet
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Mr Kot
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MasterofGrond
No, I'm not serious.
Yeah, I find it hard to believe that organizations that have significant but relatively predictable long term USD liabilities aren’t protecting itself. It’s not rocket science.
The league, separate from teams, should probably also have some sort of better strategy for smoothing fluctuations than “we’re watching closely”
Oil, the US gets like 60% of their oil/gas imports from Canada, which is an enormous amount.
Primary Assist
The taste of honey is worse than none at all
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Mexico City Maple Leafs does have a nice ring to it. Almost as good as the Cancun Canadiens and Cabo Canucks
I just taught devaluation in my macro class.
Anytime one currency appreciates relative to another we get a lot of handwringing about the weaker currency. But "weaker" and "stronger" currency is just verbiage. It doesn't mean worse and better.
For instance, thanks to the "strong" dollar the United States has an enormous trade deficit, draining the country of roughly one trillion dollars per year. (It makes buying imports cheaper and selling exports more expensive). Canada has the inverse issue, where it is hard to buy things from the United States, but there is a net inflow of money from exports.
There is understandable concern about the Canadian economy, especially with a potential trade war looming. The federal deficit isn't the biggest factor here, it is a much smaller % of GDP compared to the US federal deficit, which has been between $1T and $2T for many years now, about 6% of GDP. Canada's federal deficit projection, which has everyone talking in the last couple days, was 1.6% of GDP.
For Canadians it isn't all bad. Canadian hockey clubs will have to pay players in USD but those same players (mostly Canadian, and from all clubs) will now be more likely to spend that money in Canada. More of them will decide that now is the time to build that dream cottage on the lake.
The US economy will face major price increases if Trump's tariff policies and mass deportations go according to his stated plans. But it's worth noting that Wall St is currently betting that he won't do either of those things.
You understood it correctly. It's harder on Canadian clubs and better for Canadian players. But people only talk about the negative when a currency "weakens".
The last time there was a big devaluation (leaving out the brief devaluation at the start of the pandemic, it was also at 70 cents then), Canadian clubs weren't doing nearly as well as they are doing these days. Canadians spend a lot more on hockey. So even if this hurts that by x%, we're starting from a much higher starting point.
Personally it should be the least of our concerns. Largely thanks to the housing crisis, inequality between the haves and have nots in Canada has reached a terrifying level. The Trudeau government was asleep at the wheel with a mismatched immigration and housing policy, they've just woken up to it in the last two years. Meanwhile the other two parties are promising not to fix it (they don't plan on building enough to bring down rents). If you ask most economists, they'll tell you that only the BC NDP has a serious housing policy that could fix the problem.
So the haves can still afford to buy hockey tickets (more than ever, even with the devaluation). Well off people who own homes were already the customer base for NHL teams. But that's symptomatic of a much bigger problem than the currency or hockey revenues.
Anytime one currency appreciates relative to another we get a lot of handwringing about the weaker currency. But "weaker" and "stronger" currency is just verbiage. It doesn't mean worse and better.
For instance, thanks to the "strong" dollar the United States has an enormous trade deficit, draining the country of roughly one trillion dollars per year. (It makes buying imports cheaper and selling exports more expensive). Canada has the inverse issue, where it is hard to buy things from the United States, but there is a net inflow of money from exports.
There is understandable concern about the Canadian economy, especially with a potential trade war looming. The federal deficit isn't the biggest factor here, it is a much smaller % of GDP compared to the US federal deficit, which has been between $1T and $2T for many years now, about 6% of GDP. Canada's federal deficit projection, which has everyone talking in the last couple days, was 1.6% of GDP.
For Canadians it isn't all bad. Canadian hockey clubs will have to pay players in USD but those same players (mostly Canadian, and from all clubs) will now be more likely to spend that money in Canada. More of them will decide that now is the time to build that dream cottage on the lake.
The US economy will face major price increases if Trump's tariff policies and mass deportations go according to his stated plans. But it's worth noting that Wall St is currently betting that he won't do either of those things.
You understood it correctly. It's harder on Canadian clubs and better for Canadian players. But people only talk about the negative when a currency "weakens".
The last time there was a big devaluation (leaving out the brief devaluation at the start of the pandemic, it was also at 70 cents then), Canadian clubs weren't doing nearly as well as they are doing these days. Canadians spend a lot more on hockey. So even if this hurts that by x%, we're starting from a much higher starting point.
Personally it should be the least of our concerns. Largely thanks to the housing crisis, inequality between the haves and have nots in Canada has reached a terrifying level. The Trudeau government was asleep at the wheel with a mismatched immigration and housing policy, they've just woken up to it in the last two years. Meanwhile the other two parties are promising not to fix it (they don't plan on building enough to bring down rents). If you ask most economists, they'll tell you that only the BC NDP has a serious housing policy that could fix the problem.
So the haves can still afford to buy hockey tickets (more than ever, even with the devaluation). Well off people who own homes were already the customer base for NHL teams. But that's symptomatic of a much bigger problem than the currency or hockey revenues.
dirtydanglez
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Kamus
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Puerto Vallarta Oilers as most from Edmonton go their on vacation or own property there….. would still get more attendance then some NHL teams.
Machinehead
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Lempo
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That would be the smart thing for Trump to do, but we're just hoping he does it. So far he is attached to the idea of a "strong" dollar.
Here he is threatening sanctions against the BRICS countries that are considering stopping using the dollar for their bilateral trade among each other (which would somewhat "weaken" the dollar):
Truth Social
Trump wants to fix the trade deficit but rather than simply fixing the strong dollar problem (which cleanly handles it), he wants to make the dollar stronger and then do tariffs instead, which are bad for the economy.
miscs75
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jetsmooseice
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Until the KHL starts paying players more and steals players from the NHL, there is no issue with the cap being too low.
Bounces R Way
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