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

[thebeernerd]

Because it's a bullshit talking point, OP.

 

[Legion34]

Because it's a bullshit talking point, OP.

NHL agents players coaches and GMs disagree

 

[Canovin]

It definitely helps. Imagine the Oilers or another contender with an extra 10M cap space.

 

[HisIceness]

The solution is to write to your congressman and say "Hey man, our local NHL team sucks but if you lead the charge to eliminate income tax in our state, they'll be a dynasty tomorrow".

 

[DuklaNation]

Income taxes are definitely a factor. Anyone who says otherwise has never made a lot of money nor have they worked with wealthy individuals.

 

[cowboy82nd]

Ban indoor rinks and hold all games on natural ice. Fixes so many issues with one swift move.

Great!!!! Just destroy the league as we know it. Less games, less revenue and less fans attending. Perfect.

 

[FissionFire]

The vast majority of players make almost nothing from endorsements. The ones who do ala Crosby and Mackinnon get endorsements regardless of where they play.

Do you have any statistics to back this up or is that just your impression?

 

[PistolPete]

It definitely helps. Imagine the Oilers or another contender with an extra 10M cap space.

But why aren't the teams in (no income tax) NIT states mopping up across all leagues if it's a big factor?

 

[PistolPete]

Income taxes are definitely a factor. Anyone who says otherwise has never made a lot of money nor have they worked with wealthy individuals.

Then why aren't no income tax (NIT) states mopping up in all of the Big 4?

 

[PistolPete]

Income taxes are definitely a factor. Anyone who says otherwise has never made a lot of money nor have they worked with wealthy individuals.

Then why aren't teams in NIT states mopping up across the Big 4?

 

[Machinehead]

Yup. It's interesting how billionaires are lining up to pay over a half a billion dollars for the privilege of owning one of these franchises that allegedly don't make all that much money.

This but unironically.

 

[Canovin]

But why aren't the teams in (no income tax) NIT states mopping up across all leagues if it's a big factor?

Luxury tax.

As for the NHL, states with no income tax. Dallas, Vegas, Carolina, Florida and Tampa all in the playoffs. Seattle would be up there too if the league help them as much as they helped Vegas.

 

[Bank Shot]

Do you have any statistics to back this up or is that just your impression?

Which part?

I mean I dont see Mattias Janmark or Calvin De Haan in too many commercials.

Not a lot of info out there on endorsements but I tend to see Crosby being at the top with maybe $5 million per year in endorsements. Being in a small market never hurt him.

Seems unlikely that 3rd line guys are making 7 figures per year on endorsements in any market.

Seems like taxes would be a bigger deal for almost every player than endorsements.

 

[PistolPete]

The solution is for people to have a better understanding of how taxes work.


Yup. It's interesting how billionaires are lining up to pay over a half a billion dollars for the privilege of owning one of these franchises that allegedly don't make all that much money.

Revenue is actually not likely the primary motive; it's ROI once the team is sold.

The Big 4 teams are an anomaly in how their value always increases and by as much as it doesm

 

[KirkAlbuquerque]

Here comes the gaslighting

 

[PistolPete]

Luxury tax.

As for the NHL, states with no income tax. Dallas, Vegas, Carolina, Florida and Tampa all in the playoffs. Seattle would be up there too if the league help them as much as they helped Vegas.

How does the luxury tax prevent them when the NIT offsets that?

 

[KaprizovSaveUs]

I don’t think it makes a substantial difference if at all, it just so happens a lot of these teams are really well run right now. I didn’t see Arizona benefiting. Seattle must not have gotten the memo either.

 

[Canovin]

How does the luxury tax prevent them when the NIT offsets that?

Rich teams will get any players they want. NHL can't do that.

 

[cowboy82nd]

NHL and other sports leagues could just make a national / Federal arrangement regarding sports teams.

Can you explain this, please?

 

[Bank Shot]

Cap hit rankings relative to player rankings is a meaningless comparison for a variety of reasons.

I would say it's pretty relevant when we are talking about whether a contract is team friendly or not.

If you set a high water mark for a player of your calibre that is substantially above what others make, well it's pretty hard to call it a team friendly deal.

And what is the NHL giving up to the NHLPA in exchange for restricting signing bonuses? You say "not that big of a deal"... but in reality, it's a very big deal to the side of the negotiation you decided to ignore.

Maybe 5% of players are benefiting from this? I dont think its a showstopper in negotiations. Certainly no where close to escrow. Massively back diving contracts were beneficial to a lot of players but the league shut those down. They could do it again is all I'm saying.

 

[DuklaNation]

Then why aren't teams in NIT states mopping up across the Big 4?

Sports leagues have different factors. When a NBA prospect in draft combine criticizes taxes in Toronto, maybe its a bigger issue than you realize.

Briefly describe your income tax experience.

 

[mr figgles]

It definitely helps. Imagine the Oilers or another contender with an extra 10M cap space.

It would just get eaten up in negotiations with their current players

 

[PistolPete]

Sports leagues have different factors. When a NBA prospect in draft combine criticizes taxes in Toronto, maybe its a bigger issue than you realize.

Briefly describe your income tax experience.

Lol

Let's just say I pay enough that Tennessee looks good.

And Brian Bellows cited taxes as his reason for not wanting to play in Canada- in 1982. But he didn't then turn down Minnesota and insist on playing in whatever state had the lowest tax rate.

So taking an individual.case is meaningless because it still doesn't explain why if NIT is such a big factor that the NITS teams aren't overflowing with talent and mopping up their respective leagues.

So the question then needs to be asked, why is that the case? Perhaps then we can find the answer. Weather, current team succxess, coach's reputation, team culture reputation, city night life reputation.....all of the above

 

[Tawnos]

I would say it's pretty relevant when we are talking about whether a contract is team friendly or not.

If you set a high water mark for a player of your calibre that is substantially above what others make, well it's pretty hard to call it a team friendly deal.

Sorry, but that's not how it works. You can't pretend all players are signing under the same set of circumstances. The cap changes, which means the value of the dollars changes too. At the time Panarin signed, Ovechkin was on a contract that was lower in cap hit, but at the time he signed it the deal was higher relative to the cap than the one Panarin signed (16.82% vs 14.29%). And then you have to factor that Ovechkin contract was signed when the player was RFA and not UFA, which means they were playing in different markets.

Starting the same year as Panarin's deal, Matthews signed a contract that was only slightly less than Panarin... but again, he was an RFA and not a UFA. Once he moved into UFA territory, the deal he signed was a higher percentage of the cap than Panarin's.

Cap hit % isn't perfect, but it's far far FAR better than raw cap hit.

Maybe 5% of players are benefiting from this? I dont think its a showstopper in negotiations. Certainly no where close to escrow. Massively back diving contracts were beneficial to a lot of players but the league shut those down. They could do it again is all I'm saying.

The league didn't shut-down the back-diving contracts by fiat. It was part of the CBA negotiation.

Escrow is a great example. The players wanted a cap on escrow. The league said "fine, we want slower cap growth." And we ended up with a cap on escrow and a new formula for calculating the cap.

Every single thing is a point of negotiation. It doesn't matter how many players benefit from it.

 

[PistolPete]

Rich teams will get any players they want. NHL can't do that.

So you're saying NY is so rich that they can overcome the NITS status they have?

OK. But that applies to maybe 6 teams. So at the very least the NITS teams should be in serious contention every season but aren't