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Sagging Canadian dollar could force Blackhawks to make big changes


nuckin_futz

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Kane and Toews have the same representation.

The negotiation probably went something like this:

"You give my clients 11 million each or they both walk"

"OK"

There are legal obligations that would prevent the negotiations from going like you said. It would essentially be illegal for Stan bowman to do what you said, because he owes a fiduciary duty to the owners to act in their best interest.

What you are suggesting is essentially negligence. No one who got to the position of Stan would be that stupid.

The only real gauge of success in this business is winning. Finally, Stan Bowman got the team 2 cups, so he is better than all the GM's Vancouver has ever had (assuming we are all able to spend to the cap).

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Don't really understand the concern. Unlike Canadian teams, they collect their gate in U.S. $, and they limped along at 6000 average attendance for years before they became a success again. They shouldn't be in any worse shape than any other high cap team, and they do have good ways of burying their underperforming goalies in Europe! :D

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Maybe the NHL should be spending more effort to drive up revenue from the lower half of the league.

I don't think they can because Canadian teams make up almost 66% of the league revenue. Honestly we don't enforce our clout enough on the NHL.

unless Florida and Columbus have a bake sale maybe..

http://www.forbes.com/nhl-valuations/

(rough estimate)

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Has everybody forgotten about the 20% escrow the owners are holding back from player salaries?

Cap increases must be approved by the NHLPA and the players certainly don't want to have another increase in the escrow.

The escrow started out at 10% of player salaries it is now 20%

Escrow in a nutshell

If players' compensation does not go higher than their 50 percent HRR allotment for the season, they will be refunded the escrow payments with interest.

However, if the players' compensation exceeds the 50 percent share, the owners will be paid the escrow money.

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  • 1 month later...

These concerns aren't going away any time soon.

At the time this was first posted in Late November the Loonie stood at 1.1427 to the USD.

After today's surprise interest rate cut by the Bank of Canada the Loon stands at 1.2367 to the USD.

This cannot/will not bode well for next year's salary cap.

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The Canadian dollar is tumbling; will it affect next season’s salary cap? (Updated with comment from Daly)

The Canadian dollar is tumbling today after the Bank of Canada surprised the market with a rate cut.

At last glance, the loonie held a value of just under $0.81 USD, well down from the $0.89 USD value it held in November. Blame the crash in the price of oil for that.

Why is this relevant for hockey fans? Well, because it has the potential to affect next season’s salary cap. Specifically, it has the potential to affect it downwards.

On Dec. 8, the NHL pegged next season’s salary cap at $73 million, with the caveat that the Canadian dollar couldn’t fall in a significant way.

Well, it’s fallen. And we’d have to say in a significant way. And big-spending teams like the Chicago Blackhawks can’t love what’s happening.

We’ve emailed NHL deputy commissioner Bill Daly for a comment. Should we hear back, we’ll post his reply.

According to Sportsnet’s Chris Johnston, teams have been assured that the cap won’t fall below $71 million.

@JasonPHT Now. League assured governors it won't go below $71M because of business already done at higher exchange rate + TV money.

Update:

Reply from Daly:

“[The salary cap] obviously moves downward when the Canadian dollar goes down, but the move is not what I would consider material.”

Translation: Don’t freak out too much, Blackhawks fans. Just a little freaking out will suffice.

canadian-dolalr.jpg?w=320

http://prohockeytalk.nbcsports.com/2015/01/21/the-canadian-dollar-is-tumbling-will-it-affect-next-seasons-salary-cap/

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The dollar dropped once again.

There's no way on earth they can raise the cap 3 million... The nhl is primarily Canadian revenue driven. Unless the dollar recovers and goes back to 90 ish hopefully. It's 0.79 today.

I don't see them trading sharp within the conference.

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it was not long ago at all

that the salary cap forecasts were for a cap of 90 million within 5 to 7 years or so

that is the context in which the toews / kane contracts were signed

take a 7.5 million annual contract and increase it by 30 to 35 percent

the fall of oil prices was not really in anyones forecast

canada was considered one of the strongest economies in the G7

it's likely that the salary cap stagnation will last a year or 2 at most

and sydney crosby gets paid 12 million per year for those who think toews/kane earn more

crosby signed a luongo type contract just before the last collective agreement expired

you cannot compare these contracts

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it was not long ago at all

that the salary cap forecasts were for a cap of 90 million within 5 to 7 years or so

that is the context in which the toews / kane contracts were signed

take a 7.5 million annual contract and increase it by 30 to 35 percent

the fall of oil prices was not really in anyones forecast

canada was considered one of the strongest economies in the G7

it's likely that the salary cap stagnation will last a year or 2 at most

and sydney crosby gets paid 12 million per year for those who think toews/kane earn more

crosby signed a luongo type contract just before the last collective agreement expired

you cannot compare these contracts

That was a lovely poem.
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