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Old 05-16-2023, 08:24 PM   #3558
Slava
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Join Date: Dec 2006
Location: Calgary, Alberta
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Quote:
Originally Posted by Sylvanfan View Post
Well yeah you still pay taxes, but it's a lesser tax burden and I'm sure agents know all this stuff. These younger players are a bit smarter and better advised on these matters now too. I do think for players about to earn a max deal, they will start to look getting it in a place where they can keep more of that money.

In the NBA players hold a lot of influence over where they play. The NHL is way behind, but it will follow in those Footsteps eventually. So the players like Matthews, McDavid, Draisaitl who are all in line for max or close to max deals will start considering this more and more as time marches on. Still lots of space on those lower burden places with nicer weather for guys like McDavid and Draisaitl.
The tax burdens aren't that different though. First, you have the "jock tax" that all these guys pay. Basically if you play so many games in a state, there's a tax for those earnings. Then you have other levers like property tax, federal tax and that can even things out. And finally you have all kinds of tax planning and arrangements you can undertake to spread that tax burden out. For example, in Canada you can use things like RCAs (Retirement Compensation Arrangements).

So, without getting into the details here, you can rest assured that a guy like Huberdeau is paying almost the exact same playing here in Calgary as he would in Florida. And, if he's not, he should give me a call, because he's leaving a pile of money on the table.
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