Dollar's fall threatens Canadian teams: Boivin

posted by Dave Stubbs at 22h46 EST on Nov 19


25-cent-bill.jpg

Canadiens president Pierre Boivin fears that the sagging loonie could send Canadian NHL teams spiralling back into the dark economic days that preceded the lockout.

Boivin said today that the league's six Canadian clubs are thriving at the gate and bring in more than a third of the total revenue for the 30-team NHL. But he identified the tumbling dollar and the league's revenue-sharing deal as threats to the continued viability of Canadian clubs.

"We better not return to a 78-cent Canadian dollar because we'll be in the same position we were before the work stoppage," Boivin told reporters after giving a speech to Montreal's board of trade. – Canadian Press




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Submitted by REB on Thu, 11/20/2008 - 13:22.
"We better not return to a 78-cent Canadian dollar because we'll be in the same position we were before the work stoppage," ******************** What is he talking about, you're already there. He wishes it would rise to 78-cents. TD Bank today: - Buy $1.00USD, pay $1.3088CDN - Sell $1.00USD, get $1.2594CDN That pretty well means a 73-cent dollar.....

No et al's picture
Submitted by No et al on Thu, 11/20/2008 - 11:04.
The problem with filling your team with no-names is that they are usually young players who need to develop... that's fine says you, we will win later. But of course, as they develop and their contracts expire, they demand higher salaries and we end up in the same situation. I like the current crop of kids (and Komi is a keeper). They need a few years yet, and we will see a few Hamilton kids up over the next couple of years, and we can keep this team competitive for years. To be a true Cup contender in this league now-a-days the stars have to align perfectly. We're not quite there, but a few lucky bounces (like in '93) and we could see number 25 with this group.

mjames's picture
Submitted by mjames on Thu, 11/20/2008 - 09:41.
I am not too worried about the UFA and RFA situation. I actually hope some team like the Islanders takes a run at our RFA. We get handful of draft choices. I really don't think we are going to win with this group so i am not really bothered by our RFA situation. We make a fair offer based on the expected forward CAP and not the trailing CAP. With respect to UFA, we make a fair offer. If they sign elsewhere then good for them. Guys like Tanguay , Koivu, Kovy are going to have to take discount. If Komi thinks he is going to get $4-$5mm for 5 years, then have fun on Long Island. I like the way no name teams such as the Bruins and Leafs hustle and play. I am sure we could find some no names, if these guys left. I think there might be a few in Hamilton. Also there are going to be some good young players available from other teams since they have hurt themselves with long term hefty contracts. Flexibilty is key and we have it. mjames

Sneezer's picture
Submitted by Sneezer on Thu, 11/20/2008 - 03:24.
Cry me a River Pierre. The rink's sold out EVERY damn game - ticket prices are NUTS. The last couple of years the organization should have been absolutely RAKING in the dough. If they weren't smart enough to save for a rainy day, piss on 'em. ____________________________________________________________ Why don't we have a defensive coach? Insanity? Or arrogance?

captaink4life's picture
Submitted by captaink4life on Thu, 11/20/2008 - 01:33.
We have some of the highest ticket prices in the league(if not the highest, I'm not really sure) and we sell out every single home game with the Bell Center being the biggest venue, with regards to seating capacity, in the entire league. Even if the dollar reaches 78 cents US I don't think we'd be in any more trouble than at least half of the teams in the league right now. Give us a break Pierre!! _____________________________ Koivu for Prime Minister :) Drive for 25!!

HAB-PROFESSOR's picture
Submitted by HAB-PROFESSOR on Thu, 11/20/2008 - 00:39.
we needn't worry about our dollar, the U.S. needs to pray for their dollar as it feels the ravages of inflation....just wait till all the bailouts have been factored into their economy...goodbye US dollar! p.s. if you have any american paper money (monopoly play money soon!) convert it to either Canadian or Euros asap.

Submitted by Yeats on Thu, 11/20/2008 - 12:16.
Stick to lecturing on the Habs cause you sure ain't no professor of economics.

