Canadian Sports Teams Stand To Benefit If Loonie Continues Surge
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Canadian Teams Could Add To Payrolls
With Continued Strengthening Of Loonie |
The bottom lines for Canada's six NHL teams, the Blue Jays and the Raptors "will benefit if the Canadian dollar stays high," according to Frank Pingue of REUTERS. The Canadian dollar last week "shot to its highest level in nearly 15 months versus the U.S. currency, putting it within striking distance of rising above the greenback for the first time in over a year." Canadian teams "could beef up rosters and make more money if Canada's dollar, up nearly 20[%] this year, moves above the U.S. dollar and stays there." Experts said that a "prolonged rally means teams not bumping up against league salary caps can offer lucrative contracts to big name players." However, Maple Leaf Sports & Entertainment CFO Ian Clarke said, "Many of the clubs, including ourselves, try to protect against fluctuations in the dollar so in cases like drastic increases we do not capture the full benefit, but in worse times you don't get hurt to the same extent either." Pingue noted experts agree that the NHL, with the biggest Canadian presence among the major North American sports leagues, "would be the main beneficiary of a rallying Canadian dollar as Canadian broadcast and sponsorship deals generate high U.S. dollar returns." A stronger Canadian dollar "could also help cities hoping to lure back NHL teams lost to the United States in the 1990s when the currency sank towards a record low" (REUTERS, 10/19).
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