The Canadian dollar is tumbling today after the Bank of Canada surprised the market with a rate cut.
At last glance, the loonie held a value of just under $0.81 USD, well down from the $0.89 USD value it held in November. Blame the crash in the price of oil for that.
Why is this relevant for hockey fans? Well, because it has the potential to affect next season’s salary cap. Specifically, it has the potential to affect it downwards.
On Dec. 8, the NHL pegged next season’s salary cap at $73 million, with the caveat that the Canadian dollar couldn’t fall in a significant way.
Well, it’s fallen. And we’d have to say in a significant way. And big-spending teams like the Chicago Blackhawks can’t love what’s happening.
We’ve emailed NHL deputy commissioner Bill Daly for a comment. Should we hear back, we’ll post his reply.
According to Sportsnet’s Chris Johnston, teams have been assured that the cap won’t fall below $71 million.
Update:
Reply from Daly:
"[The salary cap] obviously moves downward when the Canadian dollar goes down, but the move is not what I would consider material.”
Translation: Don’t freak out too much, Blackhawks fans. Just a little freaking out will suffice.