News: Tavares to Explore Market - To Speak with 5 teams: TODAY IS THE DAY (Mod Warning in #1)

[Martin Skoula]

Some of you really need to look up an Econ101 video or two on YouTube. At least if you ever plan on voting anyway.

 

[CanadienShark]

To add on to the currency debate - now if he took his Canadian currency and put it in a canadian bank, and the value of Canadian to US rose, to lets say a 1 for 1 value, he would then see a gain if he translated back into USD. If there is no translation BACK into USD after an fx gain, then he has not added any value to his salary.

Edit: quoted wrong poster.

 

[Bonzo111]

You guys realize he can exchange any USD that he earns into CAD and make the same investements, that he doesn’t need to be paid by a Canadian team to do that...that is my point, you say is not hard to comprehend...well so do I.

If I make 11 mil USD I make in TOR is worth XX in CAD, when I make the same 11 mil in NY, can’t I go anywhere in Canada and exchange it for the exact same amount of CAD? Or is a USD worth less if it’s earned in US?

You're not grasping it dude. Lets all move on.

 

[ACC1224]

You guys realize he can exchange any USD that he earns into CAD and make the same investements, that he doesn’t need to be paid by a Canadian team to do that...that is my point, you say is not hard to comprehend...well so do I.

If I make 11 mil USD I make in TOR is worth XX in CAD, when I make the same 11 mil in NY, can’t I go anywhere in Canada and exchange it for the exact same amount of CAD? Or is a USD worth less if it’s earned in US?

The assumption is he will live in Canada if he signs in Canada.

 

[Bonzo111]

The assumption is he will live in Canada if he signs in Canada.

i'd live in Mozambique and commute and be da king

 

[Bacon Artemi Bravo]

You clearly don't know much about exchange rates.

1 CAD ≈ 0.75 USD
or
1 USD ≈ 1.32 CAD

It's not 1-1 even with transaction fees.

What? No,what I meant was if lets say he had $100 USD converted to CAD this month. If the FX from USD to CAD was 1.25, he would be paid $125 CAD right? Now lets say he put that money, in CAD, in the bank for 1 month. Now in the next month lets say the exchange rate changed to an even 1 for 1. So 1 USD = 1 CAD. If he went and translated back to USD, he would have $125 USD. He would have a $25 FX gain in USD. Is that wrong?

 

[New Liskeard]

Uhhhh, I'm not sure that's how exchange rates work. False numbers, but let's say the exchange rate is 2 USD to 1 CAD. A candy bar in the the US costs 2 USD. The same candy bar in Canada costs 1 CAD. Just because one has a higher number does not mean the value is any different.

You seemed to omit the fact that the dollar stretches 30 percent further. A million dollar cottage in Ontario will cost 700,000 US dollars. And cashing in a 1 000 000 US cheque into Canadian then gives you 1, 300 000.00. Pretty simple stuff.

 

[CanadienShark]

What? No,what I meant was if lets say he had $100 USD converted to CAD this month. If the FX from USD to CAD was 1.25, he would be paid $125 CAD right? Now lets say he put that money, in CAD, in the bank for 1 month. Now in the next month lets say the exchange rate changed to an even 1 for 1. So 1 USD = 1 CAD. If he went and translated back to USD, he would have $125 USD. He would have a $25 FX gain in USD. Is that wrong?

Quoted the wrong guy! My bad.

 

[Dr Danglefest]

You guys understand that its being converted to Canadian based on the exchange rate which is based on the value of the currency, correct? Its a 1 for 1 value. Right now the Canadian dollar is worth less, thats why he would get more of them. It's not actually more value, its the same value, it just takes more pieces of Canadian paper compared to pieces US paper.

Right so I guess the only thing you could say is playing in Toronto you can gamble with the value of your money, based on how the value of the USD fluctuates.

