Strength of Canadian Dollar Could Hurt U.S. NHL Teams
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Small-Market Teams Like Buffalo Feeling
Effects Of Increase In Canadian Dollar |
Small-market NHL teams in the U.S. will “soon feel the strain of a robust Canadian hockey economy, which is generating money for the NHL and increasing its hockey-related revenue,” according to Maki & Duhatschek of the Toronto GLOBE & MAIL. In turn, that could “raise the NHL’s salary cap,” which has a low-end of $34.3M this season. Under the CBA, clubs that receive revenue sharing “must generate a year-to-year growth rate in excess of the league average revenue growth rate.” Oilers Chair Cal Nichols, when asked if small-market U.S. teams “could be damaged,” said, “It’s possible. I can say that as our revenues grow, so increases what we pay into revenue sharing. I’m not going to say everything’s wonderful (in Edmonton) until we find out what we have to pay.” NHL Deputy Commissioner Bill Daly said that the increase in the value of the Canadian dollar has created a “situation worth tracking.” Daly: “This phenomenon is a new issue. If it became a persistent, league-wide issue over a considerable period of time, it may be something we have to look at addressing in some way.”
IMPACT ON PLAYERS: Meanwhile, Maki & Duhatschek noted that since NHL contracts are paid in U.S. dollars, players on Canadian-based teams are “taking a hit” and to “counter that, some are now putting money into Canadian-dollar investment deals and real estate.” However, one player agent said that he has “yet to hear any complaints from his Canadian-based clients” (Toronto GLOBE & MAIL, 11/8). In Vancouver, Elliott Pap noted that before the '05 CBA mandated that all player contracts be paid in U.S. dollars, players were "reluctant to sign in Canada, or play here, unless they were compensated in U.S. dollars.” Canucks C Trevor Linden said, “If you’re leaving your dollars in American currency and you wait a few years, I think you’ll be all right. I’ve always kept mine in U.S. dollars for the most part because I invest in U.S. dollars.” Canucks C Brendan Morrison, a finance major at the Univ. of Michigan, joked about advice he is offering to his fellow players: “If you’re going to shop, go shop in the States” (Vancouver SUN, 11/8).
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Gherardini Feels Rising Currency
Exchange Rates Source Of Concern |
EUROS: In Toronto, Dave Feschuk writes Raptors players from Europe are paid in U.S. dollars, but “many of their expenses must be paid in euros.” As of Thursday, one euro cost $1.47. Raptors VP & Assistant GM Maurizio Gherardini, who is from Italy, said, “A certain part of our living expenses are in Europe, and the euro is going up so much. And the rest of our expenses are in Canadian dollars, and the Canadian dollar is so strong. We’re getting beaten both ways. It’s definitely a source of concern.” Gherardini said that in the past it was “not uncommon for U.S. players to demand a fixed exchange rate on their deals,” but with the U.S. dollar “so low, it’s hard to imagine someone asking for such assurances of late.” Feschuk notes if the trend continues, one could “foresee a European agent asking for an NBA client to be paid in something a little more weighty than greenbacks” (TORONTO STAR, 11/9).
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