The Athletic Exposes the Truth Behind NHL Tax Advantages and the Florida Panthers

In a new report published on The Athletic, Dom Luszczyszyn exposed the truth behind the NHL teams benefiting from tax advanatages and the Florida Panthers.

The piece sheds light on a debate that's become impossible to ignore: how much of Florida's back-to-back Stanley Cups can be credited to the state's lack of income tax?

It's easy to point fingers and claim the Panthers are playing on "easy mode," building a juggernaut with a unique financial edge. The data does support that notion to an extent.

Luszczyszyn's research showed that since Seattle joined the league, Florida has saved over $1 million on average per UFA contract versus the player's projected value. Compare that to the league-wide average, where most teams overpay by nearly $400,000.

But it's not just about taxes. The Panthers' management group is among the best in the NHL at extracting value. They've mastered the art of structuring deals with heavy signing bonuses, exploiting Florida's tax code to maximize players' take-home pay.

Eight of their last ten contracts over $5 million have been at least 80% signing bonus. Meanwhile, the other untaxed states, Vegas, Dallas, Tampa Bay, Nashville and Seattle, have barely touched that level.

It's also clear that success breeds its own discount. Luszczyszyn pointed out that "winner's tax", where contending teams pay less to lure talent, is nearly as impactful as the no-tax advantage itself. Florida's built a culture where players want to stay and chase more Cups, even if it means agreeing to take a lesser salary.

In the end, the Panthers are miles ahead not just because Florida doesn't have state income tax, but because their front office knows exactly how to leverage every advantage to build a powerhouse.

Other franchises with similar tax situations, like Seattle, prove it's not automatic. At the end of the day, being smart enough to use the edge is what really sets Florida apart.

Click here to read Dom Luszczyszyn's full report.