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01-15-2004, 10:49 AM
Join Date: Aug 2003
Location: Montréal, Québec, Ca
Originally Posted by
Actually, this is not exactly how things work. The Montreal Canadiens, in the beginning of their financial year, makes a deal with a bank of some sort (ok, the details are confused, but the importance is not there) to purchase the value of the payroll in American money. They both set an estimated value for the Canadian $ VS the US $ at the start of that year, and they then have a fixed value for the rest of the year. Henceforth, they are not affected by the CAN dollar losses or gains VS the US$. Now, it's true that the CAN$ have more value now, but it won't reflect on the team's business up until they make a new deal of that kind. Or choose not to, if they are overly optimistic.
I know that they've been using that system for at least the last two years, and that they managed to save money when the dollar was down.
So, basically, we'll have to wait for next year until we see the difference in the Canadiens finances.
Wow, I've never heard about that! Really interesting insights, thx!
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