Confirmed Signing with Link: [EDM] F Leon Draisaitl signs extension with the Oilers (8 years, $14M AAV; begins 2025-26)

[Luigi Lemieux]

I think people are deluding themselves into thinking that McDavid will sign one year from now for $16m. Right now there is a $4m difference between Draisaitl and McDavid. Draisaitl and McDavid signed $8.5m and $12.5m contracts one year apart. McDavid is well worth $4m more. He's the engine that drives the team. When McDavid signs a new contract I expect he'll get that $4m again. Why on earth would he accept less?

Because he wants to win? Crosby and Malkin both took about 13% of the cap on their third contracts, a nice discount considering they were the top two centers in the NHL at the time. I honestly think we'll see McDavid taking $14-16M. Draisaitl was massively underpaid his last contract so I can understand him not taking a discount this time.

 

[behemolari]

Barkov and Tkachuk didn't take discounts. They just aren't as good as McDavid and Draisaitl.

So you missed finals, dream on

 

[NYRFANMANI]

Very on point article.

Massive Leon Draisaitl contract extension brings appreciation for Panthers top players taking team friendly deals

Does the article mention the taxes in Florida? If not, it's a useless article.

What's the income tax in Alberta?

 

[Skolman]

Very on point article.

Massive Leon Draisaitl contract extension brings appreciation for Panthers top players taking team friendly deals

Uh, ya income tax is a thing...

I would have hoped you knew about this Rubi.

 

[Rubi]

Does the article mention the taxes in Florida? If not, it's a useless article.

What's the income tax in Alberta?

Uh, ya income tax is a thing...

I would have hoped you knew about this Rubi.

If a player is being paid $10m, that's what it costs the team whether that player is in Florida or Alberta. There's no tax advantage for the team. That's a myth about players taking less because they're in Florida. If they are worth $10m in Alberta then that's what they are worth in Florida and that's what they'll ask for... unless they give the team a discount because they want to lower the financial burden on the team... and that can be done in either location. Players like Tkachuk, Barkov, and Reinhart did that. I expect Bennett will do that too.
Only RNH did that on the Oilers when it came to signing that $41m long term contract.. Draisaitl took as much as he figured he could squeeze out of the team when he signed that $112m contract. He likely would have asked for the same amount from Florida. Nurse did the same thing and I expect that's what Bouchard and McDavid will do too. Although McDavid might take a token few dollars less because he really wants to win a cup but by the the time he signs, any discount he gives will be a drop in the bucket.

 

[Skolman]

If a player is being paid $10m, that's what it costs the team whether that player is in Florida or Alberta. There's no tax advantage for the team. That's a myth about players taking less because they're in Florida. If they are worth $10m in Alberta then that's what they are worth in Florida and that's what they'll ask for... unless they give the team a discount because they want to lower the financial burden on the team... and that can be done in either location. Players like Tkachuk, Barkov, and Reinhart did that. I expect Bennett will do that too.
Only RNH did that on the Oilers when it came to signing that $41m long term contract.. Draisaitl took as much as he figured he could squeeze out of the team when he signed that $112m contract. He likely would have asked for the same amount from Florida. Nurse did the same thing and I expect that's what Bouchard and McDavid will do too. Although McDavid might take a token few dollars less because he really wants to win a cup but by the the time he signs, any discount he gives will be a drop in the bucket.

You genuinely believe this...?

 

[Rubi]

You genuinely believe this...?

For the team, yes. If a player is valued at $10m in Edmonton he has the same value in Florida.

 

[NYRFANMANI]

For the team, yes. If a player is valued at $10m in Edmonton he has the same value in Florida.

That's not what we are talking about at all.
$10m income in Alberta is TAXED differently than in Florida.

 

[D1az]

I think this is a fair deal.
What makes Edmonton's situation is problematic is the one obvious albatross which is Nurse's contact.
That in itself burdens the team directly being overpriced like h-, and is also a mental note for everyone that no team friendly deals are on the table.

 

[Rubi]

That's not what we are talking about at all.
$10m income in Alberta is TAXED differently than in Florida.

So what? If a player is offered $10m in Edmonton, Florida if they want the player is going to offer $10m too. They aren't going to say "we want you on our team but we are only going to pay you $9m because you pay less tax in Florida." It will cost either team owner $10m for the player.

 

[Rubi]

Because he wants to win? Crosby and Malkin both took about 13% of the cap on their third contracts, a nice discount considering they were the top two centers in the NHL at the time. I honestly think we'll see McDavid taking $14-16M. Draisaitl was massively underpaid his last contract so I can understand him not taking a discount this time.

