Lucas Peltier-Imagn Images
The battle of tariffs between the United States and Canada is officially in full swing, and NHL fans up north have not been shy about voicing their displeasure with America’s role in the spat. Gary Bettman also thinks they could have a negative impact on the league as a whole based on what he had to say about the potential ramifications of the situation.
Donald Trump pledged to impose tariffs on Canadian exports before he was elected, and while that plan was initially postponed when the two countries came to an agreement to delay the 25% tax that was slated into effect at the start of February, it was officially rolled out when the flip was switched on Tuesday while impacting $30 billion worth of goods.
Canada (which was targeted along with Mexico and China) wasted no time retaliating after Justin Trudeau pledged to roll out some tariffs of his own in response, and we now have a good, old-fashioned trade war on our hands that will likely lead to consumers in both countries being forced to deal with the bulk of the fallout.
The tariffs shouldn’t have much of an impact on most of North America’s “Big Four” sports leagues, but there’s one pretty notable exception in the form of the NHL, as seven of its franchises are based in Canada (as most sports fans are probably aware, the NBA and MLB boast the only other team based across the border courtesy of the Raptors and the Blue Jays).
On Wednesday, commissioner Gary Bettman got the chance to address how the tariffs could end up hurting the NHL while appearing on Squak Box on CNBC, focusing on the strain they would primarily put on teams in Canada but would still be felt across the entire league.
Bettman noted that 25% of the NHL’s total revenue ($6.3 billion last season) comes from the Canadian teams who are punching slightly above their weight when you consider they comprise around 21% of its 32 teams and noted its decision to pay out every contract in American dollars could cause an issue if the Canadian one ends up weakened by the tariffs, noting :
“All players, no matter which country they play in, get paid in U.S. dollars. So if the impact of the tariffs is to see the Canadian dollar drop relative to the U.S. dollar, it will make it more difficult and more painful.
I’m hoping that this is a moment in time and both countries find a way to work through this.”
Canadian teams would be at a disadvantage financially if that scenario unfolds, as they’d be making less money at the local level while still being forced to compete with the salaries American franchises offer players (the Flames are the only club in the Great White North operating significantly under the salary cap this season).
There’s also a trickle-down effect linked to consumer spending and the rise of prices to combat tariffs, and it goes without saying fans in both countries would probably prioritize things like housing and food over buying tickets to a hockey game; 44% of the NHL’s revenue comes from those sales, well above the MLB, NBA, and NFL (31%, 26%, and 17%, respectively).
Only time will tell how this entire scenario ends up unfolding, but it doesn’t sound like there’s going to be a ton of upside for the NHL.