What a 55 cent dollar will mean for the CFL?

With the Canadian dollar expected to continue to free fall as low as 55 cents. What can CFL teams do to soften the blow not just for American players, but also Canadian players that will be paying more for everything from groceries to gasoline. The current CFL cap is barely north of 5 million dollars for 44 players which works out to less than 3 million US if the current prediction comes true.http://www.ctvnews.ca/mobile/business/h … -1.2486200
With players making less than fast food wages if you take into account new laws that have just been made law in New York State http://mobile.nytimes.com/2015/07/23/ny … ?referrer= (Fast food workers will make 30000 US, CFL minimum at 50k will still be be less at 55 cent conversion)
The question is, what can the CFL do to stop players from either working regular jobs, or playing in alternative leagues. Billeting players with local families could be a very viable option. It works well for the CHL and the CFL’s closest competion is now doing it.http://www.oursportscentral.com/service … id=5031797
CFL starting QBs will still be making 100k in US dollars, but you literally will have back ups making New York State fast food wages that are less than. 30 thousand dollars.

Nothing.

Nothing.

Nothing.

So just let our league go back to an amateur league? The NLL only pays like 20kUS, but has free housing. How a league that draws 10 percent of the revenues of the CFL, but will treat its players better would be ridiculous.

If our US players were earning $60,000 Cdn dollars, and that's only $45,000 in US at todays exchange rate , if it drops to 55 cents US then that's around $35k Cdn that's a huge drop in earnings for US players.
The affect is that less players will want to come to Canada after the NFL cuts.

There is nothing the CFL can do about it, just like the rest of us we have to put up with higher prices because of the low dollar. Most of what we buy these days is imported.

And Bungle bringing this up frequently...

unless the CFL has influence over the precipitous fall in the value of indigenous commodities, the dollar will continue to slide and less and less American talent will make the trek North of the border.

There is little to nothing the league can do to mitigate these low wages aside from bumping up the Cap substantially (up to 50% if currency projections are realized) which could harm the health of the league as a whole.

but it's not just the CFL that suffers as Canadian member clubs in the MLS, NHL, MLB, and NBA (Raptors) pay salaries in American funds potentially leaving teams like the Jays and Raptors in the red despite recent successes at the gate.

It will have next to no impact on the league as a whole.

Since salaries are paid in Canadian Dollars it won't increase any teams expenses unlike their US based league counterparts. Even there the impact will be light.

As far as recruiting US players. Most that play here won't crack an NFL roster anyways (though many NFL players wouldn't crack it here too). As the CFL is a second highest rated gridiron football league in the world, those who want to pursue their NFL dreams or compete at a high level as long as possible, they'll still play up here.

It's the BJ's, Raptors and Canadian NHL teams which will be greatly impacted by the drop in the dollar. They pay salaries in U.S. dollars but earn revenue in Can. dollars. A 55 cent dollar would balloon the BJ losses to well over $100 million per year. Canadian NHL teams will also be crying the blues once again and will demand for handouts/subsidies from the American teams. The Jets and Leafs could relocated to Albuquerque and Salt Lake, for example.

The CFL is in the best position of any league as they pay salaries in Canadian dollars. So the CFL will not be impacted by a low Canuck buck. Football players will still sign in the CFL because there is no other option. When the CFL minimum wage was $25,000, the league signed some of the best players in history.

Some may equate the "professionalism" of a league with the player salaries. If that's the case, the CFL will not impress regardless if the player's salary is effectively $25k or $51k.

yes you are right the league can't do a thing about exchange rates, if they bumped up salaries 50% the teams wouldn't be existence because the ticket prices would have to rise 50%. It's a gate driven league and it would be nice if there was a billion dollar TV contract but each team only receive around $4 million that's a small amount, the Ottawa Senators get $42 million from TSN to broadcast less games!!! The Riders receive almost as much revenue from the 50/50 draw a they do from the TV contract.

I think it is great. Keeps the guys in Canada spending their money.

Just minor piece to add on the Raps and Jays. A decent sized chunk of their revenue - American national TV contracts does get paid to them in US dollars - so at least that portion of their revenue is protected from currency fluctuations.

For the Jays that is about $35 million USD each year and for the Raps it is $45 million USD each year.

For the CFL - it likely won't have that much of an impact. Might we lose a few American players - possibly - but for many even making $35,000USD will be worth it. For some it will keep their NFL dreams alive and because they can still top that up with off season work getting experience in the field of work they ultimately will move into full time once their playing career is over it won't be that bad.

And keep in mind for over half the year any of their own personal expenses up here are still in Canadian dollars - so they don't take any kind of a hit on those expenses.

So with the salaries in the NBA and MLB essentially it pays for maybe at least 2 or 3 players contracts at best.

Super star players - yes. So resigning players they will take a hit. But if you look at the Jays roster this season for example - some of the players playing a significant roll on this team don't make all that much money. That $35 million USD this year covers the salary of all these players.
Osuna, Sanchez, Pillar, Goins, Smoak, Donaldson, Estrada, R.A. Dickey and Edwin Encarnacion.

Yes it will have more of an impact than on the CFL though.

I see Chicken Little is at it again. I wish a mod would do something about this poster. He has 6 threads on the main page. That's more than BigDave and turkeybend combined. :wink: Shouldn't that qualify him for troll status?

Wow thanks for the info T-Pat, I wasn't aware that it would cover at least 9 players salaries on the Jays. I should've figured you of all people would be up to snuff on the subject of the Blue Jay payroll. :slight_smile: It's kind of amazing though that the same $35 million would cover almost the entire payroll of 7 CFL teams combined or based on a standard 46 man CFL roster approx. 322 players salaries as opposed to a mere 9 players for the Jays.

In all the HUGE MONEY leagues Bobo it is that free agent looming contract after a couple of good seasons that then gets you the HUGE money. So expect Donaldson to go from $4.5 million to about $20 million with his next contract.

That is one of the kind of quaint appeals of the CFL. The 'stars' can make excellent money - but it is not ridiculous money.

I saw the topic of this thread and immediately thought. "I bet Bungle made this thread" oh how right I was.

https://youtu.be/KTB4NjBzK8c?t=1m34s

I'm beginning to think Bungle is paid by the league to act as a "thread starter" to build up the clicks on the forum.

And 55 cents? Where did you get that number Bangle?