Most of us head to a sports webpage, like ours, to be informed, yes, but also to escape the boring topics of conversation other colleagues can hold around the water cooler. I mean, who wants to talk about the weather – or worst politics! Sports can lead to debate and arguments, but they remain entertaining, and the NHL surely is at this time of year, with the postseason just around the corner.
However, there is important news in the politics world that could affect the NHL and its players. The controversial American president Donald Trump recently made a huge modification in tax cuts. The change is meant to capture more federal revenue, in order to partly offset reductions in business and personal income tax rates.
In his latest 31 Thoughts article, available on Sportsnet as always, NHL insider Elliotte Friedman reports that the change, which is expected to after players from the MLB and the NBA, could also have an impact in the NHL and its teams. Here is what Friedman wrote in his piece:
“It took a while, but one of President Trump’s new policies could directly affect the NHL. On Monday, The New York Times’ Jim Tankersley reported that a change in the tax law had MLB and NBA teams concerned they could “pay more in capital gains taxes, if they trade an asset for something more valuable.”
According to the story, the change was directed at “farmers, manufacturers and other businesses that until recently could swap certain assets like trucks and machinery tax-free.” I checked with the NHL, and it confirmed that it discussed the subject at recent team finance meetings, but added it is premature to guess the true impact. What is clear, though, is the sports leagues will lobby to get an exemption.”
It means that teams could now face capital gains taxes every time they exchange or trade their highly paid players.
Major League Baseball and NBA officials have reportedly expressed hope that Congress would revisit the provision, which is one of many parts of the law that could raise their taxes or hurt their revenues. The NHL is most likely hoping the same outcome, since the league could be part of the associations affected by the significant change.