Should the NHL salary cap adjust for local income tax?

[Critical13]

Well how about we read this 15-page thread on the main board that was updated today.

https://hfboards.mandatory.com/thre...lary-cap-adjust-for-local-income-tax.2501657/

Thanks, I will give it a read tonight

 

[rent free]

yes. it also doesn't hurt that tampa bay has a competitive team

 

[Jumptheshark]

Nope. While I am a poor slob. I have been around Pros and their accountants and have seen the accountants at work.

 

[PlamsUnlimited]

No, because no one cares when the team sucks.

 

[PromisedLand]

Next CBA NHL has to account for the unfair advantage teams in Florida/Texas might have while building their team while big markets suffer due to tax implications.

Big markets like Boston, Toronto, New York, Montreal, California, Chicago, Philly etc... have to make their team with the same cap hit as the tax haven teams like Tampa/Florida etc... This is not "PARITY" this is an unfair advantage.

CBA must allow for big markets to spend over the cap to allow for tax adjustments so that "True Parity" is really exercised across the league.

What are your thoughts?

Sorry mods just saw this discussion is already taking place. Could you move this post to that thread. Thanks!

 

[Goose]

lol i got pwned.

if i have to be so faithful to the topic, i really am flabbergasted that this became such a hot topic for us fans in like, the last two years.

maybe my original post should have just been "who really cares? clearly high-tax jurisdictions don't stop players from signing for the ****ing rangers or bruins."

I think there's a percentage of players who get themselves into financial difficulties where an extra few hundred thousand in tax savings matters. Some guys just manage money poorly then there's guys like JJ getting screwed by his parents and losing pretty much everything. These guys are just people, and a LOT of people have the tendency to live above their means, no matter how much money they have.

I agree the "tax is lower" argument is overblown and probably not a major influencer in most situations, but I can see it having an impact on some people.

There's three ways to increase the cash in your pocket; increase income, decrease expenses, or decrease taxes.

 

[Muston Atthews]

I like how whatever is a current problem for the Leafs becomes a critical issue for the NHL.

When they were missing the playoffs by a few points, it was the draft lottery odds.

When they were losing in the shootout all the time, it was shootout points.

Now that it's cap crunch time, it's the tax situation.

Shhhhh.... the fans of teams who spend to the cap are talking

 

[Critical13]

No, because no one cares when the team sucks.

Does it hurt the competitive balance in the league, though? If some teams have 5-8 million saved off cap hits compared to other cap crunch teams?

 

[New Jersey]

I think there's a percentage of players who get themselves into financial difficulties where an extra few hundred thousand in tax savings matters. Some guys just manage money poorly then there's guys like JJ getting screwed by his parents and losing pretty much everything. These guys are just people, and a LOT of people have the tendency to live above their means, no matter how much money they have.

that was constructive.

 

[PromisedLand]

Certain places have minimal taxes and others have high taxes. For some star players this could be the difference of over a milion for income per year.

Should the cap be adjusted for post tax income instead of pretax income?

This would get rid of advantages teams from areas with barely any taxes for signing free agents.

On one hand it creates more parity, on the other hand it slightly complicates things.

YES!

Teams in Florida, Nashville, Dallas, Vegas get an unfair advantage when spending to the cap and on a 8 year deal this could be worth 8 to 16 million dollars (depending on the spread of 1M to 2M) for the players when signing contracts.

Next CBA must take this into account

Why should big hockey markets like Toronto, Boston, California, New York, Montreal, Pittsburgh, Philly etc... suffer due to state/provincial tax system?

new CBA must introduce post-tax parity when considering cap. Every team should have different cap based on the tax situation

 

[NyQuil]

Shhhhh.... the fans of teams who spend to the cap are talking

You're supposed to end a sentence with punctuation.

 

[joestevens29]

YES!

Teams in Florida, Nashville, Dallas, Vegas get an unfair advantage when spending to the cap and on a 8 year deal this could be worth 8 to 16 million dollars (depending on the spread of 1M to 2M) for the players when signing contracts.

