Carey Price: Tax Implication In A Potential Trade

Ah rumours… speculations… hypothetical situations… and people pretending to know what the organisation and the players are thinking. What would we do without it? You know what? Instead of fighting it, why don’t we play along? Let’s say we know that Jeff Gorton wants to trade Carey Price, for example, and the Habs’ goalie would gladly lift his no-movement clause (NMC). Let’s pretend we’re Peter Pan and let’s travel to Neverland.

For that, I’ll have to use my own opinion as we have received no indication that any of it is happening. And that is in spite of how opinions are being formulated on the net. So, in my opinion (not facts), I had written that there were four teams where I thought that Price might accept to lift his NMC for. They are:

Carey Price and Marc Bergevin
  • Edmonton Oilers – for a chance at a Cup, a bit closer to home (British Columbia)
  • Colorado Avalanche – for the same reason as above
  • Seattle Kraken – He risked it, lifted his clause for the Expansion Draft. His wife Angela is from there.
  • Vancouver Canucks – Carey’s family is in BC, so is his summer home, but Thatcher Demko makes that impossible. They’ll stick with the young man.

All of that was what I thought before Marc Bergevin was fired and landed in Los Angeles. We know the relationship he and Price had, and the mutual respect between the two men. So for that reason, I’ll add L.A. to that list where Price could accept a trade to.

Tax implication

I went onto Capfriendly.com to see what the fiscal implication would be for Price if he was traded to any of those States or Province. After this season, the Canadiens’ star goaltender has four more years to his contract with a cap hit of $10.5 million. In reality, he will be owed a four-year total of $31.25 million, with all but $7 million being base salary and the rest in signing bonuses.

SEASONSIGNING BONUSBASE SALARYTOTALTEAMNET INCOME
2022-23$6.75M$1M$7.75MMTL$3.64M
LAK$3.72M
EDM$4.06M
COL$4.36M
SEA$4.71M
2023-24$6.5M$2M$8.5MMTL$3.99M
LAK$4.08M
EDM$4.45M
COL$4.78M
SEA$5.15M
2024-25$5.5M$2M$7.5MMTL$3.52M
LAK$3.61M
EDM$3.93M
COL$4.22M
SEA$4.54M
2025-26$5.5M$2M$7.5MMTL$3.52M
LAK$3.61M
EDM$4.45M
COL$4.78M
SEA$4.54M
TOTAL$24.25M$7M$31.25MMTL$14.67M
LAK$15.02M
EDM$16.37M
COL$17.58M
SEA$18.94M

As you can see, simply fiscally speaking, Montreal is the worst place to be off the four when just looking at taxes situation. Of course, this is going with today’s tax rates and we know how quickly that can change. Los Angeles has the sun, the beaches and the fact he could walk everywhere without being recognized, all things Montreal cannot offer.

Fiscally speaking, not counting accounting creativity, Seattle would offer him over $4 million net in his pockets, so an average of $1M more per year net more than he would touch in Montreal. That’s substantial folks! Colorado offers just under $3 million more and he would be getting $1.7 million more playing with Connor McDavid.

So there you have it. Carey will be taking this into consideration if he’s asked to lift his NMC, I’m sure. This doesn’t mean that he will go for the money at all though. But it would be in discussions I’m sure.

More reading…

Medical Staff and Carey Price’s Future

Habs And Kings Are Great Trade Partners

Decisions To Come On Defense by Bob Trask

GM Announcement Coming Soon, But Narrative Won’t Die

Habs And Kings Are Great Trade Partners

It didn’t take long for Montreal Canadiens’ former VP of Hockey Operations and General Manager Marc Bergevin to find work and aside for a few pundits around the Habs, it comes at no surprise. Having been nominated three times in nine years for GM of the year, and having the best in every big trade he’s completed but one, Bergevin is known around the NHL as an excellent hockey man. While he chose the LA Kings, rest assured that there were plenty of teams interested.

This is not a rumour per se, but it’s something that’s been flying around the Montreal media for a couple of days, or since the announcement of Bergevin joining the Kings. We know that the former GM was close to his players, particularly those who formed his core leadership group. Carey Price, Shea Weber, Jeff Petry and Brendan Gallagher (amongst others), were very fond of Bergevin and the feeling was mutual. He treated them well.

The arrival of new management in Montreal is not without creating a lot of instability on the team. The future of many of those players is up in the air. Which direction will Jeff Gorton want to take this team? Which players will he want to keep around and which ones will be sacrificed in order to free up some much needed cap space?

Gallagher reunited with Danault?

Tony Marinaro of TSN 690 radio had an interesting take, one involving Brendan Gallagher. He pointed out the fact that Dustin Brown is now 37 years old and he’s in the final year of a contract with a $5.875 million. Brown has five goals in 33 games this season and he could be on the verge of retirement. Also, the Kings are 24th in the NHL on offense, scoring on average 2.72 goals per game.

Considering his relationship with Bergevin, could Gallagher, who has scored or was on pace for 30+ goals in each of the past four years, be a player of interest for the Kings? His $6.5 million contract is not far off Brown’s, for a better production. And we know the chemistry that he has with Phillip Danault…

Other potential interest

As we’ve mentioned above, there are other players who were very close to Bergevin. Guys who signed their long-term deals with him as the GM. Edmonton, Colorado and even Seattle have been named as potential destinations for Carey Price, locations where he might accept to lift his no-movement clause for, if the Canadiens wanted to trade him.

But that was before Bergevin signed with LA. The sunshine, the west coast, closer to home… In goal, the Kings have Jonathan Quick (2.40 GAA, .921 Sv%) who has one year left after this one at a cap hit of $5.8 million. They have signed 27 year-old Cal Petersen (2.70 GAA, .904 Sv%) to a $5 million cap hit until 2024-25. Neither one has trade protection.

Jeff Petry, Artturi Lehkonen and Joel Armia were also players that Bergevin really liked. And ironically, Bergevin signed Tyler Toffoli with the Canadiens as a UFA to a very affordable contract. He played eight years in Los Angeles before being traded to the Vancouver Canucks at trade deadline a couple of years ago.

Potential return

At the time of writing this, the Kings are hanging onto third place in the Pacific Division, in a battle for a playoffs’ spot. They also have one of the best prospect pools in the NHL. They are particularly deep at the center and defense position, two of the Canadiens’ biggest immediate needs. The Kings still have their first round pick for the upcoming draft and I see three very interesting prospects that the Habs might have interest for.

Sean Durzi, RD (23) 6’0″ 188 lbs, former 2nd rd pick by TOR
Owns plenty of offensive and puck-moving upside, since he is most adept whenever he has the puck on his blade. Can be a factor on the power play, as well.

Gabriel Vilardi, C (22) 6’3” 215lbs, 2017 11th overall
Is a pure playmaker who excels with the puck on his stick. Is creative and an excellent passer, but he can also score goals due to great hands. Owns a solid frame.

Rasmus Kupari, C (21) 6’2” 200lbs, 2018 20th overall
Has a tremendous amount of offensive ability. Is a very good dangler and creative playmaker. Also has very good hands and the capability of putting up good offensive numbers at all levels.

As you can see, the Kings are a very good fit for the Canadiens, depending on the direction Gorton and his new GM decide to take. In the meantime, the clock is ticking as we wait to find out who that new GM will be.

More reading…

Lighter Side: List of Bogus Habs Job Titles

Headshots And Rule Book Application – by Marc-André Breault

Wins To Come More Regularly For The Habs