Do all NHL players get paid in USD?

Discussion in 'Fugu's Business of Hockey Forum' started by Cawz, Jul 20, 2011.

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  1. Cawz

    Cawz Registered User

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    I remember back a while ago, some players on Canadian clubs would get paid in Canadian dollars, while most were in USD. But back then it was a bad deal for the player since the Canadian dollar was so poor. Does anyone know if all players nowadays have to be paid in USD, or is the option there for players to get paid in Canadian dollars. With the Canadian dollar over 1.05 again today, that translates into hundreds of thousands of dollars for most players, just on the exchange alone.
     
  2. Fire Sweeney

    Fire Sweeney Registered User

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  3. jessebelanger

    jessebelanger Registered User

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    All get paid in USD
     
  4. Ozzlyn

    Ozzlyn Registered User

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    canadian dollar will drop soon anyway
     
  5. kdb209

    kdb209 Registered User

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    Yes.

     
  6. No Fun Shogun

    No Fun Shogun 34-38-61-10-13-15

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    Unless I'm mistaken, the players have been paid in USD for at least a decade, if not two or more. That was one of the main reasons why Quebec and Winnipeg had to move, and that many feared that Edmonton, Calgary, and Ottawa might lose their teams, due to the (at the time) horrible exchange rate for the Canadian dollar.
     
  7. Cawz

    Cawz Registered User

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    I specifically remember some Oilers getting paid in Canadian dollars, but it was quite a while ago. I think it was some shrew signings by Sather for a player that didnt have much negotiating power, or something like that.
     
  8. kdb209

    kdb209 Registered User

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    Under the old (1995-2004) CBA, players were paid in the native currency of their team, and had the option to convert their contract when assigned.

     
  9. RandR

    RandR Registered User

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    Even though the player contracts are denominated in U.S. $, wouldn't Canadian teams actually pay Canadian-based players in Canadian dollars at a Canada-U.S. exchange rate, presumably periodically set or referenced by the league? There must also be all kinds of transactions between the league, teams, NHLPA, players, etc. that involve currency conversion. That would be unless all league business had to be done in U.S. $, which wouldn't make sense for business transactions where both parties are in Canada.

    So, for example, when Montreal pays Carey Price, would they not convert his monthly salary payments specified in his U.S-denominated contract to the Canadian equivalent, which is what they would then transfer to his (Canadian) bank account?

    I don't see why the league wouldn't issue or reference (eg- from OANDA) an ongoing Canadian-U.S. exchange rate to be used for all transactions that involve a currency conversion. This is, for example, what large companies do to handle things like expenses for employees who frequently travel cross-border for work.

    Of course, this still means that Carey Price's contract is worth a little less to him this year than last due to the higher Cdn $, but at least he or his team aren't having to also suffer unnecessary currency conversion charges or spreads when he gets paid.
     
  10. Blitz

    Blitz 3rd times a charm... How Swede it is!

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    sure... whatever you say. :)
     
  11. Cawz

    Cawz Registered User

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    All trends and forecasts disagree with that. CAD went over 1.06 USD today
     
  12. BadHammy*

    BadHammy* Guest

    It'll probably be that way for 3-5 more years, maybe a little more, but it will turn around eventually. It's dangerous for the sake of Canadian exporting to be above 1:1, since the U.S. is Canada's biggest trade partner. Moreover, the economy here can't suck forever.
     
  13. blues10

    blues10 Registered User

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    AHL players are still paid in US and CDN dollars. There is even a nice pay scale to compensate those playing in Canada for having a low Canadian dollar.:naughty:

    http://www.phpa.com/en/content/home/about/ahl-collective-bargaining-agreement/
     
  14. Cawz

    Cawz Registered User

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    Hope not, but you guys are so far down that spiral that getting back up will be a painful process. Seriously, who would invest in the American dollar right now?

    Obviously we hope your economy turns around, but the Canadian energy ministers just finished a big meeting to try to get more overseas markets and get away from trading so much with the US.
     
  15. RTN

    RTN Be Kind, Rewind

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  16. dre

    dre Registered User

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    i believe vinny damphousse old contract with montreal was for like 10 million $CND. I remember hearing that on tv as a kid, but don't quote me on that. I'd imagine he was prob one of the last to take his contract in CND.
     
