Avalanche fans furious as NHL set to hand division rival huge free agent advantage
Photo credit: Photo by Andy Cross / The Denver Post
Colorado Avalanche fans are voicing their frustration as the NHL, under the terms of the current Collective Bargaining Agreement (CBA), appears posed to give the division rival Dallas Stars a major edge in free agency, a move many believe could unfairly tip the scales in the Central Division.
The NHL's new CBA gives tax-friendly teams like the Dallas Stars a major edge in free agency.
NHL set to hand Avalanche huge free agent disadvantage.
Vince Hull from Blades of Steel writes under the old CBA, players could structure deals around signing bonuses, getting taxed just 15% in Canada, with the rest taxed in their home state, often saving millions.
"Now, with the new CBA capping signing bonuses at 60% of any contract, those tax loopholes are shrinking. For teams in high-tax markets, this makes it harder to compete. But for no-income-tax states like Texas, it could be a major recruiting tool." -Hull
The Stars could capitalize on the new bonus limits by offering players a major tax advantage, making them an even more attractive free agent destination as Canadian teams lose a key bargaining chip.
Here's what one NHL agent told Reuters...
"When you cap bonuses, you're forcing players to look harder at where they'll actually take home the most money. States like Texas will stand out even more."
Even ESPN pointed out that the new bonus restrictions might quietly influence where players sign, nudging stars toward markets with more favourable tax climates. For those eyeing long-term deals, this change could reshape how contracts are built, and how teams sell their city to free agents.
"With Texas offering no state income tax, the Stars can highlight how much more money players actually keep compared to signing with Canadian teams or clubs in states like California or New York, where tax rates can cut deeply into salaries." -Hull
For Dallas, a team already boasting a strong roster, warm weather, and zero state income tax, the new rule could give them an even greater edge in free agency, making it easier to attract top-tier talent or lock down stars like
Jason Robertson for the long haul.
Previously on Avalanche Insider
POLL |
JUILLET 30 | 13 ANSWERS Avalanche fans furious as NHL set to hand division rival huge free agent advantage Do you think the Dallas Stars will finish first in the Central next season? |
yes | 5 | 38.5 % |
no | 8 | 61.5 % |
List of polls |