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What is the solution to balancing the salary cap with no tax states?

There are more facets to this discussion. For example players get taxed where they play IIRC so a NYR player gets taxed for all home games in NY (plus road games against NYI and BUF) but profits from no state income taxes in places like Florida or Texas for away games there. Just like all other players in the league.

Also, playing in a big market offers other advantages like revenue from local sponsorships and advertisement. There are a lot more businesses looking and willing to book a player for local television, online or radio ads.

Also playing and living in a place like NYC or other metropolises offers other quality of life advantages small markets just can’t offer: The big city lifestyle, tons of entertainment, cultural and culinary venues and general night life, investment opportunities that come up at parties or on the golf course and so on.

It becomes a rather complex and subjective calculation but all these factors do impact player decisions where they want to play or stay/leave. Of course the actual franchise and hockey operation, team mates etc play a part as well. One player might love playing in NYC for a rebuilding team and another might be looking for a more rural place with little media attention but a competitive team. Another might just look at how much TOI he gets. And another just wants to maximize his income. Another wants good schools for his kids. Another has a girlfriend or wife that wants good weather and a pool. Another wants to hang with celebrities. And so on.
 
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danktopshelf said:
The guys can probably shop for groceries at Publix or pick up something for their wife/kid at Walgreens and not be bothered. In Florida specifically, Panthers players/hockey players are probably not even among the 100 most famous people in the area. It's much better to be rich than famous.

McDavid would just be a guy here. Many people from Cuba/Colombia/Venezuela etc are unfamiliar with hockey. Even the old school "Florida Crackers" (real term that is official and used with pride, refers to cattle ranchers, mods, please look up the specific term), often have no background with winter sports.

You add in a favorable tax situation, and it's borderline unfair.
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So why wasn’t a team like Florida or Dallas or Tampa dominating before 2020?
 
Also,

The Yankees are pretty good. The Mets are pretty good. The Knicks are pretty good. Both of the MLS teams are pretty good. The Giants suck now but had a run among the NFL's elite from 2007-2012. The Liberty are the best f***in basketball team in the world.

California has high taxes. The Kings had a good run. The Warriors won a crate of championships. The Dodgers are the best team in the world.

Philadelphia is one of the most taxed cities in the country and they're building an NFL dynasty.

This feels like a Rangers problem.
 
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Machinehead said:
Also,

The Yankees are pretty good. The Mets are pretty good. The Knicks are pretty good. Both of the MLS teams are pretty good. The Giants suck now but had a run among the NFL's elite from 2007-2012. The Liberty are the best f***in basketball team in the world.

California has high taxes. The Kings had a good run. The Warriors won a crate of championships. The Dodgers are the best team in the world.

Philadelphia is one of the most taxed cities in the country and they're building an NFL dynasty.

This feels like a Rangers problem.
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I agree with your post, but had to look up who the Liberty were.
 
Would some European players prefer east coast teams do they can travel home more quickly? Maybe short breaks in their season they can get home and back but on the west coast that’s not so easy?
 
Relocate the Flames to Atlanta and the Oilers to Houston. That solves the tax disadvantage, the weather disadvantage, the attention disadvantage, and the Canada disadvantage all in one fell swoop. Easy peasy.
 
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RiverbottomChuck said:
Can you elaborate more? I believe you just curious in the breakdown.
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I've lived in three different states myself, one with state income tax kind of on the high end (Hawaii), one kind of not but it still exists (Arizona - although I never earned enough money while living there to have to pay any), and one with none (Florida).

Anecdotally, what you pay (if anything) to use government services in each of those three states kind of reflects that. For one example, when I first moved to Florida, I switched my Arizona driver's license to a Florida driver's license and it cost something like $35. In contrast, when updating my address in Arizona, it cost more like $10. When I lived in Hawaii, and changed my Arizona driver's license to a Hawaii license, I don't think I paid anything for it.
 
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Seems like a luxury tax system for maybe one or two contracts or getting rid of signing bonuses over a certain percent of the total contract fixes everyone's issues that are realistically fixable without having to change any govt/political figures/practices
 
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The no-tax states are markets Bettman wants to develop so if anything he probably sees it as a positive.
 
Golden_Jet said:
No that’s false and misleading, you obviously don’t understand a lot of the nuances of taxes, they still pay federal on it.
All depends on where residency is in off season, and then you also have jock taxes.
Matthew’s pays less as long as he spends 1/2 year plus one day in the states.

You already got the 15% wrong in OP.

Not to mention the poster I replied to, was talking about basing it on net income, which has been debunked numerous times, every time a thread like this created.

We need a link to the dozens of other threads on this topic, that explain how taxes work for athletes.
One of the worst misconceptions is people calculating taxes like they pay all 82 games in one place like in OP.
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Not false or misleading. Of course they pay federal on it. The point is, no state/city tax like NYR players would be subject to. Panarin would pay 10.3% to NY state and 3.87% NYC city tax. A little over 14% total. 14% he would NOT have to pay in florida with barkov or tkachuks contract.

Trust me as a guy from NJ I am VERY well versed in taxes and 6 months and a day. Tkachuks residency is florida, as is barkovs. They are paying $0 state or city income tax on 90%~ of their contracts.

Its a competitive advantage to say otherwise is INSANE
 
LaffyTaffy13 said:
Not false or misleading. Of course they pay federal on it. The point is, no state/city tax like NYR players would be subject to. Panarin would pay 10.3% to NY state and 3.87% NYC city tax. A little over 14% total. 14% he would NOT have to pay in florida with barkov or tkachuks contract.

Trust me as a guy from NJ I am VERY well versed in taxes and 6 months and a day. Tkachuks residency is florida, as is barkovs. They are paying $0 state or city income tax on 90%~ of their contracts.

Its a competitive advantage to say otherwise is INSANE
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Sure, you started off your thread that was wrong from the start. Insinuating players pay taxes for all 82 games in the their home state or province, with your 14 or 15% rate more.

You’ve skipped over residency, and many other factors.
So no, your not well versed on taxes, when you can’t get even get some of the easier parts of taxes correct.
 
RiverbottomChuck said:
Can you elaborate more? I believe you just curious in the breakdown.
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Property taxes, excise taxes, high fees for various licenses and permits, high state sales tax plus local sales taxes, taxes on Intl revenue, hospitality taxes on restaurants and hotels, inheritance and wealth taxes, etc. We get socked good for having a low state income tax.
 
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Ghost of Murph said:
Property taxes, excise taxes, high fees for various licenses and permits, high state sales tax plus local sales taxes, taxes on Intl revenue, hospitality taxes on restaurants and hotels, inheritance and wealth taxes, etc. We get socked good for having a low state income tax.
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Medical insurance and associated costs?
 
HockeyVirus said:
You are suggesting accountants can change tax laws?
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No, but accountants can find loopholes you may never think of yourself, suggest for how to structure a contract (mainly, whether you take, say, $10m AAV in the form or $9m signing bonus and $1m salary, the other way around, or something else like that), etc. to minimize the player's tax burden. When they're making as much as they are, the amount of money they save on their tax burden is often more than they pay the accountant to find these loopholes and contract structure suggestion, thus making it worth it to pay them.
 
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