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The Canadian Dollar

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10-21-2003, 04:16 PM
  #1
elphy101
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The Canadian Dollar

Amazingly, the Oilers look like they will actually finish this year in the black. Picking up a player like Bondra might actually be feasible for the first time in year.

When you consider that on December 31, 2002. The Canadian dollar was trading at 1.58 CND per American Dollar.

Now that same dollar is trading at 1.316 CND per American Dollar.

Based on a payroll of 30 Million US.

Last year, the Oilers payroll would have been 47.4 Million Canadian.

Now because of the drastic decrease of the American Dollar, the Oilers payroll would be 39.48 Million Canadian.

In essence, simply because of the exchange rate the Oilers will save almost 8 Million dollar Canadian over last year.

Not to mention the fact that the Oilers save the 4.5 Million they paid to Comrie last year. And that they dumped the salaries of two of their highest paid players in Niinimaa and Carter at the trade deadline.

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10-21-2003, 04:36 PM
  #2
dawgbone
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It's been brought up already...

The Oilers purchased their american money before the CDN dollar sky rocketed... they aren't going to be getting all this money.

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10-21-2003, 04:56 PM
  #3
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Quote:
Originally Posted by dawgbone
It's been brought up already...

The Oilers purchased their american money before the CDN dollar sky rocketed... they aren't going to be getting all this money.
I don't believe that, they wouldn't have even had this money until the final payments for season tickets came in. What was the deadline for that?

It was 1.39 in August, 1.38 in July, 1.35 in June, and 1.38 in May.

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10-21-2003, 05:09 PM
  #4
elphy101
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Quote:
Originally Posted by dawgbone
It's been brought up already...

The Oilers purchased their american money before the CDN dollar sky rocketed... they aren't going to be getting all this money.
They did some hedging so that will have cost them a bit of the gains but still. The money they hedged would still have been at a much lower rate than 1.58. The highest they would have hedged would be about 1.40

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10-21-2003, 05:56 PM
  #5
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Trust me... IF they have extra dough because of their "dollar hedging" it won't be going to any more player salaries. It will more than likely go to off set the cash call from last year to help bolster their "strike fund". That's the smart thing to do.

Forget about this year... think BIG PICTURE.

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10-21-2003, 06:04 PM
  #6
elphy101
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Quote:
Originally Posted by Brynster
Trust me... IF they have extra dough because of their "dollar hedging" it won't be going to any more player salaries. It will more than likely go to off set the cash call from last year to help bolster their "strike fund". That's the smart thing to do.

Forget about this year... think BIG PICTURE.
You make a good argument there. Just wishful thinking. At least the Oilers will be back in the black this year (good chance anyway). The owners definitely deserve it for keeping the team in Edmonton.

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Old
10-21-2003, 06:22 PM
  #7
thome_26
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While I have been one of the biggest promoters of adding salary - I do understand that the Owners aren't SUPER DUPER rich. There is nobody worth 3 or 4 hundred million, and most of them don't have the cash to lose half a million bucks a year or anything like that. But I think they could atlest commit the same amount as the did last year. And it is QUITE obvious that they aren't.

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10-21-2003, 06:30 PM
  #8
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Quote:
Originally Posted by Brynster
Trust me... IF they have extra dough because of their "dollar hedging" it won't be going to any more player salaries. It will more than likely go to off set the cash call from last year to help bolster their "strike fund". That's the smart thing to do.

Forget about this year... think BIG PICTURE.
I don't remember a cash call last year? I remember the 10 million they had to pony up 3 or 4 years ago to cover their loses and to pay into the owners CBA fund.

Having said that, I agree, they should take the cash if it's there.

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10-21-2003, 06:34 PM
  #9
thome_26
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I know one of them, and I'm sure that they are all fairly smart business men. I think they will try to save as much money as humanly possible while being able to get the Oilers to the playoffs. If that means using up 1-1.5 million of the cash they'll save from the Canadian dollars rise, then I think (and hope) that they will do that.

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10-21-2003, 06:44 PM
  #10
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Having met alot of those owners, they're wonderful people who really have our community's best interests at heart. HOWEVER, they must focus their energies on the future and they can not get too caught up with the ups and downs of this season. That's the job of Lowe and Laforge. The owners MUST focus on next year's dilemma. Cal Nichols as even gone on record as stating that if there's no "market correction" in the next CBA, then the current owners really can't make this work here. I'm paraphrasing, but that was the thrust of his comment in one of the papers.

P.S.
There was a cash call not long ago. But I'm led to believe that it was to supplement an owner's strike fund and not to cover team losses.

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Old
10-21-2003, 06:51 PM
  #11
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Quote:
Originally Posted by Brynster
P.S.
There was a cash call not long ago. But I'm led to believe that it was to supplement an owner's strike fund and not to cover team losses.
At the time they said it was to offset the losses over the next 3 or 4 years until the CBA. It's probably no coincidence that the owners fund is 300 million and 300/30 = 10 million. Guessing here, but the contribution to the fund was probably considered part of the teams losses on the bottom line.

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Old
10-21-2003, 07:00 PM
  #12
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It's hardly a secret that there's a War Chest... that cash call is the only way they could have possibly raised the dough needed to satisfy the league's requirements. I'd bet on it.

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Old
10-21-2003, 07:10 PM
  #13
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Quote:
Originally Posted by Brynster
It's hardly a secret that there's a War Chest...
When the cash call happened it wasn't a widely known fact. The NHL owners were trying (and failed as usual) to hold their cards close to their chests, but the players weren't fooled and raised thier own 300 million dollar war chest.

The interesting thing is, in a sport where the players are supposedly getting 70% plus of the total revenues and only have an average shelf life of 6 or 7 years, who has the most to lose here with a long lockout

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Old
10-21-2003, 07:16 PM
  #14
thome_26
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I forget where I read it but I believe that it said something along the lines that in the event of a hold out the Owners of the NHL would lose aroudn 300-400 million. The players combined losses (no salaries) would equal like 900 million to a billion dollars..... NOW, you tell me who you think will crack! Sure's hell won't be Betman (Unless the Leaf/Flyer dick heads pressure into settling for a less then satisfactory CBA).

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