The money of Nick Suzuki, captain of the Montreal Canadiens, is often the center of attention as he is the highest paid forward in the NHL with a salary of $7.875 million until 2030.
Once again, it was his salary that caught the attention, and for an unexpected reason: the devaluation of the Canadian dollar.
While his contract for the 2023-2024 season shows an impressive sum of 10 million US dollars (even if his impact on the pool is $7.875 million), this sum takes a completely different turn when converted into Canadian dollars .
And the numbers don’t lie: the 3.45% drop in the value of the Canadian dollar since the election of Donald Trump in 2016 represents a real headache for Canadian sports teams and their finances.
According to Hugues Léger, expert in sports economics, this devaluation of the Canadian dollar has very real consequences for NHL teams located in Canada.
“I take Nick Suzuki’s salary for 2023-2024, which was 10 million US dollars. With a 3.45% devaluation, that’s $345,000 in additional costs in interest alone.”he explains on the airwaves of 98.5 FM.
These costs, although virtual for Suzuki, weigh heavily on the finances of the Canadian teams.
“All Canadian clubs, whether for ticketing, sponsorships or TV rights, generate their revenue in Canadian dollars. But salaries are paid in American dollars. This creates enormous pressure on the payroll”adds Léger.
With an astronomical salary and a life as a star player, it is not surprising that Suzuki can afford luxurious getaways, like the one in a $4,000-a-night room in the Dominican Republic, which had caused so much talk, while he snubbed the world championship to celebrate his engagement to his girlfriend.
But the reality is more nuanced.
It’s not Suzuki’s fault that NHL salaries are set in US dollars. This system, designed to standardize compensation across the league, puts Canadian teams at a disadvantage when the exchange rate is unfavorable.
For Suzuki, who receives his salary in US dollars, the currency fluctuation has no direct impact on his income.
But for the Canadian, each point of devaluation means enormous pressure on his finances.
The situation is not new for Canadian teams, but it remains a constant challenge.
To compensate for the loss of value of the Canadian dollar, they must redouble their efforts to maximize their local revenues.
Teams like the Montreal Canadiens capitalize on their popularity and fan base to maintain strong revenues in Canadian dollars.
The fluctuation of the dollar is taken into account in the internal policies of the teams, particularly with regard to non-essential expenses.
Some organizations opt for complex financial strategies to minimize losses from exchange rate fluctuations.
For Suzuki, the exchange rate issue is far from his daily concerns. But for the leaders of the Canadiens, every dollar counts.
With a strict salary cap and revenues primarily in Canadian dollars, every currency fluctuation can have a disproportionate impact on the team’s competitiveness.
The devaluation of the Canadian dollar is a sword of Damocles for Canadian sports organizations, and Nick Suzuki is a perfect example.
With a salary of US$10 million, financial pressures are piling on the Canadiens organization, although the player himself is not directly affected.
For NHL teams located in Canada, this economic reality serves as a reminder that every decision, whether it concerns salaries, revenues or expenses, is influenced by factors far beyond the ice.
And if Suzuki can afford a life of luxury, it’s also because his talent justifies every penny, regardless of the currency.
In the meantime, Geoff Molson has the best reason in the world to continue selling his beer at $16…