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Wonder if Ivan could work some magic with his friend Marchenko on a sign and trade?

 

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Suzuki, Caufield, Hutson, Slafkovsky, Demidov, Dobson, Matheson.

 

All locked down long term below market values

 

Kent Hughes is better at this than other GMs

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Posted

Hughes is a great gm. Unbelievable. Teams around the league getting fleeced by players. Demanding trades. Etc… Hughes just bringing his “A” game every day. 

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It just gets better

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Shows the commitment of Canadiens ownership ... they think long-term not in terms of annual financial reports

 

Outstanding ownership + Great Management is a dangerous combination

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1 hour ago, BCHabnut said:

Hughes is a great gm. Unbelievable. Teams around the league getting fleeced by players. Demanding trades. Etc… Hughes just bringing his “A” game every day. 

 

Yup, Hughes has done a phenomenal job on the contract side. 

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This is incredible!  Demidov signs for less than Marner did 7 yrs ago!!! And that was for a six year deal!!!

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Why do the some agents recommend, suggest or agree with signing under valued contracts? I assume they make a nice % off each deal.

I assume the union not keen on seeing team-friendly deals are they?

Or 70% of bigger contracts are overpay anyways, so not really matter if 5-10% contracts are bit less?

 

So what happens when they do add an all-star player making $15-20/yr? No jealousy or what not?

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At the end of the day, the player decides what they want to do.  If they go to the agent and say this is the deal I want to do, it's the agent's job to do it.  It's also important to note that there are 5 RFA years in Demidov's contract which greatly lower the AAV compared to if he was signing a deal for all UFA years.

 

Demidov will still be in his late 20s when this contract expires.  He'll have a chance to cash in on another max-term deal at a much higher price tag at that time so it's not all bad for the agent.

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2 hours ago, DON said:

Why do the some agents recommend, suggest or agree with signing under valued contracts? I assume they make a nice % off each deal.

I assume the union not keen on seeing team-friendly deals are they?

Or 70% of bigger contracts are overpay anyways, so not really matter if 5-10% contracts are bit less?

 

So what happens when they do add an all-star player making $15-20/yr? No jealousy or what not?

 

I think the idea is that the Habs are giving tons of bonus money up front, which the player can then invest immediately to benefit from the compounding interest. 

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Posted
2 hours ago, illWill said:

 

I think the idea is that the Habs are giving tons of bonus money up front, which the player can then invest immediately to benefit from the compounding interest. 

 

Yes, that is certainly attractive to the player, not sure all teams are willing to do that to keep the AAV lower. 

Posted

I think the signing bonus is taxed at a lower rate then the salary.  Someone can correct me if this is wrong.  But this helps mitigate the high tax rate in Montreal versus the no tax states.

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Posted
27 minutes ago, Peter Puck said:

I think the signing bonus is taxed at a lower rate then the salary.  Someone can correct me if this is wrong.  But this helps mitigate the high tax rate in Montreal versus the no tax states.

THAT is the purpose of signing bonuses ... I'm not certain that getting the money to invest on July 1st instead of having the same amount 10 months later if paid in salary really enters into a players' decision ... it is undoubtedly a benefit but just don't see it swaying a player anywhere near as much as the tax savings

Posted
2 hours ago, Peter Puck said:

I think the signing bonus is taxed at a lower rate then the salary.  Someone can correct me if this is wrong.  But this helps mitigate the high tax rate in Montreal versus the no tax states.

 

That's something for American residents.  Demidov's Russian; it's a whole different tax situation altogether so there's no guarantee of a tax incentive that way.

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8 hours ago, dlbalr said:

That's something for American residents.  Demidov's Russian; it's a whole different tax situation altogether so there's no guarantee of a tax incentive that way.

 

I'm pretty sure he'll be taxed as a Canadian given that he's living in Montreal throughout the year.

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45 minutes ago, tomh009 said:

I'm pretty sure he'll be taxed as a Canadian given that he's living in Montreal throughout the year.

 

Probably (I don't know if Russian tax law is based on residency or citizenship), in which case there is no benefit that way from the signing bonus.  They'd be talking about an RCA then or just benefitting from getting the money earlier.

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27 minutes ago, dlbalr said:

Probably (I don't know if Russian tax law is based on residency or citizenship), in which case there is no benefit that way from the signing bonus.  They'd be talking about an RCA then or just benefitting from getting the money earlier.

 

If what I saw scrolling through Facebook recently is true, the United States and Eritrea are the only two countries that tax income based on citizenship.  Google seems to back that up, but it could just be picking up on the same BS post that I saw.

 

My googling didn't seem to indicate that bonuses are taxed less in either the US or Quebec.  But I know US tax law is crazy, so I imagine there are more ways around paying the tax.

Posted

I think he'll be a simple case of Canadian residency and Canadian taxation. The RCA (it's kind of like an advanced RRSP for high earners) helps, and then getting the money earlier allows you to invest it and start earning investment income.

 

Or buy some nice things for your parents. 😊

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