Lane Hutson has a tax advantage over Luke Hughes

Lane Hutson has a tax advantage over Luke Hughes
Credit: YouTube

Every time a player signs a big contract in the NHL, comparisons are made, and that's normal. That said, no two cases in life are alike. It's like the famous “for the same talent, we'll draft the little Québécois” that we often hear…For GMs and agents alike, you have to take advantage of the differences between two cases in your own negotiations.

Obviously, the fact that Luke Hughes signed for $9 million per campaign (over seven years) has an influence on Lane Hutson's file. The Canadiens' defenseman's agent can say that Hughes took a discount because he knows that his brother Jack is in town… and that his brother Quinn is coming.

But Kent Hughes also has an argument. As Renaud Lavoie explained yesterday on TVA Sports, Kent Hughes also has trump cards up his sleeve. And not just “Montreal is fun” or sentimental arguments…

In fact, an American like Hutson could take advantage of the retirement agreement we have here. According to the journalist, Hutson could save $1.14 million per year on the terms of an $8 million per season contract. That's quite a difference. And maybe that's why Jeff Gorton was saying that the Habs know how to ignore the tax aspect, which is a topic of conversation in Canada when you compare the situation to that in the U.S. By placing part of his money in such a trust, Hutson could take advantage of a convention that offers financial gain to away players. This advantage doesn't exist for a Devils player, for example. And that's good to know…

And don't forget that using signing bonuses (time is running out, as they will be limited in the future) can save Hutson, who spends time in the U.S. during the off-season, on taxes. For those interested, Marco D'Amico (RG media) also touched on the subject, analyzing the numbers.

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