Salary Cap: Parity not really?

[Wafflewhipper]

This guy has a valid point. Even if only when it comes to free agency. I guess the Stamkos discussion over the past while got this guy thinking.http://www.pensionplanpuppets.com/2...-and-parity-steven-stamkos-income-tax-avoison

Subban just made approximately a extra $2,300,000 a year by being traded to Nashville which has Zero state tax. Quebec has the highest tax in the Nhl.

Weber likely isn't very happy though going the other way.

Click to read more...

 

[ACC1224]

I don't click blogs but I'm guessing this has to do with taxes.
Is there one example of a Player choosing one Team over another because of taxes?

 

[Wafflewhipper]

I don't click blogs but I'm guessing this has to do with taxes.
Is there one example of a Player choosing one Team over another because of taxes?

Personally if all things being equal if i were a nhl player choosing between a 25% tax team and a Zero tax state when i am a unrestricted free agent, i would take the zero tax state.

Would you want $100 an hour or $75 an hour! Thats the discrepancy from Montreal to Nashville after tax.

 

[ACC1224]

Personally if all things being equal if i were a nhl player choosing between a 25% tax team and a Zero tax state when i am a unrestricted free agent, i would take the zero tax state.

Would you want $100 an hour or $75 an hour! Thats the discrepancy from Montreal to Nashville after tax.

You may but has anyone actually done this. Stamkos would have come here had the Leafs offered 7 years instead of 5.

Would being paid in US dollars and converting to Canadian at 30% not put Weber ahead then?

 

[Dustin]

This guy has a valid point. Even if only when it comes to free agency. I guess the Stamkos discussion over the past while got this guy thinking.http://www.pensionplanpuppets.com/2...-and-parity-steven-stamkos-income-tax-avoison

Subban just made approximately a extra $2,300,000 a year by being traded to Nashville which has Zero state tax. Quebec has the highest tax in the Nhl.

Weber likely isn't very happy though going the other way.

How many NHL players are paying full tax in any of the states they work in? There are lots of ways to avoid paying taxes when you have lots of money and do lots of charity work. Sounds pretty much like the average NHL player to me.

Does this also speak to the fact that NHL players are paid in U.S dollars and therefore any player living in Canada gets a 25 % increase in salary immediately?

 

[Sokil]

Stamkos would have come here had the Leafs offered 7 years instead of 5.

keep dreaming

 

[Wafflewhipper]

You may but has anyone actually done this. Stamkos would have come here had the Leafs offered 7 years instead of 5.

Would being paid in US dollars and converting to Canadian at 30% not put Weber ahead then?

Subban would be converting too. He still lives in ontario in the off season. He will be visiting when he comes back. Accountants and financial advisors can look after that windfall easily.

 

[Xscout*]

How many NHL players are paying full tax in any of the states they work in? There are lots of ways to avoid paying taxes when you have lots of money

This. Tons of ways to get into the lower tax bracket.
I'm sure it makes a difference just not a huge difference.

 

[New User Name]

Of course players/agents take taxes into consideration.

As for Stamkos he never had any intention to sign in Toronto.

He played Leafs fans for fools and so many bought in hook, line and sinker. (me included)
Yzerman stuck to his guns and never wavered like Stamkos thought he would.

Don't wish him any ill will but definitely don't want to see him ever lift the Cup.

And if he ever has a desire to end his career wearing the Maple Leaf, I hope Leafs management at that time laughs and walks away.

Please, let's not be silly with silly talk of JT coming home.

 

[Wafflewhipper]

How many NHL players are paying full tax in any of the states they work in? There are lots of ways to avoid paying taxes when you have lots of money and do lots of charity work. Sounds pretty much like the average NHL player to me.

Does this also speak to the fact that NHL players are paid in U.S dollars and therefore any player living in Canada gets a 25 % increase in salary immediately?

If you don't have that 25% to convert, you just don't have it. I don't care how clever you think a financial advisor is at finding loopholes in a tax system, they ain't getting that much of a hit back for you.

 

[ACC1224]

Subban would be converting too. He still lives in ontario in the off season. He will be visiting when he comes back. Accountants and financial advisors can look after that windfall easily.

Maybe Subban will hook Weber up with his Accountants and advisors.

Is there any actual proof that this has ever been an issue?

 

[Menzinger]

There will never be true parity - Ie New York will always be a nicer place to live than say Edmo ton or Winnipeg.

But the taxation issue is something that could easily be fixed in an updated CBA. It would also give the leagues wealthiest teams (Leafs, Rags, and Habs - all of whine are high tax regions) a bit of a "reward" for generating so much league revenue.

 

[Fogelhund]

Would being paid in US dollars and converting to Canadian at 30% not put Weber ahead then?

Unless I am reading this wrong, you seem to be suggesting that converting to CDN dollars gives you more real income somehow... which isn't correct. You are getting the same real money, just in a different currency... unless the contracts specify being paid in USD.

I wonder if there is any currency peg on these contracts, as in a fixed currency rate, or some type of hedging going on, to protect either party in the case of currency changes.

 

[ACC1224]

Unless I am reading this wrong, you seem to be suggesting that converting to CDN dollars gives you more real income somehow... which isn't correct. You are getting the same real money, just in a different currency... unless the contracts specify being paid in USD.

