Could the Canadian Dollar positively affect the CFL?

[The_Pauser]

Now that the Canadian dollar is virtually on par with the American dollar, a $500k contract in the CFL is equal to a $500k contract in the NFL. This means that all those players on NFL contracts, making significantly less, may consider the CFL as an option to make more money.

I'm not suggesting that just any NFLer is going to come up here to make $500k; however, it might just affect a couple players decisions.
The NFL practice roster salary is about $62k. CFL stars making more than that may shy away from bolting to the NFL, because if they end up on the practice roster they would effectively be making a lot less than they would in the CFL.

Now, based on what we're seeing in the currency exchange marketplace, it's highly possible that the Canadian dollar could exceed the value of the US dollar. If the Canadian dollar goes to $0.80 per $1 USD, then that $500k CFL contract looks A LOT more appealing than a $500k NFL contract. Yes, these numbers are extreme for arguments sake, but it can be scaled down.

Economics in Canada can play a huge role in the rejuvination of the CFL.

[Rick James]

I bet it will have more of an effect on the arena league vs cfl as opposed to nfl vs cfl.

[The_Pauser]

Oh it'll have a huge affect on the AFL vs. CFL, but I think that it will have some impact on certain fringe NFL players, and star CFL players choosing to stay in the CFL.

[sj-roc]

There should be a positive effect, but this could be tempered by the fact that our income taxes are generally higher. Even with our dollar at par, there would still be less take-home pay, especially in Quebec which, last time I looked, had by far the highest marginal rates among provinces.

[TheLionKing]

Short term positive effect however I don't expect our Loonie to be on par for any extended period of time.

[cromartie]

Short term positive effect however I don't expect our Loonie to be on par for any extended period of time.

You're vastly overestimating the American economic situation. Just wait until all the ARMs coming crashing down next spring.

[TheLionKing]

Short term positive effect however I don't expect our Loonie to be on par for any extended period of time.

You're vastly overestimating the American economic situation. Just wait until all the ARMs coming crashing down next spring.

I would love to be proven wrong !

[Yank In BC]

income taxes are generally higher.

That is going to be the huge difference. Think about the one thing that your tax dollars go into that a full time resident can take advantage of: Health Care. Since the reality is most players are only here for 6 months they lose that benefit as well as getting way more heavily taxed. Will the dollar make a difference, yes, but I would venture to guess most guess a few years ago didn't realize before they came up or even just prior to that the dollar was at 60 cents.

[Hambone]

Obviously the strong loonie can't do anything but help the CFL attract talent. However $500K doesn't make for a good example as that relates almost exclusively to elite starting QBs. The reality is you can probably count the number of CFL players making more than NFL minimum wage on one hand as the currencies sit today. I think you have to look at other positions to get a better sense of the currency impact as that's where the majority of player salary ranges reside.

For argument's sake lets use $100K which is probably a reasonable mean average for CFL non-QB imports. $CDN100K 3 years ago was worth about $USD65K. Now that same contract would equate to $USD100K. As for NFL options the PR pays $USD4700/week which works out to $USD75K to $USD80K depending on whether or not the player gets paid for the bye week. That goes up to $5200/week starting next season. Minimum salary for a player on the Active/Inactive list for 2007 is as follows:
$USD285K - Zero credited seasons (this is the worst Chris Wilson will be making this season)
$USD360K - 1 credited season
$USD435K - 2 credited seasons
$USD510K - 3 credited seasons
$USD595K - 4-6 credited seasons (If Kerry Joseph returned to the NFL this would be his minimum salary. This is Brendan Ayanbadejo's minimum wage to play special teams)
$USD710K - 7-9 credited seasons
$USD820K - 10 or more credited seasons
Each of those minimum salaries increase by $10K for 2008 and a further $15K for every season after until the CBA expires after 2012. Minimum wage for a rookie in 2012 will be $USD355K.

The reality is even with the loonie at par there remains a huge gap in pay scales between the two leagues unless you are a starting CFL QB. Make the NFL as a backup at any other position and you immediately at least double your takehome pay. I don't think the stronger buck will do much to influence a player's decision to play NFL versus CFL. If the player feels he is being offered a reasonable situation to make it in the NFL he'll still give it a shot. Where I think it will make a bigger difference is when a player is sitting there trying to decide if he should continue playing football albeit in Canada or move on to life after football. At $CDN100K = $USD65K a player may opt to moving on and putting his degree to work. But at par he might be more likely to say what the heck, might as well play for another couple of years.

[MacNews]

Short term positive effect however I don't expect our Loonie to be on par for any extended period of time.

I have to agree, as even 1 or 2 years is still short-term in a 40-50 year span.

But I am definitely enjoying it while it lasts.

[Larry Key]

About time the athletes (NI and IMPORT) get to benefit from this increase. They deserve this and maybe it will have players think twice about bolting for the NFL to sit on a practice roster, if they are good enough to do so. But majority of these guys just want to play, so with the Loonie increasing, it benefits the players for sure.

[Dan Russell]

Don't hold your breathes when it comes to our dollar staying at this peak. The NFL will be unaffected by this IMO also.