Mike Mike Caron
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- Aug 29, 2010
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Apparently the 33M$ left on his buyout would've been taxed by Quebec and he would have lost millions.
The Vincent Lecavalier Thread-Part III: Philly loves dumb contracts (22.5/5, NMC)
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Apparently the 33M$ left on his buyout would've been taxed by Quebec and he would have lost millions.
- Aug 22, 2006
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I read that earlier today. Regardless of how much money Vinny has in the bank. That truly would be something serious to consider.
TimStrickland
Registered User
Honestly Vinny is just a coward.
He crossed MTL off his list because of external factors according to his BF Renaud da Informator Lavoie. External factors aka low taxes and no media/fans caring about his sorry self.
He just desired to eat his cake and have it too- the big payday with low taxes, relative anonymity and no accountability.
He will get drunk in Philly bars and won't be bothered because he'll be a nobody there, while in MTL he would be held accountable and watched on.
I hope he fails and continue his québécois primadonna act in Philly, only to see his own ass booted when it will come to buyout time.
**** him!
He crossed MTL off his list because of external factors according to his BF Renaud da Informator Lavoie. External factors aka low taxes and no media/fans caring about his sorry self.
He just desired to eat his cake and have it too- the big payday with low taxes, relative anonymity and no accountability.
He will get drunk in Philly bars and won't be bothered because he'll be a nobody there, while in MTL he would be held accountable and watched on.
I hope he fails and continue his québécois primadonna act in Philly, only to see his own ass booted when it will come to buyout time.
**** him!
Man to an extent I can't blame him for taking more money to go to a team like the Flyers...
I would love to have seen him wearing la Sainte Flanelle but Bergevin definitely has a plan and it doesn't involve signing Vinny for 5 years...
I will still be happy to see him lose against us though.
Poulet Kostopoulos
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- Oct 23, 2009
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He's probably more greedy than coward.
In the end, I'm glad he's not with the Habs. Leaves space and quality icetime to our younger players. Imagine the circus with him as a Hab and the MTL media. More distractions for the coach and players.
In the end, I'm glad he's not with the Habs. Leaves space and quality icetime to our younger players. Imagine the circus with him as a Hab and the MTL media. More distractions for the coach and players.
Link to the page that was posted at post 877:
http://business.financialpost.com/2012/06/29/graphic-hockey-havens-not-necessarily-tax-havens/
Easier to read.
http://business.financialpost.com/2012/06/29/graphic-hockey-havens-not-necessarily-tax-havens/
Easier to read.
This could very well be the reason he said that his decision was based on "external" factors.
- Aug 22, 2006
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FadeToBlack
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- Jul 1, 2012
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Simple reason Vinny Lecav didn't sign in MTL is money. With MTL's much higher tax rate (48.22%) and NJ's (Flyers are technically HQ'ed and practice in New Jersey, so they are taxed there) much lower tax rate (43.5%), the difference adds up in a hurry. If we just look at guaranteed dollars (assuming he stays in MTL) it's almost a $9m difference after taxes. If we just look at the first three years of the Flyers deal versus the first three years of the Habs offer, it's still a $5.3m difference.
Bourne Endeavor
Registered User
We may have gotten away with offering less term, but less money to boot just makes it appear as a PR offer and little else - something I suspect's Vinny's side may be perpetuating themselves. If the tax claim is true though, how can anyone be upset? Would you toss away millions because Quebec has ridiculous tax laws and gouges people?
Bourne Endeavor
Registered User
Simple reason Vinny Lecav didn't sign in MTL is money. With MTL's much higher tax rate (48.22%) and NJ's (Flyers are technically HQ'ed and practice in New Jersey, so they are taxed there) much lower tax rate (43.5%), the difference adds up in a hurry. If we just look at guaranteed dollars (assuming he stays in MTL) it's almost a $9m difference after taxes. If we just look at the first three years of the Flyers deal versus the first three years of the Habs offer, it's still a $5.3m difference.
In essence, he loses nearly 15M just by signing here. Yeah, I would take the Philly offer too. You would be insane not to. My question is how does Quebec get a cut of his buyout finances? He technically does not have to live in the Province and probably wouldn't. So how would this apply?
MasterDecoy
Who took my beer?
my uneducated but slightly logical guess it it will count as earning since he gets paid an amount each year which will be taxed at his place of residence (quebec, canada)
And THAT ladies and gentlemen is why we will never win another cup ever again
/thread
/season
/franchise
/hockey
MasterDecoy
Who took my beer?
