Confirmed with Link: Sens Extend Methot - 4 years, $4.9 million per year

[Tundraman]

On an unrelated note, it always surprises me, as a complete outsider, why these deals take so long to culminate. Just sit down with the guy, be like ok listen, we proposed 4.7, you wanted 5+, whaddya say we sign at 4.9? Done.

I guess that's absolutely not how things work in pro sports. But it just seems so (overly) simple.

In some cases for established players who know what they want they pretty much don't need an agent to make the deal. Just a lawyer to read the fine print before signing. Phillips is a classic example and Methot could have been another if he'd been clear on his bottom line right from the start.

 

[Holdurbreathe]

On an unrelated note, it always surprises me, as a complete outsider, why these deals take so long to culminate. Just sit down with the guy, be like ok listen, we proposed 4.7, you wanted 5+, whaddya say we sign at 4.9? Done.

I guess that's absolutely not how things work in pro sports. But it just seems so (overly) simple.

Simply because there is more than just money involved.

Team salary schedule, term, injury history, NMC/NTC, bonus money, etc all weigh heavily in the process.

 

[Nac Mac Feegle]

On an unrelated note, it always surprises me, as a complete outsider, why these deals take so long to culminate. Just sit down with the guy, be like ok listen, we proposed 4.7, you wanted 5+, whaddya say we sign at 4.9? Done.

I guess that's absolutely not how things work in pro sports. But it just seems so (overly) simple.

Humans like to complicate things. Silly hoomans.

 

[Prospector74]

Great move for Ottawa. I wanted the Sabres to go after him this summer. Good, hard hitting, player.

 

[The Lewler]

Wait what? He makes quite a bit more than 220K/per year with a 4.9 million dollar salary per year.

Yes... but the highest tax rate only kicks in once you hit 220k in income..

So for the purposes of our discussion, we were estimating what is the highest marginal tax rate you can pay in Ontario. Which is around 42% once you have made 220k.

Alot of people don't understand how marginal tax brackets work.. hence people claiming they don't work OT because they "get taxed more".

 

[pt_mck]

good signing. He seems happy to be here. If they didn't sign him they would need to find some one just like him.

They have EK, methot cowen ceci

just need to upgrade the rest

 

[BondraTime]

Yes... but the highest tax rate only kicks in once you hit 220k in income..

So for the purposes of our discussion, we were estimating what is the highest marginal tax rate you can pay in Ontario. Which is around 42% once you have made 220k.

Alot of people don't understand how marginal tax brackets work.. hence people claiming they don't work OT because they "get taxed more".

My bad, I thought you were saying that he would take home 220K/per year.

Awful reading comprehension on my part.

 

[Tremblay31]

Sweet Deal for both !!

 

[Pierre from Orleans]

What would be the tax margin had he got paid the same amount in the US?

 

[MainDotC]

Sweet deal!

We said the same thing about Greening. Methot got his payday now he's going to sit back and rack up the minuses until year 4.

 

[Emerica]

awesome

 

[YouGotAStuGoing]

Very excited about this move. Methot's been one of my favourite Senators since coming from Columbus.

 

[great1]

Bruce Garrioch ‏@SunGarrioch
Methot says Karlsson deserves a lot of credit for his decision to stay here. #Sens


Good job EK!

 

[Rockomax]

Happy for you guys. He's the player I wanted the most for the Habs. I like when players and organizations can come to terms, shows loyalty on both sides. I hope he will stay healthy and be effective for you guys. Cheers!

 

[Senateurs]

We just signed the most important player on the sens. Not the best, but the one that makes our best player play like the elite player he can be.

 

[Super Cake]

4 more years of this:

 

[Rocurs]

Guys, I'm an accountant. I did the *rough* calculations (as we don't know the exact details of his contract, if he has any investments, if he pits anything into a tfsa or rrsp, if he pays cpp or ei, ect.), but it looklike he keeps about 2.665 million a year.

Edit- I didn't realize it was USD. Don't feel like doing it again

I'm glad you're not my accountant.

 

[Sens Rule]

So realistically, what does he clear per year on a contract like this, $2 million?

Probably about 2.7, 2.8 million. Times 4 so about 11 million over the life if the contract. Not bad.

 

[Sens Rule]

his average tax rate would be really close to 35%. so basically 65% of his salary?

More like 46/47/48% I saw a list of the tax rates for different NHL cities. Edmonton and Calgary the lowest at maybe 41% (memory?). Next lowest are Florida and Texas teams if memory serves. The only teams over 50% are the Rangers and Isles and Habs. Highest was Montreal at 53%. We and the Leafs are in the pack with most teams and not an outlier maybe two percent above the mean.

 

[Filatov2Kovalev2Bonk]

Can't complain about this. Less than market value and ther term isn't horrible even if his body degrades.

 

[Sens Rule]

The highest an individual can pay in taxes in canada is 35% on his highest tax bracket, the majority if his salary is in that bracket tho, don't know how he would have to pay more in taxes. I have no idea about agent fee's I doubt its above 5% but what do I know?

There is provincial taxes too.

 

[Super Cake]

Bruce Garrioch @SunGarrioch · 1h 1 hour ago
Methot says Karlsson deserves a lot of credit for his decision to stay here. #Sens

 

[CanadianHockey]

Deal depends on his health. Fair value for him at this point, though.

 

[dpw]

4 more years of this:

That big arse is definitely worth the 4.9.

 

[Xspyrit]

It gives plenty of time for Cowen, Claesson, Harpur, Wikstrand and Englund to develop properly

People get to worked up with the word budget.

HF Sens =

From a business POV perspective, it would have been dumb to spend a lot more money in rebuilding years (because it's simply not a Toronto/Montreal/New York market...). I would have done the same, repay the most possible on debt loans and position myself for a better financial future when the team is ready to compete again

35%?

Man you kids are in for a rude awakening when you grow up

"The highest an individual can pay in taxes in Canada is 35%"

I don't understand why people make claims that they don't know about

Ha, what a dummy. I'm making a sign now about how dumb he is.

Only thing dumb is this post...

Like if money was the only thing important in life... He wants to live in Ottawa and be around his friends and family.

I had a big opportunity to make some good money here in Mexico but I'm passing on this because that's simply not where I want to live. Not only that, but the income taxes are much lower here than in Canada but that's not what I WANT...

I'm sure we can find something if we look hard enough...

...

Ok I think I got it; by inking this deal, we now can rest assured that management is happy with the status quo on our back end. Don't expect us to be looking for an upgrade any time soon.

Not only that, imagine if Methot becomes injury prone and can't live up to his deal, the team insurances would have to pay then? What a mistake. We'd be better by having only players from Bingo, they are young, cheap and have potential at least.

This move means the Sens will be a bubble team at best for the next 4 years!

Good deal for both sides, I'm glad this this drama is finally over.

Don't get your hopes up. Something new will pop up pronto!