Jerome Miron-Imagn Images

The tax loophole fueling the Dallas Stars' advantage over the rest of the NHL

Originally posted on Blade of Steel | By Vince Hull | Last updated Jul 23, 2025 8:35 PM ET

The Dallas Stars' massive low-tax advantage could explain why Canadian teams keep missing the Stanley Cup and why elite free agents keep heading south.

The Dallas Stars may have more than just a stacked roster and a fresh coaching staff working in their favor.

A new breakdown of the highest tax rates in the NHL shows a financial advantage that few hockey markets can match, and it might be a big reason why the Stanley Cup has stayed south of the border for the last 32 years.

The chart, compiled by Cardinal Point and based on a $10 million salary, shows how brutal taxes can be for players on Canadian and big-market U.S. teams. The Toronto Maple Leafs and Ottawa Senators top the list at a staggering 53.09%, with the Montreal Canadiens close behind at 52.95%. None of those teams, or any on the left side of the graphic, have hoisted the Cup in the last decade.

Meanwhile, the Dallas Stars sit near the bottom at just 36.57%, tied with six other teams, including the Tampa Bay Lightning, Vegas Golden Knights, and Florida Panthers.

It is no coincidence that teams with lower tax burdens have dominated recent Cup runs, from Tampa's back-to-back titles to Vegas and Florida's success.

Why Low-Tax Teams Like the Stars Have a Major Edge

This tax advantage doesn't just mean players keep more of their paychecks. It can also make Dallas a more attractive destination for free agents and help Jim Nill manage the salary cap while still giving stars like Jason Robertson and Roope Hintz competitive deals.

One NHL agent told reporters:

"Players notice this. The difference between a high-tax team and a low-tax team can mean millions in take-home money over a contract."

When you pair that financial edge with a Cup-caliber roster, it's no wonder Dallas is seen as one of the league's most attractive landing spots.

You can see how the Stars' cap-friendly roster stacks up against the rest of the league by checking the full breakdown of team payrolls and cap space on puckpedia.

And maybe, just maybe, that's one more reason why the Stanley Cup has stayed below the border for over three decades.

This article first appeared on Blade of Steel and was syndicated with permission.

More must-reads: