Carolina Hurricanes: Weak Canadian Dollar Favors the Hurricanes

With a weakened Canadian Dollar, the NHL salary cap will not move as much as some teams hoped. What does that mean for the Carolina Hurricanes?

There has been a lot of talk around the hockey world about the weakening of the Canadian Dollar, but what does that really mean for the league and the players. With seven teams, Canada represents 30%-35% of the revenue for the league. With a less favorable exchange rate, the Canadian team revenues decrease.

The NHL salary cap increases are based on revenue and revenue growth. If the Canadian Dollar does not rebound by the time the new cap is set, there will be a much smaller than expected growth in the salary cap for next season. So what does that mean for teams?

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The salary cap often determines the market for re-signing players and the multi year projections that help teams determine the structure of many deals. With caps always projected to rise, it is common to see many deals paying a player more in the later stages of contracts.

How does it affect the Carolina Hurricanes?

There are already teams that would be strapped for cap space if the numbers do rise as projected, but if the cap stays the same or similar they will really be hurting. Teams like Chicago, Pittsburgh, and Los Angeles, that have many big name players signed or load up at the deadline, will be looking to move pieces. A similar situation is what brought Joakim Nordstrom and Kris Versteeg to the Hurricanes last year from Chicago.

This was part of the genius of Carolina Hurricanes GM Ron Francis’ plan at the deadline. Neither Cam Ward nor Eric Staal were going to be signed to extensions before the end of the year. If the salary cap remains stagnate for next season, this becomes a bargaining chip for Francis to use when re-signing players. Francis also used trade deadline moves to amass a significant amount of picks over the next two drafts. 

Carolina Hurricanes

He can look to turn some of his late round picks into players, much like he did in acquiring Eddie Lack, and the previously mentioned Blackhawks. The 2015 draft occurred after the cap was raised $2.4 million, and if the projections are accurate, and the cap is lower for next season, teams will be more frantic to dump players, and again Francis will have the ability to be a buyer.

It may have been disappointing to see players like Staal, Versteeg, and Liles get dealt at the deadline, all but ending the Hurricanes chances at playoffs, but Francis has a plan. There is always the chance that Staal and/or Versteeg boomerang back in free agency. Both expressed the desire to stay in Raleigh.

Right now what is important is to find out, in the last 17 games of the season, who is ready to contribute to the Carolina Hurricanes at the NHL level night in and night out. Will players like Derek Ryan or Brock McGinn prove that they are NHL worthy and make the roster next year, or will they remain in the AHL.

Next: Hurricanes Players with the Most to Prove

After evaluating those players and figuring out where the holes are that need to be filled, Francis has the resources to build the team he wants. Remember both Rask and Faulk were picked in the second round, and with seven picks in the first and second rounds of the next two drafts, the farm system will be chock full of talented players.