Did you just come home from the bar when you typed this?

 

[bucks_oil]

What cap number did you use for 2025 to get this percentage jump? I honestly didn't know the 2025 cap had been released?

In 2024, today, he makes 8.5.

In 2025, he gets his new salary. So what is the cap in 2025?

This is a good and often underappreciated comment. Until we know the 2025 cap, we are still comparing apples and oranges.

Drai's contract is likely to fall into 15.3% range by the time it is actually active. That's exactly what MacKinnon was at when his extension activated.

 

[nturn06]

But still no win. Which is the only thing that matters.

That's what fans of teams which do not go deep always say....

 

[bucks_oil]

If a player is being paid $10m, that's what it costs the team whether that player is in Florida or Alberta. There's no tax advantage for the team. That's a myth about players taking less because they're in Florida. If they are worth $10m in Alberta then that's what they are worth in Florida and that's what they'll ask for... unless they give the team a discount because they want to lower the financial burden on the team... and that can be done in either location. Players like Tkachuk, Barkov, and Reinhart did that. I expect Bennett will do that too.
Only RNH did that on the Oilers when it came to signing that $41m long term contract.. Draisaitl took as much as he figured he could squeeze out of the team when he signed that $112m contract. He likely would have asked for the same amount from Florida. Nurse did the same thing and I expect that's what Bouchard and McDavid will do too. Although McDavid might take a token few dollars less because he really wants to win a cup but by the the time he signs, any discount he gives will be a drop in the bucket.

Lol... this is either hopelessly naive, or deliberately obtuse.

You must be right... ALL of the Florida stars took "discounts" because of course players do not factor in their take-home earnings when agreeing to contracts. After all, they can't afford any tax advice. Ohtani didn't think about taxes either... players just aren't smart enough to consider these angles at all.

OR...

The Real World. Come join us Rubi.

So what? If a player is offered $10m in Edmonton, Florida if they want the player is going to offer $10m too. They aren't going to say "we want you on our team but we are only going to pay you $9m because you pay less tax in Florida." It will cost either team owner $10m for the player.

What? Are you... what??!!

You honestly don't believe this do you?

I mean don't take my word for it... maybe an NHL GM, an NHL player and an NHL player's tax advisor might convince you... NHL free agency shows teams in states with no income tax have an advantage

Then again, likely not.

 

[kanucks25]

Worth every penny regardless of team.

I'd be ecstatic as an Oilers fan knowing both Drai and MCD are committed long term.

 

[Three On Zero]

Games are paid based on where you play. 41 games a year you'll be paying your home state income tax. The other 41 will be based on where game ins played. So I did a calculation on what that actually amounts to. For example, Dallas players (no state tax) would still pay tax based on away games.

EDIT June 13th:
See post #463 by user CDN24 in which they explains Montreal being a little different than others. Their overall number should be slightly lower/better than OTT/TOR. The sheet below does not reflect that change, so keep that in mind.

	Tax %	2 Million	5 Million	10 Million	15 Million
Dallas	2.79%	$55,800	$139,500	$279,000	$418,500
Nashville	2.79%	$55,800	$139,500	$279,000	$418,500
Florida	3.18%	$63,600	$159,000	$318,000	$477,000
Tampa Bay	3.18%	$63,600	$159,000	$318,000	$477,000
Vegas	3.50%	$70,000	$175,000	$350,000	$525,000
Philadelphia	4.33%	$86,600	$216,500	$433,000	$649,500
Pittsburgh	4.33%	$86,600	$216,500	$433,000	$649,500
Colorado	4.59%	$91,800	$229,500	$459,000	$688,500
Utah	4.69%	$93,800	$234,500	$469,000	$703,500
St.Louis	4.72%	$94,400	$236,000	$472,000	$708,000
Chicago	4.82%	$96,400	$241,000	$482,000	$723,000
Carolina	4.92%	$98,400	$246,000	$492,000	$738,000
Detroit	4.92%	$98,400	$246,000	$492,000	$738,000
Columbus	5.51%	$110,200	$275,500	$551,000	$826,500
Seattle	6.37%	$127,400	$318,500	$637,000	$955,500
Minnesota	6.83%	$136,600	$341,500	$683,000	$1,024,500
Boston	6.87%	$137,400	$343,500	$687,000	$1,030,500
Ottawa	6.94%	$138,800	$347,000	$694,000	$1,041,000
Toronto	6.94%	$138,800	$347,000	$694,000	$1,041,000
New Jersey	7.48%	$149,600	$374,000	$748,000	$1,122,000
New York I	7.54%	$150,800	$377,000	$754,000	$1,131,000
New York R	7.54%	$150,800	$377,000	$754,000	$1,131,000
Washington	7.54%	$150,800	$377,000	$754,000	$1,131,000
Buffalo	7.65%	$153,000	$382,500	$765,000	$1,147,500
Calgary	8.01%	$160,200	$400,500	$801,000	$1,201,500
Edmonton	8.01%	$160,200	$400,500	$801,000	$1,201,500
Winnipeg	8.28%	$165,600	$414,000	$828,000	$1,242,000
Anaheim	8.95%	$179,000	$447,500	$895,000	$1,342,500
Los Angeles	8.95%	$179,000	$447,500	$895,000	$1,342,500
San Jose	8.95%	$179,000	$447,500	$895,000	$1,342,500
Vancouver	10.26%	$205,200	$513,000	$1,026,000	$1,539,000
Montreal	12.10%	$242,000	$605,000	$1,210,000	$1,815,000

