Trotz: ‘No question’ teams in tax-free states have advantage

Nashville Predators general manager Barry Trotz knows his team has an edge over the majority of NHL clubs.

Being situated in Tennessee – one of the U.S.’ nine states that doesn’t levy a state income tax – Predators players are able to keep more of their money.

In a league with a hard salary cap where every dollar is crucial, Trotz is fully aware of the advantage the team’s geographical location provides.

“It is an advantage because your dollar goes a little bit farther,” Trotz said on TSN’s “Overdrive” on Wednesday. “There’s no question.”

The Predators went splurging this offseason, signing Steven Stamkos, Jonathan Marchessault, and Brady Skjei as unrestricted free agents.

While the absence of state income tax may have played a part in recruiting the high-profile UFAs, Trotz believes it’s not as significant a factor for high-end players.

“When you talk to Stamkos or Marchessault or players that are serial winners, guys that have gone deep, have had good careers, and made a lot of money, it doesn’t go that far,” Trotz continued. “But it does help the middle group a little bit. For the elite players, the top players, they’re just looking for a place that’s serious about winning, wants to win, fits in their window.”

The Florida Panthers, Tampa Bay Lightning, Vegas Golden Knights, Dallas Stars, and Seattle Kraken all share the same advantage.

Several of the NHL’s top unrestricted free agents this offseason took their talents to teams without state income tax. In addition to the Predators’ spending spree, Sam Reinhart re-signed in Florida, Jake Guentzel went to Tampa Bay, and Brandon Montour signed with Seattle.

Four of the last five Stanley Cup Champions play in tax-free states: the Panthers (2024), Golden Knights (2023), and Lightning (2021, 2020).

The NHL instituted a hard salary cap before the 2005-06 season. All 32 teams deal with the same cap ceiling, regardless of their state/province’s income tax situation.