Next CBA must take this into account

Why should big hockey markets like Toronto, Boston, California, New York, Montreal, Pittsburgh, Philly etc... suffer due to state/provincial tax system?

new CBA must introduce post-tax parity when considering cap. Every team should have different cap based on the tax situation

How is boston suffering? They barely have any taxes.

 

[Muston Atthews]

You're supposed to end a sentence with punctuation.

I wasn’t finished my thought. The original comment should read, “Shh.... the fans of teams who spend to the cap are talking, fans of teams whose players are actively jumping ship need not apply.”

 

[PromisedLand]

How is boston suffering? They barely have any taxes.

Boston has a 5.1% state tax on top of the federal tax of 39% that is about a 500K/yr loss on annual income (asusming things remaint he same) that is about 500K*8 = 4million less income on a 8 year deal.

 

[NyQuil]

I wasn’t finished my thought. The original comment should read, “Shh.... the fans of teams who spend to the cap are talking, fans of teams whose players are actively jumping ship need not apply.”

That "Enter" key is a tricky one.

 

[easton117]

Leaf fans must of found out Tampa is in their division. Which is odd to be concerned about because it’s the Bruins who remove them from the playoffs every year. They pay quite a bit of tax there too.

This whole thread screams millennial complaining.

 

[joestevens29]

Boston has a 5.1% state tax on top of the federal tax of 39% that is about a 500K/yr loss on annual income (asusming things remaint he same) that is about 500K*8 = 4million less income on a 8 year deal.

They are in the top 10 for best tax breaks. They aren't a good example. That difference is made up by them being an original 6 club

 

[joestevens29]

Are there complaints in NBA and NFL about this?

I sure don't hear about it. It's funny because the majority of Florida pro sports teams aren't exactly that great the past decade

 

[namttebih]

Where does it stop though?

The Canadian dollar is worth $0.76 today. Players get paid in USD obviously. Canadian teams therefore have an unfair advantage against US teams. Shouldn't this also be reflected?

But wait!

The cost of living in cities like Vancouver and Toronto is much, much higher than most US cities. Shouldn't this be reflected?

So in theory, places like San Jose with high taxes, high cost of living and uses the US dollar should have an extremely high cap hit and places like Tampa or Edmonton which benefit from 2 of the 3, should have a much lower cap.

 

[WillNy29]

YES!

Teams in Florida, Nashville, Dallas, Vegas get an unfair advantage when spending to the cap and on a 8 year deal this could be worth 8 to 16 million dollars (depending on the spread of 1M to 2M) for the players when signing contracts.

Next CBA must take this into account

Why should big hockey markets like Toronto, Boston, California, New York, Montreal, Pittsburgh, Philly etc... suffer due to state/provincial tax system?

new CBA must introduce post-tax parity when considering cap. Every team should have different cap based on the tax situation

This is laughably simplistic view on how this tax thing works lol

Did you know that if a player has a home in Canada but plays in the US the CRA could deem them a Canadian citizen for which they would pay canadian tax on all of their earnings in the year.

There are so many tax laws when calculating taxes especially for millionaires earning in different jurisdictions.

 

[WillNy29]

For some people but not all. There are convenient calculators we can use to see what the final tax rate is for a player in each city based on their home games and away games etc.


Yes, there is a legit impact to the tax differences. It gives teams in low tax areas an advantage clearly. How big of an impact does that have on signing players, is not so straightforward, but surely it will have an impact.

Just like quality of life, cost of living, travel time, all have impacts to players. I'd be tempted to say that they should normalize pay against taxes paid, but turn it opens up the conversation for normalizing other things which are not possible such as the other points I mentioned.

Those tax calculators suck they dont consider deductions and credits.

 

[njdevil26]

Not only should be adjusted for taxes, it should be adjusted to allow teams to keep their star players and build around them. If a team signs a player to an extension and they drafted that player, they should get some cap relief. Like the end cap hit is 75% of the actual cap hit or something.

 

[sharkhawk]

How does golden state dominate the nba instead of a team like the magic or grizzlies. Cal taxes are higher than anyone’s

 

[Balance]

No, states and cities should be punished for stifling businesses for socialist practices

 

[Joe McGrath]

I think making the salary cap more convoluted is definitely the best thing for everyone.