As the Canadian dollar continues to tumble, it’s currently hovering around $0.80 USD, the NHL says it will not have a significant impact on the salary cap for next season.
According to Commissioner Gary Bettman, the Canadian dollar will not cause the salary cap “to fall off a cliff”. During his press conference Saturday, Bettman said the league took into account the falling Canadian dollar for its latest cap projections presented to NHL teams at Saturday morning’s board of governor’s meeting.
For example, should the Canadian dollar continue to trade around $0.80 USD, next season’s salary cap ceiling would be $71.6 million. If the Canadian dollar is at $0.82 USD, the cap ceiling would be $72.2 million.
By comparison the cap ceiling this season is at $69 million.
Deputy Commissioner Bill Daly clarified that the figures presented includes the NHLPA’s five percent escalator.
“The CBA actually contemplates the five percent as standard,” said Daly. “I don’t anticipate that’s going to be an issue. Because I think the players’ association wants to make sure where the cap goes as well because it’s in their interest to do it. I don’t anticipate any issue on the five percent inflator.”
The NHL’s December projections had the salary cap for next season at $73 million so today’s news isn’t that alarming. That will change of course if the Canadian dollar continues to slide.