Quoting: LoganOllivier
That is actually completely incorrect, taxes are far more complex than that. I can't recall exactly what the numbers are but for Toronto to match a 9.5 million dollar deal with Florida, its only a million or so more. So 6.5 would be about a 7 million dollar deal in TO. TSN made a graph on this in the summer and I was surprised at how close it was. Sure it makes a difference but there are way more factors at play than just money. Facilities, endorsement opportunities etc.
Using the post-tax earnings calculator here on CapFriendly.com, it shows that a $7m contract, for example, would result in an earning of $4,444,310 in Tampa, and $3,290,029 in Toronto. Similarly, in Tampa, a $9.5m contract would result in $6,019,310 earning, and only $4,451,779 in Toronto. I would have to argue that while it may seem relatively small, we are still talking about an extra $1-1.5m post-tax which means a lot. Not to mention the fact that Tampa has great weather, and that the media is not as intense.
I also factored in the fact that three of Tampa's superstars have taken pay-cuts to stay here. Stamkos was reported to be drawing $9-10m from TOR, and stayed for $8.5m. Hedman, who is arguably the best defenseman in the league, stayed here for under $8m. Kucherov, who is top-5 in points since 2015-16 and could easily draw upwards of $11m, stayed in Tampa for $9.5m. Players love to play in Tampa, which is why guys like Ryan McDonagh and JT Miller stayed in Tampa. Is $6.5m too low for Point? Probably. Point will probably attract $7-7.5m from Tampa, and what Nylander does, or doesn't do, will affect that.