Quote:
Originally Posted by Vulcan
Anyone who remembers the Flames situation in the 90s when the Canadian dollar was low knows that the Flames had an internal cap and it really affected our ability to get and to hold onto players. This made the team bad and with a bad team, attendance went down creating a worse situation. The bargaining agreement making all teams have a cap and equalization payments will probably make our situation less dire but it still could be affected.
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Revenues were much lower in the '90s. The Canadian dollar was much lower in the '90s. The Flames inability to compete was more a product of the enormous separation that existed between teams without any limitations on spending, and those with severe limitations. The cap has effectively created a balance in spending that dramatically reduces the potential for this form of inequality. In other words, with the existence of HRR and a cap, the devalue in the Canadian dollar will impact HRR which affects ALL teams. In the '90s there was no such limitations in place that governed spending.
In other words, this is likely not an issue.