Tag: luxury tax


NHL agent calls for league to adopt luxury tax system


Powerful NHL agent Allan Walsh is among the league’s most outspoken player representatives. He made some bold statements about concussions a few months ago and is now providing some interesting thoughts on the CBA talks. Most specifically, Walsh took to Twitter to express his belief that the league needs to adopt a “revenue sharing/luxury tax system.”

Here are some of the highlights from his multiple comments.

“The solution is revenue sharing/luxury tax system to ensure financial health for all franchises,” Walsh wrote. “NHL big market owners are OK paying players big money contracts as long as they don’t have to share their revenue with small market clubs. That’s why the only option for Bettman is to keep coming after the players again and again. There will be no end to this.”

The NBA has a luxury tax system that – in the simplest terms – charges richer teams who exceed the “soft” cap and distributes the “tax” evenly among the teams that avoid the tax. The NHL currently has a “hard” cap, with the most meaningful guidelines being the ceiling (for “big market” teams) and floor (typically for “small market” teams). We’ll see if the NHLPA brings up revenue sharing whenever they decide to provide their counter-proposal.

(H/T to Kukla’s Korner.)