Falling Canadian Dollar

[Dick_Pole]

JPR was negatively effected by hedging. When the dollar got stronger the Jays weren't able to benefit right away.

 

JPR's mouth said he was negatively affected by it...but he wasn't. His mouth just liked to open whenever there was some kind of excuse to be had for his mediocre performance.

 

Understand the budgeting process - it's to come up with a figure, a guess, of how much money you're going to have available for next year. The most variables you take out of the equation, the more solid your number becomes, and the better benefit you have of being able to plan around a solid number sooner. So hedging away your foreign currency risks to your operations is almost always beneficial.

 

JPR wasn't negatively affected by it, there was a missed opportunity. He didn't get some bonus cash, but the cash he expected was there. That's what the problem was.

 

But even if they didn't hedge and $5M was unexpectedly thrown at his doorstep, what would he have done with it? Not much you can do if your bosses give you an extra $5M in March. Sure, he could have picked someone up at the deadline, but the prerequisite to that is that you have to be in serious contention which JPR never was.

[Dick_Pole]

So even if the jays have hedged the whole amt as you say hedging costs money and at what $$ would it be set at . 95 or 96 cents ?? What would the hedging cost ? It still takes a chunk out of the 150 mil and making it uglier going forward for next years budget .

 

See but this is where I contend that it's not an issue - We don't know the ins and outs of Rogers' books. But if they hedged the currency as I assume they would, that $150M US translates to something like $160M CDN and it's a solid number on both aspects. The budget would have always been $160M CDN but the $150M US number was vocalized. I'm just making this up based on your numbers, I haven't actually heard a $150M number though I assume they always mean US figures. It would be nonsensical if they used $CDN to express a US-dollar based expense.

 

Actually, do you mean next year as in the upcoming season? Or next year as in 2015? If you meant the latter then yes, it would hurt the business. If $160M CDN bought you a $150M US budget for 2014 and the CDN dollar drops 5% by the time next year's budgeting and hedging process starts, then your same $160M CDN would get you 5% less, around $8M less for 2015.

[xposbrad]

As expected, the fall of the Canadian dollar will impact Canadian teams.

 

FROM MLBTR:

The shift in favor of the American dollar against the Canadian variety is beginning to have an impact on Canadian sports teams, writes Sportsnet.ca's Michael Grange. "It won't affect our plans for this year, we're already locked and loaded (with regard to payroll)," said Jays president Paul Beeston. "But it will affect our bottom line, that's for sure."

[jaysfan2014]

Where were they when the dollar fell to under 80 cents in 2009?? This is not news. And besides, the US dollar is going to fall sooner or later, as this recent rally is more due to the Fed unwinding QE(quantitative easing) and does not reflect the poor fundamentals of the US. Why Sportsnet would report a story like this is questionable. The moment good economic data comes out of Canada, our dollar will rebound. Besides, at least we don't have a ticking time bomb of Obamacare to worry about..

[LunchBox]

"It won't affect our plans for this year, we're already locked and loaded (with regard to payroll)," said Jays president Paul Beeston. "But it will affect our bottom line, that's for sure."

 

This is fairly ambiguous, but if it means he doesn't expect any FA acquisitions that's totally unacceptable.

[reedjohnsonfan]

This is fairly ambiguous, but if it means he doesn't expect any FA acquisitions that's totally unacceptable.

 

Ya and it's clearly a cop-out, hopefully fans don't buy into this crap.

[flafson]

Maybe he means it will affect ticket sales and stuff like that and not losing money from exchange rates.

[jaysfan2014]

Uhhh.. Ervin Santana, Ubaldo Jimenez, and others are still out there. Jays are still expected to sign someone.

 

Rolen was traded because he wanted out of Toronto, Rios was let go because he struggled badly, and a club such as the White Sox took a flier on him. Remember, JP Riccardi gave him that awful deal.. Also, that was the same year JP Riccardi got fired as well.

[Olerud363]

Where were they when the dollar fell to under 80 cents in 2009?? This is not news. And besides, the US dollar is going to fall sooner or later, as this recent rally is more due to the Fed unwinding QE(quantitative easing) and does not reflect the poor fundamentals of the US. Why Sportsnet would report a story like this is questionable. The moment good economic data comes out of Canada, our dollar will rebound. Besides, at least we don't have a ticking time bomb of Obamacare to worry about..

 

The Canadian health care system is an atomic bomb compared to the firecracker that is Obamacare.

 

Obamacare is so insanely complicated that it is difficult to predict what will happen. It involves a vast array of programs, the main ones medicaid expansion (free health care expansion) and private health insurance subsidies based on income. The two main parts can atleast be tweaked if things start to head south.

 

On the other hand if for some reason the s*** hits the fan in Canada it will be much more difficult to solve. No matter what happens, even if it was the addition of small copays, there would be riots on the streets.

 

Canada has a lot of social programs for young people. In the U.S. most social programs are for the extreme very, very, poor and focused on kids, or the older people. The healthy young adults don't get much. They allready recieve little, so not much to take away. If you took aware their Obamacare U.S. young adults would celebrate.

 

If you tweaked their socialized health care (atleast some) Canadian young adults would start a civil war. That's a time bomb.

[Smokey]

 

Rolen was traded because he wanted out of Toronto, Rios was let go because he struggled badly, and a club such as the White Sox took a flier on him. Remember, JP Riccardi gave him that awful deal.. Also, that was the same year JP Riccardi got fired as well.

 

 

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