A strong Canadian dollar "means strong business growth" for the NHL, but with the currency "skidding, speculation is rife that the league’s bottom line may suffer, triggering a cascade of side effects, including a stagnant salary cap" for the '15-16 season, according to Jeff Klein of the N.Y. TIMES. But league officials have said that the speculation "is overblown." NHL Deputy Commissioner Bill Daly last week said, "I expect there to be a healthy rise in the salary cap for next season. The Canadian dollar would have to continue to fall in a material way for that to change." Klein noted next season's salary cap "is certain to be a main topic of discussion" when the NHL's BOG meets Dec. 8-9 in Boca Raton, Fla. The salary cap "is tied to league revenue." When the Canadian dollar falls, the portion of league revenue generated by the NHL’s seven Canadian franchises "diminishes as well," which "affects the salary cap." The salary cap "has climbed steadily every non-lockout year since it was instituted" for the '05-06 season. The cap is at $69M per team this season, and early forecasts "predicted it to increase" to $74M for next season, but "that may prove optimistic." The Canadian dollar, "which matched the American dollar" as recently as February '13, "now trades at just over 88 cents." A Canadian Imperial Bank of Commerce report issued in September "estimated that the loonie will fall below 85 cents." Even though Canadian teams "make up only" 23% of the NHL, "by most estimates they contribute" about 35% of revenue. In addition, Rogers Communications’ 12-year, $5.2B broadcast deal "is paid in Canadian dollars, so while that contract was worth" $4.9B in U.S. dollars "when it was signed a year ago, it is worth" $4.6B today (N.Y. TIMES, 11/30).
