Articles / How important is LTIR and state tax in the next CBA?

How important is LTIR and state tax in the next CBA?

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Jun 5, 2025 7:00 PM
In a recent discussion regarding the NHL's salary cap and the significance of Long-Term Injured Reserve (LTIR), NHL Commissioner Gary Bettman and Deputy Commissioner Bill Daly highlighted how state income tax plays a crucial role in team strategies. They pointed out that teams benefiting from Florida's favorable tax climate, like the Florida Panthers, gain a competitive edge when managing their rosters, particularly when injuries force them to leverage LTIR effectively. The implications of the upcoming Collective Bargaining Agreement (CBA) are substantial, as negotiating clauses around LTIR and tax considerations will impact how teams assemble their rosters in the future.

Bettman noted that the use of LTIR allows teams to navigate the complexities of the salary cap, especially when injuries occur during critical parts of the season. The relationship between taxation and player salaries significantly affects each franchise's operational strategies, influencing decisions on player acquisitions and long-term contracts. As teams face various challenges, including the potential for injury-laden seasons, understanding and strategically utilizing LTIR provisions can be vital for maintaining competitiveness in the ever-evolving NHL landscape.

As the league navigates these considerations, team owners and management must prepare for the challenges that lie ahead in the next CBA negotiations. Ensuring that elements such as LTIR flexibility and income tax implications are addressed will be essential for the financial health and competitive balance of the league as a whole. The discussions led by Bettman and Daly shed light on the intertwining factors of finance and sport, emphasizing that understanding these intricacies is key to future successes in the NHL.