Bust
Registered User
- Jul 28, 2016
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The tax advantage has had no measurable impact on outcomes in this league.
Of course it has. Players are signing for less money in certain areas.
Alan Pogroszewski (Who has been quoted in this thread already) made mention regarding Reinhardt new deal: Reinhart’s salary @ $8.625 million annually, he owes $3.15 million in taxes in Florida. He would pay $1.1 million more in California, $1.5 million more in New York and $1.4 million more in Toronto. It saves him over 12mil over the duration of the deal.
Theres another example from a couple of years ago, obviously if it was true then and nothing has changed (in terms of taxation rules) :
Methot made over 1.4mil more playing for Dallas than the same deal would have paid him in Ottawa.
That kind of cost saving in a hard cap league cannot be argued as anything other than an advantage for teams in lower tax areas.