So his CAD could end up being worth more or less and there’s no really no way for him to predict that over the course of a 7 year deal, meaning say it’s worth 1:1.5 so 11:16.5 over the first 3 years (33:49.5) and he saves up that money. Whichever way the value of the dollar fluctuates his money earned has either increased or decreased. If it’s now 1:1 he has banked an extra 16.5 mil....if it’s no 1:2 then his 49.5 should be worth 66 and it’s not because you can’t go back in time

Edit: when I say should be worth 66 I mean if he saved that 33 mil in USD and not CAD he could exchange it for 66mil and not the 49.5 he saved up in CAD. In this hypothetical

Tried to make that math as simple as possible.

Obviously for US based teams you don’t have the exchange rate and your money is always based on just the Dollar and you are paid in dollars and you don’t have to play that game

 

[member 157595]

i'd live in Mozambique and commute and be da king

Melnyk, is that you?

 

[Sherwood71]

I feel like the people who aren't grasping how the value of a specific currency changes based on where you are buying the goods and services have never been out of the country. Either that, or they have never heard of people who build giant mansions or companies in other countries because its cheaper than if they were to build it in their country.

 

[GordieHoweHatTrick]

Until the dollar went down in value and you got a pay cut for no reason.

..and his purchasing power would still (very likely) be higher than his purchasing power when his salary was denominated entirely in CAD.

 

[Bacon Artemi Bravo]

Right so I guess the only thing you could say is playing in Toronto you can gamble with the value of your money, based on how the value of the USD fluctuates.

So his CAD could end up being worth more or less and there’s no really no way for him to predict that over the course of a 7 year deal, meaning say it’s worth 1:1.5 so 11:16.5 over the first 3 years (33:49.5) and he saves up that money. Whichever way the value of the dollar fluctuates his money earned has either increased or decreased. If it’s now 1:1 he has banked an extra 16.5 mil....if it’s no 1:2 then his 49.5 should be worth 66 and it’s not because you can’t go back in time

Tried to make that math as simple as possible.

Obviously for US based teams you don’t have the exchange rate and your money is always based on just the Dollar and you are paid in dollars and you don’t have to play that game

Exactly. At the end of the day, it's just like any other investment and he'll put his money where him and his advisers choose no matter what currency he is paid. It's quite literally a non-issue.

 

[BMOK33]

I feel like the people who aren't grasping how the value of a specific currency changes based on where you are buying the goods and services have never been out of the country. Either that, or they have never heard of people who build giant mansions or companies in other countries because its cheaper than if they were to build it in their country.

I think people overrate the whole Texas Florida tax thing and also the Canada conversion thing when it comes to NHL UFAs. I’m not exactly a dumb person but I’m probably smarter than a vast majority of NHL players and I am financially clueless and have no idea nor do I hardly ever think of things like that and I’m closing in on 40. It’s hard for me to believe many of these guys do either

 

[TheWayToRefJose]

You seemed to omit the fact that the dollar stretches 30 percent further. A million dollar cottage in Ontario will cost 700,000 US dollars. And cashing in a 1 000 000 US cheque into Canadian then gives you 1, 300 000.00. Pretty simple stuff.

Yes. As I said, the numbers are different, but the value is not.

Which is more? 1,000 USD or 19,838.70 Pesos? Neither. They're both the same!

Let's try it with something that's not money. Which is longer? 1 yard or 0.914 meters? Once again, neither.

 

[Just Rude]

This makes no sense at all. The reason it is relevant is that Toronto is the only city on that list that uses Canadian currency. Meaning quite simply he can stretch his dollars significantly more due to the exchange rate. Purchasing of real estate or businesses should he choose to do so; he gets way more bang for the buck because he is being paid in US currency. Why is that so hard for some to comprehend?

Jesus. Someone finally gets it. It has nothing to do with what goods and services cost in NYC or the States. People can't grasp the idea that if he is living and working in Canada, with no ties or reason to buy anything in the States, that purchasing power is irrelevant. He lives and works, for the most part, in Canada, and pays with Canadian currency. Living and working in Canada, would you rather your paycheque be in US$, a much stronger currency, or CDN? As a resident of Canada, he is being paid in USD, a stronger currency than Canadian, but buying goods and services in Canadian.


