Here’s something to keep in mind as the NHL Board of Governors meets today and tomorrow in Pebble Beach, where expansion and the 2016-17 salary cap are, among other things, expected to be discussed.
From the Financial Post:
The Canadian dollar fell more than half a U.S. cent Monday morning to levels not seen in 11 years as crude oil futures traded below US$39 a barrel.
The loonie traded at 74.13 cents U.S. shortly after North American stock markets opened after falling 0.63 cents from Friday’s close.
This is not good news for Quebec City hockey fans. If the NHL is going to expand, it’s going to want teams that can be drivers of revenue, and the loonie at these current levels makes it a lot harder for Canadian teams to do that.
And it could get even harder. Morgan Stanley has predicted the Canadian dollar could slide all the way to 69 cents next year. Hence, the speculation that the league may be stalling in order to see if Seattle can figure out a way to build, or renovate, an arena.
The strength of the loonie, of course, has an impact beyond just the Canadian teams. Its precipitous fall is a big reason there’s a “cap squeeze” right now.
Just to give you a sense of how quickly things have changed, here’s a chart of the loonie’s value over the past five years:
As you can see, it wasn’t that long ago that it was actually worth more than the greenback.