Trade Thread XVIII: Brace Yourselves. Friday Is Coming.
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02-06-2014, 08:37 AM
Join Date: Mar 2002
The CDN teams account for 1/3 of all HRR. The Loonie going down .90 cents does sting, but not as much as what people are worried about. The TV deal is $4.9B USD, $5.2B CDN.
Even though teams account for their hockey ops under one currency (USD), a lowered CDN is going to have an impact on the cap.... just not in the millions as some are prognosticating.
Might make next years cap go from 71.2 to 70.4. There isn't going to be a 4% drop in the cap because the dollar value does down. Cap is going to go up 5-9% per annum not matter what. The CDN going down, and staying down, means the cap growth slows down if all CDN teams account with the CDN (which they don't). If tickets are only going to bring you .90c on the dollar, you just raise the prices to offset the loss. Canadians will still show up to watch the Jets and Oilers.
This means that 5-9% yr over yr growth, will slow down by a maximum of 1.2-1.8% worst case scenario.
And that's not accounting for expansion, world cup of hockey, and the fact that the NBC deal will need to be re-upped, and that the Rogers deal basically pays 2 expansion teams worth of money (not counting any ticket or ancillary sales), every year.
Hockey is in fine financial standing. This isn't basketball or baseball where the bottom half teams can barely compete in their respective leagues.
This is what a hard cap does.
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