According to a business advocacy group, the Boston Bruins’ championship drought can be partly attributed to Massachusetts’ tax policies.
The Bruins, who last won the Lord Stanley Cup in 2011, are losing top talent who prefer to play in lower-tax states so they can move to higher incomes, According to the Mass Opportunity Alliance.
The group noted that four of the last five Stanley Cup winners and seven of the last 10 to make the final round have been from states with no state income tax.
The Florida Panthers won the Cup last season, defeating the Las Vegas Golden Knights.
In 2020, the Tampa Bay Lightning won the franchise’s second Stanley Cup. The club would repeat this the following year.
Florida and Nevada do not have state income taxes. Neither did Texas, the group noted, which helped the Dallas Stars assemble enough talent to reach the Cup Finals in 2020.
It costs players significantly more to play in Boston than in states with no income tax.
Bruins veteran forward Brad Marchand will make $5 million before taxes in the 2023-24 season. But after state income taxes were imposed in Massachusetts, his take home pay was only $2.934 million.
According to the MOA, if Marchand had played for a team in Nevada, Washington state, Florida or Texas, he would have taken home $3.3 million, or about $400,000 more.
Bruins star scorer David Pastrnak is also making a financial sacrifice by staying in Boston.
Pastrnak earned an annual salary of $13 million last season. If he were a member of the Dallas Stars, Vegas Golden Knights, Seattle Kraken, Florida Panthers or Tampa Bay Lightning, his net income would be $7.97 million.
Instead, Massachusetts charges Pastrnak income taxes, leaving him with $6.884 million.
Pastrnak would also save some money in taxes if he played for the Carolina Hurricanes. His take home pay would have been $7.38 million.
While North Carolina has an income tax, it does not have an income surtax – which is an additional tax often imposed on higher earners.
The Nashville Predators, an expansion team that joined the National Hockey League in 1998, reached the final round in 2017. The team’s home state, Tennessee, does not impose an income tax.
Players looking to maximize their earning potential have taken notice.
In the most recent free agency period before this season, six teams that play in states with no income tax – Nashville, Florida, Tampa Bay, Dallas, Vegas and Seattle – spent nearly a quarter of the more than $1 billion in total contracts. Have done. Which were signed last summer.
The Panthers managed to lock down one of their stars by scoring forward Sam Reinhart, who resigned from the club for $69 million over 8 years – an average of $8.625 million per year.
Of the $8.625 million annual salary, Reinhart is owed an estimated $3.15 million because he lives in Florida.
If he had chosen to play for a team in California under the same salary, he would have been paid $1.1 million more.
According to a special tax calculator, if Reinhart signs with the Rangers or Islanders, his tax bill will increase by $1.5 million – meaning he will have to pay more than half of his income to the government. Created by Cardinal Point Athlete Consultants.
Alan Pogroszewski, founder, president and CEO of AFP Consulting LLC, which specializes in tax preparation and consulting for pro athletes, told the AP that it would take more than $88 million for the Rangers or Islanders to receive the same amount of money as Reinhart’s $69. Will need to offer a contract of Rs. million contract with the Panthers.
Massachusetts recently approved a “millionaires tax” or “fair share amendment” that imposes a 4% additional tax on income over $1 million per year.
Bill Belichick, former head coach of the New England Patriots, Recently reported on “The Pat McAfee Show”“That additional tax has prevented professional NFL players from signing with a team and playing in a place called “Taxchusetts”.
Despite relatively high taxes in deep blue Massachusetts, Boston’s sports teams have performed quite well in recent years.
Since the turn of the century, The Hub has seen its professional clubs capture 13 titles – including six by Belichick’s Patriots, four by the previously cursed Red Sox, two by the NBA’s Celtics and one by the Bruins.
