@@MagicMaker249hahaha like that's ever gonna happen. The first west coast team to win the cup, not to mention the best logo in the league which equals merchandise sales. Also Frank took a discount to stay while a certain baseball player down the road did the same for his new team. Anaheim will have a franchise for years to come bro.
Marginal income tax rates (MITR) are an interesting topic including that they vary by Canadian province and US stage among those that have NHL teams. Of those Canadian provinces that have NHL teams, going from east to west, for the 2024 fiscal year, the highest MITR was: - 25.75% for Quebec - 13.16% for Ontario - 17.4% for Manitoba - 15% for Alberta - 20.5% for BC Last June the Oilers came closer to winning a Stanley Cup than any Canadian team since the Canucks to end their 2010-11 season (the Habs’ having lost the 2021 Stanley Cup final in five games, two fewer than the Oilers would lose their 2024 one). Yet last year, Alberta, among those Canadian provinces, with NHL teams, had only the second-lowest MITR on the highest income earners. Could it be that, even with the lowest MITRs applicable to the highest income earners (before factoring in whatever federal income tax rates there are), limited playoff success, following the 2016-17 NHL season, has been why quite a number of players who they didn’t draft, but are still on those teams, are already in their 30s? I may have more to say a little bit later.
The Dodgers did differed payments for Ohtani and now Teoscar Hernandez. It's the way of the future for teams to afford a star studded roster to win championships I leagues with salary caps. It works for the players too since they still get their bag and now have a better chance of getting their rings too.
spoiler alert: baseball teams have been doing deferred contracts since pretty much the beginning of the 'MLBPA' and CBAs. (and probably before that even)
Bravo👏 Imagine if every team had the option of offering tax free contracts. Let the GMs-EDIT: OWNERS pay the taxes on their player’s contracts. Then it’s neutral across the board and the government still gets all their millions of dollars of income taxes from them🤷🏻♂️
I thought that this used to be legal and was the only way the Canadiens were able to attract players unwilling to be taxed in Quebec. However, I thought that the NHL closed that loophole.
Slavin and Jarvis of the Hurricanes JUST did this. This is part of the CBA which expires before the 2026 season. So they can’t just change it on the fly.
You need to look up the deal signed with the Dodgers and Shohei Ohtani. The difference between 9M/year and the 6 is that the one that will count on the cap is in today's value... and as someone with a bit of an accounting background... that's NOT tax evasion... that's tax avoidence... the difference being.. the former is a crime.. the latter perfectly legal.
@@dooshkid Sure... but at the same time.. same net effects... most of the $$$$ delayed until after they are done playing and living elsewhere avoiding the California taxes. Yeah, different exact details (Shohei does not need the money at the moment as he's weathy... where This guy probably needs some to live on)... and by deferring it helps the cap today...
You still may see states come after players for the money as the work they are being paid for was done in their state. Takes one bill in the legislature to close that loophole.
Because money lose value over time due to inflation. There's also opportunity cost to this, money the player might have made if he could invested sooner rather than later.
From trade rumors Frank Vatrano is still available via trade from trade rumor that teams that didn’t want to give assets for rentals now have more interest in Frank vatrano and with an extension his trade value has gone up if true or not we will see?
Sounds like an awesome deal for the Ducks, they can pay in future dollars that will be greatly diminished in value due to the loss in value of the currency, they save cap space because of that diminished value as well. Franky is taking a big risk since he will be taking payment in a dollar that is worth far less. This is a tax strategy that is created by someone who doesn't know anything about taxes or estate planning but it is much better than letting the state take half your money. Taxes are voluntary and have always been so. Better to know about taxes and estate planning than to sell your services short.
@@RobertAndruszko I assume nothing. Why else would he chose that? He made the choice of what he "thinks" is a better financial strategy, again taxes are voluntary, so his choice is made out of ignorance or philanthropy to his corporate bosses. I am certain his thinking resulted in his contract or he would not have signed it.
The last 900k he makes in 2044 will still be taxed somewhere. If he just paid the tax on the 900k now, take home 450k and invest it, in 2044 that 450k would grow to approx 2 million. He's trading 2 million for 900k. His first payment in 2035 will have a full taxable amount of 900k. If he paid the tax now (450k take home) and invested it and cashed it in in 2035, He'd have 450k thats already taxed and 550k in capital gains (which carries a much lower tax rate anyways). He's keeping 9 million pretax (best case 6 million post tax) by deferring it instead of 4.5 million post tax and almost 11 million in capital gains, which is probably 8 million take home - Wants 6 million take home instead of 12.5 - Get a new Agent
Pretty sure that the time value of money was fully considered on his side. Also, you CAN borrow on future guaranteed payments… so he could potentially borrow on that money and still earn. But nice trying to figure out what it may be.
tax law in the united states is you pay tax on income in the year it is received. it is simply the same as placing money ina retirement account/ira. at the the time you take the $$ you are making less for athletes you will still be paying the max federal rate but if you live in a no tax state like florida you can save up to 14 percent. look up the bobby bonilia (not sure of spelling) he gets like 1 mil a year from the Mets in defered comp and has not played in 20 years.
