Ex-NHLer Roberto Luongo takes a dig at no-state-tax advantage following Connor McDavid's $12.5M AAV extension

Connor McDavid signed a two-year $25 million extension with the Edmonton Oilers on Monday. The deal has an average annual value of $12.5 million and starts in the 2026-27 season. He is entering the final year of his eight-year $100 million deal signed in 2017. McDavid helped the Oilers reach the Stanley Cup Final last season, but lost to the Florida Panthers.

NHL insider Elliotte Friedman shared the financial details of the contract on X.

“2 x $12.5M for McDavid.” Friedman tweeted on Monday.

Former NHL goalie Roberto Luongo replied.

“No state tax strikes again!” Luongo tweeted.

Luongo's tweet referred to no income tax in U.S. states like Florida, Nevada, Texas, Tennessee and Washington. The Panthers, Lightning and the Golden Knights have won Stanley Cups recently after building strong teams with financial flexibility.

Legal analyst Eric Macramalla explained in July that Canadian teams face growing tax challenges. He highlighted that all seven Canadian teams rank among the most taxed in the NHL. The league’s new collective bargaining agreement also limits signing bonuses and shortens contract terms.

"With all seven Canadian teams in the top eleven in the NHL, things just got a bit more complicated for Canadian teams," Macramalla said, via Forbes. "It’s tough enough with these teams competing against teams in tax free states like Florida, Tennessee, Nevada and Texas. And now, a relief valve for Canadian teams has been partially closed."

These changes make it harder for Canadian teams to compete for top players. U.S. teams in states with no income tax have a financial advantage.

Oilers GM on Connor McDavid’s $25 million contract

Edmonton Oilers general manager Stan Bowman discussed Connor McDavid’s $25 million contract. He said the $12.5 million yearly salary was the star center's choice, and the team did not suggest or push for that number.

"That's really a question, really more for Connor than us," Bowman said on Monday, via NHL.com. "Like that was what Conor wanted. And it was not like we made a pitch that he should sign for that amount. That was never - we never had those conversations at all."

Bowman added that the Oilers were happy to finalize the deal and called it a good day for the team and its fans. The contract keeps McDavid’s salary the same as his current $100 million contract.