9 States with No Income Tax - NHL CAP

[hamzarocks]

Leafs found a way to make this irrelevant for them atleast with Marner and Matthews earning 3M+ in advertising (almost more than any NHL player pretty sure) yet we still had that ending

Tampa being where they are is a 13+ year process.

Go back to 2008 and look through the moves they made. They sucked, no one was coming there. They had a GM who acquired talent at an incredible level. The team had success making deep runs and they got players to come back long-term due to an unfinished feeling with Tampa being the clear cut best team to have not won a cup (post lockout) before 2020.

Tampa drafted great(outside the 1st round) made the right calls in moving on from non-core players/old aged previous core guys (Lecav, St Louis, Purcell, Downie, Drouin, Bishop, Jt Miller)

They did get fortunate that Kucherov was injured and on LTIR this year letting them keep killorn but we saw they didn't win the division without him. They could've lost in the 1st round if the team wasn't as good as they were with tremendous chemistry and leadership from the top.

Tampa is still in the phase of heavy contention. They look like they could be a mid 90s redwings type contender where the redwings were serious contenders from 95ish to 2013ish.

Tampa even with moving pieces this off-season looks to have a cup window from 2014 to potentially 2030

 

[Legion34]

Is this another Leafs or Habs fan complaining about the tax nonsense.


Funny how it's always those two fan bases.

the 2 teams that have the highest tax rates that pay into revenue sharing?

so the 2 teams that are affected the most complain the most?

crazy!

What’s next, the teams that are effected the least….complain the least?

inconceivable!

 

[Legion34]

Ugh, k, SO the taxes associated with 'no tax' states are only applicable to home games. Ie. 50% +/- of your games are taxed differently (dont ask how the intricacies of its construction as I am not a CMA). Furthermore, teams that have state-tax advantages certainty dont have the ability (or at least as MUCH ability) to construct contracts in ways that would be considered more advantageous to a player (yes, I am aware of the maximum amount a contract can be front-loaded, and how much it can drop year over year). Theres also hockey operations related expenses like scouting, development, management, coaching, medical staff; it goes on. Whatever 'advantage' smaller-cap teams in state tax havens might (or might not) have is certainly offset by leauge juggernauts (financially speaking only) like the rangers, canadians, and leafs getting the advantage of printing infinite money to spend everywhere else.

signing bonuses get paid in home state.

methot just said being traded from ottawa saved him 700k on a 5 million ish contract.

 

[Legion34]

This has been beaten to death.

Vote for better elected officials that won’t take money you worked for.

orrrrrr “support your team” so other fans don’t have to pay for it?

 

[MikeyMike01]

I mean...I'd rather live in a state that pays for infrastructure and programs for the at-risk and needy, but these are young idiots we're talking about so I get the appeal of a lack of taxes.

You’re free to donate any portion of your income to the charities and causes of your choosing.

 

[Lolonegoal]

Ok I'll humour you.

Let's say you prorate the cap for each team to compensate for the tax differences. Then those teams are forced to sign players to lower contracts with no tax incentives.

Then what happens when these tax-free teams starting signing players for cheaper than usual because of the tax breaks then ship those players off to a team with taxes, in basically a retained deal. Is it fair to that player that he signed a contract under the assumption he wouldn't be taxed? What if they back-load contracts before trading, getting a few years for cheap then trading off to a team like New York or Toronto who can pay the cash but want the cap break. Or what happens if they front load it then, get the player in his prime years of the contract and then ship him off to a team like Arizona that'll take the cap hit with little cash.

 

[King'sPawn]

And the Rangers and Kings have an advantage over the rest of the teams in the league because they attract the most free agents. Let’s do something about that too.

Wait... what? Which free agents do the Kings attract?

 

[cowboy82nd]

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming — have no income taxes "state".

Kraken, Knights, Panthers, and the Lightning.

Each of these teams have a clear advantage over the rest of the league. Each of these teams work within CAP framework plus added room when one factor's tax break to negotiate contracts.

Is this something the NHL will consider next collective agreement?

Then should it also be taken in to account that players can earn more in endorsements in certain cities (Toronto, New York, Montreal, etc) than others?

 

[GreatSaveLuongo]

so what did the NBA do?

 

[zar]

Sure.

New York, LA and Toronto will lose cap space to negate their advantage in offering FAs lucrative sponsorship opportunities

All O6 teams will lose cap space to negate their advantage in offering FAs the chance to play for a historic franchise and add to the sport's history

All southern teams will lose cap space to negate their winter weather advantage

All coastal teams will lose cap space to negate the advantage of offering ocean front property

NY, LA, Panthers and Vegas will lose cap space to negate their advantage of offering a booming nightlife/club scene


Do you see how dumb this idea is yet?

As an Oiler fan, I agree with all of your suggestions.

You forgot a couple though; the eastern teams losing cap because of the lesser travel and the non-Canadian teams losing cap because of lesser media/public attention.

 

[Lazlo Hollyfeld]

Doesn't this thread belong in the Business of Hockey forum, where I can more easily ignore it?

 

[GreeningOil]

Canada has nation wide Health Care and not private Health Care. Clearly, the Canadian teams have an advantage over players that have families.

NHL players can afford premium medical insurance that would allow them to have access to the best treatment and best doctors. Canada has this universal health care but more often than not the treatment isn’t timely :/

 

[Brown Cat]

And the Rangers and Kings have an advantage over the rest of the teams in the league because they attract the most free agents. Let’s do something about that too.

this but unironically

 

[Rubi]

Good thing tax free countries like Bermuda or the Bahamas don't have hockey teams.

 

[SotasicA]

Every player files their own taxes. You don't know how much they end up paying after all is said and done, with all their deductibles and exemptions and side income that might be taxed differently because of their primary hockey income.

 

[Blowfish]

Then should it also be taken in to account that players can earn more in endorsements in certain cities (Toronto, New York, Montreal, etc) than others?

Or Why not have both...

 

[Wester]

Ok I'll humour you.

Let's say you prorate the cap for each team to compensate for the tax differences. Then those teams are forced to sign players to lower contracts with no tax incentives.

Then what happens when these tax-free teams starting signing players for cheaper than usual because of the tax breaks then ship those players off to a team with taxes, in basically a retained deal. Is it fair to that player that he signed a contract under the assumption he wouldn't be taxed? What if they back-load contracts before trading, getting a few years for cheap then trading off to a team like New York or Toronto who can pay the cash but want the cap break. Or what happens if they front load it then, get the player in his prime years of the contract and then ship him off to a team like Arizona that'll take the cap hit with little cash.

That is why I said that low taxes usually come with a lot more NTC-s. And when the cap situation gets worse, moving those NTC-s is a lot harder.

 

[Headshot77]

Time to put an NHL team in Rapid City, SD

 

[Eisen]

It doesn't matter. There is cost certainty. That's all the cap was about.

 

[bobholly39]

I know this complaint is so stupid. One cup in the cap era has been won in a no tax state

How is it stupid? It's 100% an advantage, what's there even to deny? Not every advantage imaginable automatically means "we win all the cups!"

Whether NHL should or shouldn't do anything about it is up for debate - but acting like it's not an advantage is just silly.

 

[triggrman]

Unless laws have changed I believe Signing bonuses would be taxed in state of issue only.

Endorsement deals also are taxed on residency

You’re taxed where the money is earned. If your signing bonus is paid to you in July it will be wherever you live when that bonus is paid.
I get a bonus every March, my company is headquartered in Chicago. I don’t pay Chicago income tax.

 

[Legionnaire]

How is it stupid? It's 100% an advantage, what's there even to deny? Not every advantage imaginable automatically means "we win all the cups!"

Whether NHL should or shouldn't do anything about it is up for debate - but acting like it's not an advantage is just silly.

It's stupid because your high taxes are your issue. If you want lower taxes, then you need to lobby your legislature - not expect other teams to be penalized for your excessive taxes.

 

[Krewe]

How is it stupid? It's 100% an advantage, what's there even to deny? Not every advantage imaginable automatically means "we win all the cups!"

Whether NHL should or shouldn't do anything about it is up for debate - but acting like it's not an advantage is just silly.

Yeah but you don't see Tampa fans cry about the advantages big-market teams like leafs, rangers, LA have.

Tell me. What was the last big UFA that signed in Tampa? Now do it for Leafs/LA/Vegas so on

 

[bobholly39]

Yeah but you don't see Tampa fans cry about the advantages big-market teams like leafs, rangers, LA have.

Tell me. What was the last big UFA that signed in Tampa? Now do it for Leafs/LA/Vegas so on

I agree people shouldn't cry about it. Yes other markets have their own big advantages.

All I said was don't deny taxes are an advantage for Tampa - because they are. Other markets have their own advantages/disadvantages.

 

[Melrose Munch]

stop complaining about this.