Tuesday, December 8, 2009

Currency Rise Helps Canadian N.H.L. Teams

The Canadian teams in the NHL used to be the "poor cousins" to the American teams. Now, the decline in the American dollar has created a trade imbalance in Canada. Because of the stronger currency, it's now cheaper for the six Canadian teams (Maple Leaves, Canucks, Oilers etc.) to pay their players in United States dollars and to reduce debts. N.H.L. Commissioner Gary Bettman spoke of Canada’s renewed economic strength when he said the league was interested in expansion to Winnipeg and Quebec City, cities that lost N.H.L. teams in the 1990s. The league initiated the Canadian Assistance Program at the start of the 1995-96 season to help small-market Canadian teams stay afloat. The program ended when a salary-cap and revenue-sharing model was adopted by the league before 2005-2006, during the lockout that wiped out the previous season. Today, several Canadian teams are net contributors to revenue sharing, helping to keep weaker American franchises alive.

M.L. KIN 332I

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