

Unless the NHL veers off in a dramatically different direction post-Bettman - in which case, nothing is off the table - there will be little appetite at the ownership level to amend the CBA to account for the different tax jurisdictions in which players play. Still, having noted that there’s a kinda-sorta precedent in place, the specific answer is no. However, the program was a tacit acknowledgment by the league that there was a systemic financial gap between teams that operated north and south of the border that needed to be addressed if the goal was to create a more equitable financial playing field - which was what the hard-cap system was theoretically designed to do. Now, it wasn’t strictly an apples-to-apples comparison to the question raised here, because one dealt with the currency imbalance and this question asks about tax rates. The league tried to eliminate a form of competitive imbalance once before in the Gary Bettman era, when they introduced what was known as the Canadian assistance program in the pre-salary cap days to address the disparity between the Canadian and U.S. Once Bettman retires, hopefully soon, will the League look at ways to eliminate this financial disparity in what is supposed to be an equitable system? - Timothy S.
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These teams have a competitive advantage … and Bettman has no reason to change this as the low-tax teams are frequently located in the southern U.S. With the NHL’s salary cap, teams in locations with higher income taxes are at a disadvantage as players can make more signing for less on certain teams. Human behavior is, after all, a difficult thing to predict.īut a rise in the cap will help Toronto afford an Auston Matthews extension, Edmonton afford a Leon Draisaitl extension, and Colorado pay that $12.6 million Nathan MacKinnon extension that makes him the highest-paid player in the league as of next season.
#SPURS HYPE SQUAD SALARY FOR FREE#
The real unknown here is: Once there’s all that extra money in the system, will teams revert to their pre-flat cap spending habits and wildly overpay for free agents again? Or does the discipline they’ve been forced to show working with a budget change behavior and make teams allocate their salary-cap dollars more prudently?ĭeep down, you suspect players and agents believe teams won’t be able to help themselves when it comes to spending habits, especially for grade-A free agents, and that the pre-flat cap excesses will bubble up again once the cap jumps. That’s extra money a select handful of (usually) star players can count on to boost their earnings - and why so many of this year’s UFAs took short-term deals. It means by the summer of 2025, there should be an extra $10 million or so in additional across-the-board spending possibilities for teams. Happily, that debt is due to be paid off in the 2023-24 season, at which time the cap is estimated to rise by anywhere from $4 to $5 million year over year, and the expectation is it will increase by a similar amount the following season. Under the CBA, because NHL players and owners divide revenues 50-50, the sharp decline in revenue during the pandemic resulted in debt in the neighborhood of $1 billion that needed to be repaid by players to owners. Let’s begin by noting that the NHL’s flat salary-cap era is tied to the league’s COVID-19-related revenue losses. Thanks! - Jason H.ĭo you think the next few free-agent classes will see a lot of higher AAV deals w/ term once the cap goes up and teams have more to spend? Or is all the talk about the cap increase a tad overblown since it won’t be something dramatic like we have seen in the NBA. What do you think the cap will look like next year and who do you think it’ll help the most? By that, I mean not only teams but also particular free agents. (Questions have been lightly edited for clarity and brevity.)
