STAY SAFE ONLINE with ExpressVPN, the internet’s #1 trusted virtual private network! Get 3 MONTHS FREE @ https://www.expressvpn.com/legorocks99 #ad
SUPPORT the channel with SUPER THANKS! Contributors will be recognized with individualized comments, and my sincerest gratitude. CLICK the “$ THANKS” button to get started!
We’re going over Frank Vatrano’s extremely bizarre contract extension with the Anaheim Ducks.
This video is taking place after the 2024 NHL Entry Draft, and after the 2024 Stanley Cup Playoffs.
The 2024 NHL Draft 1st Round went as follows:
1st) San Jose Sharks, Macklin Celebrini
2nd) Chicago Blackhawks, Artyom Levshunov
3rd) Anaheim Ducks, Beckett Sennecke
4th) Columbus Blue Jackets, Cayden Lindstrom,
5th) Montreal Canadiens, Ivan Demidov
6th) Utah Hockey Club, Tij Iginla
7th) Ottawa Senators, Carter Yakemchuk
8th) Seattle Kraken, Berkly Catton
9th) Calgary Flames, Zayne Parekh
10th) New Jersey Devils, Anton Silayev
11th) San Jose Sharks (from Buffalo Sabres), Sam Dickinson
12th) Minnesota Wild (from Philadelphia Flyers), Zeev Buium
13th) Philadelphia Flyers (from Minnesota Wild), Jett Luchanko
14th) Buffalo Sabres (from Pittsburgh Penguins via San Jose Sharks), Konsta Helenius
15th) Detroit Red Wings, Michael Brandsegg-Nygard
16th) St. Louis Blues, Adam Jiricek
17th) Washington Capitals, Terik Parascak
18th) Chicago Blackhawks (from New York Islanders), Sacha Boisvert
19th) Vegas Golden Knights, Trevor Connelly
20th) New York Islanders (from Tampa Bay Lightning via Chicago Blackhawks), Cole Eiserman
21st) Montreal Canadiens (from Los Angeles Kings), Michael Hage
22nd) Nashville Predators, Yegor Surin
23rd) Anaheim Ducks (from Toronto Maple Leafs), Stian Solberg
24th) Utah Hockey Club (from Colorado Avalanche), Cole Beaudoin
25th) Boston Bruins (from Boston Bruins via Detroit Red Wings and Ottawa Senators), Dean Letourneau
26th) Los Angeles Kings (from Winnipeg Jets via Montreal Canadiens), Liam Greentree
27th) Chicago Blackhawks (from Carolina Hurricanes), Marek Vanacker
28th) Calgary Flames (from Vancouver Canucks), Matvei Gridin
29th) Dallas Stars, Emil Hemming
30th) New York Rangers, EJ Emery
31st) Toronto Maple Leafs (from Edmonton Oilers via Anaheim Ducks), Ben Danford
32nd) Edmonton Oilers (from Florida Panthers via Philadelphia Flyers), Sam O’Reilly
This video is also taking place after 2024 NHL Season, and after the 2024 Stanley Cup Playoffs, where the Florida Panthers defeated the Edmonton Oilers in the Finals.
Twitter: @LR99Gaming
Portfolio: http://giopalermo.ca/
Twitch: legorocks99
#NHL #NHLNews #NHLTrade #NHLTrades #NHLTradeRumours #NHLNewsToday #NHLDraft #NHLProspects #FlyTogether #AnaheimDucks #Ducks #Anaheim
Hi. I’m “Gio Palermo”, also known as “legorocks99” (“legorocks99Gaming”, “LR99Gaming”, or “LR99”). I post video game commentaries on YouTube revolving around “hockey”, with a primary focus on “Vancouver Canucks”, “Montreal Canadiens”, “Detroit Red Wings”, and top “NHL prospects” topics. These videos are uploaded with “NHL 25” gameplay in the background. I enjoy making these videos and I hope that you enjoy watching them!
legorocks99 and all its denominations function under “Gio Palermo Media Inc.”
34 Comments
From trade rumors Frank Vatrano is still available via trade from trade rumor that teams that didn’t want to give assets for rentals now have more interest in Frank vatrano and with an extension his trade value has gone up if true or not we will see?
Deferred Compensation Contracts
In the cap-strapped NHL where every dollar under the salary cap can make or break a team's season, front offices are constantly searching for innovative ways to structure contracts. One such strategy is deferred compensation, a financial maneuver that can subtly but significantly alter a team’s cap hit. But how does deferred compensation actually work, and why isn’t it more common in the NHL? Here are the intricacies of this contract strategy and examine how teams like the Carolina Hurricanes are leveraging it to their advantage.
Teams and players can include deferred compensation in a contract as outlined in the Collective Bargaining Agreement. Some key notes:
The compensation needs to be tied to a season in the contract when it is earned. A portion of the contract cannot be just generally deferred; it needs to be a portion of the payment earned during a specific season that is deferred.
The deferred compensation needs to be paid after the contract expires for it to be considered deferred
California did this to themselves. Shohei Ohtani structured his contract like this. Make all his money when he's back in Japan, or a resident of a zero tax state. California is a hellhole and is sinking fast. Good riddance woke communists.
