How important is LTIR and state tax in the next CBA?

As the two NHL teams from Florida have represented the Eastern Conference in each of the past six Stanley Cup Finals, debate has raged over the advantage that teams in American states with no state income tax have over others in acquiring and retaining players.

With a new CBA looming, that is sure to be a hot topic of discussion, as is the widespread usage among contenders of LTIR, on which injured players are placed to provide salary cap flexibility and relief often to return as soon as Game 1 of the first round of the playoffs rolls around.

The Panthers, for example, placed Matthew Tkachuk on LTIR after his injury at the 4 Nations Face-Off and used the increased flexibility to acquire Seth Jones and Brad Marchand at the deadline.

On Thursday’s episode of Daily Faceoff LIVE, Tyler Yaremchuk and Insider and President of Hockey Content Frank Seravalli discussed the reality of the situation and what could change in the impending new collective bargaining agreement.

Tyler Yaremchuk: One thing that a lot of fans, a lot of teams are obviously interested in, the LTIR loophole. Sounds like they’re going to find some sort of a solution for that. The details of which, we don’t know, but the LTIR loophole, obviously a big part of these negotiations?

Frank Seravalli: I wouldn’t say a big part. I’d say one where both sides have an interest in finding a solution that works for everyone. I think it’s on the list, but it’s not an insanely high priority. Also related, unrelated, if you’re thinking about money and the Florida Panthers being in the Cup final, no appetite from either side to talk about state tax. So, there won’t be any sort of leveling of the ice surface if that’s what you’re hoping for. Neither side sees it as an issue.

You can watch the full segment and the rest of the episode here…