NHL Announcement: Not a great news for Kent Hughes and the other Canadian Teams

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Will Austin
September 21, 2024 (9:14 PM)

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The question of tax advantages in the National Hockey League (NHL) remains thorny, particularly for teams located in high-tax markets.

Bill Daly, Gary Bettman's right-hand man, recently stated that the league is examining these options but noted:

«There is no easy solution. Players choose their destination for a variety of reasons. In the end, yes, [taxation] is one of them, but quality of life is probably more important.»

This situation is increasingly frustrating for players, especially those in Canada. Shane Pinto, forward for the Ottawa Senators, voiced his discontent:

«They need to find a way to make adjustments. You can't blame unrestricted free agents for heading south to the United States. [...] Canadian teams have to constantly overpay players to attract them here.»

Statistics back up these concerns: four of the last five championship teams are from states with no income tax, and seven of the last ten finalists were in the same situation. This forces franchises to be creative in attracting talent.

Kent Hughes, General Manager of the Montreal Canadiens, seems to have adopted an effective strategy. By developing young talent and offering them long-term contracts, he hopes to attract players through winning and the prestige of playing in the "Mecca of Hockey." Thus, the tax issue might become less relevant if the team continues progressing.