Canadian dollar

Discussion in 'The Business of Hockey' started by jol, Jul 1, 2007.

  1. jol

    jol Registered User

    Joined:
    Jan 31, 2003
    Messages:
    1,726
    Likes Received:
    0
    Trophy Points:
    36
    Occupation:
    Analyst
    Location:
    Miami Beach, Florida
    Home Page:
    The exchange rate for CAD, against USD, is about 0.95. When do we start seeing players using CAD as they they salary base or does current contract state that USD is only currency to be used?
    My guess is that CAD will go above 1 in near future.

    JOL
     
  2. saskganesh

    saskganesh Registered User

    Joined:
    Jun 19, 2006
    Messages:
    2,368
    Likes Received:
    6
    Trophy Points:
    96
    Location:
    the Annex
    never. most players live/work out of the USA.
     
  3. MerryJ99

    MerryJ99 Registered User

    Joined:
    Aug 13, 2006
    Messages:
    5,151
    Likes Received:
    0
    Trophy Points:
    0
    Occupation:
    Realtor
    Location:
    Edmonton
    If the Canadian Dollar rises above the US dollar, players will be making more money playing in Canada.

    Might not be a bad thing, maybe we can attract more players that way!
     
  4. SOLR

    SOLR Registered User

    Joined:
    Jun 4, 2006
    Messages:
    5,670
    Likes Received:
    23
    Trophy Points:
    96
    Location:
    Toronto / North York
    Currency debates are about to end imo, we will have a unique currency between the 2 countries in a not so distant future.
     
  5. Irish Blues

    Irish Blues Worth waiting for :)

    Joined:
    Dec 15, 2002
    Messages:
    21,800
    Likes Received:
    0
    Trophy Points:
    0
    Occupation:
    Actuary
    The CBA requires that all NHL salaries be paid in $US ... so at least not until a new CBA is considered. Even then, it's unlikely that there will be a change, since with a salary cap system there has to be some standard by which all 30 teams are compared ... and with the majority of teams (and revenue) coming from the U.S., don't expect the $CN to be the standard anytime soon.
     
  6. Kafka

    Kafka Registered User

    Joined:
    Mar 1, 2002
    Messages:
    5,365
    Likes Received:
    1
    Trophy Points:
    0
    Occupation:
    student
    Location:
    Montreal
    Home Page:
    Financial specialists predicted a long time ago that the CDN dollar will be above the american one around 2015. Now, they claim it will be much sooner, before 2010.
     
  7. STA

    STA Registered User

    Joined:
    Jul 25, 2006
    Messages:
    1,360
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Vancouver
    The Canadian Federal Government better not agree to adopt the US dollar if it keeps falling (which will keep happening as long as George W. is the president) .
     
  8. jol

    jol Registered User

    Joined:
    Jan 31, 2003
    Messages:
    1,726
    Likes Received:
    0
    Trophy Points:
    36
    Occupation:
    Analyst
    Location:
    Miami Beach, Florida
    Home Page:
    Maybe stronger CAD means more teams in CANADA. Teams' revenues are CAD based, expenses (salaries) USD based.

    JOL
     
  9. Brazz

    Brazz This boat is 4 real!

    Joined:
    Nov 6, 2005
    Messages:
    1,602
    Likes Received:
    0
    Trophy Points:
    0
    bussiness is done in the USD, no matter how hight the CAD goes this won't change
     
  10. HackandLube

    HackandLube Registered User

    Joined:
    Dec 7, 2005
    Messages:
    2,513
    Likes Received:
    3
    Trophy Points:
    86
    Any real political science and economics student knows that a monetary union between the US and Canada is pure fallacy.

    In any case, one thing that sucks in Canada is that even though the CAD $ is almost par with the US $, prices still haven't dropped for stuff in stores which are still set at the old CAD $ = ~ $0.60 US level. That really sucks, things are still sometimes 40% more expensive because of greedy retailers.
     
  11. SOLR

    SOLR Registered User

    Joined:
    Jun 4, 2006
    Messages:
    5,670
    Likes Received:
    23
    Trophy Points:
    96
    Location:
    Toronto / North York
    Theres election in 2008...
     
  12. SOLR

    SOLR Registered User

    Joined:
    Jun 4, 2006
    Messages:
    5,670
    Likes Received:
    23
    Trophy Points:
    96
    Location:
    Toronto / North York
    What about the Euro?

    If the europeans did it, I dont see why the ALENA members cant do it. Theres already talks about it, but it takes the democrats in the US for the project to move on.
     
  13. Tyrolean

    Tyrolean Registered User

    Joined:
    Feb 1, 2004
    Messages:
    7,959
    Likes Received:
    32
    Trophy Points:
    101
    Euros IMO are the most valuable currency though some people think it is gold.
     
