The future for Canadian NHL franchises is in for a big financial challenge with record financial growth in the league, with the NHL projecting a salary cap increase to $113.5 million USD in 2027-28, following a $95.5 million in 2025-26 and $104 million in 2026-27 jumps. Canadian franchises have an equivalent salary of $163.2 million CAD at current exchange, raising a big concern about competitiveness and financial solvency for Canadian teams in balancing out salaries and expenses.
Real concern for (some) Canadian teams moving forward: a $113.5 million USD salary cap in 2027-28 equates to $163.2 million spending in Canadian dollars based on today’s rate.
How will those teams find a way to significantly generate new revenue to match increase?
— Frank Seravalli (@frank_seravalli) January 31, 2025
Whereas U.S.-based franchises enjoy a relatively stable economic environment, Canadian ones must work with changing exchange rates, whose impact is direct in terms of player salaries and operational costs, a challenge heightened by a post-pandemic boom in NHL, worth $6.2 billion in the most current campaign. Teams such as Toronto Maple Leafs, Montreal Canadiens, and Edmonton Oilers, who have a constant spending at the cap, will have to seek new sources of funding in a quest to keep pace with escalating expenses.
The NHL model for shared revenue providing little comfort, Canadian teams will have no alternative but to try raising ticket prices, maximising sponsorships, and extending electronic and international branding in a quest to make up for mounting financial burden.
The financial chasm will widen even further, burdening groups with even less room for competition—especially with the NHL and NHLPA preparing for future CBA negotiations that will have an ongoing impact on distribution of funds and financial planning. With no real new sources of funding, a variety of groups will not have enough room to compete in free agency and maintain key talent. In a matter of years, the future could have a significant impact in redefining financials for Canadian hockey.
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