For some businesses — a weak Canadian dollar is a good thing.
Professional sports is definitely not one of them. The Canadian dollar flirted with the US 80-cent mark on Thursday. And, the currency plunge will soon be hurting the bottom lines of Canadian MLS and NASL teams.
MLS and NASL teams aren’t forthcoming about the terms of their contracts. But the MLS Players Union sheds some light on how the salaries are paid out. According to MLSPU Executive Director Bob Foose: “All contracts are calculated in U.S. Dollars, players can then choose to have them paid in either, or a combination.”
So, according to the union, it’s the player’s (or agent’s) call when it comes to determining if the cheques are paid in American or Canadian dollars. And, it’s hard to imagine a player not choosing to get paid in the more stable currency — the Yankee dollar. In the NHL, where there are seven teams out of 30 are Canadian, contracts are paid out in U.S. figures — including Canadian players on Canadian teams.
Toronto FC has confirmed that all MLS salaries are in US dollars.
The salaries we see published by the MLS Players Union are all in American dollars. So, if Toronto FC has Designated Player Michael Bradley on for an MLSPU-reported salary of $6.5 million, that’s American dollars. So, as of Thursday’s exchange rate, Bradley’s salary is now at nearly CDN$8.05 million, and going up (in Canadian currency) as the loonie plummets.
Try this as a comparison: At the start of the 2014 MLS season, the Canadian dollar was at 90.2 cents US. So, a year ago, Bradley’s contract was worth about $7.2 million in Canadian bucks. This year, it’s over $8 million. And that’s all because of the plunging dollar.
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