Quote:
Originally Posted by Enoch Root
they would consider the currency and factor in conservative levels in their NPV calculations. It is also easily hedged.
you don't build billion dollar projects and just allow yourself to get blindsided by things like currency risk.
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I think you misinterpreted the previous post. He was talking about how much it hurts the team to pay their costs in USD and earn their revenues in CAD, when USD strengthens. They certainly have been hit hard by this. I think he was just generally saying that might be a factor in the arena decision generally with the health of the org. Not sure how you think currency exposure would affect the arena decision itself (it wouldn't because it'd all be CAD).
Brings up an interesting point though. Do Cdn teams hedge their USD exposure for player payroll? Would make a ton of sense. But if that was the case, a weak Canadian dollar wouldn't even hurt them. And since that's a factor in the cap calculations, it makes me think that they might not hedge for whatever reason.