Nac Mac Feegle
wee & free
- Jun 10, 2011
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lol, I like that "dwinger." should make that an official position in hockey.
Dzingel goes to Carolina for 2 yrs
Guessing it is similar to Marcus Johanssons deal and I am guessing he will not earn as much over the next 5 yrs as we offered him
Dzingel is getting about an extra $400k in Carolina per year at that salary than he would have in Ottawa based on state & provincial taxes.
Our comparative offer would have had to have been $7.5 mil over the two years.
Still a bargain, but just attributing some hard numbers to that salary - for the sake of comparison.
Think we will ever see a scenario where a team's cap floor/ceiling numbers are reflective of the local tax situation?
Think we will ever see a scenario where a team's cap floor/ceiling numbers are reflective of the local tax situation?
Okay.
If we equalize against taxes, I want teams in colder climates to also receive additional draft compensation based on the weather each year. Florida has an unfair advantage because they are sunny. Lots of players don't want to go to cold cities. That's unfair.
I also think the Islanders deserve compensation from the other 30 teams because their arena situation makes it more difficult for them to retain or attract talent.
I would also hope that for every player like Tavares who admits it was their dream to play for the Leafs, that Toronto has to give up some sort of compensation. They have a huge advantage because they have 100 years of history that influences players. A team like Vegas or Carolina doesn't have nearly the amount of home grown talent who are willing to either take discounts or choose them over other teams.
Point being, every team has advantages and disadvantages when it comes to attracting players. Not everything can or should be equalized against.
I agree that every location has its advantages. Taxes are just unique in that they're purely financial and you can actually quantify it reasonable well. They also effect everyone in the same way whereas some players may have a location preference unique to them. If someone wants to play near their family, or in a hot climate, then that's their choice that they've earned when they hit free agency. It's just weird that a player could ask for a $7M per year salary from one team and $9M from another in order to have the same take home pay; this directly effects salary cap parity.
But until there's actually a good solution, then there's not much point discussing it. Like Bonk said, no way will many teams want to venture from the status quo. There's a lot of hurdles for such a change.
I don't want to get in a massive conversation about taxes but I'm an accountant and I can tell you players can get out by paying minimal taxes in Canada. Teams have financial plans for players designed for just that. It's nothing new and it's been around forever. If a player wants to play in Canada he'll be able to do just that and won't lose much.
There's also the fact that player salaries are in USD. For teams, that is in fact crippling because revenues are in CAD and you're dishing out an extra 35% in salary but for players... They are getting paid at approx. 1.35 rate and spend at 1.00. For the players their money goes further in Canada than it does in the US. That in itself is an advantage that's never ever talked about, yet that's extremely valuable for any individual.
I am not an accountant, so appreciate any insight individuals such as yourself offer - far more constructive than "let's demand the weather be changed too, harrump!"
I only raise the issue because there has been so much conversation around attracting/retaining stars. That conversation is prefaced by the need for a new owner, of course, but it remains. If, as you say, a player can avoid taxes (something that I have a problem with on an entirely different kevel), and an owner in Ottawa (for example) can afford the "signing" bonuses that are so prevalent in today's contracts, then there is no financial reason for a player not to take similar money (similar because I cannot imagine that they can escape ALL taxes, and so there would remain some premium) that they would get in Florida and play somewhere like Ottawa.
There's also the fact that player salaries are in USD. For teams, that is in fact crippling because revenues are in CAD and you're dishing out an extra 35% in salary but for players... They are getting paid at approx. 1.35 rate and spend at 1.00. For the players their money goes further in Canada than it does in the US. That in itself is an advantage that's never ever talked about, yet that's extremely valuable for any individual.
Going to wait and see how this pans out.
#hammond
https://www.tsn.ca/st-louis-blues-goaltender-jordan-binnington-agree-to-2-year-8-8m-deal-1.1337041
I don't want to get in a massive conversation about taxes but I'm an accountant and I can tell you players can get out by paying minimal taxes in Canada. Teams have financial plans for players designed for just that. It's nothing new and it's been around forever. If a player wants to play in Canada he'll be able to do just that and won't lose much.
There's also the fact that player salaries are in USD. For teams, that is in fact crippling because revenues are in CAD and you're dishing out an extra 35% in salary but for players... They are getting paid at approx. 1.35 rate and spend at 1.00. For the players their money goes further in Canada than it does in the US. That in itself is an advantage that's never ever talked about, yet that's extremely valuable for any individual.
Going to wait and see how this pans out.
#hammond
https://www.tsn.ca/st-louis-blues-goaltender-jordan-binnington-agree-to-2-year-8-8m-deal-1.1337041
I haven’t read the whole threads regarding taxes but from my understanding (as a few others have mentioned) taxe rates for professional athletes aren’t as simple as just taking the marginal tax rate of the state/province they live in. I’m pretty sure players pay taxes on revenu earned in away games payable to the province or state they’re playing in while on the road.
Obviously, half the games are played at home so Florida players benefit a bit more for example, but it’s not like the difference is as significant and pronounced as a lot of reporters and posters seem to assume. I’m definitely not aware of all the intricacies of American tax laws but this is my understanding.
I haven’t read the whole threads regarding taxes but from my understanding (as a few others have mentioned) taxe rates for professional athletes aren’t as simple as just taking the marginal tax rate of the state/province they live in. I’m pretty sure players pay taxes on revenu earned in away games payable to the province or state they’re playing in while on the road.
Obviously, half the games are played at home so Florida players benefit a bit more for example, but it’s not like the difference is as significant and pronounced as a lot of reporters and posters seem to assume. I’m definitely not aware of all the intricacies of American tax laws but this is my understanding.