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Phil in Absentia
01-12-2016, 03:54 PM
From the Globe and Mail (http://www.theglobeandmail.com/report-on-business/top-business-stories/canadian-dollar-flirts-with-70-cent-mark/article28127395/):


Canada now has a 70-cent dollar.

The loonie dipped under the 70-cent (U.S.) level, touching as low as 69.9 cents, having rallied earlier to as high as 70.5 cents.

The currency has been largely hit by oil prices, which dipped below $30 a barrel at one point today, the domestic economic outlook and the different timelines for interest rates in Canada and the United States.

We’ve already written plenty on the loonie, and how its largely unexpected plunge has the potential to affect everything from expansion to Quebec City (http://nhl.nbcsports.com/2015/12/07/the-canadian-dollar-isnt-doing-quebec-city-any-favors/) to the Los Angeles Kings’ ability to re-sign Milan Lucic (http://nhl.nbcsports.com/2015/12/11/dont-tell-the-commish-but-the-canadian-dollar-keeps-falling/). It’s a big story, no matter how much Gary Bettman tries to downplay things.

True, the NHL is in a different place than it was the last time the Canadian dollar sunk to its current levels. There was no salary cap, for one.

But consider the following quote from former Vancouver Canucks owner Arthur Griffiths, who sold the franchise in 1997 when the loonie was around $0.73 USD, and headed lower.

“The team turned into the greatest money pit in terms of losing money year after year,” Griffiths told Business In Vancouver. “I was collecting Canadian dollars and paying players in U.S. dollars.”

Two years later, the Quebec Nordiques moved to Denver. The year after that, the Winnipeg Jets moved to Phoenix. Those moves weren’t entirely due to the currency disparity, but it was a significant factor.

http://nhl.nbcsports.com/2016/01/12/canadian-dollar-dips-below-0-70-usd-for-first-time-since-2003/

Shanahammer
01-12-2016, 03:56 PM
That's no bueno

Phil in Absentia
01-12-2016, 04:16 PM
The longer this goes on, the worse off the salary cap is going to be in terms of whether the NHLPA opts for the inflator or not. Also known as the "escalator" and "growth factor". It's basically the 5% salary cap increase that's been applied every year, agreed upon by the NHLPA in conjunction with the economics surrounding the established cap each season.

From what I've read, it's possible for the PA to vote for a percentage less than five, so maybe that's the solution? Either way, any fans' expectations/anticipation of a growing cap probably needs to be tempered.

Future
01-12-2016, 04:33 PM
WOW, first the environment, now the NHL cap!!! Where will it end?

https://media2.wnyc.org/i/620/372/c/80/photologue/photos/fracking-sign2.jpg

So Nashty
01-12-2016, 07:02 PM
How did I not know the canadian dollar was called the loonie?!

I always thought it was just the Canadian dollar lol

Dunny
01-12-2016, 09:00 PM
They had to know this was going to happen. It was an inevitability.

torontonyr
01-12-2016, 11:08 PM
http://i.imgur.com/RBc2RQX.png

Shanahammer
01-13-2016, 08:28 AM
Interesting how geopolitics affects North American hockey.

Dunny
01-13-2016, 08:35 AM
It's really just the price of crude + Bank of Canada holding the interest rate at about 0.

Phil in Absentia
01-13-2016, 09:48 AM
The Canadian dollar dipped under 70 cents to the U.S. dollar for the first time since 2003 before recovering and closing at 70.13 cents U.S. The dipping loonie has obvious NHL salary-cap implications with the impact that the seven Canadian NHL teams have on overall league revenues, the cap of course a number that’s calculated off hockey-related revenue. The league projected a $74.5 million ballpark figure for next season’s cap (up from the current $71.4 million) at the early December board of governors meeting. But that wasn’t with a Canadian dollar this low in mind. I would figure that cap number will be lower than $74.5 million unless the Canadian dollar rebounds to some degree. That has huge implications for the way NHL teams plan ahead on extensions for players and trades.

http://espn.go.com/blog/nhl/post/_/id/40601/rumblings-sabres-are-sellers-at-trade-deadline-buyers-plentiful-for-jonathan-drouin

Shanahammer
01-13-2016, 09:54 AM
It's really just the price of crude + Bank of Canada holding the interest rate at about 0.

The price of crude failing is due to Saudi Arabia ignoring OPEC quotas and flooding the market. They want to fuck over Iran as much as they can before sanctions are lifted and Iranian oil hits the market, since the entire Middle East is essentially a KSA-Iran proxy war.

Puck Head
01-13-2016, 01:48 PM
The price of crude failing is due to Saudi Arabia ignoring OPEC quotas and flooding the market. They want to fuck over Iran as much as they can before sanctions are lifted and Iranian oil hits the market, since the entire Middle East is essentially a KSA-Iran proxy war.

Initial flooding of market had to do with shale development in North America.

They wanted to slow/stop all of the new developments here, and they have done a good job at that.

Faiz
01-13-2016, 02:10 PM
Our Dollar Store is now the Five Dollar Store due to high import costs.