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Sports Football CFL Saskatchewan RoughridersFormer CFLer and current financial planner Mike McCullough weighs in on the impacts American players face with a low Canadian dollar
Published Feb 04, 2025 • 4 minute read
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A pair of CFL footballs are shown on a field. Photo by Jim Wells /Postmedia
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As free agency approaches in the Canadian Football League, we are about to see some big-name players sign some big-money contracts.
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But by the time those players take those dollars home, it’s not as much as it once was.
While the CFL operates in Canadian currency, more than half of the players who make up the league are American, with many of them living in the United States during the off-season.
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So, before that big-money contract hits the bank account, Canadian taxes need to be paid on it and then it needs to be converted to USD.
And this week, the value of the Canadian dollar reached lows not seen since 2002 and 2003, when it traded around 61 cents US.
Former CFL linebacker Mike McCullough — who played for the Saskatchewan Roughriders from 2003 to 2013 and is now a financial analyst in Regina — remembers how the exchange rate affected those American players early on in his CFL career.
“Many years ago, when I was playing, a lot of guys were struggling,” said McCullough, an Ontario native. “I have seen guys get very stressed out about it. Luckily, I didn’t have to worry about it, but I definitely remember seeing the guys not only get worked up, but reasonably so they were quite nervous about it.
“For those guys, they were stressed out with families and all that kind of stuff. It definitely weighs on them for sure, especially when it comes to negotiating a new deal.
“You’re going to have to try to maybe negotiate a bigger jump. And is the team willing to do it?”
The CFL doesn’t disclose players’ salaries to the public, but teams do operate under a $5.650-million salary cap with a roster of 56 players. Some of the top quarterbacks in the league make upwards of $500,000 while the minimum player salary is $70,000 with practice roster players collecting $750 per week. All players receive housing or a housing allowance which is not counted against the cap.
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While American veterans and those with knowledgeable agents are aware of the exchange rate and how it affects them, some American rookies come to the CFL without much background on the Canadian dollar, which climbed back up to around 70 cents after Monday’s low.
“When you think about it, if your average tax rate is 20 per cent just in Canada, and then you get your Canadian money, you have to convert it, you lose another 30 per cent — you’re only getting 50 cents on the dollar,” said McCullough, 44, a two-time Grey Cup champion. “I don’t think a lot of the guys, especially the newer guys, realize the high taxation we have in this in this country as well. And then, you add that to the lower value dollar.
“But a lot of these young guys, I’m sure don’t even think of that. Why would you? You’re young and you’re playing the sport you love. You’re getting paid to do it. You just think, ‘Oh yeah, I’m getting 60 grand.’
“Well, 60 grand isn’t 60 grand that you think it is.”
By the time American players pay taxes and calculate the exchange rate, some decide to stay in Canada during the off-season to minimize the impact on their wallets.
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“A lot of times the guys would stay here in the off-season if they weren’t married or had kids or anything,” said McCullough. “They just stay here in the off-season because frankly, it’s cheaper for them to do that.”
Mike McCullough at Roughriders camp. Photo by Bryan Schlosser /Regina Leader-PostMidway through McCullough’s career in 2007, when the Canadian dollar was trading on par with the American dollar, he certainly noticed a change in tone with those salary conversations in the room.
“It definitely made a big difference for those guys,” said McCullough. “And I think it made a difference for the club.
“You know, they could negotiate with guys knowing the dollar was almost on par with the U.S. dollar, and maybe not have to offer them as much because the guys were willing to take a little bit less, knowing that the Canadian dollar was valued higher.”
While the Canadian dollar started to recover this week, the uncertainty of its future could also impact other professional leagues who have Canadian and American teams like the NHL, NBA and MLB.
Consider the Toronto Blue Jays’ pitch to sign free agent MLB outfielder Juan Soto, who recently agreed to a deal with the New York Mets for US$765 million.
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That’s worth more than $1 billion in Canada.
“You’ve got to pay an extra 30 per cent essentially,” said McCullough. “I think it definitely hurts the bottom line of the teams and getting guys up here.
“It’s already difficult enough to get the American guys come up here anyways, because it’s Canada, it’s cold. Now you had the Canadian dollar being devalued, it just makes it even worse.”
tshire@postmedia.com
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