Luxury Tax proposal
TSN is reporting that the NHLPA proposal contains a luxury tax that would impose a 75 cents on the dollar tax on payrolls over $40 million. This is what it would look like for the various teams - data from USA Today:
One of the NHL's complaints with the PA's previous proposals was that the luxury tax was toothless - a 20 cent on the dollar tax would not be a drag on salaries. Is this luxury tax enough?
With last years payrolls, a total of $191 million would be collected and somehow divided among the teams that were under $40 million in payroll.
Most plans indicated that teams would have to hit a minimum payroll to receive a share of the money - say $30 million. If the bottom 5 teams increased their payroll to $30 million then those 16 teams with payrolls less than $40 million would receive almost $12 million each.
What would happen in reality? Most of the teams paying between 40 and 60 million would likely drop down to share in the tax revenue. For the Leafs - you would think that they would be forced to drop their salaries by 8 or so million so their payroll cost would remain the same after the tax.
Sounds like a starting point to me.
| Team | Payroll | Luxury Tax | Player Costs
|
| Detroit Red Wings | $77,856,109 | $28,392,082 | $106,248,191
|
| New York Rangers | $76,488,716 | $27,366,537 | $103,855,253
|
| Dallas Stars | $68,578,885 | $21,434,164 | $90,013,049
|
| Philadelphia Flyers | $68,175,247 | $21,131,435 | $89,306,682
|
| Colorado Avalanche | $63,382,458 | $17,536,844 | $80,919,302
|
| Toronto Maple Leafs | $62,458,140 | $16,843,605 | $79,301,745
|
| St. Louis Blues | $61,675,000 | $16,256,250 | $77,931,250
|
| Los Angeles Kings | $53,833,800 | $10,375,350 | $64,209,150
|
| Anaheim Mighty Ducks | $53,296,750 | $9,972,563 | $63,269,313
|
| Washington Capitals | $50,895,750 | $8,171,813 | $59,067,563
|
| New Jersey Devils | $48,931,658 | $6,698,744 | $55,630,402
|
| Boston Bruins | $46,569,000 | $4,926,750 | $51,495,750
|
| Vancouver Canucks | $42,074,500 | $1,555,875 | $43,630,375
|
| New York Islanders | $40,865,500 | $649,125 | $41,514,625
|
| Ottawa Senators | $39,590,000 | $0 | $39,590,000
|
| Phoenix Coyotes | $39,249,750 | $0 | $39,249,750
|
| Montreal Canadiens | $38,857,000 | $0 | $38,857,000
|
| Calgary Flames | $36,402,575 | $0 | $36,402,575
|
| Carolina Hurricanes | $35,908,738 | $0 | $35,908,738
|
| San Jose Sharks | $34,455,000 | $0 | $34,455,000
|
| Tampa Bay Lightning | $34,065,379 | $0 | $34,065,379
|
| Columbus Blue Jackets | $34,000,000 | $0 | $34,000,000
|
| Edmonton Oilers | $33,375,000 | $0 | $33,375,000
|
| Buffalo Sabres | $32,954,250 | $0 | $32,954,250
|
| Chicago Blackhawks | $30,867,502 | $0 | $30,867,502
|
| Atlanta Thrashers | $28,547,500 | $0 | $28,547,500
|
| Minnesota Wild | $27,200,500 | $0 | $27,200,500
|
| Florida Panthers | $26,127,500 | $0 | $26,127,500
|
| Pittsburgh Penguins | $23,400,000 | $0 | $23,400,000
|
| Nashville Predators | $21,932,500 | $0 | $21,932,500
|
One of the NHL's complaints with the PA's previous proposals was that the luxury tax was toothless - a 20 cent on the dollar tax would not be a drag on salaries. Is this luxury tax enough?
With last years payrolls, a total of $191 million would be collected and somehow divided among the teams that were under $40 million in payroll.
Most plans indicated that teams would have to hit a minimum payroll to receive a share of the money - say $30 million. If the bottom 5 teams increased their payroll to $30 million then those 16 teams with payrolls less than $40 million would receive almost $12 million each.
What would happen in reality? Most of the teams paying between 40 and 60 million would likely drop down to share in the tax revenue. For the Leafs - you would think that they would be forced to drop their salaries by 8 or so million so their payroll cost would remain the same after the tax.
Sounds like a starting point to me.
