Why wasn't the Sharks offer not eligible for bonus structure? How do you knows this? All I remember is they were offering $13M and there is no way you can tell me what the bonus structure was. I doubt that type of information is available.... like the exact contract details.
Because there’s a special clause created in the Canada / US tax treaty as an exemption for athletes to allow bonus payments from Canadian teams to be taxed at a ridiculously low rate (via tax credits) as long as they maintain US residency status (6-months + 1-day on US soil).
Canadian teams along w Bettman lobbied US & Cdn govts hard as a means to even the playing field for attracting players to Canada.
Auston Matthews was the first player to take full advantage of it w the 2nd contract which was almost entirely paid in bonuses with approx $800K as taxable salary
Heavily bonus structured contracts are an enormous advantage for Cdn NHL teams, especially Leafs, Habs and Cgy/Edm due to lowest provincial taxation - only catch it for US resident players only and Tavares is now going to get whacked by Revenue Canada because he has broken his residency requirements