The issue of taxes on NHL players is important, and Sharks general manager Mike Grier has said he would hypothetically support a tax equalization plan. But will it happen?
Discussions about taxes that NHL players must pay have been in the spotlight over the past year.
The fact that some teams enjoy relatively low taxes is a topic that fans and media are delving into. And Tuesday, San Jose Sharks general manager Mike Grier addressed the issue of taxes during his midseason availability, saying he would support a tax equalization plan. — although he added that he “could see both sides” of the tax debate.
Hockey news investigated the tax issue for the Problem of money and powerAnd as many suspected, there are advantages to teams from tax-free US states like Texas and Florida. And voices from around the NHL have spoken out on the issue – including Nashville Predators general manager Barry Trotz, who told TSN Radio in July that tax-free states have a much easier time attracting new players and retaining them. than high-tax states (California, New York, New Jersey and Minnesota) or Canadian provinces. Buffalo Sabers general manager Kevyn Adams also said the place they play has high taxes – and no palm trees.
So you can understand why Grier would embrace a fiscal equalization plan. Indeed, given that California teams were tied for sixth in The Hockey News’ ranking of highest-tax states, Grier would be right to do everything he could to support leveling the financial playing field.
That said, finding a system that balances the taxes paid by players is no easy task. When this writer interviewed NHL Players’ Association Executive Director Marty Walsh in Novemberhe spoke directly on the tax issue.
“It’s complex because … it’s an issue that from jurisdiction to jurisdiction – when I say jurisdiction, it could be a state, it could be a province, it could be a county, it could be a region, it could be a country, whatever – the tax laws are different, right? » said Walsh. “And there is no uniform tax law. You know, for example, in Massachusetts, two years ago, voters voted (for) the millionaires tax. This affects most of our players.
“You know, it’s really hard to understand. It would be impossible because of the way tax structures and tax laws change, right? (They change) dramatically. And it has to be (solved) entirely by the government. So it’s difficult for us to intervene now.”
With these comments, Walsh poured cold water on the tax issue, but the new labor agreement will expire after the 2025-2026 season. Even though we know that hockey-related revenues will always be the major issue in the negotiations, there appears to be relatively good relations between the NHL and the NHLPAand who knows, the tax issue could end up gaining ground.
Regardless, seeing an NHL GM come out in favor of a fiscal equalization plan is a notable move. Grier and Trotz understand why low-tax states fare easier than high-tax states and provinces. And with the abundance of sharp minds within the union and on the management side, there could eventually be a plan to balance the balance of power when it comes to taxes.
Time will tell if we see progress on this issue. However, as of now, tax-free states will continue to have an advantage, and NHL fans are savvy enough to view the tax benefit as significant. Whether this problem will be resolved remains an open question, but it is unlikely to go away.
