Fort Lauderdale, Florida (AP) – The Florida Panthers are two victories to become the fifth champion of the Stanley Cup in the past six years from an American state without income tax.
The race made taxes a hot topic around the league. Many candidates who were going deep in the playoffs come from Sun Belt Lays, but the financial advantage is a great advantage for them to attract and retain players. Or is it?
“The tax is at best marginal, and I think that the real reasons are that we are trying to find a way to do our best to try to gain,” said Florida director Bill Zito, adding that the team and coach Paul Maurice are also key assets. “The sun does not kill us. It is a pleasant environment in which to live. It’s a good place for families. It’s a good place for singles. He has a little something for everyone, “
Commissioner Gary Bettman said before the final he “hates the problem”, and this was obvious on Monday evening on TNT when the retirement player who became analyst Paul Bissonnette suggested that tax problems should be resolved in the next collective agreement. Bettman called him ridiculous and asked for rhetorically if the league should subsidize teams in places like New York and Los Angeles.
NHL’s tax landscape
Panthers, Tampa Bay Lightning, Vegas Golden Knights, Dallas Stars, Nashville Predators and Seattle Kraken are the six NHL teams out of 32 in a place without state income tax. The deputy commissioner, Bill Daly, said that some other franchises have raised him as a concern, but added that the League does not share this reflection.
“These imbalances have existed forever,” said Daly. “There are so many reasons why a player can choose to play in a particular place for a particular team for a particular coach who has nothing to do with the tax situation on this market.”
The union seems to agree that nothing should be negotiated in the next CBA to alleviate variable tax levels. Deputy Executive Director of NHLPA, Ron Hainsey, who played for seven teams in 17 seasons from 2003 to 2000, cited a series of cuttings in places like Detroit, Chicago, Los Angeles and Pittsburgh over a decade and more like a hole in the argument.
“I am sometimes confused that this is the subject it is,” said Hausey. “To react in this way because Florida and Tampa have their moment here when they have the players, the right teams, took less to stay – it’s the same thing that occurred the previous 12 years with all these other things. So, when we talk, is it really a problem, I’m not sure it is.”
Hausey also stressed that this is not a leading problem in the NFL and the NBA. Of course, hockey still has a long way to go to catch up with football wages and basketball players, even with CAP in NHL in the coming years due to income records.
Alan Pogroszewski, who studied and worked with players on tax issues for more than a decade, said that a flexible salary ceiling explains the range of tax situations. Its AFP council noted that since 2016, teams in places without state income tax have qualified for the playoffs at a higher rate, providing what it called “a tax advantage integrated into several of these cities”.
“It’s a combination of many things,” Pogroszewski said on Tuesday. “There are more factors than the simple amount of money spent. This is how it is spent. But when you enter an equal playground and your dollar is more, then it allows you a certain latitude.”
What do players think?
Brad Marchand, a Canadian who played Boston for a decade and a half before being exchanged in Florida in March, does not reject taxes as a choice factor where playing.
“Canadian teams, most of them have an extremely high tax rate, then California teams, the same thing: these teams will have to pay more money to get some players than others,” said Marchand. “When you look at a team like Montreal, what are 52, 54%? Against a team like here or Dallas or other. It is a difference of 15%. When you add this, it’s a huge sum of money.”
Of course, money is not the only motivation factor. The success of Florida, Tampa Bay, Vegas and Dallas coincides directly with Zito, Julien Brisebois, Kelly Mcrimmon and Jim Nill being some of the best frames around and knowing how to assess talents and manage the ceiling.
Being able to play golf in winter does not hurt either, and some players prefer small markets with less pressure. Others are attracted to crazy hockey places where fans care deeply and hockey is either the best dog, or the only match in town.
Edmonton’s Oilers, in the final for a second consecutive year, are the perfect example.
“The passion that this fans base has for their team is incredible,” said Oilers Evander Kane striker, who also played at Atlanta, Winnipeg, Buffalo and San Jose. “Once you get here and learn a little more in the city in the city, you realize that there is really a little to do and it’s a good place for families and they have big summers.”
NHL players are paid in US dollars, even in Canada, withdrawing part of the tax stitching from places like Montreal and Toronto with high tax rates due to the exchange rate. But it can also be cut according to where the guys choose to live.
“It helps while you are there, but also the subsistence costs in Canada are also extremely high, because you are taxed through the roof on everything: what you buy, what you sell, what you do,” said Marchand. “So, yes, at the time, the costs are a bit different but not much, and then when you get back, you have 20, 30% less money, so it acts absolutely a role.”
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