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10-24-2008, 02:38 PM
  #45
Beakermania*
 
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Join Date: Apr 2004
Location: Kingston or Hamilton
Country: Canada
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Quote:
Originally Posted by CastroLeRobot View Post
actually no, I meant expenses. Revenues are the same since tickets/merchandise are roughly the same price. Expenses, however, are in US$ (player salaries, offshore factories where merchandise is being manufactured, airplane tickets, hotels, etc). So if your Revenues drop 20% (because of exchange rates), your expenses rise 20%.

I think we both are right and it depends on where you stand (I mean as of which currency varies, i.e. is it the CD$ dropping, or is it the US$ rising)
Since everything in the CBA is worded with respect to US $ and we are talking about things like the salary cap and revenue sharing with regards to American teams I prefer to look at it as Revenues dropping. Lets also not forget where our ownership is from; the US.

Also the CBA is all based on Revenues... not on expenses.

Also it is not true that Expenses rise 20%.... sure salary expense for players (and some executives; scouts etc) is in US$. But the habs have a number of other expenses that are in Canadian Dollars (taxes, arena workers, utilities, etc)...

Quote:
Originally Posted by Fido22 View Post
It's the double whammy combo hit of a significantly lower dollar (decreased USD revenues for strongly supported cdn teams) and decreased corporate and consumer spending (decreased ticket/box sales and merchandise sales, especially for weaker market US teams) that makes this an economic Monster!
Most corporate tickets are already sold.... Most sponsorships and ad revenues are already done. This becomes a problem next year... and thus affects the 2009-10 revenues far more than this years revenues.... this in turn cascades to affect the 2010-11 salary cap.

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