Frank Seravalli from dailyfaceoff.com recently joined Tim Micallef to discuss the future of Auston Matthews with the Toronto Maple Leafs. The idea of Matthews leaving Toronto is ridiculous. Frank Seravalli believes that Matthews will be a member of the Toronto Maple Leafs for life.
With the recent departure of Johnny Gaudreau from Calgary to Columbus and Brady Tkachuk wanting Calgary to trade him to a US-based team, speculation is growing that US-born players don’t want to play in Canada. There are a few things about being in a Canadian market that some players don’t like. Things like climate, taxes, and insane media coverage are all factors to consider.
Some players want to live in a warm climate near the beach. Others want to play in a city where there is no income tax. As of 2021, Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming are the only states that do not levy a state income tax. A clear advantage for the Lightning, Panthers, Stars, Predators, Golden Knights, and Kraken.
Now, just as the NHL has players who prefer to play in a warmer climate or a state with no income tax, others would love to play for a Canadian market, even if they are American. I don’t think the issue is as big as some in the media are making it out to be.
Toronto Maple Leafs and Auston Matthews Situation
The one thing Toronto can do better than most NHL teams (US or Canadian) is to circumvent the income tax by giving the player most of their money through signing bonuses. Auston Matthews’ current deal is structured this way.
Year 1: $15.2 million signing bonus, $700,000 salary
Year 2: $15.2 million signing bonus, $700,000 salary
Year 3: $9.7 million signing bonus, $750,000 salary
Year 4: $7.2 million signing bonus, $750,000 salary
Year 5: $7.2 million signing bonus, $750,000 salary
Matthews’ does not get taxed on all his signing bonus money, only his salary. From his current five-year deal with the Toronto Maple Leafs worth $58.15 million, Matthews only gets taxed on $3.65 million. Toronto will likely structure Matthews’ next deal the same way. General Manager Kyle Dubas will find a way to make sure Matthews gets top dollar when the time comes.
(Salary cap info from capfreindly.com)
When the time comes for the Toronto Maple Leafs to re-sign Matthews, the salary cap will be $84.5 million. The limit for one player is 20% of the salary cap. So, if Toronto signs Matthews to the maximum allowed under the current CBA, Matthews’ next cap hit will be $16.9 million. With the chance to make that much money and become the highest-scoring Maple Leaf in team history, I don’t see Matthews leaving.
None of us know what Matthews will do for his next contract, but I don’t believe he’s leaving Toronto. Maybe near the end of his career, he will decide to play in the US, but I don’t think he’s in any hurry.