  17. Hockey Team

    Hockey Team Hunger Force

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    I would assume that the players/clubs can decide whether the player's paycheck gets paid as USD or CAD, as long as the exchange rate being used is correct and consistent (eg, if they use the exchange rate on the 15th for this month they have to do that every month), so that they can't game the currency market to circumvent the cap. (that can be significant too, could easily pay a player 5-10% more by cherry picking the best exchange rate of the month).

    Can't imagine they would force the clubs to convert their Canadian revenue into USD then make the player convert it back to CAD to use it.
     
  18. driller1

    driller1 Dry Island Reject

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    Haha. China of course. Not because they want to, but they need to manipulate their currency to have an exporting edge. Who do you think buys US Treasuries to finance the US budget while the US runs huge deficits?

    And its not like China wants / can afford for the USD to depreciate. Their trillions and trillions of dollars of debt would be worth a lot less than what its worth now.
     
  19. Integral

    Integral Registered User

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    Although I can't speak for how "soon" the USD will strengthen, keep in mind that the monetary easing of the USD is an intentional policy being pursued by the Federal Reserve. The idea is to weaken the US dollar which should spur exports and discourage imports. Other national banks have tried similar measures but can't compete simply because of the quantity of US dollars and their status as a reserve currency.

    In any case, I don't think anyone expects this to be a permanent arrangement.
     
  20. I am the Liquor

    I am the Liquor 1 in the surf, 2 in the turf...

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    How do you know all this stuff?

    I feel like I should be paying you.:laugh:

    Its pretty remarkable.
     
  21. saskganesh

    saskganesh Registered User

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    Well, it's still largely American purchasers, led by the Federal Reserve itself. China only owns about 8% (roughly) of US debt.
     
  22. squidz*

    squidz* Guest

    Furthermore, arbitrage has to set in eventually. Living right on the US side of the border, it's easy to see how devastating the strong Canadian dollar is to Canadian businesses. The price differences have gotten so big that people from Thunder Bay have been regularly driving down to Duluth (about 3.5 hours plus border crossing time) to do all their shopping. The exchange rate probably won't be going back to 1990s levels any time soon (if ever) but the Canadian dollar is sitting around its peak and will come off it in the next few years.
     
  23. squidz*

    squidz* Guest

    The bigger reason China can't allow US currency to depreciate is their dependence upon exporting to the US. Nearly 20% of all Chinese exports go to the US. If the dollar depreciates, the exchange rates they've been forcing for the Yuan will become completely untenable and they'll suffer massive economic issues from the drop off in exports.
     
  24. 5lidyzer19

    5lidyzer19 Registered User

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    "Years of current account deficits - deficits induced not by the decisions of private savers looking to maximize returns but by foreign public sector entities seeking to maintain export growth - has literally resulted in a US economy that, on net, is unable to produce the goods its citizens want to consume.

    South Korea, Russia, and other emerging markets that go through severe crises usually undergo a sharp depreciation in the inflation-adjusted value of the currency, making them hypercompetitive, at least for a while. This makes it easier to replace imports with domestic goods and services and much more attractive to export.

    In contrast, the global financial crisis actually strengthened the U.S. dollar as it was seen as a haven. Currency depreciation - of substantial magnitude - is a mechanism by which economies recover from financial crisis. But we shouldn't underestimate that challenges that accompany such an adjustment.

    Put simply, the Federal Reserve is positioned to declare war on Bretton Woods 2. November 3, 2010. Mark it on your calendars.

    So perhaps Bretton Woods does not end because foreign governments are unwilling to bear ever increasing levels of currency and interest rate risk or due to the collapse of private intermediaries in the US, but because it has delivered the threat of deflation to the US, and that provokes a substantial response from the Federal Reserve. A side effect of the next round of quantitative easing is an attack on the strong dollar policy.

    The rest of the world is howling.

    Consider the enormity of the situation at hand. The Federal Reserve is poised to crank up the printing press for the sake of satisfying their domestic mandate. One mechanism, perhaps the only mechanism, by which we can expect meaningful, sustained reversal from the current set of imbalances is via a significant depreciation of the dollar. The rest of the world appears prepared to fight the Fed because they know no other path.