Like I said yesterday, the MSRP of my truck in suburban NYC is $48,000 USD. The exact same truck in Toronto, without any rebates, has a MSRP of $59,000 CDN. So, after the exchange, do I save more money by buying my truck in Canada, or the States? The answer, at least in this case, is Canada. That isn't going to apply in every case, of course, but it is an example.

If I am making $12.5 million a year CDN working and living in Canada, and my neighbour is making $12.5 million USD, the fact is, my neighbour has $16.5 million CDN to spend. How much a car or a house costs in the US is irrelevant. My neighbour is better off than me.

If people are going to harp about how much tax Tavares will pay IN CANADA, you also have to add he will be making more money IN CANADA, which may or not be a good thing. That's up to his accountants to decide. ​

 

[Dr Danglefest]

You're not grasping it dude. Lets all move on.

How am I not grasping it oh wise one? I laid out a very formulaic response and you have a cheap one liner that serves no purposes or outlined any real thought

 

[Liferleafer]

What? No,what I meant was if lets say he had $100 USD converted to CAD this month. If the FX from USD to CAD was 1.25, he would be paid $125 CAD right? Now lets say he put that money, in CAD, in the bank for 1 month. Now in the next month lets say the exchange rate changed to an even 1 for 1. So 1 USD = 1 CAD. If he went and translated back to USD, he would have $125 USD. He would have a $25 FX gain in USD. Is that wrong?

If you converted 100 USDs to Canadian dollars at an exchange rat of 1.25...you would have $125 Canadian dollars. If in 1 month the exchange rat became even...that $125 would still be $125...in either Canadian or US dollars. The point is, the US dollar will continue to be worth more than Canadian for quite some time....so living in Canada and being paid in US dollars will be beneficial.

 

[Rants Mulliniks]

His OHL team was good, but never won anything, and those teams turn over every few years, so not a good measure of future success IMO.

The AHL team was built by previous GMs largely through the draft. The key players on that team were never acquired by Dubas. Sure he made some moves, but the key pieces were already in place and the Marlies were a strong franchise before he got the AGM role.

What's interesting is he's walking into a similar situation with the Leafs. The core of the team is set and he may walk into landing JT to boot.

What we know about him is he ran point on the Kessel deal in which the Leafs got fleeced by a vet GM. Hopefully Dubas has learned enough from Lou to make smarter decisions going forward and add that to whatever skill set he's deemed to have.

What we know about him is every single place he has been in some form of GM capacity he has seen his team set franchise point records within 3 to 4 years. I'm sure you could try to logic it away that he walks through the land of unicorns with ginormous horseshoes up his butt. Or you could ask yourself if there are any common denominators.

I'm not really sure I hold your opinion on the Kessel deal as it ultimately landed us Kapanen and the guy who just finished top 5 in Vezina voting.

 

[Bonzo111]

How am I not grasping it oh wise one? I laid out a very formulaic response and you have a cheap one liner that serves no purposes or outlined any real thought

 

[God King Fudge]

Brutal but true. It really stinks that we can't use this site when we want to use it the most. It's been like that since I've been around...seems worse since the change though.

I started browsing this site in 2003 I believe and I distinctly remember this being an issue all the way back then, though not as bad as it is now.

 

[TheWayToRefJose]

Except the price of goods rarely move as fast as the exchange rate. God damn are people misinformed in this thread..... Just ask folks who live in Canada and get paid in USD how their buying power and savings have improved the last few years.

It's a hypothetical statement. Thought that was pretty obvious when I said the numbers weren't real. Just because the cost of living is different doesn't mean having 1 USD isn't the same as having 1.33 CAD

 

[ACC1224]

Jesus. Someone finally gets it. It has nothing to do with what goods and services cost in NYC or the States. People can't grasp the idea that if he is living and working in Canada, with no ties or reason to buy anything in the States, that purchasing power is irrelevant. He lives and works, for the most part, in Canada, and pays with Canadian currency. Living and working in Canada, would you rather your paycheque be in US$, a much stronger currency, or CDN? As a resident of Canada, he is being paid in USD, a stronger currency than Canadian, but buying goods and services in Canadian.

