ch presumably described Canada to the world-the largest hockey stick and puck in the world. Seemingly, everyone recognizes that in Canada, “Hockey is King” (c1).These teams have made a home for themselves in their towns and if these two franchises are up rooted from their communities they may not be gained much of an advantage even with the lower taxes (Dryden 2).One of the fundamental problems with Canadian hockey teams competing with their American counterparts is that Canadian teams pay all of the player’s salaries and travel are in American currency. However, all the revenue from ticket sales, concessions and advertising is in Canadian currency. American teams have an advantage over their Canadian counterparts because all the money that was created from ticket sales, concessions and selling advertising is one-third more than what Canadian teams will make. This is because of a weaker Canadian dollar, 69 cents to one American dollar, means that Canadian franchises will always make one-third less from basic franchise profits as long as the Canadian dollar stays the same. “The teams are among Canada's fewest businesses that pay most of their salaries and expenses in U.S. dollars out of revenue earned in depressed Canadian dollars” (May p 2). This is a problem because the weaker Canadian dollar makes it harder for these franchises to run day-to-day operations (Duhatschek 7). “The result is uneven playing field between 22 U.S.-based franchises and six in Canada”(Duhatschek 7). The weaker Canadian dollar and higher taxes is forcing Canadian franchises to look south for better opportunities. The National Hockey League needs to make it so teams in profitable areas could help out teams in lower profit markets by sharing some of their profit. By sharing profits this could help Canadian teams with high taxes. Unlike the NBA or NFL the NHL does not have a lucrative TV contract with a network t...