THIS IS BRILLIANT and a lot more nhl players need to take notes!! This guy is going to be paid and comfortable for the rest of his life such a good idea and move to get around paying brutal taxes
So tell me again what the point of shutting the league down for a full season to get a salary cap system that the players didnt want. I thought it was to get contract spending under control but i guess i was wrong. Seems like all the teams do now is find creative ways to give them ridiculous contracts anyways. Justdrop the damn cap and let the teams do what they are already doing anyways
This would help so many athletes if they did this. Think of all the young athletes that go bankrupt after their career ends. Come to think of it i think you can get bank loans on gauerenteed future earnings, so essentially you can go out and spend that money on a house and it should appreciate over 10 years in value therefore the 900k in the future will grow and not depreciate, this is smart af.
Except you’d never have to do it because of Nevada’s tax rates. California has some extra taxes comparatively. Which is part of the reason it’s harder to get people to sign out here.
California may go after him for taxes of the work done for the payment was in California. He is a probably going to make way less then if he just paid the taxes and earned interest on the money
If anyone buys the team, they acquire the contracts too, so yeah. They'll be paying him if they don't want to go through a lengthy legal deal that would make them lose even more money
Unlike tax evasion, tax avoidance is legal.
That's like pension.
Pretty sweet pension
Great move by Frank, getting paid after he retires.
Unless there is no Anaheim Ducks anymore when he retires, so who's gona pay?
@@MagicMaker249hahaha like that's ever gonna happen. The first west coast team to win the cup, not to mention the best logo in the league which equals merchandise sales. Also Frank took a discount to stay while a certain baseball player down the road did the same for his new team. Anaheim will have a franchise for years to come bro.
@@scawfan75 yeah that's probably never gona happen but better safe than sorry u know world is wonderous Place anything could happen.
Marginal income tax rates (MITR) are an interesting topic including that they vary by Canadian province and US stage among those that have NHL teams. Of those Canadian provinces that have NHL teams, going from east to west, for the 2024 fiscal year, the highest MITR was:
- 25.75% for Quebec
- 13.16% for Ontario
- 17.4% for Manitoba
- 15% for Alberta
- 20.5% for BC
Last June the Oilers came closer to winning a Stanley Cup than any Canadian team since the Canucks to end their 2010-11 season (the Habs’ having lost the 2021 Stanley Cup final in five games, two fewer than the Oilers would lose their 2024 one). Yet last year, Alberta, among those Canadian provinces, with NHL teams, had only the second-lowest MITR on the highest income earners. Could it be that, even with the lowest MITRs applicable to the highest income earners (before factoring in whatever federal income tax rates there are), limited playoff success, following the 2016-17 NHL season, has been why quite a number of players who they didn’t draft, but are still on those teams, are already in their 30s? I may have more to say a little bit later.
It’s the Bobby Bonilla clause, deferred payments for after he retires.
Super common in baseball, just not for why Bonilla happened lol
The Dodgers did differed payments for Ohtani and now Teoscar Hernandez. It's the way of the future for teams to afford a star studded roster to win championships I leagues with salary caps. It works for the players too since they still get their bag and now have a better chance of getting their rings too.
spoiler alert: baseball teams have been doing deferred contracts since pretty much the beginning of the 'MLBPA' and CBAs.
(and probably before that even)
Sweet, let's have all Canadian teams do that. You can also think of the deferred salary as a pension. He'll get paid while retired
McConnor gonna resign for league minimum and taking 200 mio over 14 years xD
Bravo👏
Imagine if every team had the option of offering tax free contracts.
Let the GMs-EDIT: OWNERS pay the taxes on their player’s contracts.
Then it’s neutral across the board and the government still gets all their millions of dollars of income taxes from them🤷🏻♂️
It would be taxable under Canadian tax laws when earned, not when received.
@@garycochrane4829 Time to become the 51st!
This kid is smart asf. His agent is smarter
I thought that this used to be legal and was the only way the Canadiens were able to attract players unwilling to be taxed in Quebec. However, I thought that the NHL closed that loophole.
Slavin and Jarvis of the Hurricanes JUST did this. This is part of the CBA which expires before the 2026 season. So they can’t just change it on the fly.
You need to look up the deal signed with the Dodgers and Shohei Ohtani. The difference between 9M/year and the 6 is that the one that will count on the cap is in today's value... and as someone with a bit of an accounting background... that's NOT tax evasion... that's tax avoidence... the difference being.. the former is a crime.. the latter perfectly legal.
not even close to the same deal and done for completely different reasons.. lol
@@dooshkid Sure... but at the same time.. same net effects... most of the $$$$ delayed until after they are done playing and living elsewhere avoiding the California taxes. Yeah, different exact details (Shohei does not need the money at the moment as he's weathy... where This guy probably needs some to live on)... and by deferring it helps the cap today...
