David Chase
Registered User
- Nov 18, 2008
- 31
- 0
Now, before I begin this isn't a Stamkos didn't come here because of money situation, but I'm going to bring Stamkos contract in Tampa up in this post.
So, Stamkos signs an 8 year 8.5 AAV contract to stay in Tampa, in the state of Florida which has no state tax. If Stamkos were to sign in Toronto instead of Tampa for the same contract, he would lose an additional $1.19 million a season, and over $9.52 million over the course of the contract. That being said, Toronto would have to pay Stamkos that additional amount which would make his AAV $9.69 million per season, and hurt Toronto as a competitive organization more so due to losing an additional $1.19 million in cap.
Now, all that being said it leads to my proposal. I feel that the NHL should change it's salary cap rules based on the teams they have permitted to be apart of the league. Whatever team has the lowest State tax combined with the US federal tax and that should be what's used to calculate salary cap. If Tampa Bay is only having to pay 38% tax, and players are able to sign lesser contracts by using this calculation while giving the team signing them additional cap space I deem that to be unfair, and anti competitive. All teams are playing within a framework that's intended to be fair. Having even one team, capable of having additional funds at their disposal to build and use puts all other teams at a disadvantage.
Something has to be done to make the salary cap fair for all teams within the league and the only way to do that is to change the system, a hard cap set for all teams at whatever the value needs to be on a sliding scale, teams that operate in areas with higher tax rates should have their salary cap increased by that %, and the teams that live in areas that have no state tax should have their max cap reduced by that same %, it's the only fair way to do business in the league.
So, Stamkos signs an 8 year 8.5 AAV contract to stay in Tampa, in the state of Florida which has no state tax. If Stamkos were to sign in Toronto instead of Tampa for the same contract, he would lose an additional $1.19 million a season, and over $9.52 million over the course of the contract. That being said, Toronto would have to pay Stamkos that additional amount which would make his AAV $9.69 million per season, and hurt Toronto as a competitive organization more so due to losing an additional $1.19 million in cap.
Now, all that being said it leads to my proposal. I feel that the NHL should change it's salary cap rules based on the teams they have permitted to be apart of the league. Whatever team has the lowest State tax combined with the US federal tax and that should be what's used to calculate salary cap. If Tampa Bay is only having to pay 38% tax, and players are able to sign lesser contracts by using this calculation while giving the team signing them additional cap space I deem that to be unfair, and anti competitive. All teams are playing within a framework that's intended to be fair. Having even one team, capable of having additional funds at their disposal to build and use puts all other teams at a disadvantage.
Something has to be done to make the salary cap fair for all teams within the league and the only way to do that is to change the system, a hard cap set for all teams at whatever the value needs to be on a sliding scale, teams that operate in areas with higher tax rates should have their salary cap increased by that %, and the teams that live in areas that have no state tax should have their max cap reduced by that same %, it's the only fair way to do business in the league.