FadeToBlack
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- Jul 1, 2012
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I don't think that's necessarily the case, but I just wanted to add that in the best-case scenario for Vinny (Florida, actually, is one of those best-case scenarios) with no state, city, or municipal income taxes, he would bring home $6,299,221.00 next year, or a rate of 41.47%. It's not the crazy fans and insane media attention, although I'm sure that doesn't help, it's all about the Benjamins... and in Canada, you get less. In order to have equal take-home pay from just the contract, the Habs would have had to offer Vinny 9.115% more money... or $24,550,984.93 over 5 years, for a cap hit of 4.91 per.
Last note before I hit the sack... in order to equal his take-home pay including his buyout dollars, you're looking at a total contract value of $26,083,255.00, or $5,216,651.00 per annum.
Last edited:
HabsByTheBay
Registered User
KPMG did a study on the differences in tax for NHL franchises. I am guessing that Philadelphia players pay PA tax since the games are played there, regardless of where their headquarters are. Philly taxes are pretty similar to Pittsburgh taxes and much lower than Newark's taxes, so that leads me to believe the Flyers pay PA tax.
Anyway the difference between Philadelphia and Montreal was about $300,000 on a $4 million contract. Which is a lot, but the difference is almost certainly smaller now because the Bush tax cuts ended in 2013. The top tax rate went from 35% to 39.6% again.
Financial Post graphic
So while Lecavalier might have chosen Philly for money but it's the money in his contract - more years, higher AAV. The taxes are unlikely to have made a significant difference, especially when you consider he'd likely pick up many more endorsements in Quebec than in Philadelphia.
Anyway the difference between Philadelphia and Montreal was about $300,000 on a $4 million contract. Which is a lot, but the difference is almost certainly smaller now because the Bush tax cuts ended in 2013. The top tax rate went from 35% to 39.6% again.
Financial Post graphic
So while Lecavalier might have chosen Philly for money but it's the money in his contract - more years, higher AAV. The taxes are unlikely to have made a significant difference, especially when you consider he'd likely pick up many more endorsements in Quebec than in Philadelphia.
DAChampion
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- May 28, 2011
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Quebec should raise university tuition to $25,000/year and eliminate universal medicine so that it can lower taxes and the Habs can bring home the cup 
You can't blame him after seeing this.
Hockey is, after all, a business.
A lot of us, me included, would say I'd happily play for the minimum wage just to be in the NHL, or that 22M, or 13M, he'll be rich either way so we can't feel bad for him, but money can change your mind once you have had a taste of it.
There can be a lot of reason why he took more money. It doesn't have to be all about himself, his future? His kids maybe? Who knows.
Dharvey33
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- Apr 30, 2010
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Good ridance did not want anything to do with him to begin with. I prefer we go after a real free agent that could help us like Horton or Clarksson.
If we were to have a quebecois in the team i'd much prefer Dupuis at least that guy can still play on both ends. For a 2nd -3rd line he would be a great addition.
If we were to have a quebecois in the team i'd much prefer Dupuis at least that guy can still play on both ends. For a 2nd -3rd line he would be a great addition.
Vinny to Philly? Philly is nuts. They are desperate for a goalie and desperate for good dmen so what do they buy? Vinny!!!!!
NUTS just NUTS. Unless Vinny has a long term plan. Sign with Philly then dont score a goal, then get a buyout in 2 years, keep the money and sign with another team again, dont score a goal, get a buyout, retire by owning the bank in Florida and laughing and L... and L... and L... take a drive up to Philly and drive around town in your new Ferrari and yelling out thanks for the 50 other brand new Ferrari you bought me.
Bahhahahhahahahahahah.
NUTS just NUTS. Unless Vinny has a long term plan. Sign with Philly then dont score a goal, then get a buyout in 2 years, keep the money and sign with another team again, dont score a goal, get a buyout, retire by owning the bank in Florida and laughing and L... and L... and L... take a drive up to Philly and drive around town in your new Ferrari and yelling out thanks for the 50 other brand new Ferrari you bought me.
Bahhahahhahahahahahah.
Taxes in Canada are based on residence, specifically on Dec 31. There are many people who live in one tax jurisdiction and work in another. The FP article, the fine print even states, "Each scenario assumes the taxpayer will be subject to social taxes in the home jurisdiction".
Especially when it comes to NHL players, who have enough money to travel as they need, have summers off (well, self-directed training) and spend a lot of time on the road.
A player could have his family and main house wherever he wants, have his mail delivered there, etc. This could be because it's a great situation for his family, or because it's in a low-tax jurisdiction. In the city where his team is, he could rent a small bachelor apt near the rink, or a room from a teammate, and travel back and forth as required.
Mike The Wall
Registered User
This is about another FRENCH PLAYER turning his back on the Habs. And then then the French Quebecers complain that the Habs do not go out and sign French players. You know what I am fed up!!!!!
Naoned
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