You still may see states come after players for the money as the work they are being paid for was done in their state. Takes one bill in the legislature to close that loophole.
not sure why more players do not do this. especially those playing in new york/california and even americans playing in canada.
Because money lose value over time due to inflation. There's also opportunity cost to this, money the player might have made if he could invested sooner rather than later.
From trade rumors Frank Vatrano is still available via trade from trade rumor that teams that didn’t want to give assets for rentals now have more interest in Frank vatrano and with an extension his trade value has gone up if true or not we will see?
That's a lot of interest or stock lost over 10 years, just saying.
time to have tax offsets in the salary cap
Now the Ducks will have Frank Vatrano Day just like the Mets with Bonilla.
Yet Frank can play unlike Bobby
They watched Ohtani do it
Sounds like an awesome deal for the Ducks, they can pay in future dollars that will be greatly diminished in value due to the loss in value of the currency, they save cap space because of that diminished value as well. Franky is taking a big risk since he will be taking payment in a dollar that is worth far less. This is a tax strategy that is created by someone who doesn't know anything about taxes or estate planning but it is much better than letting the state take half your money. Taxes are voluntary and have always been so. Better to know about taxes and estate planning than to sell your services short.
The time value lost was likely computed as less than the tax savings. You assuming that the player did this without thinking is pretty far fetched.
@@RobertAndruszko I assume nothing. Why else would he chose that? He made the choice of what he "thinks" is a better financial strategy, again taxes are voluntary, so his choice is made out of ignorance or philanthropy to his corporate bosses. I am certain his thinking resulted in his contract or he would not have signed it.
This is nothing new. The Dodgers are literally doing this right now.
Been done before.
Shohei contract 🧐
The last 900k he makes in 2044 will still be taxed somewhere. If he just paid the tax on the 900k now, take home 450k and invest it, in 2044 that 450k would grow to approx 2 million. He's trading 2 million for 900k. His first payment in 2035 will have a full taxable amount of 900k. If he paid the tax now (450k take home) and invested it and cashed it in in 2035, He'd have 450k thats already taxed and 550k in capital gains (which carries a much lower tax rate anyways). He's keeping 9 million pretax (best case 6 million post tax) by deferring it instead of 4.5 million post tax and almost 11 million in capital gains, which is probably 8 million take home - Wants 6 million take home instead of 12.5 - Get a new Agent
Pretty sure that the time value of money was fully considered on his side. Also, you CAN borrow on future guaranteed payments… so he could potentially borrow on that money and still earn. But nice trying to figure out what it may be.
tax law in the united states is you pay tax on income in the year it is received. it is simply the same as placing money ina retirement account/ira. at the the time you take the $$ you are making less for athletes you will still be paying the max federal rate but if you live in a no tax state like florida you can save up to 14 percent. look up the bobby bonilia (not sure of spelling) he gets like 1 mil a year from the Mets in defered comp and has not played in 20 years.
THIS IS BRILLIANT and a lot more nhl players need to take notes!! This guy is going to be paid and comfortable for the rest of his life such a good idea and move to get around paying brutal taxes
I love this contract
It screws Cali a bit and I’m all for it
Sounds like he signed with the Dodgers
Normalize tax evasion
So tell me again what the point of shutting the league down for a full season to get a salary cap system that the players didnt want. I thought it was to get contract spending under control but i guess i was wrong. Seems like all the teams do now is find creative ways to give them ridiculous contracts anyways. Justdrop the damn cap and let the teams do what they are already doing anyways
They aren’t receiving any real benefit, as the true cost is the same as the cap hit.
It's 1.5 million less a year
This would help so many athletes if they did this. Think of all the young athletes that go bankrupt after their career ends.
Come to think of it i think you can get bank loans on gauerenteed future earnings, so essentially you can go out and spend that money on a house and it should appreciate over 10 years in value therefore the 900k in the future will grow and not depreciate, this is smart af.
Exactly something that nobody is talking about here. He’s got guaranteed money coming.
MLB (Dodgers) did this, no?
California tax evasion scheme
I love it
900k in 18 years will be worth like 200k today.
Dumb - Just pay the tax and invest the money - you'll end up with more in your pocket than you'll end up this way
Imagine the reactions if a VGK player signed this contract.
Signed, a VGK fan
What would that be? Same as LTIR shenanigans?
Except you’d never have to do it because of Nevada’s tax rates.
California has some extra taxes comparatively. Which is part of the reason it’s harder to get people to sign out here.
Brilliant move. Sacramento can g.g.fkd.
Nothing new
California taxes its residents to death. It's disgusting. Vatrano is an awesome player! He is also a fan favorite! Glad to see he got an extension!
California may go after him for taxes of the work done for the payment was in California.
He is a probably going to make way less then if he just paid the taxes and earned interest on the money
🎯
Not how it works. But…
Why not just give him stock in the team
Does he become an asset of the team
What if the team is sold
The new owner had to pay it
What if the team moved is Utah
If anyone buys the team, they acquire the contracts too, so yeah. They'll be paying him if they don't want to go through a lengthy legal deal that would make them lose even more money