Back when the original Winnipeg Jets moved to Phoenix, a lot of the reason was the Canadian Dollar falling far below par. It impacted every Canadian team, but it was the Jets that felt it the most, leading to their departure.
Now, the Canadian Dollar seems to be falling again. However, things are different now. The new NHL and it’s revenue-sharing plan makes sure every team is receiving a good amount of money from the top-earning NHL teams. Add into account that NHL revenues are getting higher and higher and there shouldn’t be any problem.
Scott Brown, True North’s Director of Corporate Communications, had this to say about the dollars fluctuation.
“The falling dollar has no impact on us at all due to currency mitigation laid out in the revenue-sharing part of the (collective bargaining agreement). It simplistically means that mechanisms in revenue-sharing will compensate teams for the equal amounts of revenue lost due to a decreasing Canadian dollar.”
NHL Deputy Commissioner Bill Daly echoed those comments.
“I do not believe at this point it is a major concern for our clubs. Most of our Canadian clubs protect themselves against currency fluctuation. Obviously, a steeper and lasting decline in the value of the Canadian dollar might prove more problematic over time, but is not a situation that we are facing right now.”
The way the NHL works now, teams that are in a bad situation aren’t in as much trouble as they would have been twenty years ago. Now, teams like the Winnipeg Jets are safe from most financial troubles. That can only be good for the NHL.
Tags: Winnipeg Jets