A major tax hike by the NHL will come to the league as early as March 1.
The NHLPA has called the proposal an “unprecedented tax increase” and said it’s going to be a “huge problem” for the league.
In a press release issued today, the union said the tax would apply to the NHL’s assets, including player salaries and team-related revenue.
“We believe the proposed tax increase is an unprecedented tax increase that will cause significant pain to the NFLPA, the NHL, and its players, many of whom are in the middle of a difficult time, and have been for some time,” the union stated.
“The tax increase will have a devastating impact on the NHL players’ and fans’ ability to participate in their sports, which will have severe consequences for the game, its players and its fans.”
The tax will increase from a flat rate of 3 percent to a 4 percent surcharge.
That’s the same rate the league has proposed to increase to 5 percent.
The union has also said that if the tax is approved, it will result in a decrease in the NHL player salary cap, which currently stands at about $6 million, from $55 million to $49 million.
“Any tax increase proposed by the NFL would have a massive negative impact on our players, our teams, and our fans, many who are working hard to support our teams,” the statement continued.
“Our players, coaches and fans deserve a fair, balanced tax increase, not an unfair, regressive tax increase.”
The NFLPA said it “remains concerned about the potential impact” of the tax on its players.
The NFL Players Association, which represents players, is also pushing for a lower tax rate, which it’s calling for from 2021 to 2024.
The league has said the proposed rate is more than a million dollars higher than the league’s tax base.