Like I said yesterday, the MSRP of my truck in suburban NYC is $48,000 USD. The exact same truck in Toronto, without any rebates, has a MSRP of $59,000 CDN. So, after the exchange, do I save more money by buying my truck in Canada, or the States? The answer, at least in this case, is Canada.

If I am making $12.5 million a year CDN working and living in Canada, and my neighbour is making $12.5 million USD, the fact is, my neighbour has $16.5 million CDN to spend. How much a car or a house costs in the US is irrelevant. My neighbour is better off than me.

If people are going to harp about how much tax Tavares will pay IN CANADA, you also have to add he will be making more money IN CANADA.​

Really is astonishing that some can't get their heads around this.

 

[Bacon Artemi Bravo]

Jesus. Someone finally gets it. It has nothing to do with what goods and services cost in NYC or the States. People can't grasp the idea that if he is living and working in Canada, with no ties or reason to buy anything in the States, that purchasing power is irrelevant. He lives and works, for the most part, in Canada, and pays with Canadian currency. Living and working in Canada, would you rather your paycheque be in US$, a much stronger currency, or CDN? As a resident of Canada, he is being paid in USD, a stronger currency than Canadian, but buying goods and services in Canadian.

Like I said yesterday, the MSRP of my truck in suburban NYC is $48,000 USD. The exact same truck in Toronto, without any rebates, has a MSRP of $59,000 CDN. So, after the exchange, do I save more money by buying my truck in Canada, or the States? The answer, at least in this case, is Canada.

If I am making $12.5 million a year CDN working and living in Canada, and my neighbour is making $12.5 million USD, the fact is, my neighbour has $16.5 million CDN to spend. How much a car or a house costs in the US is irrelevant. My neighbour is better off than me.

If people are going to harp about how much tax Tavares will pay IN CANADA, you also have to add he will be making more money IN CANADA.​

What you're not getting is that in your scenario there is someone who is getting paid in CDN vs USD. He gets paid the same salary USD no matter which team, just in 1 scenario it gets converted to CDN, and the same exact value. Your truck example would be useful for your point but it is highly anecdotal. If you had a better example of how living in Canada is actually cheaper than living in the US after the exchange rate, you would make your point.

 

[Dr Danglefest]

Jesus. Someone finally gets it. It has nothing to do with what goods and services cost in NYC or the States. People can't grasp the idea that if he is living and working in Canada, with no ties or reason to buy anything in the States, that purchasing power is irrelevant. He lives and works, for the most part, in Canada, and pays with Canadian currency. Living and working in Canada, would you rather your paycheque be in US$, a much stronger currency, or CDN? As a resident of Canada, he is being paid in USD, a stronger currency than Canadian, but buying goods and services in Canadian.

Like I said yesterday, the MSRP of my truck in suburban NYC is $48,000 USD. The exact same truck in Toronto, without any rebates, has a MSRP of $59,000 CDN. So, after the exchange, do I save more money by buying my truck in Canada, or the States? The answer, at least in this case, is Canada.

If I am making $12.5 million a year CDN working and living in Canada, and my neighbour is making $12.5 million USD, the fact is, my neighbour has $16.5 million CDN to spend. How much a car or a house costs in the US is irrelevant. My neighbour is better off than me.

If people are going to harp about how much tax Tavares will pay IN CANADA, you also have to add he will be making more money IN CANADA.​

Okay now taking all of that into consideration...which way is the less volatile way to earn your money as it currently stands since he has to sign now...in USD or in USD converted to CAD?

If banked and saved 77-88 million in 7-8 years will still be 77-88 million IN USD, but will the CAD amount after being exchanged be the same in 7-8 years? I highly doubt the value of the USD remains stagnant for 7-8 years. So you are virtually gambling the long term value of money earned. Possibly for better possibly for worse. What’s worth 14.5 CAD in USD now probably won’t be in 7-8 years