Proposal: Lowered Salary Cap for Florida Teams

[Isles Drive For 5]

Tampa (and I guess the Panthers, though they’re not capitalizing on it) has a massive competitive advantage over everyone else in the league due to Florida’s tax rules. I’m not sure if any of the other states have the same rules as well, so forgive me if I’m leaving them out. But honestly, Yzerman is consistently able to use the tax situation to his advantage to get high level players to sign for less than they would in other places, and as a result, is able to build a super team.

I would like to see the NHL put a system in place that negates this advantage and levels out the playing field. The Florida teams should have a lower salary cap than everyone else. By how much exactly, I’m not sure. The NHL could easily hire a team of economics minded individuals to compute how much lower it should be. I’m sure they could figure out how much of an advantage, in millions, the Lightning are receiving based upon their state’s tax system. Once they figure out how much of an advantage they are receiving, they could lower the Lightning’s cap by that amount.

I certainly am no financial expert, and I wouldn’t pretend to be one. All I know is that the way the system is currently arranged, it gives the Lightning an unfair advantage. Something needs to be done.

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[Starat327]

I'd also like to see players not get lucrative endorsement deals by playing in markets where hockey is the be all end all, since they're only getting those endorsement deals because they play in the NHL.

But this isnt the place to discuss either of those things.

 

[LordZapp]

Lock er up.

 

[895]

Also the Islanders should get a higher salary cap because no one wants to play there.

 

[Spotty 2 Hotty]

Let's take away the salary cap for Toronto so everyone that's gonna sign there every offseason actually can. Toronto is the only team that can sell out every night even when they're terrible, so why not reward them?

 

[Beautvillier]

Also the Islanders should get a higher salary cap because no one wants to play there.

not cool bro

 

[Desert Panther]

Several states have no income tax (NHL markets in Nevada, Florida and Texas are the only affected). However, they are balanced out by higher taxes in other areas (e.g., Texas has a higher property tax system than most and Florida has a much higher Property Insurance system). The benefit isn't nearly as large as you think it is.

 

[bleedblue1223]

Several states have no income tax (NHL markets in Nevada, Florida and Texas are the only affected). However, they are balanced out by higher taxes in other areas (e.g., Texas has a higher property tax system than most and Florida has a much higher Property Insurance system). The benefit isn't nearly as large as you think it is.

Tennessee as well, state taxes don't affect wages, just interest and dividends.

 

[unicornpig]

this is a stupid thread.

 

[Starat327]

Several states have no income tax (NHL markets in Nevada, Florida and Texas are the only affected). However, they are balanced out by higher taxes in other areas (e.g., Texas has a higher property tax system than most and Florida has a much higher Property Insurance system). The benefit isn't nearly as large as you think it is.

Nevermind that the american dollar - which everyone gets paid in - is worth approximately 31 percent more in Canada. But yeah, TAXES ARE UNFAIR.

 

[Shwabeal]

The fact that OP only included Florida shows why this argument from all these people up in arms about tax advantages is simply because Tampa has built a great team. No mention of any of the other teams that are in states with the same advantage. The league will not, and should not, for one second, consider adjusting the cap for teams in these states. People never had a problem with this until the past few years when a team with the tax advantage built a strong cup contender on the backs of top notch scouting, drafting and culture building. People really need to stop whining about this.

 

[rent free]

A lot of people would like to see this I imagine but it won't happen.

 

[CupsOverCash]

I know all these cups they are winning from the no instate taxes. tsk tsk.

 

[Sherwood71]

You defeated your own argument in your OP. Panthers aren't capitalizing on the tax advantage because no one wants to play for them (no offense Panthers' fans). Players want to go to Tampa because its a well-built, well-managed team with great players. Dallas isn't a super team by any means and the Panthers aren't either. If you remember, Tavares didn't choose Tampa or Dallas. Sure they can offer contracts with lower AAV, but they still need players to actually be sold on the team's potential to win cups. Also, calling Tampa a super team is misleading since they haven't won anything since the Eastern Conference in 14-15 and the cup in '04. They are stacked but haven't done anything with the talent yet.

 

[Isles Drive For 5]

I know all these cups they are winning from the no instate taxes. tsk tsk.

Well, to be honest, they’ve underachieved. But the bottom line is they're going to continue receiving chances to win it all, because they will continue to be immensely talented, which signing all these contracts for less overall will enable.

 

[Isles Drive For 5]

You defeated your own argument in your OP. Panthers aren't capitalizing on the tax advantage because no one wants to play for them (no offense Panthers' fans). Players want to go to Tampa because its a well-built, well-managed team with great players. Dallas isn't a super team by any means and the Panthers aren't either. If you remember, Tavares didn't choose Tampa or Dallas. Sure they can offer contracts with lower AAV, but they still need players to actually be sold on the team's potential to win cups.

