The Canadian dollar is trading at around $0.77 USD today. While that’s up considerably from where it was a few months ago, the damage has already been done to NHL revenues.
“If the Canadian dollar was still at par, we would be $100 or 200 million higher perhaps than we may find ourselves,” NHL commissioner Gary Bettman told Bloomberg Television today.
Having said that, Bettman still expects there will be a “revenue increase” compared to last year, adding that “we continue to grow year after year and set new records.”
More from Bloomberg:
Bettman said that while the NHL’s revenue growth has come across the entire business, the league has seen its biggest boon in its digital platform. The league last year signed a six-year, $1.2 billion contract with Major League Baseball’s interactive media and Internet arm, or BAM, to operate the its digital operations, streaming services and TV network. The NHL got a 10 percent stake as part the deal.
The NHL playoffs are currently in the middle of the conference finals. The NHL’s fiscal year ends June 30.
League revenues, of course, have a direct impact on the salary cap, and let’s face it, that’s the only thing most fans care about.
As of March, the cap was expected to grow from $71.4 million in 2015-16 to $74 million next season.
However, that projection assumed the NHLPA would accept the CBA’s standard five percent growth factor, and with escrow topping the list of player concerns, that’s no given.
The players’ association will discuss and make a decision on the growth factor at some point before July 1.