Around the League 24-25

[Blob Mckenzie]

No they won't be or everyone would be doing it. They can pay him over hundred years they are still getting dinged 6 million per on his cap hit. T his was as easy as you think teams would have exposed this loophole years ago.

[Meds]

No they won't be or everyone would be doing it. They can pay him over hundred years they are still getting dinged 6 million per on his cap hit. T his was as easy as you think teams would have exposed this loophole years ago.

https://www.msn.com/en-ca/sports/nhl/de ... r-AA1wZZlc

Rage away Blobcat.

[Blob Mckenzie]

So they save 1.43 million on the cap. Its bullshit. How long will they allow this? Why aren't other teams doing this? The NHL is slightly less bush than the CFL. The grubby little count will close the loophole while he licks his lips waiting for Vancouver to do it and hit them with a record penalty. Aquilini the spineless piece of shit should have lit him up like a Christmas Tree after the league fucked them on the Luongo debacle. Take the fine and just eviscerate the little hairlip.

[Chef Boi RD]

So they save 1.43 million on the cap. Its bullshit. How long will they allow this? Why aren't other teams doing this? The NHL is slightly less bush than the CFL. The grubby little count will close the loophole while he licks his lips waiting for Vancouver to do it and hit them with a record penalty. Aquilini the spineless piece of shit should have lit him up like a Christmas Tree after the league fucked them on the Luongo debacle. Take the fine and just eviscerate the little hairlip.

“Eviscerate!” Hot damn, your grasp of the Webster dictionary has always thrown me for loops. At times I think your Jethro Bodine and then other times your like Tennesse Williams.

Eviscerate - disembowel (a person or animal).
"the goat had been skinned and neatly eviscerated"

[Topper]

It took Blobby Brown 7 hours to figure out that AAV is the Cap Hit.

[Topper]

Put your phone away

https://x.com/spittinchiclets/status/18 ... 7966870872

[Blob Mckenzie]

It took Blobby Brown 7 hours to figure out that AAV is the Cap Hit.

So it took someone 5 years to do this? There's one capologist in the league that found out this loophole after all this time. I was clearly wrong. I am shocked that the grubby little piece of shit Bettman is allowing this. Canucks need to get onboard with these type of deals. But loanebehold they would be the team to get fucked similar to the Luongo deal.

[Meds]

It took Blobby Brown 7 hours to figure out that AAV is the Cap Hit.

So it took someone 5 years to do this? There's one capologist in the league that found out this loophole after all this time. I was clearly wrong. I am shocked that the grubby little piece of shit Bettman is allowing this. Canucks need to get onboard with these type of deals. But loanebehold they would be the team to get fucked similar to the Luongo deal.

In order for the team to save less than 25% of the cap hit the player had to be willing to defer 50% of his paid salary for 10 years…..he won’t start collecting $900K per until 2035 when he’s 40 years old. I don’t think too many players want to do that.

Vatrano is showing himself to be a smart cat with this. It’s likely the biggest single contract he will get, and playing in this league until he’s 40 is far from a sure thing. He has set himself up nicely to transition into whatever comes after hockey. More than a few pro athletes have a hard time adjusting when the big cheques abruptly cease at the end of their final contract.

Perhaps this sets a precedent for some other players to follow.

[Hockey Widow]

He also spreads out the tax liability

[Topper]

He also spreads out the tax liability

Yes

viewtopic.php?p=573161#p573161

[UWSaint]

If the league approved it, then obviously this is workable. This also sets a precedent for players to be asking for guaranteed retirement income.

I’m curious how the numbers work. He’s deferring 50% of his salary, yet the Ducks save just under 25% on the cap hit. I assume they will have to carry $900K of dead cap for a decade.

No, there's no carrying the cap in the future.

This option's been in the CBA for a long time. IIRC, the Canes did this with some player last summer (or this fall).

The way to think of it is that the player really is only getting the equivalent of $4.57M present value per season, just what the team is getting hit with for the AAV.

What do you think $900,000 in 10 years is worth in today's money? About $417,000, invested in something with an 8% annual return.

What about $900,000 in 20 years (the last year Vatrano gets a 900K payment)? What's that worth in today's money? About $193,000, invested in something with an 8% annual return.

What's above is only intended to illustrate the point -- I don't know the formula for future value the CBA uses. But if you asked me if I wanted $4.71M in income today ($1.57M this year, 1.57M next, and 1.57M next) or $9M to be paid out in equal installments as income over a 10 year period starting in 10 years, I think I'd prefer the money now.

Now Vatrano would be paying a full 49.3% in income tax on the extra take it now cheese living in California (and assuming its paid in full and not escrowed). 37% fed, 12.3% Cali. (which is CRAZY!). So he takes home about $796K more a year after taxes than the contract he signed, for 3 years. But if that $$ is invested long term, gains are taxed at the long term capital gain tax rate. Which is a lot less than income tax (at least the federal rate). It really depends on when he realizes gains and his income at the time to know what he'd pay in taxes, but under current law, its not going over 20% and I'd be surprised if he didn't realize gains in a way that would keep that number closer to 15%. And that is substantially less as a percentage of gains than the income tax that will be paid on the $900,000 per year even if in a no-income tax state. Under today's federal tax law, his effective tax rate will be around 33%, and that's assuming NO other income.

And remember -- all $9M paid later is subject to income tax, where the capital gains are applied only to the gains from the investments. Tax advantage from deferring? Maybe kind of. California will be deprived of the revenue, so that's something.

Consult your tax and investment advisor, but it seems to me that the reason most players haven't opted for this approach is that this approach (take $18M, $9M paid over next 3 years; half paid between 10 and 20 years) really isn't wealth maximizing compared to being paid 13.71M in the next 3 years. Most players would rather build their own retirement account, though most NHL teams are a fairly safe investment, but they aren't AAA rated municipal bonds. If Anaheim goes bankrupt, Vatrano will see little to none of this money.

[Tciso]

Consult your tax and investment advisor,.

I'm sitting right here. I don't usually mix hockey talk and work, but I got 20 years in the financial industry.

[Hockey Widow]

Kracken place Sprong on waivers. Something wrong with the guy me thinks.

[Chef Boi RD]

I mean that was the book on him, HW. We should’ve surprised. Coaches don’t like him.

[Carl Yagro]

Well, looky here...

There's now a rumoured rift/feud in ol' Beantown between linemates? Such drama! Say it ain't so.

Well, maybe there is some truth in that winning fixes everything and losing causes tensions? Hmmm... kind of makes sense.

Either way, I think hockey media should run with this (Fridge Man?) and revisit it often.

Gotta have the click-baity, ya know?

Captain Hates Pasta?

"There’s zero issues in the room at all and to say he’s at the centre of anything is a completely fabricated lie. This guy has zero merit to anything he’s saying… This guy can go pound sand and go back to the closet where no one knew he was before and report on nothing because that’s what he’s going to be doing after this.”

The captain is telling a media member to go smash silicon dioxide and alludes to the person's orientation? Threatening to disappear this person and ensure future employment opportunities in related field are limited? What an asshole!