I didn't want to title this "weak Candian dollar" like a lot of other places because the discrepancy is a result of the US dollar strengthening rather than the Canadian weakening. (the Canadian dollar has held steady against other currencies)The contract with Rogers is paid in Canadian dollars, which sharply declined in value against the U.S. dollar after the deal was announced on Nov. 26, 2013. As a result, the NHL is taking a large hit in the contract’s first season: One NHL governor, who spoke anonymously because league officials are forbidden to publicly discuss NHL business, said the currency hit for the 2014-2015 season was pegged at about 17 per cent, which, based on the annual average rights fee of $433-million, works out to a $73.61-million loss for the league.
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A major loss on the Canadian TV deal for 2014-2015 will have an impact on the salary cap, currently $69-million (U.S.) per team this season. The cap is based on the league’s total hockey-related revenue (HRR), so it’s difficult to estimate the specific effect of the Rogers deal, but based on the league’s own calculations, it could result in a $1.3-million (U.S.) drop per team in the cap for next season.
Strong US dollar hurting NHL; cap may drop to $67-million
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tfrizz
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Strong US dollar hurting NHL; cap may drop to $67-million
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