Free Agency thread part II

[OldCraig71]

Yeah, that silent agreement is otherwise known as collusion.

Lawyer lawyer pants on fire.

 

[Runner77]

Lawyer lawyer pants on fire.

Real cases, real people. Judge Judy.

 

[calder candidate]

It’s actually slightly less than Ontario and similar to California and New York. It shouldn’t be as big of an issue as people make it out to be. The biggest question is if the organization is desirable.

California, Ontario and Quebec are among the highest taxe rate in the league...

 

[ottawa]

California, Ontario and Quebec are among the highest taxe rate in the league...

New York state, Vancouver and Winnipeg aren't too far off either...those 4 teams are within 4% from Quebec (or 150k on a 5m contract). The tax thing is overblown...Montreal has a cheaper cost of living than NYC and Vancouver as well.

Edmonton/Calgary are ~5% lower

 

[Runner77]

Does cost of living even matter to multi millionaires? It’s all about creatively being able to shelter their earnings from the taxman.

 

[calder candidate]

New York state, Vancouver and Winnipeg aren't too far off either...those 4 teams are within 4% from Quebec (or 150k on a 5m contract). The tax thing is overblown...Montreal has a cheaper cost of living than NYC and Vancouver as well.

Edmonton/Calgary are ~5% lower

Cost of living isn’t a factor, 5% more cash in there pocket is a much bigger factor...

 

[ottawa]

Cost of living isn’t a factor, 5% more cash in there pocket is a much bigger factor...

Oh really? Over inflated real estate isn't a factor?

Why don't you come try living in Toronto where a 1 bedroom condo downtown costs ~600k (with usually close to 1k in condo fees after 3 years). Vancouver is just as bad. Let's not even get started on New York. What can I get in Montreal for 600k...perhaps a house?

That 5% equates to 150k which far surpasses the real estate cost difference.

 

[Chili]

An old saying...Winning is the best recruiter

 

[Runner77]

Cost of living isn’t a factor, 5% more cash in there pocket is a much bigger factor...

Even if they bought real estate in a market where cost of living is higher, it would only represent a fraction of a UFA’s salary. And real estate accrues value over time, especially the type of real estate players can afford to buy.

 

[Ezpz]

Real estate is an investment; you don't lose money you spend on it. Extra take home income is a much bigger factor because you invest it in yourself instead of investing it in local infrastructure. I live abroad and salary and cost of living were the only factors that mattered. My employer offered to pay for my housing and give me a percentage of profits in return for living in a lesser city. Obviously I don't make 10 million dollars a year where the difference is negligible no matter which city I choose; but if I did I would probably consider other factors such as quality of life, local education, philosophical compatibility and safety.

Keep in mind the NHL is one of the least educated groups of athletes on the planet due to the draft age. Then combine it with the fact that to be a high level athlete you need to have a certain level of arrogance or stubbornness; many athletes fire their agent if they say something they don't like. The higher take home pay is going to outweigh any potential investment, merchandising, or endorsement opportunities in their mind.

The money you take home in Dallas or Tampa isn't going to outweigh endorsement potential in Montreal; but guaranteed money is safer and many players like anonymity.

 

[Stoneburg]

Oh really? Over inflated real estate isn't a factor?

.

Marleau is selling his house for $12M, no, real estate for the .1% is not a factor. The rich are different than you and me.

Maple Leafs' Patrick Marleau selling Toronto house for $11.888M - Sportsnet.ca

 

[Estimated_Prophet]

Real estate is an investment; you don't lose money you spend on it. Extra take home income is a much bigger factor because you invest it in yourself instead of investing it in local infrastructure. I live abroad and salary and cost of living were the only factors that mattered. My employer offered to pay for my housing and give me a percentage of profits in return for living in a lesser city. Obviously I don't make 10 million dollars a year where the difference is negligible no matter which city I choose; but if I did I would probably consider other factors such as quality of life, local education, philosophical compatibility and safety.

Keep in mind the NHL is one of the least educated groups of athletes on the planet due to the draft age. Then combine it with the fact that to be a high level athlete you need to have a certain level of arrogance or stubbornness; many athletes fire their agent if they say something they don't like. The higher take home pay is going to outweigh any potential investment, merchandising, or endorsement opportunities in their mind.

The money you take home in Dallas or Tampa isn't going to outweigh endorsement potential in Montreal; but guaranteed money is safer and many players like anonymity.

Let us not pretend that the vast majority of NBA and NFL players who went to college actually learned anything there.

 

[Ezpz]

Let us not pretend that the vast majority of NBA and NFL players who went to college actually learned anything there.

Fair enough but I'm sure many accidentally learned something.

 

[BehindTheTimes]

Real estate is an investment; you don't lose money you spend on it. Extra take home income is a much bigger factor because you invest it in yourself instead of investing it in local infrastructure. I live abroad and salary and cost of living were the only factors that mattered. My employer offered to pay for my housing and give me a percentage of profits in return for living in a lesser city. Obviously I don't make 10 million dollars a year where the difference is negligible no matter which city I choose; but if I did I would probably consider other factors such as quality of life, local education, philosophical compatibility and safety.