Note:
USA federal tax is 37%, where as in Canada it's 33%. For this reason, I lowered the Canadian teams taxes by 4% to make up the difference. Keep in mind the table below is just State taxes, so players still need to pay way more taxes than that - but this is a half-decent representation of the difference from one team to another, as federal is across the board.

Below is the full table if you want to see the more in-depth numbers. I added some more notes under it as well.

Home (41) Division (13) In-Conf (12) Out-Conf (16) Average 2 Million 5 Million 10 Million 15 Million Anaheim 13.30% 10.68% 7.96% 7.20% 8.95% $179,000 $447,500 $895,000 $1,342,500 Boston 9.00% 8.03% 7.20% 7.96% 6.87% $137,400 $343,500 $687,000 $1,030,500 Buffalo 10.90% 8.03% 7.20% 7.96% 7.65% $153,000 $382,500 $765,000 $1,147,500 Calgary 11.00% 10.68% 7.96% 7.20% 8.01% $160,200 $400,500 $801,000 $1,201,500 Carolina 4.50% 7.20% 7.20% 7.96% 4.92% $98,400 $246,000 $492,000 $738,000 Chicago 4.95% 5.24% 7.96% 7.20% 4.82% $96,400 $241,000 $482,000 $723,000 Colorado 4.40% 5.24% 7.96% 7.20% 4.59% $91,800 $229,500 $459,000 $688,500 Columbus 3.50% 7.20% 7.20% 7.96% 5.51% $110,200 $275,500 $551,000 $826,500 Dallas 0.00% 5.24% 7.96% 7.20% 2.79% $55,800 $139,500 $279,000 $418,500 Detroit 4.25% 8.03% 7.20% 7.96% 4.92% $98,400 $246,000 $492,000 $738,000 Edmonton 11.00% 10.68% 7.96% 7.20% 8.01% $160,200 $400,500 $801,000 $1,201,500 Florida 0.00% 8.03% 7.20% 7.96% 3.18% $63,600 $159,000 $318,000 $477,000 Los Angeles 13.30% 10.68% 7.96% 7.20% 8.95% $179,000 $447,500 $895,000 $1,342,500 Minnesota 9.85% 5.24% 7.96% 7.20% 6.83% $136,600 $341,500 $683,000 $1,024,500 Montreal 21.75% 8.03% 7.20% 7.96% 12.10% $242,000 $605,000 $1,210,000 $1,815,000 Nashville 0.00% 5.24% 7.96% 7.20% 2.79% $55,800 $139,500 $279,000 $418,500 New Jersey 10.75% 7.20% 7.20% 7.96% 7.48% $149,600 $374,000 $748,000 $1,122,000 New York I 10.90% 7.20% 7.20% 7.96% 7.54% $150,800 $377,000 $754,000 $1,131,000 New York R 10.90% 7.20% 7.20% 7.96% 7.54% $150,800 $377,000 $754,000 $1,131,000 Ottawa 9.16% 8.03% 7.20% 7.96% 6.94% $138,800 $347,000 $694,000 $1,041,000 Philadelphia 3.07% 7.20% 7.20% 7.96% 4.33% $86,600 $216,500 $433,000 $649,500 Pittsburgh 3.07% 7.20% 7.20% 7.96% 4.33% $86,600 $216,500 $433,000 $649,500 San Jose 13.30% 10.68% 7.96% 7.20% 8.95% $179,000 $447,500 $895,000 $1,342,500 Seattle 7.00% 10.68% 7.96% 7.20% 6.37% $127,400 $318,500 $637,000 $955,500 St.Louis 4.70% 5.24% 7.96% 7.20% 4.72% $94,400 $236,000 $472,000 $708,000 Tampa Bay 0.00% 8.03% 7.20% 7.96% 3.18% $63,600 $159,000 $318,000 $477,000 Toronto 9.16% 8.03% 7.20% 7.96% 6.94% $138,800 $347,000 $694,000 $1,041,000 Utah 4.65% 5.24% 7.96% 7.20% 4.69% $93,800 $234,500 $469,000 $703,500 Vancouver 16.50% 10.68% 7.96% 7.20% 10.26% $205,200 $513,000 $1,026,000 $1,539,000 Vegas 0.00% 10.68% 7.96% 7.20% 3.50% $70,000 $175,000 $350,000 $525,000 Washington 10.90% 7.20% 7.20% 7.96% 7.54% $150,800 $377,000 $754,000 $1,131,000 Winnipeg 13.40% 5.24% 7.96% 7.20% 8.28% $165,600 $414,000 $828,000 $1,242,000 Some notes: - Home tax numbers taken from Turbotax. - I realise this isn't perfect. For example, single people pay a different rate vs married with children. That and this is based on their entire income, but the first ~200k is often in a lower bracket. It's just a rough guide. - Schedules are based on 41 home games, 13 divisional games, 12 inner-conference games, and 16 outer-conference games. The 'average' tax column is based on this (41xHome + 13xDiv + 12xIn + 16xOut) - Other average such as 'Division' is just an average of every team in that category.

