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10-08-2008, 10:34 AM
WhipNash27's Avatar
Join Date: Jan 2007
Location: Westchester, NY
Country: United States
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Originally Posted by Fletch View Post
it definitely could be a problem, although many of the tickets were sold by the teams prior to the crisis. True there are a lot of game day tickets, etc., that may go unsold, but the bulk of their revenues come from subscriptions, luxury suites, etc. that were already paid for. Next season could be a disaster. What may also hurt the cap is the recent strengthening of the USD compared to the Candian dollar, which, I believe, contributed a fair amount to the increase in the cap. It's not inconceivable that it does down next season, and down even more the season after, both of which will be interesting scenarios.
As of now the 10 cent difference in the CAD won't make a huge difference. In the past the 1.40CAD/1USD and even worse numbers like 1.60/USD is what killed the Canadian franchises. If it stays around where it is now, there won't be a huge difference. Of course losing 10 cents over $100 million nets you a $10 million loss, but it's still not as bad as it once was. However, with the USD getting stronger everyday (A few months ago the Euro was around 1.70, today it's 1.36), there could be bigger effects down the road as you pointed to.

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