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Thread: Karlsson to TB??

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    Default Karlsson to TB??

    This is NOT my own speculation- in fact makes very little sense to me- but on the most recent 31 thoughts podcast Elliotte spent a decent amount of time talking about how they are one of the biggest favorites outside of SJ. One of the big factors is that unlike SJ which apparently is a heavily taxed state- TB is tax free! So not only is there potential to sign him but they were speculating he could and would likely have to take a major haircut to keep in line with Hedmans contract but because of the tax situation he might still be coming out ahead money wise. This all sounds totally nuts to me but Friedge is about as legit as it gets. Can you imagine in cap leagues if EK signed in Tampa AND at a discount!! Please excuse me while i wipe the drool off my keyboards :P

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    Default Re: Karlsson to TB??

    He may be willing to take a paycut to play there, but ask him to cut his hair and I think we'd have a problem.
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    Default Re: Karlsson to TB??

    I wouldn’t get to drooley just yet. There is definitely smoke in TB which could lead to fire but it’s still the very early stages. Tampa is a income tax free state but that break isn’t as big as most make it out to be. NHL players pay state income tax to the places they work so only his time Tampa would be tax free. All road work is taxed to the respective states. It is still a good chunk of money saved but I don’t believe it’s a driving force like most believe.
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    Default Re: Karlsson to TB??

    Quote Originally Posted by Bstbullies View Post
    I wouldn’t get to drooley just yet. There is definitely smoke in TB which could lead to fire but it’s still the very early stages. Tampa is a income tax free state but that break isn’t as big as most make it out to be. NHL players pay state income tax to the places they work so only his time Tampa would be tax free. All road work is taxed to the respective states. It is still a good chunk of money saved but I don’t believe it’s a driving force like most believe.
    According to CapGeek, an $8 million salary in Tampa is worth a $10 million salary in SJS. They might be wrong, but if not, that's pretty spot on.
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    Default Re: Karlsson to TB??

    This "news" is about a year old. It was very widely reported in the Ottawa press last year that the major difficulty the Sens had with moving Karlsson is that the only team he'd consider signing a long-term deal with was Tampa Bay. (And for whatever stupid reason, Ottawa didn't want Erik in the Eastern conference).

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    Default Re: Karlsson to TB??

    Quote Originally Posted by GavinC View Post
    According to CapGeek, an $8 million salary in Tampa is worth a $10 million salary in SJS. They might be wrong, but if not, that's pretty spot on.
    You and Capgeek could be right as I’m not an accountant. Saving 2M on 10M a year doesn’t add up to me though. A 5% state tax on 10M would be 500k. Maybe capfriendly is comparing a Canadian team (higher federal tax) to the US AND state tax? I was just trying to point out, say over a 70M 7yr deal he’d be saving a little over half of 3.5M we’ll just say 2M over 7yrs. It’s a big chuck of change but if a higher taxed team offered 73.5M 7yr it’d be basically the same take home money. There’s a difference, just not a big one. I couldn’t find the article that dove into this but I did find a Bloomberg article https://www.forbes.com/sites/kurtbad.../#4e80dd7c411e

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    Default Re: Karlsson to TB??

    If this happens that pp1 is going to set records
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    Default Re: Karlsson to TB??

    Quote Originally Posted by Bstbullies View Post
    You and Capgeek could be right as I’m not an accountant. Saving 2M on 10M a year doesn’t add up to me though. A 5% state tax on 10M would be 500k. Maybe capfriendly is comparing a Canadian team (higher federal tax) to the US AND state tax? I was just trying to point out, say over a 70M 7yr deal he’d be saving a little over half of 3.5M we’ll just say 2M over 7yrs. It’s a big chuck of change but if a higher taxed team offered 73.5M 7yr it’d be basically the same take home money. There’s a difference, just not a big one. I couldn’t find the article that dove into this but I did find a Bloomberg article https://www.forbes.com/sites/kurtbad.../#4e80dd7c411e
    Yeah I'm not either, just the most legit calculator I could find (CapFriendly sorry, not CapGeek RIP). State tax in SJ is 12.9% though, so quite a bit more than 5% (again, according to CapFriendly). It works out to roughly a million difference after taxes.

    SJS (10/8): $5,030,159/$4,036,000
    TB (10/8): $6,335,012/$5,075,012

    Check it out for yourself: https://www.capfriendly.com/post_tax_calculator/
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    Default Re: Karlsson to TB??

    Friedge quotes the equivalent value (approx) - likely not to the penny but probably close enough. I'll listen again and post what he said...

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    Default Re: Karlsson to TB??

    Sorry he never said an equivalent price point- just that he'd have to take hedman money or less and that it's a tax free state. He also said he thinks TB is currently the frontrunner and that if given a chance Karlsson would find a way to make it work.

    @ alsrevenge- who called it news? I posted in trade rumors and listed it as "something I heard on a podcast"- lol!

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    Default Re: Karlsson to TB??

    Quote Originally Posted by GavinC View Post
    Yeah I'm not either, just the most legit calculator I could find (CapFriendly sorry, not CapGeek RIP). State tax in SJ is 12.9% though, so quite a bit more than 5% (again, according to CapFriendly). It works out to roughly a million difference after taxes.

    SJS (10/8): $5,030,159/$4,036,000
    TB (10/8): $6,335,012/$5,075,012

    Check it out for yourself: https://www.capfriendly.com/post_tax_calculator/
    Yeah that makes a lot more sense as California has by far the highest state tax rate, most states fall in the 3-6% range. 12.9% is asinine. I’m still not sure if CF accounts for the state taxes that has to be paid even though he signs in a no income tax state. Those two numbers would be even closer if they haven’t taken that into account. Thanks for the calculator share!

    Emu, I think alsrevenge was referring to the “news” as EK65 has been rumored to TB in the past as well.
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    Default Re: Karlsson to TB??

    On a side note, I completely disagree with Friedman's contention that tax savings is not a major advantage for teams from Florida, Texas, and Nashville. I am not sure if it should be addressed with the salary cap but it definitely is an advantage. A couple podcasts ago he and Marek were debating this.
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    Default Re: Karlsson to TB??

    You could argue the same thing all day about sponsorship opportunities in bigger markets.

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    Default Re: Karlsson to TB??

    Quote Originally Posted by Dennis View Post
    You could argue the same thing all day about sponsorship opportunities in bigger markets.
    I'd want to see all the numbers on that.
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    Default Re: Karlsson to TB??

    Quote Originally Posted by Dennis View Post
    You could argue the same thing all day about sponsorship opportunities in bigger markets.
    I think the big difference there is that the tax advantage applies to every player who signs in favourable states. Sponsorships are. Pretty variable depending on whether you're a star or not.
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