12/21/24
October 30, 2008
Plunging dollar gives sports leagues a currency conniption: The sudden nosedive of the loonie this month and its continuing volatility threaten to wreak havoc with the finances of Canadian sports businesses that face heavy expenses in U.S. dollars, compounding the inevitable woes stemming from any sustained weakness in the economy.
"We don't know where the bottom is," said Toronto Blue Jays president Paul Godfrey, who estimates that each one-cent drop costs the Jays about $760,000 on a payroll of $100-million. "It's like falling into a black hole."
posted by tommytrump to business and law at 08:27 PM - 3 comments
It really doesn't seem that bad from where I'm siting. The dollar bounced back huge recently, the Jays are owned by a billionaire, the Leafs never have to worry having again been ranked by Forbes as the most valuable franchise in the NHL. The Raps are owned by the Leafs and sell out.
It''s all good, baby. Don't fret none.
posted by WeedyMcSmokey at 10:31 PM on October 30, 2008
"Loonie": The nickname for the Canadian dollar. Also the condition of the world's financial markets. I retired yesterday. The company told me that my 401k was so far down that I owed money on it. Not to worry. I'll act like I'm rich enough to get a bailout while I pretend to be poor enough to get an "income redistribution" handout.
posted by Howard_T at 01:33 PM on October 31, 2008
With the Blue Jays, you can see that impact that each shift has, if your expenses/contracts are written in USD and your income is primarily in Canadian dollars.
*I know how they feel. A couple of months ago our dollar was worth USD 0.98, now it's USD 0.65 and dropping. Luckily some of my payment contracts are written in USD.