NHL Taxes: Bettman & State Tax Issues
- The impact of state income tax on NHL teams and player acquisitions is sparking debate, especially during the Stanley Cup Finals.
- NHL player salaries are generally lower than those in other major sports.
- A player earning $3 million in New York would net $2.77 million before federal taxes, while the same player in California or Toronto would earn $2.6 million and...
Examine the hidden financial realities impacting the NHL: State income tax significantly skews player earnings and team competitiveness. Does the current tax system give tax-free states an unfair advantage in attracting top talent and vying for playoff spots? Commissioner Bettman downplays tax issues, yet a stark disparity exists, with players on tax-free state teams netting significantly more. observe how the absence of state income tax provides a financial boost, potentially influencing free-agency decisions and team performance. This financial advantage results in an imbalance, affecting both player compensation and team building. The article digs into the specifics of the NHL income tax, with comparisons between earnings of stars like Artemi Panarin and Aleksander Barkov. Imagine how a revision to the CBA could level the playing field. Discover what’s next over at News Directory 3.
NHL Income Tax Disparity: creating an Unfair Advantage?
Updated June 11, 2025
The impact of state income tax on NHL teams and player acquisitions is sparking debate, especially during the Stanley Cup Finals. While the Florida Panthers‘ success is often attributed to the state’s lack of income tax, their well-constructed and managed team also plays a crucial role. However, the NHL faces a genuine risk of imbalance due to this tax issue.
NHL player salaries are generally lower than those in other major sports. With only 18 players earning over $10 million annually and an average salary around $3 million, agents are increasingly advising clients to sign with teams in states without income tax to maximize earnings. This trend is evident in free agency and trades.
The disparity is significant. A player earning $3 million in New York would net $2.77 million before federal taxes, while the same player in California or Toronto would earn $2.6 million and $2.63 million, respectively. On average, players on teams in states with income tax earn about 11% less than those in tax-free states like Florida, Nevada, and Texas.
This NHL income tax situation allows tax-free teams to pay star players less while also attracting quality mid-tier talent. For example, Artemi Panarin of the new York Rangers earns $11.64 million, while Aleksander Barkov of the Florida panthers earns $10 million. Similarly,Igor Shesterkin (NYR) makes $11.5 million compared to Sergei Bobrovsky (FLA) at $10 million, and Adam Fox (NYR) earns $9.5 million versus Aaron Ekblad (FLA) at $7.5 million.
Over the past five years, teams from tax-free states have shown stronger results. Tax-free teams accounted for 30% of playoff spots, despite representing only 18.75% of the league. While these teams, such as the Panthers and Golden Knights, are well-managed, the financial advantage cannot be ignored.
NHL commissioner Gary Bettman dismisses the notion that the tax structure is a problem, pointing out that the conversation gained traction only after Florida’s success. However, the Panthers’ increased spending since 2013 has undoubtedly fueled their achievements.
What’s next
To address the salary imbalance, the NHL and NHLPA should consider revising the CBA to account for state income tax within the salary cap. this could involve offsetting the tax burden, ensuring a more level playing field for all teams and players.