Salary Cap: Parity not really?

[EspenK]

I believe the tax issue is somewhat mitigated because you pay taxes on your earnings where you earned them. So 1/2 of Stamkos' pay will be taxed by the likes of NY, Oh, Cali, etc. Not sure about the taxes for games played in Canada.

 

[Community]

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.

Pretty sure a player's state tax depends on where the games are being played. Meaning that Subban will only receive 0% state tax when he plays in Nashville (or another place that has no state tax). So while there is still a difference, the difference isn't as much as you stated.

This is at least my understanding of how state taxes affect NHL player's salaries and I might be wrong.


Edit: Same as what EspenK said!

 

[New User Name]

Let's face it. For a variety of reasons Canadian born players prefer to play in the states.

Even when they retire they stay there. Yet American players playing in Canada usually have a US summer home and go back when they retire. (Canadian born players may come back to visit ma and pa and bro and sis and the family dog)

European players playing for US or Canadian teams usually go home too.

The four greatest players in NHL history are all Canadian born but now US citizens. Orr, Lemieux, Gretzky and the late Howe.

Heck, our Canadian born Shanahan's family lives full time in New York state and he is a US citizen.

Even our former GM Nonis lives full time in New Hampshire.

 

[ACC1224]

Florida and Alberta if I recall have the best tax rates with California and New York being some of the worse. Seems the worse tax places have the better success at attracting Free Agents than the havens.

 

[Eb]

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

Must have missed this.

It was leaked what we offered him?

 

[ACC1224]

Must have missed this.

It was leaked what we offered him?

Yes 5 years.

 

[Jack Bauer]

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.

That's only 1 factor though.

What if in Montreal you could make an extra $5 mil in endorsements as a major Canadian and Quebec based sports figure vs living in a market where NFL and college sports rule the market place?

And what if you actually lived in Canada while playing in Canada and benefitted from getting paid in American dollars?

Even after taxes I think Subban makes more in Canada when adding in endorsements and the exchange rate.

 

[Eb]

Yes 5 years.

Anything on the $?

 

[New User Name]

Yes 5 years.

If it comes out the Leafs actually offered Stamkos 5 years and X dollars the Leafs are in trouble with the league.

Money and term CAN NOT be officially discussed during the "courting" period.

 

[ACC1224]

That's only 1 factor though.

What if in Montreal you could make an extra $5 mil in endorsements as a major Canadian and Quebec based sports figure vs living in a market where NFL and college sports rule the market place?

And what if you actually lived in Canada while playing in Canada and benefitted from getting paid in American dollars?

Even after taxes I think Subban makes more in Canada when adding in endorsements and the exchange rate.

You forgot in Quebec you can get 24 Heineken/Stella for 24.99

 

[Eb]

If it comes out the Leafs actually offered Stamkos 5 years and X dollars the Leafs are in trouble with the league.

Money and term CAN NOT be officially discussed during the "courting" period.

That's what I thought.

Who is speculating this?

 

[Jack Bauer]

You forgot in Quebec you can get 24 Heineken/Stella for 24.99

Another very important part of the puzzle.

 

[Wafflewhipper]

No it's not.

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

The dollar fluctuates daily. There is a line of thinking that believes that the Canadian dollar being 85 cents on the American greenback is the best for the Canadian economy. We are a export market and the states purchasing power is best to be strong. Our dollar being par with the states is not the ideal scenario on the whole.

Taxes and conversion on your paycheck is a completely different ball of wax. Anyways, its a advantage for lower taxed Nhl teams.

 

[ACC1224]

Anything on the $?

Not that I recall.

 

[Dustin]

That's what I thought.

Who is speculating this?

"I hear she mates with men then eats them" Homer Simpson.

 

[Jack Bauer]

If it comes out the Leafs actually offered Stamkos 5 years and X dollars the Leafs are in trouble with the league.

Money and term CAN NOT be officially discussed during the "courting" period.

Based on the amount of signings in the first hour of free agency a team that didn't make any of them really has nothing to worry about.

Are we naive enough to believe Edmonton didn't make financial offers to Lucic before 12:01pm on July 1 yet think that a random report would get the Leafs in trouble for a player they didn't sign and actually scared off with his in depth and overwhelming their proposal was?

 

[Wafflewhipper]

Yes 5 years.

I have never seen a link on that either. You care to link it?

 

[Vexed]

Let's face it. For a variety of reasons Canadian born players prefer to play in the states.

Even when they retire they stay there. Yet American players playing in Canada usually have a US summer home and go back when they retire. (Canadian born players may come back to visit ma and pa and bro and sis and the family dog)

European players playing for US or Canadian teams usually go home too.

The four greatest players in NHL history are all Canadian born but now US citizens. Orr, Lemieux, Gretzky and the late Howe.

Heck, our Canadian born Shanahan's family lives full time in New York state and he is a US citizen.

Even our former GM Nonis lives full time in New Hampshire.

Frankly, there are not many better countries to live in if you are super rich

 

[ACC1224]

If it comes out the Leafs actually offered Stamkos 5 years and X dollars the Leafs are in trouble with the league.

Money and term CAN NOT be officially discussed during the "courting" period.

I don't recall where I heard it. What time did he re-sign with Tampa?

 

[Jack Bauer]

I don't recall where I heard it. What time did he re-sign with Tampa?

30 seconds before the NHL blew up on June 29th.

Our meeting with him was on the 27th.

He didn't speak with any teams but Tampa after our meeting with him. Detroit was not pleased.

 

[Wafflewhipper]

Florida and Alberta if I recall have the best tax rates with California and New York being some of the worse. Seems the worse tax places have the better success at attracting Free Agents than the havens.

If you read the link in my initial post you would see where the list ranks every team by tax rate.

 

[ACC1224]

30 seconds before the NHL blew up on June 29th.

Our meeting with him was on the 27th.

He didn't speak with any teams but Tampa after our meeting with him. Detroit was not pleased.

That makes no sense then.

 

[New User Name]

The dollar fluctuates daily. There is a line of thinking that believes that the Canadian dollar being 85 cents on the American greenback is the best for the Canadian economy. We are a export market and the states purchasing power is best to be strong. Our dollar being par with the states is not the ideal scenario on the whole.

Taxes and conversion on your paycheck is a completely different ball of wax. Anyways, its a advantage for lower taxed Nhl teams.

I realize that. It is better for our economy that the dollar is around .85 US.

Although taxes are a part of the reason free agents may not sign in Canada, there are other reasons.

Interesting to note that over 95% of Canadian born NHL players playing on US teams live full time in the US yet what percentage of Raptors and Blue Jays players live full time in Canada? Less than 5% I'd guess.

Joffrey Lupul has a full time home in California. Phil Kessel has a home in Florida. I'd imagine JVR and Jake Gardiner have homes in the US too.

 

[ACC1224]

If you read the link in my initial post you would see where the list ranks every team by tax rate.

I don't click links, what does it say?

 

[BoredBrandonPridham]

Just because you play hockey for a Canadian NHL franchise doesn't imply you're a Canadian tax resident. All of this speculation on taxes seems so misinformed and ridiculous