Lol... this is either hopelessly naive, or deliberately obtuse.

You must be right... ALL of the Florida stars took "discounts" because of course players do not factor in their take-home earnings when agreeing to contracts. After all, they can't afford any tax advice. Ohtani didn't think about taxes either... players just aren't smart enough to consider these angles at all.

OR...

The Real World. Come join us Rubi.



What? Are you... what??!!

You honestly don't believe this do you?

I mean don't take my word for it... maybe an NHL GM, an NHL player and an NHL player's tax advisor might convince you... NHL free agency shows teams in states with no income tax have an advantage

Then again, likely not.

https://x.com/i/web/status/1797316951611727971

 

[ManofSteel55]

So what? If a player is offered $10m in Edmonton, Florida if they want the player is going to offer $10m too. They aren't going to say "we want you on our team but we are only going to pay you $9m because you pay less tax in Florida." It will cost either team owner $10m for the player.

Do you honestly believe that it doesn't make a difference? If a team can show that the player will make a few hundred thousand more per year AFTER TAX, then that is a big deal to players, and is absolutely and edge for teams in states with lower income tax rates.

Take Tkachuk for example. He signed an 8 year, 76 million dollar deal. In Florida, he has no state income tax, so he only has to worry about the federal income tax rate (37% I believe)

If he had stayed in Calgary, he would be paying the federal income tax AND provincial tax. It doesn't make a difference to the owner, as you said, 9.5M is 9.5M, but it makes a difference to the player, as their take-home amount in Florida would be more.

 

[PuckG]

But still no win. Which is the only thing that matters.

Context matters with the garbage comparison you used. If the Leafs had any semblance of post-season success, they wouldn’t be in the situation they are currently in.

 

[sena]

you all think owners want to sign up to spend more on players to add to the fact that these same owners also pay more taxes on profits.

good luck

so do people that sign in low tax states get an adjustment if they are traded to make up for the tax increase then?

 

[VivaLasVegas]

IMHO, same as all other big-dollar long-term signings: Fantastic if he can stay healthy; horrible if not.

 

[Yuke]

Oh an by the way, do you really expect Oilers would be playing in finals had they faced healthy Canucks these playoffs?

Before you toss out this question, remember Kane was playing injured and Henrique was not playing

 

[AM]

Because he wants to win? Crosby and Malkin both took about 13% of the cap on their third contracts, a nice discount considering they were the top two centers in the NHL at the time. I honestly think we'll see McDavid taking $14-16M. Draisaitl was massively underpaid his last contract so I can understand him not taking a discount this time.

It all comes down to what the cap is.

 

[Dr Jan Itor]

The new highest paid player in the in history of the NFL has a career 2-5 playoff record.

 

[Maple Leaf]

if he really wanted to win he would need a hometown discount

 

[57special]

if he really wanted to win he would need a hometown discount

what do you think he has done for the past seven years?