Keep in mind the NHL is one of the least educated groups of athletes on the planet due to the draft age. Then combine it with the fact that to be a high level athlete you need to have a certain level of arrogance or stubbornness; many athletes fire their agent if they say something they don't like. The higher take home pay is going to outweigh any potential investment, merchandising, or endorsement opportunities in their mind.

The money you take home in Dallas or Tampa isn't going to outweigh endorsement potential in Montreal; but guaranteed money is safer and many players like anonymity.

Anything that requires money going out instead of coming in is a liability, not an asset. This is true for your house too, the only people who truly have an asset in a house are those with rental income or the bank.

 

[Milhouse40]

Even if they bought real estate in a market where cost of living is higher, it would only represent a fraction of a UFA’s salary. And real estate accrues value over time, especially the type of real estate players can afford to buy.

It's known that on a 1 million deal, with all expenses paid, escrow, taxes, agent....a player bring home about 250 to 300k. Not all players can afford everything they want.

But for me the biggest difference is the fact that they get 30% more money to live on if they stay in canada (from exchange rate)

When you combine the two of them together, i think it can equal the 9-10% taxes we have in extra compare to other city

 

[tazsub3]

Cost of living isn’t a factor, 5% more cash in there pocket is a much bigger factor...

With the trump factor, you are underestimating " how much living in canada"can have as an advantage for players with young families. Especially europeans

 

[MC94]

With the trump factor, you are underestimating " how much living in canada"can have as an advantage for players with young families. Especially europeans

Im not very in tune with politics so call me crazy if you want, I really don't think the Trump factor is a very strong factor for most players

 

[1909]

Anders Lee should be the main target on the UFA market for Habs.

Nyqvist and Chiasson could be fair middle six solutions.

 

[BLONG7]

Does cost of living even matter to multi millionaires? It’s all about creatively being able to shelter their earnings from the taxman.

I think the tax thing is overblown somewhat........now the weather may be a different story. And of course, the fans and the media are also a big ocnsideration, regarding privacy and so on...

As you say, the $$$ thing, and taxes, they just hire creative accountants...

 

[Runner77]

I think the tax thing is overblown somewhat........now the weather may be a different story. And of course, the fans and the media are also a big ocnsideration, regarding privacy and so on...

As you say, the $$$ thing, and taxes, they just hire creative accountants...

I believe it's climate, the fishbowl factor and taxes. I don't know how much taxes enters into the equation, we have seen so many posts and interviews about how it is possible for players to achieve a similar tax avoidance end-result in most jurisdictions via creative accounting. I don't think cost of living is a big issue to them, it only represents a small fraction of their earnings.

 

[tazsub3]

Im not very in tune with politics so call me crazy if you want, I really don't think the Trump factor is a very strong factor for most players

you would be surprised. Of course, such movement is not a factor in a state like California, or new york, but that is a thought on the mind of many.
I know for a fact of a prominent , not elite, but good that has asked his agent only to consider teams in Canada for that reason.
He has 2 kids that are close to being teens, and he dont want them growing up and educated in the US.
Now of course, it is hard to generalize, and i am not trying to.
All i am saying , that i know it is a factor for some.
Even in my industry, i know of colleagues wanting (or did) to move back to Canada , mainly for their kids.

 

[Grate n Colorful Oz]

Diamond in the rough.

That's Karlsson

 

[Tighthead]

I believe it's climate, the fishbowl factor and taxes. I don't know how much taxes enters into the equation, we have seen so many posts and interviews about how it is possible for players to achieve a similar tax avoidance end-result in most jurisdictions via creative accounting. I don't think cost of living is a big issue to them, it only represents a small fraction of their earnings.

I think for the lower level players it is.

A friend is neighbours with a player who got traded from the Sens to a team in a much larger metro area. As a guy making $1.5 per year, he loved Ottawa. Big house in the burbs, 10 minute drive to the rink.

You aren’t going to starve on $1.5 M in San Jose or Manhattan, but your life will not be as posh. Certainly there are cultural benefits to those cities, but these are guys who love to eat at the Keg.

 

[Runner77]

I think for the lower level players it is.

A friend is neighbours with a player who got traded from the Sens to a team in a much larger metro area. As a guy making $1.5 per year, he loved Ottawa. Big house in the burbs, 10 minute drive to the rink.

You aren’t going to starve on $1.5 M in San Jose or Manhattan, but your life will not be as posh. Certainly there are cultural benefits to those cities, but these are guys who love to eat at the Keg.

The thread is about UFAs and that means none of them are going to be signed at a $1.5M salary.

Sure, if they're making close to $1M, you may have some different dynamics at play but those are not the players that generally matter as UFAs if they even exist as UFAs, they're just filler.

 

[MC94]

Fair enough but I'm sure many accidentally learned something.

Ya, how to party lol