Some of you math-y sporty types out there have probably wondered what Standard & Poor's downgraded rating on U.S. government debt means for the world of athletics.
Well, On The Forecheck offered "3 Ways the S&P's Downgrade on US Debt Could Impact the NHL" early this morning. It's worth a read.
Over the last 10 years, however, the situation between the two currencies has largely reversed - the Canadian dollar has rebounded from a low of around 63 US cents, up to the point now where the loonie is worth slightly more than $1.00 US. It's that kind of tailwind that has the Canadian NHL teams among the league leaders in revenue, as their incomes have grown by more than 50% simply due to currency conversion relative to the American teams.
In light of tonight's news, then, one likely impact is that the Canadian/US exchange rate could tip even more heavily in the loonie's favor, to the extent that either US Treasuries become less attractive on the world financial stage, or Canadian bonds appear more so. Any significant shift in the exchange rate would further increase those seven teams' prominence within the league structure ...
3 Ways the S&P's Downgrade on US Debt Could Impact the NHL [On The Forecheck]