Rumor: Rumors & Proposals Thread | Broberg, Holloway and Ceci are Gone, Do We Add Another D Before Camp?
- Thread starter Bryanbryoil
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Yeah but they don't put stuff out there just for views. They are being told this by someone.
TopShelfGloveSide
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- Dec 10, 2018
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13.5 is more than fair in my opinion but it ain’t worth losing him over 500k.
Hope it’s true.
Montreal is paying Laine, Dvorak, Anderson, Gallagher, Suzuki and Caufield 40.88M this year.
Edmonton is paying McDavid, Draisaitl, Nuge, Hyman, Skinner and Arvidsson 38.63.
I dont know why but it made me chuckle.
Edmonton is paying McDavid, Draisaitl, Nuge, Hyman, Skinner and Arvidsson 38.63.
I dont know why but it made me chuckle.
Shanahanigans
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Draisaitl is a premier player but paying 14 mill for his 30-38 year old seasons seems rich to me. Feels like we’re paying for past performance a bit.
Nostradumbass
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Where do I start?
- Typically collateralized loans aren't at face value
- Kane's bankruptcy proceedings have added material risk to borrowing against SPCs.
- Collateralized loans aren't at low interest rates, or even prime. You're typically getting closer to the high yield territory of 10%+ unless it is extremely over-collateralized and with highly liquid assets
- Income tax isn't being avoided/evaded or turned into capital gains tax. Capital gains are paid on the capital return minus interest paid. Income tax is still paid on the salary. Your suggestion of a conservative investment at 5-6% likely will not cover the interest on the loan.
- The Canadian government is currently in the middle of a battle with John Tavares over jurisdiction for where his taxes should be paid on his bonus, this is far from settled law at this point.
That just scratches the surface, but hopefully this helps.
Lay Z Boy GM
Registered User
I just want a Cup in the next 5 years. If we get one I don’t care if McDrai are way overpaid vets after, as long as they have rings.
Does Draisaitl even pay his income tax in Canada in the first place? He is a German citizen.
Tavares is not (last I checked) German.
What I was saying was the Oilers effectively cover the interest cost on a loan by paying the player even more but in return the player then agrees to defer more salary, driving his cap hit down.
I don't think institutions are never going to let pro sports athletes borrow money or open up lines of credit just because 1 player (Evander Kane) was irresponsible. If they operated that way, no one would get lent anything as plenty of wall street folks and regular folks have gone bust on loans in the past.
Honestly I could care less man. We need Leon long term. At that cost, with the salary cap now rising each year by a lot it seems, it may be tolerable (if this rumour is true)
It doesnt matter where hes a citizen.
Hes a resident of Canada, and working in Canada.
Of course hes paying income taxes here.
Not that simple. Auston Matthews pays less because of his bonus structure by claiming US residency.
Auston Matthews Shoots and Scores Tax Savings | Crowe Soberman LLP
On February 5, Auston Matthews signed a 5-year contract extension with the Leafs for $58.15M. Fans have reason to be thrilled today, but Canadian taxpayers may be a bit irritated.
I guess the question is how would taxation work if someone like Draisaitl defers a lot of his salary and then becomes a tax resident of Florida or takes up a part time coaching position next door to Germany in Switzerland in retirement for a couple of years for example?
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battlegoon
Registered User
It's interesting because these guys actually have been right a lot, they've just had a few details mixed up. Holloway and Broberg did sign 2 year deals the week these guys said they would. They were just wrong about the team it would be for and the dollar amount. And all they said was that the dollar amount "could" be 1.1 and 1.3 mil for them (basically what the Oilers had offered).
Then they said Kane wasn't expected to start on LTIR, which he's not. But it's not because he's ready to play. It's because we don't want to dip into LTIR.
So while they may have a few details wrong here or there, they've been right about a lot. Including the Bowman hiring the next day when no one else said it was going to be Bowman.
I gotta give them the benefit of the doubt on this. Maybe not on the actual numbers that Leon will sign for, but I sort of believe he could get signed this week potentially at this point. Guess we'll see.
A signing bonus that a player earns July 1st is likely taxed wherever they say their residence is. For Draisaitl that could be a number of different places.
In season salary is taxed by the state/province a player is on any given day. So when the Oilers are in New Jersey, any income earned that day will be taxed at NJ rates, in Nashville, Tennessee rates, in Edmonton, Alberta rates etc.
It’s why the tax thing isn’t actually as big of an impact as a lot of people make it out to be. Can’t imagine the amount of work an accountant needs to do to make sure it’s all filed correctly lol.
M Ace
Registered User
If say Draisaitl cleans Katz pool for half of the caphit it would be on Draisaitls personal account. Then sign the contract for the other half of the salary to have it count against the cap.
Win-win situation....
Fourier
Registered User
Media reads from other media recording it to sound fresh and different and more factual. Then the next media does it from that and so on.
Example last one was "We are hearing..."
One before "It is being reported ..."
Or "Have been told ..."
Or "My sources are saying"
All rubbish. Only fact if it happens or if the Oilers confirm.
Media need to do this because they need to post something .
Notice there are no or few actual reporters anymore. News comes from other news mostly.
Jimmi McJenkins
Sometimes miracles
Give me a Leon extension please, at $12M per with a bunch deferred
Glad it's finally happening.
Couldn't help but feel a bit of anxiety as the summer came to a close with no news of a Drai contract.
Looks like it's finally done. I bet the Mutts guys are right and that it'll be 8 years $14m/yr, they called the Bowman hiring the night before too. I think it's a bit rich but, whatever, will just be glad that it's done.
Just read back in the thread now, the deferral stuff was some major wishful thinking. Too many complications involved where everybody has to agree to such a thing.
Just read back in the thread now, the deferral stuff was some major wishful thinking. Too many complications involved where everybody has to agree to such a thing.
Then there is this kind of post. Says absolutely nothing and the next two posts equate it to being a fact that there is a signing today of Leon Draisaitl though it doesn't say it or really anything at all.
oilers4life5
Known ref hater
I want to see a ton of deferred money. Blow the league up.
This says everything if you know Bob.
walktheboulavard
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