Prngr44 Posted May 29, 2012 Share Posted May 29, 2012 Oh yes I completely made it up ....so your telling me a billionaire(team owner) has never struck a deal with a politician to make their business more successful(like attracting a star player to work for that business) Look your obviously smarter than me so can you please post the section of the current cba that specifies where the salaries are gross or takehome and where it says the taxes can't be manipulated?. Thank you Link to comment Share on other sites More sharing options...
PlayStation Posted May 29, 2012 Share Posted May 29, 2012 Well the NHL also has the Escrow The NHL uses an escrow system. What is the NHL escrow system? Players pay a percentage of their salaries from each paycheck to an escrow fund. This money is intended to cover any potential shortfalls in projected league revenue. For example, if the NHL thinks it's going to make $2 billion in revenue, the salary cap will be based on that number. BUT if the league only ends up making $1.7 billion, there’s a $300 million shortfall. If there’s a shortfall, then the NHL takes the money from the escrow fund to make up the difference. However, if the league makes $2 billion, the players would get this money back. In the early salary cap years, the league was growing so this money ended up being returned to the players, but with the economy being what it is, there's a chance the players may lose a chunk of their salaries. The escrow payment has been set as high as 25% - that was in 2009. That meant that a quarter of each player's salary was held in escrow in case the money was needed to help offset shortcomings in the league's projected revenue. http://offsidesportsblog.blogspot.ca/2011/10/nhl-nhlpa-agree-on-initial-escrow-rate.html Link to comment Share on other sites More sharing options...
avelanch Posted May 29, 2012 Share Posted May 29, 2012 Oh yes I completely made it up ....so your telling me a billionaire(team owner) has never struck a deal with a politician to make their business more successful(like attracting a star player to work for that business) Look your obviously smarter than me so can you please post the section of the current cba that specifies where the salaries are gross or takehome and where it says the taxes can't be manipulated?. Thank you Link to comment Share on other sites More sharing options...
LostViking Posted May 29, 2012 Share Posted May 29, 2012 Not the ones with smart accountants... Link to comment Share on other sites More sharing options...
avelanch Posted May 29, 2012 Share Posted May 29, 2012 Personally I don't know US tax law very well, there may well be provisions where NHL players are allowed to earn their income strictly in their home state. In other words, Detroit's players aren't being paid by Panther fans, they are being paid by the Red Wings who get their money (all earned in Detroit) by Red Wings fans attending Red Wing games, so even though they work sometimes in Florida, the actual product purchased by fans would be made in Detroit, the money made in Florida would go to Panthers players. I could see an argument either way, so I am not sure what the rules are. Either way, it wouldn't be that tough to calculate for someone of experience. Link to comment Share on other sites More sharing options...
Prngr44 Posted May 30, 2012 Share Posted May 30, 2012 This can be quite true. Income earned from NHL salary could easily be offset by an income loss, resulting in net zero taxes. A player who inherits a failing business (say by purchasing it for free), for example, would be quite well protected in certain instances. If that player wanted to then fold the business when he retires from hockey, to avoid having to pay out the debts the business owes, well that would be a shrewd move. This of course is muddied by varying laws across provinces, states, and the two countries involved. Sometimes it is not so simple to cancel out employment income with business loss, but other times it can be done. It is not very difficult to calculate such things. Income is earned daily by the player, it is easy to keep a record of where the team is each day, and which players are active and which are sitting at home injured. It is just a matter of taking all the tax rates that apply, figuring out how many days they apply for, and prorating everything. A simple spreadsheet could handle this in a few minutes, of course you would have to understand enough tax law to apply the proper taxes and ignore the ones which don't apply. Personally I don't know US tax law very well, there may well be provisions where NHL players are allowed to earn their income strictly in their home state. In other words, Detroit's players aren't being paid by Panther fans, they are being paid by the Red Wings who get their money (all earned in Detroit) by Red Wings fans attending Red Wing games, so even though they work sometimes in Florida, the actual product purchased by fans would be made in Detroit, the money made in Florida would go to Panthers players. I could see an argument either way, so I am not sure what the rules are. Either way, it wouldn't be that tough to calculate for someone of experience. Not quite, there are work arounds for this sort of thing. The most basic being that if a player is to make 500k and worries he will lose half to taxation, the club could 'pay the tax' by giving him a 1M salary instead. This obviously would affect salary cap. The other obvious option is the illegal cash in a paper bag, I don't think that is a common NHL practice, but I assume its been done before. You can also work out a deal where the player would receive capital gains rather than income, this would likely be a deal involving the player returning to the team after retirement - and receiving some sort of stock that the team had been holding as a business investment. Capital gains are taxed much lower than income. Link to comment Share on other sites More sharing options...
avelanch Posted May 30, 2012 Share Posted May 30, 2012 Where the hell are you coming up with this stuff??? The tax returns would be a complete nightmare. I file 3 state returns and 1 federal return and it's a pain. Sure, I know that I made 10% of my annual income in this state, 15% in that state, and the rest in yet another state. It's still a royal pain to have to fill out 3 separate state returns and another federal. Pro players would have to fill out a state return for every single state they play in. Spreadsheet or not it's a pain. The entire tax code in the US is a pain. Throw in another 25 or 30 states' worth of codes and it's no wonder why a player wouldn't want to TOUCH their returns. Link to comment Share on other sites More sharing options...
WHL rocks Posted May 30, 2012 Share Posted May 30, 2012 Oh yes I completely made it up ....so your telling me a billionaire(team owner) has never struck a deal with a politician to make their business more successful(like attracting a star player to work for that business) Look your obviously smarter than me so can you please post the section of the current cba that specifies where the salaries are gross or takehome and where it says the taxes can't be manipulated?. Thank you Link to comment Share on other sites More sharing options...
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