I’m not saying you don’t have to originally build the organization up properly first. Once you do though, you then have an unfair advantage keeping it where it is.

 

[CupsOverCash]

Well, to be honest, they’ve underachieved. But the bottom line is they're going to continue receiving chances to win it all, because they will continue to be immensely talented, which signing all these contracts for less overall will enable.

Well people dont understand that you have to build a good team first. Thats where it starts. That is not easy to do. Getting them to buy in and take a little home town discount is not easy to do either. I dont think enough credit goes to our drafting and player management. I personally put these as reasons we are good way above our taxes.

 

[Setec Astronomy]

You defeated your own argument in your OP. Panthers aren't capitalizing on the tax advantage because no one wants to play for them (no offense Panthers' fans). Players want to go to Tampa because its a well-built, well-managed team with great players. Dallas isn't a super team by any means and the Panthers aren't either. If you remember, Tavares didn't choose Tampa or Dallas. Sure they can offer contracts with lower AAV, but they still need players to actually be sold on the team's potential to win cups. Also, calling Tampa a super team is misleading since they haven't won anything since the Eastern Conference in 14-15 and the cup in '04. They are stacked but haven't done anything with the talent yet.

Yeah, but you can't pretend that the lower tax allows doesn't allow them to sign players at lower salaries, and I imagine that it is something that is addressed in contract talks.

Still, when you think about it a little bit, the idea opens up a whole can of worms that would quickly spiral out of control. In some places, you might have higher state income taxes, but the cost of living is much lower. Do we factor that in? Do we factor in property taxes? And what if Congress reinstates the deduction of state and local taxes? What about teams that have an advantage of being in markets where players can seek out more lucrative endorsement deals? What about markets that have better schools?

It's ultimately a solution in search of a problem, and soon, many other problems.

 

[JT Kreider]

And are you going to tax the Rangers because of the huge lure of playing in New York for an Original Six franchise in the Mecca of sports entertainment?

Certain markets have certain advantages.

(Panarin gonna look mighty fine in Broadway blue)

 

[Legion34]

You defeated your own argument in your OP. Panthers aren't capitalizing on the tax advantage because no one wants to play for them (no offense Panthers' fans). Players want to go to Tampa because its a well-built, well-managed team with great players. Dallas isn't a super team by any means and the Panthers aren't either. If you remember, Tavares didn't choose Tampa or Dallas. Sure they can offer contracts with lower AAV, but they still need players to actually be sold on the team's potential to win cups. Also, calling Tampa a super team is misleading since they haven't won anything since the Eastern Conference in 14-15 and the cup in '04. They are stacked but haven't done anything with the talent yet.

Tons of teams didn’t do well with no cap. Toronto didn’t win a cup in the no cap era. Does that mean that the argument for parity through a salary cap is invalid?

One. Team sucking and not taking advantage of a massive loophole properly does not mean it doesn’t exist

 

[Funk21]

Personally I don't think this is a stupid thread as we have a league that is across two countries and multiple States and Provinces. Having no provincial or State taxes does effect what RFA's or UFA's will sign for. Sure we cannot account for every economic factor (Cost of Living, Endorsement Deals, etc) but having a level playing field that essentially compensates the NHL salary cap number per team based on basic economic factors Such as the State and Federal Tax levels would be ideal.

As an example, Kucherov just signed 9.5X8. He had 100 points last year and 85 the year before. If I am a TML GM and looking to hand out contracts based on those type of production numbers Matthews, Marner and Nylander would all be around 6 per based on production alone. Just saying that they have a very distinct advantage.

 

[HandshakeLineRespect]

NHL needs a soft cap with a luxury tax.

 

[Bevans]

I don't see how you could change the cap to reflect taxes without also changing it to reflect currency.

This would give a massive advantage to some of the wealthiest teams in the NHL like Toronto, Montreal, New York etc.

Why would the other owners vote to give a financial advantage to the most profitable teams in the NHL?

 

[Legion34]

And are you going to tax the Rangers because of the huge lure of playing in New York for an Original Six franchise in the Mecca of sports entertainment?

Certain markets have certain advantages.

(Panarin gonna look mighty fine in Broadway blue)

The salary cap is the only way that the NHL has artificially limited the advantages.

There is no weather cap, media cap, endorsement cap, Broadway cap.

There is a salary cap. If the NHL has done this at least make it fair

 

[Em etah Eh]

You going to lower the floor too?