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Expect Canucks not to spend like before due to the weaker dollar


BurgerKing

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The CAD will return to parody or more rather soon.

The Canadian Dollar is going all Weird Al on us? :lol:

As for the OP's prediction of doom, even with a slightly weaker dollar, the Canuck's revenue will still be miles ahead of most U.S. teams.

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If the CAP goes to $70 mil the exchange hit will be +/- $7 mil. Combine that with buyouts for Gillis, Torts and possibly Booth. I caveat that with the idea that Booth might fit somewhere else as his play has improved. Story is that both Gillis and Torts had buyout clauses at reduced costs.

By far the biggest hits to Canuck revenue is the loss of playoff games and all the money that brings in. It dwarfs all the above costs. I am sure that when the Acquilinis review their capital gain on the franchise value that they are not that panicked. For all those who enjoy badmouthing this ownership group they conveniently forget past realities. The Griffiths had a tough time staying afloat and McCaw was uninterested and imposed caps on spending. I never heard Gillis once say the team did not have money to do what he wanted. Spent to the CAP every year and spent millions on support and franchise development.

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Haha, thought of that after theminister's post, and to top it off had a buddy post on FB earlier he got bit by a bunny.

But yeah, on topic: the value of the Canucks have increased from $250M to $700M since around 2008. I don't think there will be any significant cuts in spending we'd have to worry about.

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Gate revenue and merchandise are purchased mainly in canadian funds, all salaries are paid in US. Add in the decreased attendance, how could it not have an impact? Predicting dark times ahead.

Ummmm... new TV deals = huge extra revenue.

The Canucks are not only profitable, they have also increased in value dramatically.

I see no reason or suggestion that we won't be a cap ceiling team (or close to it) for the foreseeable future. There may be times when we don't spend to the cap because there aren't the right players available at the right price... or we want to have roster spots for our young guys.... but I don't see an internal cap ,limitation.

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Is Trevor going to have a blank cheque?

And after buying out Gillis and probably Torts, will they buy out Booth (can't see it but it does increase cap space by spending money)?

They also have new salaries for Linden, the new GM, head and assistant coaches, possibly new scouting positions, and then UFA signings after locking up our RFAs.

It's a 'whack a dough' and the dollar falling, FAQ's divorce, the tower build, what else?

The Aquilini family has been great to the fans, players, and staff by paying for anything and everything they could to help win the Cup.

I sure hope it continues.

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The NHL put in a salary cap and equalization payments throughout the league. Beyond that, if we can get this team rolling again (if) we have a much healthier box office take than the majority of US teams.

Any lack of spending would be entirely choice of ownership.

The real thing that will ding us is the dumb choice to carry 15% of Luongo's "untradeable" contract and whatever costs we get anchored with if he were to retire early.

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It's just a way to adjust the trade imbalance, the dollar was high Canada took a hit on exports to the US, the dollar is adjusted we export like crazy. The US is our biggest customer, it will go like this for awhile until the lobbyists for some sectors in the US economy or Government start screaming.

That is a Keynesian fallacy. These fallacies are spread through the mainstream financial media so I don't blame you for thinking that. A weak currency makes raw imports more expensive. It also makes capital goods more expensive. Say a Canadian mining company wanted to import a fleet of Caterpillar dump trucks. If the CAD is lower, these trucks (capital goods) cost more. Thus, slowing down the export process.

A weak currency is not good for exports. Look at the USD. It has fallen on the USD index from 120 to the 70 range. Exports fell while the USD fell. Then look at Germany. The Euro was below the USD when it was introduced. It went from .80 to 140 and its exports went up.

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You know what pi$$es me off?

When I come to Canada with my US dollars and every business says "Oh, we just take those at par"

B.S!

That's when I take my REAL dollars and start heading for the door, I usually get called back and offered 85%

Move the Canucks to Point Roberts, problem SOLVED!

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A few things I think OP needs to include in his appraisal:

1) The new initiative with food and beverage, by eliminating Aramark, should increase profitability over time if not immediately due to initial outlay.

2) The Utica Comets are a money making venture right now and they raised the value of the franchise.

3) The Canucks are vastly profitable already whereby their expenses have not come close to revenue generation over the last few years. The decrease in the dollar will cut into profit not necessarily budget.

4) The towers, though expensive, are likely being built on credit and they will raise the value of the property and increase rental income for the facility.

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You know what pi$$es me off?

When I come to Canada with my US dollars and every business says "Oh, we just take those at par"

B.S!

That's when I take my REAL dollars and start heading for the door, I usually get called back and offered 85%

Move the Canucks to Point Roberts, problem SOLVED!

Is that you Torts ?

The Canadian dollar is worth more then the USD. Its just that the CAD is managed down to give you yanks cheaper oil. I wouldn't even give you par.

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Is that you Torts ?

The Canadian dollar is worth more then the USD. Its just that the CAD is managed down to give you yanks cheaper oil. I wouldn't even give you par.

The USD being accepted in foreign countries is generally awful for local economies.

In Canada, I just think it's a service that should require a premium rate. No sympathy for par on fluctuating currency from me.

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