  14. Resolute

    Resolute Registered User

    Joined:
    Mar 4, 2005
    Messages:
    4,125
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    AB
    Not really, no.

    One United States dollar is worth the same in Canada as one United States dollar is worth in the United States.
     
  15. Nalyd Psycho

    Nalyd Psycho Registered User

    Joined:
    Feb 27, 2002
    Messages:
    24,415
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    No Bandwagon
    Home Page:
    All Canadian teams face that risk though, the fact that it would have to hit sub-peso levels for the Maple Leafs to be in trouble is a factor, but, no one can predict these things.

    In summer of '95 the Canadian dollar was .72n US(n is variable, it was fluxuating between 7 & 9) not strong by any stretch of the imagination, the traditional level is more in the 80's. So, logically, if a team can survive at .72, then surely it would florish, as most of the time the dollar would be much higher. But, by '01, the dollar was down to .65 US. That 7 cent drop adds up fast when your in a multimillion dollar industry. And as such, even with near average attendance, the Vancouver Grizzlies could not survive.

    You are right that it is foolish to expect teams to plan for 95 cents to make money, but given the historical 50 cent fluxtuation, it's difficult for any team to make long term projections.
     
  16. STA

    STA Registered User

    Joined:
    Jul 25, 2006
    Messages:
    1,360
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Vancouver
    Rudy or Romney won't be much better than Dubya.
     
  17. Crease

    Crease Chief Justice of the HFNYR Court

    Joined:
    Jul 12, 2004
    Messages:
    15,597
    Likes Received:
    2,825
    Trophy Points:
    186
    I'm having trouble understanding how the exchange rate affects business in Canada. If a player is paid with the USD and lives in Canada and the CD is $0.95, then isn't his purchasing power increased? How is that unappealing to a player?
     
  18. Fish on The Sand

    Fish on The Sand Untouchable

    Joined:
    Feb 28, 2002
    Messages:
    61,357
    Likes Received:
    795
    Trophy Points:
    214
    Location:
    Nanaimo
    Home Page:
    the issue was canadian teams were doing business in canadian dollars, but having to pay out players in US dollars.
     
  19. Crease

    Crease Chief Justice of the HFNYR Court

    Joined:
    Jul 12, 2004
    Messages:
    15,597
    Likes Received:
    2,825
    Trophy Points:
    186
    Ahh gotcha. Well, if the CD goes above $1, more Canadian teams will pop up but no players would want to play there. :sarcasm:
     
  20. Doc Scurlock

    Doc Scurlock Registered User

    Joined:
    Nov 23, 2006
    Messages:
    1,211
    Likes Received:
    6
    Trophy Points:
    96
    That's true. For example, I usually end up ordering my DVD's from amazon.com vs. amazon.ca because even when I pay shipping, ordering from the US site costs me less and they have better sales promotions too.
     
  21. Fugu

    Fugu Guest

    Actually it is the opposite. The player is paid in USD's. He has to pay for goods and services in CAD's. If the CAD is rising, it will take more of his USD's to buy the same things. The Canadian-based players had it much better when the loonie tanked against the USD.
     
  22. DayQuil*

    DayQuil* Guest

    No.

    If the dollar in Canada goes above the US dollar, it will not make a difference in the players choice of where to play, for one reason:

    Taxes

    Almost half the players salary goes for Taxes in Canada.

    Secondly, even if the dollar were to go above the US dollar, it would eventually go down due to the lack of trade and business Canada will have with other countries, and also tourism would go down, which would cause the GDP to slow down, causing the dollar to fall.
     
  23. jk421*

    jk421* Guest

    Just a quick question about players paying income tax

    Canadian player playing on a Canadian team pays Canadian income tax and an American playing on an Amercian team pays American income tax I assume.

    Canadian player playing on an American team pays what income tax?

    American player playing on a Canadian team pays what income tax?

    If players playing in Canada have to pay Canadian income tax then it will not matter all that much if the Canadian dollar ever rises above the US greenback.

    Taxes here in Canada are crazy.
     
  24. Fugu

    Fugu Guest

    No, not really.

    And the players don't have a choice in the currency anyway. The CBA prescribes that all player salaries are in USD, so this part of the discussion is moot.
     
  25. Sotnos

    Sotnos Registered User

    Joined:
    Jul 8, 2002
    Messages:
    10,887
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    Not here
    Home Page:
    We had a thread about this several months ago, and I don't think we came to any good conclusions. There's residency requirements, states with tax agreements with each other, taxes where you live, taxes where your off-season house is. As far as I know, they pay income taxes for whatever state/province they play in on the road also. This is why players have professionals to take care of this stuff, I guess. :)
     

Share This Page

monitoring_string = "358c248ada348a047a4b9bb27a146148"