Quote:
Originally Posted by Enoch Root
They are paying $4.57M/yr regardless. The deferral makes sense for the player, so they give it to the player. It also helps the team, because if they didn't defer, Vatrano would probably want more money (because he is paying higher taxes). So the team gets a better contract.
And it affects other teams, in that it helps California teams with player-attraction. If the Canadian teams can't do it, it just extends the gap further.
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We actually have a different deferral loophole but most US Accountants wouldn't know it and it has some consequences of its own in terms of cash flow, interest rates and growth as its more of a retirement savings program.
But thats outside of the NHL and wouldnt affect a team's Cap.
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