Sweet, let's have all Canadian teams do that. You can also think of the deferred salary as a pension. He'll get paid while retired
Been done before.
That's like pension.
I thought that this used to be legal and was the only way the Canadiens were able to attract players unwilling to be taxed in Quebec. However, I thought that the NHL closed that loophole.
The Dodgers did differed payments for Ohtani and now Teoscar Hernandez. It's the way of the future for teams to afford a star studded roster to win championships I leagues with salary caps. It works for the players too since they still get their bag and now have a better chance of getting their rings too.
California tax evasion scheme
California will still try to get their claws on that money. California actually taxes satellites in space! Yes, IN SPACE!!!!
You need to look up the deal signed with the Dodgers and Shohei Ohtani. The difference between 9M/year and the 6 is that the one that will count on the cap is in today's value… and as someone with a bit of an accounting background… that's NOT tax evasion… that's tax avoidence… the difference being.. the former is a crime.. the latter perfectly legal.
Great move by Frank, getting paid after he retires.
California may go after him for taxes of the work done for the payment was in California.
He is a probably going to make way less then if he just paid the taxes and earned interest on the money
It’s the Bobby Bonilla clause, deferred payments for after he retires.
Does he become an asset of the team
What if the team is sold
The new owner had to pay it
Why not just give him stock in the team
900k in 18 years will be worth like 200k today.
not sure why more players do not do this. especially those playing in new york/california and even americans playing in canada.
tax law in the united states is you pay tax on income in the year it is received. it is simply the same as placing money ina retirement account/ira. at the the time you take the $$ you are making less for athletes you will still be paying the max federal rate but if you live in a no tax state like florida you can save up to 14 percent. look up the bobby bonilia (not sure of spelling) he gets like 1 mil a year from the Mets in defered comp and has not played in 20 years.
Sounds like an awesome deal for the Ducks, they can pay in future dollars that will be greatly diminished in value due to the loss in value of the currency, they save cap space because of that diminished value as well. Franky is taking a big risk since he will be taking payment in a dollar that is worth far less. This is a tax strategy that is created by someone who doesn't know anything about taxes or estate planning but it is much better than letting the state take half your money. Taxes are voluntary and have always been so. Better to know about taxes and estate planning than to sell your services short.
Marginal income tax rates (MITR) are an interesting topic including that they vary by Canadian province and US stage among those that have NHL teams. Of those Canadian provinces that have NHL teams, going from east to west, for the 2024 fiscal year, the highest MITR was:
– 25.75% for Quebec
– 13.16% for Ontario
– 17.4% for Manitoba
– 15% for Alberta
– 20.5% for BC
Last June the Oilers came closer to winning a Stanley Cup than any Canadian team since the Canucks to end their 2010–11 season (the Habs’ having lost the 2021 Stanley Cup final in five games, two fewer than the Oilers would lose their 2024 one). Yet last year, Alberta, among those Canadian provinces, with NHL teams, had only the second-lowest MITR on the highest income earners. Could it be that, even with the lowest MITRs applicable to the highest income earners (before factoring in whatever federal income tax rates there are), limited playoff success, following the 2016-17 NHL season, has been why quite a number of players who they didn’t draft, but are still on those teams, are already in their 30s? I may have more to say a little bit later.
This isn’t a bad deal. Cap going way up. This is peanuts. But you’re just click baiting like a good little YouTuber
Shohei contract 🧐
Nothing new
They aren’t receiving any real benefit, as the true cost is the same as the cap hit.
That's a lot of interest or stock lost over 10 years, just saying.
This would help so many athletes if they did this. Think of all the young athletes that go bankrupt after their career ends.
Come to think of it i think you can get bank loans on gauerenteed future earnings, so essentially you can go out and spend that money on a house and it should appreciate over 10 years in value therefore the 900k in the future will grow and not depreciate, this is smart af.
Sounds like he signed with the Dodgers
Imagine the reactions if a VGK player signed this contract.
Signed, a VGK fan
California taxes its residents to death. It's disgusting. Vatrano is an awesome player! He is also a fan favorite! Glad to see he got an extension!
I love this contract
It screws Cali a bit and I’m all for it
This kid is smart asf. His agent is smarter
Dumb – Just pay the tax and invest the money – you'll end up with more in your pocket than you'll end up this way
The last 900k he makes in 2044 will still be taxed somewhere. If he just paid the tax on the 900k now, take home 450k and invest it, in 2044 that 450k would grow to approx 2 million. He's trading 2 million for 900k. His first payment in 2035 will have a full taxable amount of 900k. If he paid the tax now (450k take home) and invested it and cashed it in in 2035, He'd have 450k thats already taxed and 550k in capital gains (which carries a much lower tax rate anyways). He's keeping 9 million pretax (best case 6 million post tax) by deferring it instead of 4.5 million post tax and almost 11 million in capital gains, which is probably 8 million take home – Wants 6 million take home instead of 12.5 – Get a new Agent