MikeMcLaren's picture
Submitted by MikeMcLaren on Thu, 11/20/2008 - 01:53.
Ummmm, actually DEflation is the bigger worry for the US economy right now, not INflation. With oil now at, what, $52.75USD a barrel and commodities continuing to fall, the natural resource heavy Canadian economy and its dollar are going to be hurt. If you look at the meteoric rise of the Canadian dollar it's almost directly tied to the rise of oil - so too its fall. Those Athabaska tar pits don't look so sexy when oil only costs you double digits a barrel. We're in a global economy right now, but the US is a huge consumer of goods and the ripples hit everyone. Ask China. Ask India. And yes, ask Canada. The Canadian dollar story is going to be a huge one, especially when salaries are paid in US dollars. It could be that Canada will still get an extra team or two out of this very hard global recession because some weak US markets won't be able to sustain a team. But you're dreaming if you think all of a sudden that the Canadian/US dollar valuation is a non-issue and the bottom's going to fall out of the USD in comparison to world currencies. Common sense and recent history show us that the USD is getting strong again. As bad as the US economy is, people are getting skittish about investing in "emerging markets" now. /\\ike GO HABS GO!

Submitted by 93miraclecup on Wed, 11/19/2008 - 23:42.
that's ridiculous anyway. The lower $C will lower the salary cap next year, on top of the impact of the recession. Canadian teams will be fine, in Montreal and Toronto in particular.

Exit716's picture
Submitted by Exit716 on Wed, 11/19/2008 - 23:22.
This was a calculated blow to the head of Bettman by the large markets that are sick of propping up the small markets.

Xtrahabsfan's picture
Submitted by Xtrahabsfan on Wed, 11/19/2008 - 23:19.
Falling Canadiens threatens Habs Fans!

Bugs's picture
Submitted by Bugs on Wed, 11/19/2008 - 23:07.
110% says Bob's in L.A. talkin' to Mats. Peace Out ______________________________________________________ Lord Bugs Potter, esq. Earl of Fluppitburg, Baron of Flopshlupshire and Knight of the Flannel Republic.

Steiner's picture
Submitted by Steiner on Thu, 11/20/2008 - 00:52.
here we go again! I wish this guy would just sign somewhere already.

No et al's picture
Submitted by No et al on Wed, 11/19/2008 - 23:04.
We still have enough cap space to sign Shanahan? Seems like a hard working guy with heart and leadership skills... a bigger, tougher Dougie Gilmour. Maybe we should offer him a contract. I hear he's likely going to sign for less than $2 million for the rest of the season. That's a steal.

Habsrule1's picture
Submitted by Habsrule1 on Thu, 11/20/2008 - 10:28.
Shanahan chose NY over us a couple years back. There is no way I'd offer him a contract unless his agent called us, and that's not about to happen. "I can't hear what Jeremy(Roenick) is saying because my Stanley Cup rings are in my ears" - Patrick Roy Go Habs Go!! Habsrule

Submitted by Yeats on Wed, 11/19/2008 - 23:00.
J.T. posted this on October 22: http://habsinsideout.com/otherwing/j-t/9909 Seems to me Pierre should hire a decent economist. For the right price, I'm available. Heck, I even have the Rosetta Stone software for French handy so I can keep the francophone press at bay if need be.

24 Cups's picture
Submitted by 24 Cups on Thu, 11/20/2008 - 00:13.
Yeats - I remember reading this article when it came out in October. The fact that next year's cap was basically set before the economic meltdown occurred, means that the real financial Armageddon will arrive in 2010. How the hell is Gainey supposed to re-sign so many free agents when the cap is set to go up and down like a yo-yo? I also found it interesting that the PGA and LPGA are facing the same dilemma. They are on stable ground for next year but then all bets are off for 2010 in terms of tournament dates, sponsorship support, and television coverage. The threat of contraction isn't as far fetched as some people would think. Even the loss of four teams would mean a reduction of 100 NHL jobs. Kelly and his players could be in a tight squeeze if that were to happen just as the CBA expired. The balance of power would certainly shift to the owners. There's so much more to running an NHL team these days then just deciding which 20 players to put out on the ice. Going For The Brass Ring - 25 Cups In 100 Years

Submitted by Yeats on Thu, 11/20/2008 - 12:22.
Steve, you would think that GMs will act responsibly given what probably lies ahead, but they won't. I could envision Bettmann coming up with a "bail out" package for those that get caught with big contracts in a declining salary-cap web. I love the sport, but it is regional. I do think the League needs to contract, or remain stable, through the addition of some Canadian franchises. You probably don't have enough data yet to come up with robust econometric models, but it would make a hell of a master's degree thesis.