    Bad things happen when you fight the Fed. You find yourself on the wrong side of a whole bunch of trades. In this case, I suspect it means that Bretton Woods 2 finally collapses in a disorderly mess. There may really be no other way for it to end, because its end yields clear winners and losers. And the losers, in this case largely emerging markets, and not prepared to accept their fate.

    Bottom Line: The time may finally be at hand when the imbalances created by Bretton Woods 2 now tear the system asunder. The collapse is coming via an unexpected channel; rather than originating from abroad, the shock that sets it in motion comes from the inside, a blast of stimulus from the US Federal Reserve. And at the moment, the collapse looks likely to turn disorderly quickly. If the Federal Reserve is committed to quantitative easing, there is no way for the rest of the world to stop to flow of dollars that is already emanating from the US. Yet much of the world does not want to accept the inevitable, and there appears to be no agreement on what comes next. Call me pessimistic, but right now I don't see how this situation gets anything but more ugly

    We've often seen the phrase, "Saved by WWII" when seeing the analogy between now and the 1930s. Then the world was in disarray, based on economic constraints rooted in WWI reparations, the expansion and bursting of the stock market, and world wide abject poverty.

    Saved by a war that cost 60 million lives? What was the option? The starvation of the poorest had begun in Eastern Europe, and revolution was in the air in United States. No one can contemplate the extent of the disaster that is coming now, since we don't conceptualize WWII as being caused by economics.

    Perhaps it's time to promote this explanation, so it would be clearer just what kind of a precipice we are now looking over.
     
    Last edited: Jul 24, 2011
  25. 5lidyzer19

    5lidyzer19 Registered User

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    Keep in mind that the United States also struck a special agreement with OPEC in 1971. The U.s left the gold standard, but it made an even sweeter deal with a resource needed by every relevent economy on earth. Opec's oil can only be bought with U.s dollars. U.s dollars can only be "earned" by exporting your hard assets to us for paper. Since then, we've created the slickest form of empire ever devised. The United States makes dollars, and the rest of the world (our colonies)makes things that dollars can buy. The two pillars of american empire are military and the dollar. A strong dollar keeps the military strong, and a strong military keep the dollar strong.

    Any attack on the system will be met with harsh consequences, as Iraq and Suddam found out when he stopped accepting dollars for their OPEC oil reserves. Within one year of this decision, the United States invaded Iraq and immediately switched away from the Euro. Saddam attacked the U.s Dollar, which is an indirect attack on the U.s Military. It is the reason that Iran has been in the crosshairs as well. Not to mention Venezuala and Chavez. They are all too weak to confront us militarily, but they have made no attempt to hide their attacks on the U.s Dollar.






    Every time I hear the U.s call China a currency manipulator, I get a big smile. The Federal Reserve is the greatest manipulator in the history of the world under the Dollar/Oil standard.

    The U.s intentionally creates budget deficits since 1971.

    U.s buys imports and increases our standard of living at the expense of the rest of the world. Foreign central banks build dollar reserves which they invest in dollar denominated U.s treasuries. Increased Treasury demand allows government to run deficiets....deficiets allow more consumption on a nation and consumer level....more consumption creates a need for more imports...you guessed it more imports leads to more foreign central banks demand for U.s treasuries. This loop of infinite rise in consumption levels and appetite for more and more debt was a disaster waiting to happen.

    Other central banks would intentionally weaken their currencies in relation to the dollar to keep up their economies and exports to the U.S: The world's economic engine.

    "You can have a peice of the American dream, but we'll be the king of the food chain reaping the most benefit."

    Globalization was the U.s Dollarizing the world and getting them so deep into the game, that their only option is to continue the game or lose everything. Federal reserve policy makers learned that they could exert more power via U.s treasury debt, than they ever could running surpluses.

    The housing and other bubbles are merely a sympton of a much larger dollar bubble bursting. Anyone confused as to why the U.s isn't bouncing back from this recession easily, or hoping for a lift in the dollar, has ignored the last 40 years-and more importantly the Fed's recent actions.

    We are currently witnessing the breakdown of Bretton woods 2 and the U.s as a reserve currency-and we've already seen how this story ends 70 years ago.
     
    Last edited: Jul 24, 2011

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