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Home»NHL»NHL Must Address Tax Inequity in Tax Cap System
NHL

NHL Must Address Tax Inequity in Tax Cap System

JamesMcGheeBy JamesMcGheeAugust 19, 2024No Comments6 Mins Read
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Perhaps this represents a snapshot in time where it’s a coincidence that four of the six teams without state taxes have accounted for 11 of the final 20 conference spots overall over the past four years.

And if Florida beats Edmonton in the Stanley Cup Final, the NHL would have its fourth champion in the last five seasons from a tax-free state, joining Tampa Bay in 2020 and 2021, and Vegas last year. Colorado in 2022 is the exception.

It’s not about Rangers-Panthers. I have been write about the inequity within the budget ceiling system Tax rates were long before the Puddy Tats became the Ferocious Cats. It’s hard to miss. There’s an upside to a team being able to offer a little less on a contract because of tax issues.

Tampa Bay, Vegas and Dallas have each reached the conference finals three times in the last five years. Florida has been there twice. Nashville and Seattle, the other two no-tax state teams, have not.

Florida Panthers’ Vladimir Tarasenko celebrates after his goal against the New York Rangers during the third period of Game 6 of the Eastern Conference Finals. Getty Images

Bill Zito did a remarkable job as a general manager in Florida, as did Jim Nill in Dallas, Steve Yzerman and Julien BriseBois in Tampa, and George McPhee and Kelly McCrimmon in Vegas. They are all sharp and disciplined. They have built programs that have lasted.

They don’t need help.

By the way, all six teams other than Dallas used LTIR this year, so even the inherent advantage those teams have wouldn’t be able to cover the salary cap. Yes, it will start to fade next season — when does next season become this season? — when the salary cap increases, but the advantage won’t go away.

Florida Panthers general manager Bill Zito speaks to reporters during media day ahead of the 2024 Stanley Cup Final at Amerant Bank Arena. Mandatory Credit: USA TODAY Sports via Reuters Con

Every individual’s tax situation is unique. Just like every location. This is not about subtracting 10% from the cap for state teams that don’t pay tax. It would be complicated to find a formula that would allow for equivalence, but surely there are experts in the field who would be able to solve the problem.

It is not the NHLPA’s job to coordinate a change. In fact, the NHLPA could oppose it. Ninth Avenue certainly has no interest in it.

But the owners of the league’s other 26 teams should be pushing for a change that levels the playing field. Why should a minority of six teams have the power? Why don’t the owners of the Rangers, Islanders, Oilers, Kings and Ducks come together to fix the salary cap injustice that disadvantages their teams?

Connor McDavid led the Oilers to the Stanley Cup Final. NHLI via Getty Images

Yes, the Oilers are from a Canadian province with high tax rates. It is possible. The unfairness of the system can be overcome. But the Oilers could be an exception that proves the rule.

The collective bargaining agreement expires after the 2025-26 season. The board of governors is expected to appoint a committee to study tax inequities in the cap before the next round of negotiations.


Sheldon Keefe was a solid recruit in New JerseyHe’s a coach who brought structure to the Maple Leafs over a five-year span that involved dealing with elite talent and high-level egos.

I don’t care one bit for the public disrespect he showed Jimmy Vesey during and after the winger’s short, unproductive and ill-fated stint in Toronto, but I guess that’s fine, and I hope it was an isolated incident and that stuff like that is behind the coach.

New New Jersey Devils NHL hockey team head coach Sheldon Keefe speaks during a press conference, Tuesday, May 28, 2024, in Newark, NJ. AP

Of course, general manager Tom Fitzgerald has an obligation to acquire a clear No. 1 goalie whose work will instill confidence in the team instead of leaving a litany of doubts. I think that’s already been written.

It may be a draft-day deal, with the Devils willing to give up the 10th overall pick and it’s a matter of who bites, but Boston’s Linus Ullmark – a year removed from the Vezina, months removed from losing the No. 1 spot to Jeremy Swayman and a year away from free agency – and Calgary’s Jacob Markstrom lead the parade of candidates with Jake Allen in place as the backup.

The Devils also need to bulk up, that’s undeniable. They’re too reliant on talent. It’s never too early to get a head start on the conference finals.

Linus Ullmark might be someone on the move. NHLI via Getty Images

(Oh, I forgot, Kurtis MacDermid.)

I also think that heading into his sixth season and at 23 years old, Jack Hughes might want to abandon his surfer posture and present himself as a serious leader of his team.

Don’t get me wrong, two years ago I was touting No. 86 as a Hart Trophy contender, I could watch him play all night. But I thought a touch of arrogance crept into his public persona in the second half of last season, and it wasn’t particularly flattering.

Once again, Keefe has been able to navigate elite young talent in the spotlight and, playoff shortcomings aside, he has led an unbalanced team with erratic goaltending to between 102 and 115 points in each of his three full seasons behind Toronto’s bench. Keefe’s first two seasons were cut short by COVID.


If Chris Kreider and Mika Zibanejad return as teammates next camp, I’d be all for giving Brennan Othmann the first opportunity to play as a teammate on the right wing, and unless it becomes clear early on that it won’t work, the opportunity would be extended.


Last minute:

Kelly Sutherland was not selected as one of the four referees for the Cup final, but we have learned that he is going on a speaking tour instead.

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