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Something For Steven Stamkos To Consider

from Michael Traikos at the Toronto Sun,

According to sports tax guru Robert Raiola, even if Stamkos is paid $10 million per year he would actually take home less annually by playing in Toronto ($4.3 million after taxes and agent fees) than he would in Tampa Bay for only $8.5 million ($4.6 million).

“In order for Stamkos to go to Canada, they would have to pay him a lot more money than what he would have gotten to stay in Tampa Bay,” said Raiola, a senior manager at O’Connor Davies LLP, who has professional sports clients throughout the country. “Do I think it factors into free agency? Absolutely. I think in any sport where you have a cap, the teams that don’t have a state tax have a huge advantage.”

It does not get any easier if Stamkos were to sign in Montreal, where the combined statutory marginal income tax rate is 53.31%, or Winnipeg (50.4%), Calgary or Edmonton (48%) or Vancouver (47.7%). In fact, Ontario and Quebec have a higher tax rate than any state in the U.S., while Manitoba, Alberta and B.C. also rank among the top 10 of states/provinces with an NHL team.

It is just one of the many reasons Canadian teams not only have a harder time attracting top-end free agents, but also signing them at market value.

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Filed in: NHL Teams, St. Louis Blues, | KK Hockey | Permalink
  Tags: steven+stamkos

Comments

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Yeah, higher taxation in Canada and lower rate for Canadian dollar (in last few years) re well known facts. We just forget this first-grader stuff from time to time.

Posted by tutoka on 04/13/16 at 03:53 AM ET

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Something for Stamkos considering before signing with Detroit: While Detroit is a more attractive place regarding taxation, this positive side is offset by the absolutely collapsed urban scenery and almost non-existent city life. It is a fact a lot of players like to be in a nice city. They like to see a vibrant street crowd where people actually enjoy walking on the sidewalk and do not try to escape in to an isolation of the inside of their cars. Free agents are not going to fall for self-absorbed, over-historizing and emptied-out mantra about “classy organization” while the factual environment of their future life would be so dilapidated grin

Posted by tutoka on 04/13/16 at 04:29 AM ET

Temo's avatar

Posted by tutoka on 04/13/16 at 04:29 AM ET

When was the last time you’ve been to Detroit?

Posted by Temo from La Capital, Míchígán on 04/13/16 at 07:59 AM ET

Nathan's avatar

Posted by tutoka on 04/13/16 at 04:29 AM ET

When was the last time you’ve been to Detroit?

Posted by TEMO from La Capital, Míchígán on 04/13/16 at 07:59 AM ET

+1

And also, different strokes. Some people like the smaller, but still fun and vibrant suburban feel of communities like Ann Arbor, Plymouth, Royal Oak, and Northville.

Either point could be valid. I don’t know Stamkos. Maybe he likes the city, maybe he likes the burbs.

Posted by Nathan from the scoresheet! on 04/13/16 at 09:25 AM ET

Primis's avatar

When was the last time you’ve been to Detroit?

Posted by TEMO from La Capital, Míchígán on 04/13/16 at 07:59 AM ET

I’ll take “Never” for $500, Alex.

I’m from Michigan, not Detroit.  I have no particular attachment to the City of Detroit, and Detroit infuriates me in so many ways because of how blind Detroit and Detroiters often are to the fact that they are just a tiny part of a much larger state that has a lot more to offer.

That said, I’ve been to a lot of other cities, and Detroit is much better than them.  Cincinnati, Cleveland, and Columbus are all just terrible places that I can’t wait to be out from any time I’m there (Cleveland is by far the better of the 3 though).  Indianapolis is OK but very… I dunno’... sterile and boring.  I hate everything about Chicago as a city/place, all the things some people rave about Chicago I find myself instead hating (I may hate Chicago more than any other place in the US).

We never hate going to Detroit proper for events, we have a good time, and some of the suburbs are truly amazing places.  We never feel unsecure or unsafe.  The “blight” or “decay” isn’t as easy to find as it used to be, or as it’s made out to be now still.  It’s honestly not any worse than many other cities in the region.


RE: the taxation, that’s part of the reason why Nashville is always going to struggle.  Who wants to go play in NAS and pay their ridiculous taxes?  It’s also why FLA and TB sometimes land guys that make you scratch your heads—their taxes are low.  When you’re making THAT kind of coin, small difference sin taxation make a big difference,

And as for TOR…  it’s no accident that everyone player is always linked to TOR and almost none of them ever end up thee.  And it’s not just because of taxes, there are plenty of other strikes against it as well.  That so many media types still haven’t clued in to that yet tells you yet anotherstrike against the market.

Posted by Primis on 04/13/16 at 09:31 AM ET

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I was A couple of months ago. I use to go there every 4 months in average. Detroit simply cannot compete with top destinations. If you are a Michigander you might like it, but it is biased relationship. You can compare it to a relationship between mother and her criminal son, or son and his criminal mother. They love each other because they are still part of a family grin, despite the fact one of them did something bad.
Players who have nothing in common with Michigan have no restrains to compare Detroit critically with other NHL destinations. I am afraid despite certain improvement in downtown, Detroit environment is still subpar to many other NHL cities. Look at the piles of trash along I-75 between suburbs and downtown. Do you think Swedish or other players are proud to smell its atmosphere? I am sure they saw much better in their lives than that.

Posted by tutoka on 04/13/16 at 09:46 AM ET

Paul's avatar

Regarding the Detroit atmosphere, I am sure the new arena will be a breath of fresh air as opposed to the Joe, where you cannot do much around the arena unless you want to go for a swim in the Detroit River.

Also remember most of the playeres live in Birmingham, Bloomfield Hills, Novi, Farmington Hills, etc.

I used to live in downtown Birmingham on any give off day, I would run into 3-5 players on a regular basis, hell, I used to waive to Murph who seemed to be outside of his home on a regular basis.

Unlike other cities like Toronto, Chicago, NYC, Detroit athletes live in the burbs and a 20 minute ride will get them to the rink with no issues.

Posted by Paul from Motown Area on 04/13/16 at 09:53 AM ET

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One good thing about the future is Red Wings will move in to a new arena. It is supposed to be an excelent place, with much better amenities for team, management, fans, much better infrastructure for socializing. I hope it will help little bit with attracting free agents.
By the way, look at the contrast with the situation of New York Islanders: Cool suburbs, cool Brooklyn BUT horrible arena from hockey stand-point - hockey seems to be unimportant to arena owners, Islanders players have to travel by commuter train… Redwings have at least good arena and in this building, hockey is the king over all other events ....

Posted by tutoka on 04/13/16 at 10:04 AM ET

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RE: the taxation, that’s part of the reason why Nashville is always going to struggle.  Who wants to go play in NAS and pay their ridiculous taxes?  It’s also why FLA and TB sometimes land guys that make you scratch your heads—their taxes are low.  When you’re making THAT kind of coin, small difference sin taxation make a big difference,

Tennessee has no state income tax. That alone offsets their other taxation.

Taxes certainly play a role but not as big as they make it out to be. Plenty of free agents have signed with the Rangers over the years and taxes are outrageous in that area.

Posted by evileye on 04/13/16 at 11:39 AM ET

duhduhduh's avatar

much better infrastructure for socializing.


what does that mean?  I find the Joe pretty social, actually.

Posted by duhduhduh on 04/13/16 at 12:15 PM ET

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Plenty of free agents have signed with the Rangers over the years and taxes are outrageous in that area

New York city offsets this disasvantage of high taxes through the highest possible quality in city life.

What I mean by athemuch better ifrastructure for socializing?
For example enough restrooms, architectural quality, higher comfort level, close proximity of stores im the district, mid level suites where affluent fans like to actually hang out together instead of just buying tickets and not showing up becase of sort of a “mangy” feel to the arena.

Posted by tutoka on 04/13/16 at 06:18 PM ET

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Paul Kukla founded Kukla’s Korner in 2005 and the site has since become the must-read site on the ‘net for all the latest happenings around the NHL.

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