SportsMoneyNew NHL CBA Will Make It Tougher For Canadian Teams To CompeteByEric Macramalla, Contributor. At the same time, Forbes contributors publish independent expert analyses and insights.
AuthorJul 27, 2025, 04:45pm EDTTORONTO, ON - APRIL 27: Auston Matthews #34 of the Toronto Maple Leafs sets for a face-off against, in light of current trends.
More the Boston Bruins during the second period in Game Four of the First Round of the 2024 Stanley Cup Playoffs at Scotiabank Arena on April 27, 2024 in Toronto, Ontario, Canada.
Additionally, (Photo by Kevin Sousa/NHLI via Getty Images)Editorial Image Credit line info It was already tough for NHL teams in Canada to compete.
Taxes are high, the weather isn’t great and the media scrutiny is intense (just ask Mitch Marner).
Nevertheless, Well, the new NHL CBA is to make things a bit more challenging for Canadian teams (quite telling). On the other hand, The issue relates to taxes.
Nevertheless, Under the old CBA, all of a player’s contract could be comprised of signing bonuses except for the CBA mandated yearly minimum salary. At the same time, That has changed.
What the data shows is new CBA limits bonuses to 60% of a contract. Why does this matter.
This tells us that Canadian tax on signing bonuses for non-residents of Canada is limited to 15%, with the player then paying the balance owing at the prevailing tax rate in his state in the United States.
Moreover, So while a player who claims to be a resident of a U. State pays taxes in both Canada and the U.
, the combined tax savings is significant, potentially saving the player millions of dollars over the term of the contract.
Furthermore, So to minimize the tax burden, some players on Canadian teams structure their contracts primarily by way of signing bonuses knowing those bonuses will only be taxed at 15% in Canada (an important development).
Furthermore, That’s why you sometimes see a player sign a deal with the CBA base salary of $775,000 and the other $10 million in signing bonuses. Taxes, taxes, taxes.
MORE FOR YOU Toronto Maple Leafs captain Auston Matthew signed a 4 year/$53,000,000 with $49,650,000 in signing bonuses.
By structuring the contract with 94% in signing bonuses, Arizona resident Matthews stands to enjoy a substantial tax savings.
On his last deal alone, Matthews d around $4 million in taxes across his 5 year deal worth $58,201,250 (this bears monitoring).
Moreover, MONTREAL, CANADA - FEBRUARY 3: Carey Price #31 of the Montreal Canadiens makes a pad on the.
More puck on an attempt by Daniel Alfredsson #11 of the Ottawa Senators during the NHL game at the Bell Centre on February 3, 2013 in Montreal, Quebec, Canada, in today's financial world.
The Canadiens defeated the Senators 2-1 (something worth watching).
(Photo by Richard Wolowicz/Getty Images)Getty Images Matthews isn’t the only player that has signed bonus laden contracts with a Canadian team to diminish the tax impact.
Carey Price’s contract has $70 million of the $84 million allocated to signing bonuses, which amounts to 84% of the total value of the contract.
On his $122 million deal, 93% of Leon Draisaitl’s contract is signing bonuses. Meanwhile, And 75% of William Nylander’s contract is comprised of signing bonuses.
Conversely, The money adds up quickly, amid market uncertainty. With players having finite careers and finite earning potential, saving as much money as possible matters.
Furthermore, And now there can be as much as an additional 35% of a player’s income exposed to the very high Canadian tax rates, considering recent developments.
With the Canadiens, Leafs, Senators and Canucks leading the league in income tax rates, and with all seven Canadian teams in the top eleven in the NHL, things just got a bit more complicated for Canadian teams.
It’s tough enough with these teams competing against teams in tax free states Florida, Tennessee, Nevada and Texas. And now, a relief valve for Canadian teams has been partially closed.
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