71. Sports: Professional Hockey Expansion in Canada
- Author:
- Norm O'Reilly
- Publication Date:
- 06-2011
- Content Type:
- Journal Article
- Journal:
- Americas Quarterly
- Institution:
- Council of the Americas
- Abstract:
- In Canadian hockey, currency fluctuations can be almost as important as player skills. When the Canadian dollar, or loonie, began approaching parity with the U.S. dollar in late 2007, fans in Winnipeg and Québec City were thrilled. Financial constraints (along with a lack of owner interest) had driven the Winnipeg Jets to Phoenix in 1996 and the Québec Nordiques to Denver in 1995. But many now believe that the loonie's rise has opened the way for a return of National Hockey League (NHL) franchises to both cities. This optimism may not be warranted. Potential owners forecast an uncertain long-term value of the loonie, which is critical for the success of Canadian professional ice hockey. In the last half of the 1990s and early into the new millennium, the U.S. economy was growing faster than the Canadian economy. Although ticket sales remained high for Canadian NHL franchises, the weakening Canadian dollar meant that U.S. teams were typically stronger on non-ticket revenues such as payments for media rights, regional sports networks and sponsorship. This put further stress on small-market Canadian teams, and importantly, decreased their attractiveness as investments.
- Political Geography:
- United States and Canada