The general manager of the Montreal Canadiens, Kent Hughes, is ready to use all the mechanisms of the collective agreement to relieve the tax burden of the players he wishes to sign.
And this includes the famous deferred payments, a little-known mechanism of the collective agreement which was recently used by the Anaheim Ducks to reach an agreement with Frank Vatrano.
“We will study any possible structure in a contract that would offer an advantage to the organization and the player,” Hughes said during his mid-season review Wednesday in Brossard. We looked at contracts that included deferred payments to try to understand their appeal to a player and to a team.
As an agent, Hughes is no stranger to the tricks in the business that allow players to improve their tax situation.
“As an agent, I tried this kind of thing,” said the CEO, who was formerly the head of Quartexx Management. There is language related to tax efficiency that was used in some of the contracts I negotiated.
“So, yes, we will consider [les paiements différés].»
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On the other hand, we cannot compare apples and oranges. The laws in California are not the same as those in Canada, for example.
“Many teams and players have been interested in ways to minimize the tax burden. This is something that has been observed in the state of California, and in sports other than hockey. Canada has its own regulations,” recalled Hughes.
With the salary cap expected to rise to at least $92.4 million next season and several contracts expiring with the Canadiens, Hughes will be able to shop with deep pockets on July 1. Deferred payments could prove, who knows, an additional weapon in its arsenal.
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