Legal analyst drops bold take on new NHL CBA impacting Canadian teams - "Make things a bit more challenging" 

NHL: NHL Draft - Source: Imagn
New NHL CBA puts Canadian teams at a disadvantage in salary structure and tax battle (Source: Imagn)

The new NHL CBA has brought changes to how a player's salary is structured. This is expected to hurt Canadian teams, who are currently going through a Stanley Cup drought of over three decades.

Ad

According to the new rules, now only 60% of a contract can be paid through signing bonuses. The rest is taxed at regular Canadian rates, which are much higher. This change contrasts with the previous one, in which players could receive most of their salary as signing bonuses. These bonuses were taxed at only 15% for U.S.-based players in Canada. This saved players millions of dollars.

Legal analyst Eric Macramalla says the new NHL CBA will hurt Canadian teams. He explained this in his Sunday column for Forbes. The new changes make Canadian teams less attractive to top players. Teams in low-tax U.S. states will now have an edge.

Ad
"With the Canadiens, Leafs, Senators and Canucks leading the league in income tax rates," Macramalla said, "and with all seven Canadian teams in the top eleven in the NHL, things just got a bit more complicated for Canadian teams. A relief valve for Canadian teams has been partially closed."

Canadian teams already face many challenges. They deal with high taxes, cold weather and heavy media pressure. This change adds another problem. U.S. teams in states like Florida and Texas pay lower taxes. Players may choose those teams more often now.

Ad

Fans in Canada are already frustrated. No Canadian team has won the Stanley Cup since 1993. This year, five Canadian teams made the playoffs. But Florida won again, keeping the Cup in the U.S. That makes the wait even longer for Canada.

Players want to earn more and pay less tax. Now, that’s harder to do in Canada, and so the road back to the Stanley Cup just got steeper.

Ad

Other important changes in the new NHL CBA beyond bonus limits

The new NHL CBA introduced several key changes beyond the 60% limit on signing bonuses. Contract terms are now shorter—six years for free agents and seven for re-signings. Front-loaded contracts face limits, and salary deferrals are no longer allowed. The minimum NHL salary will rise over the next few years, starting at $850,000 in 2026–27.

Even the playoff LTIR rules are stricter, and teams must keep playoff rosters under the cap. Only five players can be recalled from the minors after the trade deadline. The league also added clear rules for emergency goalies. Additionally, there are new rules for qualifying offers and performance bonus eligibility.

Wayne Gretzky’s wife Janet responds to critics questioning his loyalty to Canada, Bobby Orr's support following 4 Nations drama

Edited by Alvin Amansec
Sportskeeda logo
Close menu
WWE
WWE
NBA
NBA
NFL
NFL
MMA
MMA
Tennis
Tennis
NHL
NHL
Golf
Golf
MLB
MLB
Soccer
Soccer
F1
F1
WNBA
WNBA
down arrow icon
More
bell-icon Manage notifications