Quote:
Originally Posted by Flash Walken
Taxes are 'a' factor. They are obviously not a massive factor because for the preceding 10 years when Calgary had the lowest tax burden of any team in the NHL they were pretty much only successful signing/retaining players from the general area.
If taxes were the biggest deal you'd think Every player in the league would avoid California and sign in Florida, and yet the California teams are at the top of every FA players list. If the Florida Panthers have such low taxes and it's such a nice climate, why do the Panthers routinely appear in the top 5 or 10 for being listed on a players no-trade list? Same with Phoenix.
The difference between the best tax jurisdiction and the 10th best is a few percentage points.
I mean, Brad Richards chose to take less money, and pay 12% more tax, to join the Rangers rather than play in Calgary.
The biggest factor when it comes to Canadian teams and taxation is the inability for players in Canada to claim their agent and lawyers fees like they can in the US, which is of course is not a tax jurisdiction issue but a revenue canada tax policy issue.
3 Years ago when the Oilers and Flames had the best tax jurisdictions in the NHL they were both top 5 least desirable locations to play in. Which is weird, because players playing for Canadian teams also receive an exchange boost being paid in US dollars and living in Canada. That's 20% more income just to live in Calgary and pay a couple of percent more tax than somewhere else.
An NHL player pays more tax to play for Minnesota than Calgary, and yet Minnesota doesn't appear to have much difficulty attracting free agents.
Player agents will tell you tax concerns for most players are an after thought. No one is deciding between playing for Carolina or Buffalo based on taxes.
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We already agree that it is 'a' factor not the factor.
My point was that the Canadian teams are swimming upstream already. At least they had a tax advantage for a while, but now, not even that.
As to the bold, between '06 and '15, the dollar spent most of that time at or near par - a huge disadvantage for Canada. Now the dollar is much better (from a player's salary perspective), but the tax advantage is gone.
We are saying similar things. I think taxes are a bigger factor than you do, but without question, they are not the only factor.
NY and LA are so popular, they can charge the highest tax rates and still be a desirable location. The Canadian cities do not have that luxury.
Edit: as to your last comment, everyone has different priorities. That is an empty statement. I know people that have moved because of taxes. I know businesses that have uprooted themselves and moved the entire company due to taxes.