The Effect of Exchange Rates on the Performance of Professional Sports Franchises in International Competition

Abstract

Exchange rates are a very important factor for businesses that operate internationally, especially when franchises are in international competition for the same talent pool. As an international league, this paper seeks to analyze how teams’ performance in the NHL is affected vis-à-vis a fluctuating value of currency. This analysis is extended to Champions’ League soccer, where over 50 countries with different currencies compete in the same international context. Results indicate that currency value has a significant effect on success in international competition.