Canadian dollar

[jol]

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

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[saskganesh]

never. most players live/work out of the USA.

 

[MerryJ99]

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!

 

[SOLR]

Currency debates are about to end imo, we will have a unique currency between the 2 countries in a not so distant future.

 

[Ted Hoffman]

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

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.

 

[Kafka]

never. most players live/work out of the USA.

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.

 

[STA]

Currency debates are about to end imo, we will have a unique currency between the 2 countries in a not so distant future.

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) .

 

[jol]

Nevertheless this has nothing to do with the fact that the CBA says all players are paid in the USD.

Maybe the Canadian-based players should pool their funds and get a good hedge fund manager so as to miminize their losses when paying in the CAD but getting paid in the USD....

Maybe stronger CAD means more teams in CANADA. Teams' revenues are CAD based, expenses (salaries) USD based.

JOL

 

[Brazz]

bussiness is done in the USD, no matter how hight the CAD goes this won't change

 

[HackandLube]

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.

 

[SOLR]

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) .

Theres election in 2008...

 

[SOLR]

Well fortunately for us Americans, Dubyah and cronies were not able to rescind the Constitution even though they nibbled away at personal freedoms and stretched the separation of powers to its maximum point. Therefore George cannot continue to be president per the US Constitution.

I suppose I don't see any reason for Canada to adopt the USD. A global currency not controlled by any single govt is a nice utopian concept, but for now no govt wants to import the monetary or fiscal policies of another regime, in essence giving up the control of those very concepts for their country.

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.

 

[Tyrolean]

What about the Euro?

If the europeans did it, I dont see why the ALENA members cant do it.

Euros IMO are the most valuable currency though some people think it is gold.

 

[Resolute]

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!

Not really, no.

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

 

[Nalyd Psycho]

Gee, who knew that Canadian teams charged customers in local currency? Sorry for the sarcasm, but a lot of the regulars on the business board have figured that out by now.


No. A stronger CAD alone shouldn't mean more teams in Canada. Along with all the other factors that should get considered (population size, demographics, arena and associated terms, TV and ancillary revenues), one cannot assume that the CAD will never again fall below its current value or below the USD if it surpasses it. There is some risk involved when currencies float against each other.

Ignoring that risk is foolish IF the financial case for a Canadian team requires that the CAD remain within a certain range of the USD.

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.

 

[STA]

Theres election in 2008...

Rudy or Romney won't be much better than Dubya.

 

[Crease]

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?

 

[Fish on The Sand]

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?

the issue was canadian teams were doing business in canadian dollars, but having to pay out players in US dollars.

 

[Crease]

the issue was canadian teams were doing business in canadian dollars, but having to pay out players in US dollars.

Ahh gotcha. Well, if the CD goes above $1, more Canadian teams will pop up but no players would want to play there.

 

[Doc Scurlock]

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.

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.

 

[Fugu]

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?

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.

 

[DayQuil*]

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.

 

[jk421*]

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.

 

[Fugu]

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.

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.

 

[Sotnos]

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.

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.