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Mike Richards VIII Kings vs NHLPA

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Johnny Utah said:
So they owed him 21 without a buyout, a buyout would have been 14 and instead LA ended up paying 10k?

Correct me please.
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$22 million owed without buyout.
$14.6 million with a buyout.
$17.5 million was the settlement.

Very fair, considering the cap hit was spread out over 351 years.
 
tsanuri said:
I'm just going off the number reported by many on twitter and in articles, including the one linked a few pages back. Have no idea where the extra money is from.
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$6.6 MM is the cap recapture penalty for Richards and is evenly extracted over the first five years, resulting in the $1.32 MM each year through 2020. If you subtract out that amount through the first five years, you get the settlement amount for those years (with the obvious big jump in year 1).
 
That's all taxable income, correct? I know punitive settlements in CA are tax free but this is not a punitive settlement. After CA taxes makes that money look a lot different.
 
PJ Kings Hockey said:
I'd imagine it was more Jeff Solomon's work.
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I'm sure it was mostly his work However i would think it come from dean. The convo is something like

Dean Hey jeff we need to lower this Richards hit going forward
Jeff well dean ill see what i can do Lets negotiate with him A lower amount for him is probably worth not going thru the risk of a appeal
DEan yes that makes sense

The convo would be wayyyy more involved then this .This is the cliff notes of it.
 
The Tikkanen said:
That's all taxable income, correct? I know punitive settlements in CA are tax free but this is not a punitive settlement. After CA taxes makes that money look a lot different.
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Reclamation Project said:
I'm sure CA is getting a piece.
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He doesn't reside in California (at least, if he's smart, he won't), so no, its not taxable in California. It's not even taxable in the U.S.

I don't know Canada's tax system, but it would be taxable there, if applicable.
 
When Richards is receiving his payouts, he'll probably be living in Canada exclusively, so he shouldn't have to pay US/CA taxes. This is assuming he's not a U.S. citizen. Luckily for him, because Canada's tax on it's highest income earners is significantly lower than the United States.

Top income bracket tax rates:
Canada 29% + 13.16% Ontario Province Tax.
USA 39.6% + 13.3% State tax in California.
 
wait, does he have dual citizenship? i ask only because i think it affects taxes quite a bit.
 
cali101 said:
wait, does he have dual citizenship? i ask only because i think it affects taxes quite a bit.
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Richards is a Canadian citizen. In Canada, his first year's income would be taxed at the marginal rate of (wait for it) 49.52% on anything over $220,000, all inclusive of Federal tax, Ontario provincial tax and surtaxes. The rates are scaled so that one pays 20.05% on the first $40,922 and the rates go up from there until $220,000 where it maxes out at the 49.52%.

Correct me if I'm wrong but I've been told that NHL hockey players pay taxes to a large number of jurisdictions depending on where their games are played eg., an LA King would pay taxes federally and to the State of California on whatever % of his income is gained from playing half of his total games at home plus at San Jose and Anaheim. If he played one away game in Boston, he would pay Massachusetts State taxes (and Federal taxes) on 1/82 of his salary. There may also be city taxes involved in some jurisdictions. Players are paid during the season by the game in 2 week periods. I assume if a player plays 3 games in one 2 week period, he'd be paid 3/82 of his salary for that period; if 5 games, then 5/82 of his salary. It's an accountant's heaven. Richard's accountant will be a rich man trying to put his tax forms together for 2015.
 
moosehead81 said:
Richards is a Canadian citizen. In Canada, his first year's income would be taxed at the marginal rate of (wait for it) 49.52% on anything over $220,000, all inclusive of Federal tax, Ontario provincial tax and surtaxes. The rates are scaled so that one pays 20.05% on the first $40,922 and the rates go up from there until $220,000 where it maxes out at the 49.52%.

Correct me if I'm wrong but I've been told that NHL hockey players pay taxes to a large number of jurisdictions depending on where their games are played eg., an LA King would pay taxes federally and to the State of California on whatever % of his income is gained from playing half of his total games at home plus at San Jose and Anaheim. If he played one away game in Boston, he would pay Massachusetts State taxes (and Federal taxes) on 1/82 of his salary. There may also be city taxes involved in some jurisdictions. Players are paid during the season by the game in 2 week periods. I assume if a player plays 3 games in one 2 week period, he'd be paid 3/82 of his salary for that period; if 5 games, then 5/82 of his salary. It's an accountant's heaven. Richard's accountant will be a rich man trying to put his tax forms together for 2015.
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They are not paid by the game. They are paid by the day. Check is the same for every two week period over the course of the regular season (players are not paid during pre-season or playoffs).
 
Holden Caulfield said:
They are not paid by the game. They are paid by the day. Check is the same for every two week period over the course of the regular season (players are not paid during pre-season or playoffs).
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That's not how I understand it. The Jock Tax means players are taxed where they work, which is where they play that game.
 
I know racers taxes are deducted based on the location of each race. 20 different tracks = 20 different tax brackets (not adjusted to repeats in the same state of course).
 
Ron said:
He doesn't reside in California (at least, if he's smart, he won't), so no, its not taxable in California. It's not even taxable in the U.S.

I don't know Canada's tax system, but it would be taxable there, if applicable.
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California doesn't care where you live. If the company is in California, you pay taxes on it.
However if the company is in Texas and you worked in California, again you pay taxes on it.
So basicly if the money was ever in California, they want a piece.
 
onlyalad said:
California doesn't care where you live. If the company is in California, you pay taxes on it.
However if the company is in Texas and you worked in California, again you pay taxes on it.
So basicly if the money was ever in California, they want a piece.
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I think that's what I said, actually. (Except where you said if the company is in California, and you live and work elsewhere. You are taxed in the jurisdiction of your primary residence.)

For example, I work in California (mostly). My company is located in Virginia. But I work and reside here, so I pay California state taxes.

Athletes are taxed where they work. So if an athlete plays in Los Angeles one day, he is going to pay California tax for that day. If he plays in Dallas the next day, he is going to pay (NOPE). Texas doesn't have state tax. If he plays in New York the next day, he is going to pay New York state tax that day.
 
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