One of the most major economic factors that concerns the Air Canada Centre is the exchange rate for the Canadian dollar. The dollar affects the total amount of money that they achieve a company. The players for the teams are paid in American wages, so therefore the exchange rate has a huge effect on the company's total profit. The Canadian economy is also in a horrible position at the current time, the money is experiencing a shortage. To solve this money problem, The Air Canada Centre is trying to allocate their dollars wherever they can. Another aspect is that all the teams spend a significant amount of money to taxes, and the government recently denied tax breaks to Canadian sports teams. Advertising, is yet another factor where most of their money is spent. The Air Canada Centre is also not interested in partnerships because of the state that the economy is in right now, so they focus on paying off their sponsors. The economy is huge right now also, it dictates what happens to the company; because, if corporate sales are not good then the salaries of the players cannot be paid.
The Competition.
The Air Canada Centre has many competitors. Their main competition is other sports teams such as the Blue Jays, Buffalo Sabres, Buffalo Bandits, basically any other major league sports team, other than hockey and basketball teams, are a threat. Other major league sports teams would be direct competition for the Air Canada Centre; on the other hand, their in-direct competition would be other means of entertainment such as going to the movies, comedy clubs or going on the internet. Less people are making the effort to go out and purchase hockey or basketball tickets. To put ticket sales back up the Leafs rely on tradition, and the Raptors are the only NBA team in Canada, they also use Vince Carter as excellent advertising and people love the excitement of basketball games. Corporate sponsors also help the Air Canada Centre out, they are the Toronto Star, Toronto Sun, Internet sites, and JD Waterhouse.
