New NHL CBA Will Make It Tougher For Canadian Teams To Compete
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This change to the NHL CBA has made it a bit tougher for Canadian teams like the Leafs and Canadiens to compete. Here's why.
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personal finance
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July 27, 2025
04:45 PM
Forbes
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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
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
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
Moreover, Editorial StandardsRes & PermissionsLOADING PLAYER.
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