I wonder if there is any currency peg on these contracts, as in a fixed currency rate, or some type of hedging going on, to protect either party in the case of currency changes.

All contracts are paid in US dollars.

I wonder if Subban was aware of the Quebec tax rate when he signed his huge extension?

 

[New User Name]

Unless I am reading this wrong, you seem to be suggesting that converting to CDN dollars gives you more real income somehow... which isn't correct. You are getting the same real money, just in a different currency... unless the contracts specify being paid in USD.

I wonder if there is any currency peg on these contracts, as in a fixed currency rate, or some type of hedging going on, to protect either party in the case of currency changes.

All NHL contracts are paid in US dollars. Including those of Canadian teams.

 

[Dustin]

If you don't have that 25% to convert, you just don't have it. I don't care how clever you think a financial advisor is at finding loopholes in a tax system, they ain't getting that much of a hit back for you.

First off as others have stated when playing in Canada you are paid in US but you buy everything in Canadian meaning you are actually making more money than if you played in the states and made the exact same salary.

Secondly you are vastly underestimating what those with very high salaries can do with money to ensure that they pay the least amount of money in taxes.

 

[Fogelhund]

First off as others have stated when playing in Canada you are paid in US but you buy everything in Canadian meaning you are actually making more money than if you played in the states and made the exact same salary.

That is incorrect.

 

[Suntouchable13]

This is the first year that I remember where people were making a big deal about taxes. It's really a minor issue. There are a lot of bigger issues that players consider when they are UFAs

 

[New User Name]

Only 2 star players have played out their contracts with the team that drafted them to go play for their boyhood teams.

Both players ironically are American.

Zach Parise and Ryan Suter.

and I really thought we'd have the first Canadian do it...

 

[Budsfan]

I've been on about this for many years and until they Prorate the Cap System, the inequality favours areas that have less taxation and since the Cap was put in place to supposedly level the playing field, it has done basically the opposite.

Canadian teams are the most affected because we pay the highest taxes and to add to the inequality we pay most of the highest prices to see our team play and we send those monies south, to support teams that have an unfair advantage in acquiring players, does this make sense.

Is there another reason that no Canadian teams made the playoffs, this past season.

Equalization should include ticket prices being equal across the board and if teams can't be self-sufficient, then they should be put in places they can draw fans and not in places they can't and then expect to have successful teams support them, by charging their loyal fans extremely high prices.

Let's face it Hockey is being hijacked to the U.S.

Guess what, Bettman when asked if players would go to Las Vegas and I'm Paraphrasing said "why not they pay no State taxes there".

 

[Dustin]

That is incorrect.

http://www.theglobeandmail.com/spor...sink-salaries/article28253008/?service=mobile

Explains how Canadian players are paid in US $.

 

[New User Name]

I've been on about this for many years and until they Prorate the Cap System, the inequality favours areas that have less taxation and since the Cap was put in place to supposedly level the playing field, it has done basically the opposite.

Canadian teams are the most affected because we pay the highest taxes and to add to the inequality we pay most of the highest prices to see our team play and we send those monies south, to support teams that have an unfair advantage in acquiring players, does this make sense.

Is there another reason that no Canadian teams made the playoffs, this past season.

Equalization should include ticket prices being equal across the board and if teams can't be self-sufficient, then they should be put in places they can draw fans and not in places they can't and then expect to have successful teams support them, by charging their loyal fans extremely high prices.

Let's face it Hockey is being hijacked to the U.S.

Guess what, Bettman when asked if players would go to Las Vegas and I'm Paraphrasing said "why not they pay no State taxes there".

By mainly Canadian born players.

 

[New User Name]

That is incorrect.

No it's not.

If your contact is 1 million US. At 15% exchange rate it's 1,150,000 Canadian.

 

[paulhiggins]

First off as others have stated when playing in Canada you are paid in US but you buy everything in Canadian meaning you are actually making more money than if you played in the states and made the exact same salary.
...

Even when the exchange rate is compensated for, prices for most goods are cheaper in the US, due to scale. Check the price in US$ for stuff on Amazon.ca vs. the price in US$ for stuff on Amazon.com. This isn't simply due to the differences in the value of their dollars. Restrictions manufacturers put on shipping to Canada prevent us getting the same deals our US counterparts get, even when using equivalent dollars. Of course if you are making millions per year this might not matter that much.

 

[Wafflewhipper]

First off as others have stated when playing in Canada you are paid in US but you buy everything in Canadian meaning you are actually making more money than if you played in the states and made the exact same salary.

Secondly you are vastly underestimating what those with very high salaries can do with money to ensure that they pay the least amount of money in taxes.

A zero tax state and a 25% tax province. A million US dollars gross in Canada is only going to give you a net of $750,000 before you even get to EI,CPP and federal tax.

We are one of the very highest taxed countries in the world. The Nhl has created a imbalance in favour of American teams because many are vastly lower taxed.

Family decisions on finances aren't posted online for me to link proof of players choosing based on tax, but we can figure out common sense in decision making.

You get less of your money after tax in canada and that is the bottom line.