C'mon Poetica. The CAD has gained approx 25% vs the USD since the last lockout. All revenues are calculated in USD. Common sense dictates if 33% of league revenue is collected in a currency that appreciated by 25%, the revenue is affected.
Wow! I spent hours looking at actual facts and numbers and wrote a whole long message detailing said facts and numbers and apparently all I needed was "approx" guesses and claims of "common sense" to support any opinion I have. Geez, I wish you'd told me before I wasted time actually fact checking your "common sense."
At any rate, I never said the revenue, especially specifically for Canadian teams, wasn't influenced at all. Rather, I said fluctuation in the Canadian dollar was not a major determining factor in the NHL's bottom line. If you have proof to backup your assertions, please share it. I'd love to see it.
Canadian teams have to pay NHL fees, players' salaries, and US based travel fees in US dollars, but the teams still exist in Canada. That means their other costs are in Canadian dollars and would not be influenced by changes to the loonie. It costs the same to power an arena from one day to the next, regardless of changes in currency. So, with regard to local costs changes in the Canadian dollar would not matter.
Furthermore, as I mentioned in my previous message, dealing with both currencies is not new for the Canadian teams. I'm sure they utilize multiple banking techniques to minimize their loses and maximize their gains resulting from currency fluctuations. Dealing with large funds, they probably get a great exchange rate and I'm sure they buy US currency to have on hand to avoid needing to buy it when the loonie drops. They most likely take advantage of currency fluctuations to profit, selling one currency when it's high and buying the other when it's low.
Also, some of the money the Canadian teams receive would likely be in US funds already (such as from video games, merchandising agreements through the NHL which use US funds, or NHL.com purchases for example), and therefore have none lost to exchange.
Edited by poetica, 22 November 2012 - 05:09 PM.