[News] Tavares tells the Islanders he is leaving

[Jay Random]

Originally Posted by Flames Draft Watcher

LOL. It matters because they live 3/4 of the year in Canada and thus the majority of their living expenses are in CDN$. They buy a house in Canadian $, eat out or buy groceries in CDN$, buy a car in CDN$, etc.

And every one of those things costs more in Canadian dollars than it does in U.S. dollars, because Canadian dollars are worth less and therefore Canadian prices are higher.

Canadians are STILL shopping in the U.S. to get bargains, because the apparently favourable exchange rate is more than cancelled out by higher prices on this side of the border.

[GioforPM]

Originally Posted by Jay Random

No, it isn't. Because prices in CAD are not the same as prices in USD. It doesn't matter a good goddamn which currency you get paid in, converting it to Canadian dollars does not magically give you more money. It just gives you a bigger number of less valuable dollars.

This is not high-flying financial wizard stuff here. You might as well say that a player should play in Turkey because 10M USD = 47M Turkish lire. It's a foolish argument to make.

However, income tax makes a difference from place to place.

[Jay Random]

Originally Posted by GioforPM

However, income tax makes a difference from place to place.

True. All seven Canadian markets have higher income taxes than the league average.

[Fire]

Originally Posted by Jay Random

True. All seven Canadian markets have higher income taxes than the league average.

Thanks Notley. Time to go back to the 10% flat tax.

[savemedrzaius]

It sure would be nice to have Tavares as the 1st line C and allow Matthews to get some easier competition as the 2nd line C.

I really doubt it happens but you never know.

[browna]

Smart work by Tavares' agents to include Toronto in the dog and pony show. You have the Toronto sports media from all networks staking out the building where they are meeting. As if they expect Tavares to be wearing a Leafs jersey out of the building, and am sure they are bringing in lip readers and behavioural experts to assess the body language of Babcock and Tavares etc, they are that lathered up just to be on site.

My guess is Tavares promised Babcock years ago (Olympics?) to allow him to make a pitch to him if he became a UFA and JT is being nice. Leaf fans are treating this opening as some sort of 2nd coming of Sittler.

Even smarter to have the Leafs go first and really drive up the price of the next teams.

My guess is still he stays on the Island or goes West.

[savemedrzaius]

Originally Posted by browna

Smart work by Tavares' agents to include Toronto in the dog and pony show. You have the Toronto sports media from all networks staking out the building where they are meeting. As if they expect Tavares to be wearing a Leafs jersey out of the building, and am sure they are bringing in lip readers and behavioural experts to assess the body language of Babcock and Tavares etc, they are that lathered up just to be on site.

My guess is Tavares promised Babcock years ago (Olympics?) to allow him to make a pitch to him if he became a UFA and JT is being nice. Leaf fans are treating this opening as some sort of 2nd coming of Sittler.

Even smarter to have the Leafs go first and really drive up the price of the next teams.

My guess is still he stays on the Island or goes West.

The Canadian sports media would be doing this even if the Leafs weren't involved. Tavares is a star and players like him don't make it to free agency often. Plus it's the summer so they are desperate for hockey news.

I really doubt Babcock and Tavares were making agreements and promises in 2014. "Ok, Babs, I promise to meet with whatever team you are coaching in 4 years. I promise!!" If there is any behind the scenes agreements it would be between Tavares and Shanahan. Shanahan is really tight with the Tavares' family apparently. Shanahan knows John from when he was a kid because he is a friend of the family I've read.

There is no driving up the price. Tavares is going to get paid no matter where he goes. All teams are offering similar contracts I am sure. NYI has the advantage of offering the extra year which is the big difference. I agree he ends up staying NYI though.

[Infinit47]

Originally Posted by savemedrzaius

The Canadian sports media would be doing this even if the Leafs weren't involved. Tavares is a star and players like him don't make it to free agency often. Plus it's the summer so they are desperate for hockey news.

I really doubt Babcock and Tavares were making agreements and promises in 2014. "Ok, Babs, I promise to meet with whatever team you are coaching in 4 years. I promise!!" If there is any behind the scenes agreements it would be between Tavares and Shanahan. Shanahan is really tight with the Tavares' family apparently. Shanahan knows John from when he was a kid because he is a friend of the family I've read.

There is no driving up the price. Tavares is going to get paid no matter where he goes. All teams are offering similar contracts I am sure. NYI has the advantage of offering the extra year which is the big difference. I agree he ends up staying NYI though.

I agree with moas if this, but with TO involved the Canadian media has been kicked into a higher gear than if he was meeting with say, Winnipeg...and I don't think it would be even close.

[transplant99]

Originally Posted by savemedrzaius

The Canadian sports media would be doing this even if the Leafs weren't involved. Tavares is a star and players like him don't make it to free agency often. Plus it's the summer so they are desperate for hockey news.

I really doubt Babcock and Tavares were making agreements and promises in 2014. "Ok, Babs, I promise to meet with whatever team you are coaching in 4 years. I promise!!" If there is any behind the scenes agreements it would be between Tavares and Shanahan. Shanahan is really tight with the Tavares' family apparently. Shanahan knows John from when he was a kid because he is a friend of the family I've read.

There is no driving up the price. Tavares is going to get paid no matter where he goes. All teams are offering similar contracts I am sure. NYI has the advantage of offering the extra year which is the big difference. I agree he ends up staying NYI though.

