Preface - I am a Montreal Canadiens and although this topic affects the Habs, it also affects other Canadian teams and also some in the U.S.
It has always bothered me that Bettman has not addressed this subject, as it severely affects Canadian teams and likely to a lesser extent teams in California (Weather makes a difference).
Every time a UFA hits the market for a large contract, there is an immense difference in the Net/Take Home pay that goes into their pocket. As an example, and there are a variety of taxes that come into play (Income/State/City), a player signing in Nashville/Vegas/Florida/Dallas can likely pay up to 15% less taxes than a player signing in Toronto/Montreal/Winnipeg, and even Los Angeles, Anaheim, San Jose. So if I am a player worth 8 x $8 Million for a total contract of $64 Million, that is a total of $9.6 Million more in my pocket if I sign with Nashville over the course of the contract. ALMOST $10 Million DOLLARS! Who in their right mind would give that up to play for their hometown (except maybe John Tavares).
What this creates is an immense disadvantage to the higher taxed teams, and they have to severely overpay for good free agents. They ALSO have to overpay RFAs and gamble that they will be worth the contract (see Cole Caufield, PK Subban, etc.) in later years. In essence, it gives the lower taxed teams the pick of the litter to sign the UFAs, because those UFAs have a 15% advantage over other teams. By overpaying UFAs and RFAs, Canadien teams essentially get a roster that is 15-20% depleted.
It ABSOLUTELY makes sense for each NHL team, based on their Income/State/City tax, to have their own individual Salary Caps. If the Dallas/Nashville/Florida/Vegas Cap is $83 Million, then Toronto/Winnipeg/Toronto should have a cap of $95 Million. Or, make the Salary Cap is based on NET Salary.
With such a tight and minuscule Salary Cap in the NHL, every dollar counts and it boggles my mind that Bettman and company don't see this, or maybe they do because they want to grow the sport in the U.S. Personally, I think this is directly related to the Canadian teams not winning, as players want the warm U.S weather, but even more importantly pocketing an extra $5-$10 Million throughout their career. Thoughts?
It has always bothered me that Bettman has not addressed this subject, as it severely affects Canadian teams and likely to a lesser extent teams in California (Weather makes a difference).
Every time a UFA hits the market for a large contract, there is an immense difference in the Net/Take Home pay that goes into their pocket. As an example, and there are a variety of taxes that come into play (Income/State/City), a player signing in Nashville/Vegas/Florida/Dallas can likely pay up to 15% less taxes than a player signing in Toronto/Montreal/Winnipeg, and even Los Angeles, Anaheim, San Jose. So if I am a player worth 8 x $8 Million for a total contract of $64 Million, that is a total of $9.6 Million more in my pocket if I sign with Nashville over the course of the contract. ALMOST $10 Million DOLLARS! Who in their right mind would give that up to play for their hometown (except maybe John Tavares).
What this creates is an immense disadvantage to the higher taxed teams, and they have to severely overpay for good free agents. They ALSO have to overpay RFAs and gamble that they will be worth the contract (see Cole Caufield, PK Subban, etc.) in later years. In essence, it gives the lower taxed teams the pick of the litter to sign the UFAs, because those UFAs have a 15% advantage over other teams. By overpaying UFAs and RFAs, Canadien teams essentially get a roster that is 15-20% depleted.
It ABSOLUTELY makes sense for each NHL team, based on their Income/State/City tax, to have their own individual Salary Caps. If the Dallas/Nashville/Florida/Vegas Cap is $83 Million, then Toronto/Winnipeg/Toronto should have a cap of $95 Million. Or, make the Salary Cap is based on NET Salary.
With such a tight and minuscule Salary Cap in the NHL, every dollar counts and it boggles my mind that Bettman and company don't see this, or maybe they do because they want to grow the sport in the U.S. Personally, I think this is directly related to the Canadian teams not winning, as players want the warm U.S weather, but even more importantly pocketing an extra $5-$10 Million throughout their career. Thoughts?
