Taxes: Bill Daly is aware of the reality of canadian markets, but…

The NHL is, for better or worse, an accounting league. Obviously, the product is a sporting one, but the reality of the salary cap means that this aspect cannot be ignored.

Not everyone’s happy about it, but there you go.

And in recent years, seeing teams located in markets with extremely low tax rates enjoy success has brought the subject back to the table. After all, a Florida team has represented the East in the Stanley Cup Finals for the past five seasons, and a team like the Predators has just attracted a ton of free agents.

Meanwhile, Canadian teams (who don’t have these advantages) find themselves at a disadvantage in this regard… and it’s a problem that’s been denounced.

Bill Daly, Gary Bettman’s right-hand man, talked about all this… and as Matt Larkin (Daily Faceoff) wrote, he’s aware of the reality of Canadian markets, but he doesn’t sound like someone who wants to change the situation.

The no-state-income-tax advantage is real. The NHL players know it.

So will the NHL do anything to level the playing field?

NHL deputy commissioner Bill Daly addressed the topic and several other hot-button issues Tuesday at the Player Media Tour:https://t.co/tVdDmrkhZY

– Matt Larkin (@MLarkinHockey) September 10, 2024

Daly is aware that there’s a lot of talk about this (especially in Canadian markets), but at the moment, he doesn’t feel it’s jeopardizing the integrity of the league to the point where he needs to act. He notes that while some teams have a tax advantage, other teams have different advantages depending on their market.

Maybe that’s why a guy like Alex Newhook keeps hearing that guys want to come and play in Montreal, which doesn’t have that tax advantage over Florida.

The question now is whether the league will eventually have to change. The idea of a tax-adjusted salary cap has been floated… but it’s pretty clear the league doesn’t have that in mind.

If there is to be an adjustment, one senses that the league would opt for other options.

In any case, that said, Daly’s comments clearly suggest that there will be no immediate change at this level. It remains to be seen whether, over the years, the league will feel a greater need to correct the situation.

Overtime

– Great read.

Part 2 of my interview with Doug Armstrong: On his work as Team Canada Olympic GM already underway, on Canadian goaltending and an early roster deadline for Four Nations and more https://t.co/ezegx6tc1a

– Pierre LeBrun (@PierreVLeBrun) September 10, 2024