Did anyone else hear if Leafs asked the NHL for approval to cover the Ontario withholding tax for players? I heard from someone close to team that this may be going on now. So Leafs can be in a similar situation to Tampa. If this occurs then Leafs could still use their huge cash bank account to front load players and also fund the Ontario tax discrepancy. It made sense to me because all this does is pay the government rather than the player. Salary/CAP do not change. It puts us back in the drivers seat. And keeps the Leafs in the NHL camp on the next CBA negotiations. Also makes the current negotiations easier to complete. Should be interesting to see how Bettman deals with this one? If he rules against Leafs then you know he is trying to give the advantage to the no tax state teams and use Leaf money to fund his Arizona experiment.
Should Marner's next contract be similar to what Nikita Kucherov is getting?
- Thread starter LeafsNation75
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Revenue sharing and the cap has gone overboard and is helping the have-nots way too much.
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Kind of like Betteman's pet southern teams that add 0 revenue to increase the cap.
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What? 7 Canadian teams are adding more revenues than the 24 American teams.
The biggest tv contract Bettman has is with Rogers.
Canadian NHL clubs sacrificing revenue
When it comes to how revenues are shared in the NHL, not all franchises are created equal. It's estimated that Canada's seven NHL clubs already contribute more than a third of the league's total revenues. Five of the top six revenue-generating clubs are based in Canada.
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My guess it is the first of many issues to come up in 2019. Apparently this all started when Stammer told Leafs his after tax pay was a problem. Yes stammers wife is from Tampa which may have been reason enough on its own. But Tampa did just enough using state taxes to get him his best after tax offer. Now that there appears to be issues getting Matty, Mitch and Gards under the CAP and agents telling Leafs that they need to be much higher salary to adjust for Ontario taxes it is starting to boil over. Should be very interesting times. And when you think about it why can Tampa have Stammer Kucherov and soon to be Point all under 10M (3 superstars) yet Leafs 3 guys Matty Marner Tavares are all over 10M. It is simply not fair. And it is not right. And using offer sheets against us in July will lead to a massive divide/fight between the haves and the have nots on the NHL.
Mess
Global Moderator
You have to take into account things like
- Affordability
- Lifestyle
- Tax Rates and Cost of Living
- Internal pay scale
- Offersheet potential
- # of UFA years purchased
- Player stat comparables
etc etc.
Leafs are one of the richest teams in the NHL and play at the Cap ceiling, while there are other teams that play on a budget and near the Cap floor.
A player on a small market team won't make the same $$ as one on a big market team for affordability reasons.
A player in a low state tax market can make less $$$ then high income tax market because of net take home pay. Toronto salaries vs Zero State Tax Tamp Bay players.
Term and # of UFA years purchased away.
Ottawa is struggling right now, but is it anything like Arizona, Florida or Carolina?
It shows you how important the Canadian teams are, when they are combining for such a large % of the revenue with only 7 teams out of 31.
Eh, there are some big contracts on some bad teams with poor revenues.
And again, the Florida teams alone have some terrible contracts, regardless of taxes.
Matthews, Marner ETC will also make a lot more $ in commercials revenue than they ever will in Florida. There was an article about how much more Tavares is making.
I agree the NHL has to address the tax issue, as it gives certain teams an unfair advantage, and that was not the goal of a hard cap.
hotpaws
Registered User
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where are you getting all this from ?
also this tax crap is way overblown since these guys don't fill out a simple tax form like a person working at a factory does
Where the Leafs crush everyone is non-hockey related revenues. We are on top of NHL hockey related revenues but only a slight lead over Rangers and Habs. But non-hockey revenues are apparently HUGE. So we have this massive stack in the bank and can front load everyone and pay large dividends to shareholders. This is the Leafs real advantage that NO one else has anything even close. When the CBA gets renegotiated and goes to a luxury tax the Leafs position will be the same lets keep non-hockey related revenues out of CAP calculation. It is where the board is at. If NHL stays with current CAP and modifies things a little then the after tax situations will be something teams like Dallas and Tampa will fight hard to maintain. 2019 will be very interesting times for NHL. This is a difficult internal negotiation between teams never mind the NHLPA who will fight more to include non-hockey related revenues in next CBA. Bettman will need to be at his best.
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Florida and Carolina probably should move. Phoenix is too big of a market to abondon right now.
Yes they do. In fact Leafs, Marlies and Growlers all provide T1's to every player. Each of those players are deemed employees by CRA. I can't say exactly how I know but lets just say it is a family situation.
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I’m not saying there shouldn’t be changes to the current CBA, but there was a tax accountant on here this fall that posted this link....
I forget the posters handle but IIRC he is a Punjabi Canadian tax accountant.... and he seemed to think the tax situation is not as bad as we think with loopholes and sound advice....
John Tavares Could Save Nearly $12 Million In Taxes On His New Contract
I forget the posters handle but IIRC he is a Punjabi Canadian tax accountant.... and he seemed to think the tax situation is not as bad as we think with loopholes and sound advice....
John Tavares Could Save Nearly $12 Million In Taxes On His New Contract
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They were sold out the other night when Vegas played there....which gives me hope if they can turn the corner on the ice.
It’s a great market, a great city and I hope it they make it. We liked it enough to look at buying property out there.
Hockey is a regional sport, so sometimes a "Big Market" just isn't enough. Do people really care?
Everything said in the Forbes article is true. Getting CRA approval for the deferral corporation is a lot lot trickier then the writer has implied. The player still has to setup the deferral (idea is you pay less tax today and even out taxes paid over a longer period of time) and then CRA must agree with it. Keep in mind the CRA gets the withholding from the team so the player has to get it back $$$$$ back from the CRA. Not as easy as was implied I am told from a family member. Anyways lots of guys do it. For big money guys it is chump change the costs of doing it. For lower paid guys the costs of doing it exceed the benefits. But for tavares of course. He lives in Toronto now so he must have foregone the Florida tax haven side of it. The Florida side of it is easier for US citizens to get done. For Canadian citizens passport proof is required.
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