Lucas Peltier-USA TODAY Sports
As the NHL’s salary cap era evolves, the issue of states that operate with no income tax – and the attractiveness of that type of existence to NHL star players – has bubbled to the surface in recent months.
And although NHL deputy commissioner Bill Daly recently addressed the issue, stating the league is aware of the perceived problem, and it could be addressed over time, other elements go into what players choose for their long-term homes in hockey’s top league.
“There have been too many variables to really control all of the (factors that makes teams attractive) – including the fact that there are some markets that are very highly desirable to players that have kind of the highest tax rates in the world,” Daly told THN deputy editor of digital media Michael Traikos at a recent media event. “Yet there are other opportunities, other things that make those markets attractive to players. I just think that there is so much that goes into the equation of where a player wants to play, what he’s willing to take to play there, and a lot of that has to do with team chemistry and how teams are constructed and how the player sees himself fitting into the team in terms of need. To account for all those variables, I think, would be a very difficult exercise.”
There has long been a perception among media and fans that, for a variety of reasons, the NHL’s seven Canadian teams have more difficulty attracting high-end talents to their city. Certainly, Canada’s tax system cuts deeper into players’ salaries than many American states, and that fact, along with the harsher weather, causes players to move to no-tax states such as Florida and Texas, but Daly acknowledged the issue without committing to any specific solution.
“Obviously there’s chatter out there, specifically in the Canadian media that the Canadian franchises are disadvantaged,” Daly told Traikos. “We take that chatter seriously and we always look for ways to make the system better. But I don’t have any obvious answers.”
Daly also spoke to potential solutions such as increasing the cap ceiling for Canadian and high-taxed American cities. And the answer, he said, was easier said than done.
“I don’t think we could ever had a different cap for different teams, even though we kind of do in some respects, with respect to how the CBA works and bonus overages and the like,” Daly said. “So I suppose there’s a formula that you could think of that way.”
The NHL is famous for moving slowly in regard to making serious changes to its collective bargaining agreement with the NHL Players Association, but with a new CBA due in 2026, there’s a fair possibility the labor agreement could be modified to even out the financial playing field and create as much competitive parity as possible. Yet Daly cautioned that expecting changes in that regard in a hurry is probably going to be disappointing for Canadian fans who want this issue tackled.
“I don’t think this issue is to the level of kind of trying to push something through, particularly without really giving it some advance thorough thought and running it through all the potential channels,” Daly said. “Sometimes when you rush to do something, based on chatter, you kind of step into a hole and the unintended consequences kind of bear their heads. I think we continue to be satisfied with the level of competition in the league and how competitive it is and we’ll continue to monitor it and if we can make it better we will.”
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News Summary:
- NHL Deputy Commissioner Bill Daly Addresses Perceived Parity Issue And NHL's 'No-Tax' States
- Check all news and articles from the latest NHL updates.