KHL teams want to keep Ovechkin, Kovalchuk rather than return 'em to NHL?
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11-11-2012, 10:02 PM
Join Date: Feb 2012
Originally Posted by
The rise in the Canadian dollar only played a small role in the overall growth of the NHL since the last lockout. The NHL simply put overlooked a massive flaw in the system they designed coming out of the last lockout.
I was looking for something from a business reporter or economist from, I don't know, Forbes in 2005, not something a hockey beat writer said in 2012.
His math is sketchy as well. The difference between Canadian teams' revenue under 2005 vs 2012 exchange rates is 155 million, or a little under 5% of overall revenues. Not the .7 % number he comes up with.
Just due to exchange rates and
no other factors related to a rising dollar that could drive the revenues of Canadian teams up
(such as more spending power by the consumer-base that comes with a currency rise, more corporate spending, etc), the cap floor gets inflated by $3 million. Pegging those other factors, conservatively, at another $3 million in revenue inflation and 9 teams are red that would have been black if this unpredicted currency fluctuation did not occur.
The only teams that would be losing meaningful money had the canadian dollar not unexpectedly risen are Columbus and Phoenix.
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