Arash Madani is not parked out some concrete structure in the middle of the day for 8 hours in Beverly Hills if the Leafs arent' involved. Period.

[dino7c]

Originally Posted by Jay Random

No, it isn't. Because prices in CAD are not the same as prices in USD. It doesn't matter a good goddamn which currency you get paid in, converting it to Canadian dollars does not magically give you more money. It just gives you a bigger number of less valuable dollars.

This is not high-flying financial wizard stuff here. You might as well say that a player should play in Turkey because 10M USD = 47M Turkish lire. It's a foolish argument to make.

No kidding...the reality is most things are cheaper in the US not more expensive

[Enoch Root]

Originally Posted by Jay Random

No, it isn't. Because prices in CAD are not the same as prices in USD. It doesn't matter a good goddamn which currency you get paid in, converting it to Canadian dollars does not magically give you more money. It just gives you a bigger number of less valuable dollars.

This is not high-flying financial wizard stuff here. You might as well say that a player should play in Turkey because 10M USD = 47M Turkish lire. It's a foolish argument to make.

Except price differentials don't fluctuate as much as currencies do.

When the dollar is 1.10 - 1.20, you're probably losing with respect to purchasing power.

But when it's over 1.30, you're definitely winning.

[Enoch Root]

Originally Posted by dino7c

No kidding...the reality is most things are cheaper in the US not more expensive

They're cheaper, but they're not typically 30% cheaper.

[Jay Random]

Originally Posted by Enoch Root

Except price differentials don't fluctuate as much as currencies do.

When the dollar is 1.10 - 1.20, you're probably losing with respect to purchasing power.

But when it's over 1.30, you're definitely winning.

Fair enough, but you're not winning by 33%, which is what GFG, FDW and others appeared to be implying.

I just looked up the most recent OECD figures, which have purchasing power parity for the Canadian dollar at 1.25 to the U.S. dollar (2017 figures). If that hasn't changed in the last several months (dubious), then an exchange rate of 1.33 CAD/USD means you gain about six percent by spending your money in Canada instead of the U.S.

But that's only on the money you actually spend. I guarantee you John Tavares is not going to spend the after-tax portion of $10 million. The bulk of that money will be invested, and as I mentioned earlier, investments cost what they cost no matter what currency you use. You don't get a discount on stocks, bonds, certificates of deposit, REITs, or commodities by paying for them with Canadian dollars.

At that level of income, just the difference in tax rates between jurisdictions is a bigger budget item than your entire cost of living. If Tavares earns $10m in Las Vegas or Florida, he keeps $6.1m after taxes. In Toronto or Montreal, he keeps about $4.7m. I think I can safely say that he is not spending more than $1.4m on the housekeeping.

[topfiverecords]

Chiarelli, Lowe, Mac-T, McLellan, Gulutzan, Yawney, McDavid, Gretzky and Katz are staying at Tavares' hotel trying to sneak DVDs into his room.

[Calgary4LIfe]

Hopefully Calgary is one of those other teams that he may end up talking to. If so, Treliving should show up early, and punch-out every other team's GM in the lobby. When that team doesn't show up in the agent's office, Tavares will simply take it as that team not being serious enough. Sigh... would take the Flames into bona-fide contenders for the next 6 years or more.

[Oil Stain]

Originally Posted by Jay Random

At that level of income, just the difference in tax rates between jurisdictions is a bigger budget item than your entire cost of living. If Tavares earns $10m in Las Vegas or Florida, he keeps $6.1m after taxes. In Toronto or Montreal, he keeps about $4.7m. I think I can safely say that he is not spending more than $1.4m on the housekeeping.

Exactly this. And their biggest expense which is housing is not something that is neatly divided along country lines.

A person buying a comparable home in Vancouver or Toronto is spending more money than a person in some US locations regardless of the exchange rate.

Calgary would have an advantage over some locations in the housing cost regard.

[GioforPM]

Originally Posted by Oil Stain

Exactly this. And their biggest expense which is housing is not something that is neatly divided along country lines.

A person buying a comparable home in Vancouver or Toronto is spending more money than a person in some US locations regardless of the exchange rate.

Calgary would have an advantage over some locations in the housing cost regard.

Presumably a player who buys a nice house in an expensive market can sell it at the same or better price when they leave/retire, though. So it's not like the cost of housing is a big deal.

[PegCityFlamesFan]

Within minutes TSN had an article about the leafs offering a max 1 year contract and a picture of Tavares in Leaf gear. Here we go.

[loob job]

I would offer him the max we could, players like him don't come to free agency very often.

[Flashpoint]

Unfortunately you have to look at Calgary as the least desirable location in the NHlL for the coming season.

Our team isn’t competitive.
Our building is obsolete.
Our travel is some of the worst in the league.
Canadian taxes.
Winter.

The only difference between Calgary and Edmonton right now is that they have a new building and Connor McDavid. So I guarantee if a player has a no trade list we’re on it.

Some of this stuff is out of our hands. Fortunately the two biggest factors for players are 1) money and 2) chance at a cup, so hopefully Peters and our new players can put up some wins and we can step in the right direction.

Thankfully at least for this coming season we have a shot at making the playoffs. Unlike the dumpster fire up north.