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Discounted Tavares and Knies extensions proving team culture outweighs tax codes

Photo credit: John E. Sokolowski-Imagn Images
Jul 2, 2025, 06:00 EDTUpdated: Jul 1, 2025, 11:53 EDT
Is anyone else getting a little sick of talking about income tax?
Since the Florida Panthers won back-to-back Stanley Cups, state and provincial tax codes suddenly seem to be concern number one for every NHL fan screaming bloody murder about the salary cap. But take a closer look and you’ll see the situation in Florida is more about team culture than anything. And now, the Toronto Maple Leafs are getting on that same wavelength.
Over the past week, Toronto has inked extensions on John Tavares and Matthew Knies with some great value. Tavares signed a four-year contract worth $4.38 million annually, while Knies’ six-year deal reportedly carries an AAV of $7.75 million. Considering the not-so-distant past of large contracts the Leafs have given to their top players, these figures are absolute steals for locking down a veteran and a rising star who are crucial to the next era of this group.
Getting players to agree to take less money to stay put is no easy feat, but at the end of the day it comes down to the culture built from the top down. There needs to faith in the plan of management to build a winning group, and a strong relationship between teammates and ownership built on trust and respect.
Speaking after signing his extension, Tavares himself admitted that he probably could have signed for more money, but there were bigger things at play in this contract negotiation.
“My belief in us to win is extremely high and I want to keep forward and giving it every crack we’ve got to get where we want to get to,” he said. “I get to do what I love, what I’ve been doing since I was a kid. And even though I obviously left some money out there, I’ve done pretty well. I’m still doing pretty well.”
Absent from that press conference was Tavares talking about how much he’ll have to pay in taxes for staying in Toronto, because that quickly becomes a moot point when the organization is offering a chance to win with a strong group. By leaving money on the table, Tavares is putting his faith in Treliving that the cash will be spent wisely elsewhere, showing the mutual respect between the two parties. Not to mention, in a market like Toronto, the money will always be flowing in through sponsorships anyways.
If these same two contracts has been signed in Florida, or another income-free state like Texas, it’s not hard to imagine people would be complaining that it’s yet another example of the tax issues with the salary cap. Instead, it demonstrates the importance of a strong team culture, and the DNA change Treliving has been teasing. It’s something Florida GM Bill Zito has built, and now Treliving is working on doing the same.
Another good example is the Montreal Canadiens, whose top three attackers are signed to full-term deals at less than $8 million a year each. GM Kent Hughes also signed newly acquired defenceman Noah Dobson to eight years at just under $10 million. Despite Quebec having some of the highest income taxes in the league, their top players have so far been incentivized to take less money, with their faith put in the plan Hughes has for the coming years.
All to say, income tax is but one factor that could play into an NHLer’s decision on where to sign, and on what size contract. If there’s faith in the organization and a strong team culture, players will be more likely to take a slight pay cut. Conversely, if management doesn’t show a strong direction or builds bad relationship, they won’t be doing them any favours.
So as Tavares and Knies hit the ice next season, they’ll be skating with some new teammates alongside them, as Treliving has a bit more cash burning a hole in his pocket headed to July 1st. With that in mind, can we please put the income tax conversation to bed?
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