A topic that has gained a bit of steam recently is regarding NHL teams that play in states that do not levy an income tax.
There are some who feel that those teams are getting an unfair advantage over others because players can pocket more money while playing for one of the no-tax teams than they would on the same contract for a team in a state that taxes income.
Florida is one of the few NHL states that does not tax income. Others are Tennessee, Washington, Texas and Nevada.
It’s pretty clear why the argument is suddenly being made.
The past five Stanley Cup Champions have been Florida, Vegas, Colorado and Tampa Bay back-to-back.
Between the Panthers and Lightning, they’ve accounted for each of the past five Eastern Conference representatives at the Stanley Cup Final.
So does playing in a no-tax state give these teams a financial advantage over the others in the league?
In his latest notebook for The Athletic, Eric Duhatschek discussed this topic with some interesting detail.
“The timing of these questions is interesting because five years ago, nobody saw Florida as a destination, even though it had the same advantageous tax structure as it does now,” Duhatschek wrote. “The main reason was the Panthers weren’t very good on the ice and played in front of one of the least engaged fan bases in the NHL. Funny how winning and good management can change things.”
Indeed, Florida winning the Stanley Cup last year and becoming a contender in recent seasons had less to do with their geographic financial advantages and more to do with the brilliance of General Manager Bill Zito and his staff.
Was it Florida’s tax situation that helped the team snag players like Gus Forsling or Carter Verhaeghe? As the article points out, what about the savvy moves to acquire Sam Bennet or Brandon Montour, or the guts it took to trade away Jonathan Huberdeau?
As social media reminds us, that trade wasn’t received as well at the time as it has been in the months and years since.
It’s a fun and timely argument for fans to make, but it doesn’t hold much water.
The Panthers have built one of the strongest, smartest and synergetic front office and scouting departments the NHL has seen.
If players are taking less money to join Florida, it’s not for the tax break.
Nobody was worried about Florida’s tax situation when the Panthers were struggling to make the playoffs for a couple decades.
Guys are gravitating toward the team now for one reason, and one reason only.
They want to win.
The tax thing…that’s just a bonus.
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