The Nashville Predators were the biggest spenders in the NHL on July 1, handing out $111.5 million to four players on the first day of free agency. Their three highlight acquisitions were stars Steven Stamkos ($32M), Jonathan Marchessault ($27.5M), and Brady Skjei ($49M).
Overall, NHL teams spent $1.12 billion in contracts on the first day, the most ever spent in any single day of free agency. The big spending came in direct response to the NHL’s salary cap jumping up to $88 million, the first big jump since before the COVID-19 pandemic.
Nashville, the capital of Tennessee, is one of the few NHL markets where players on the team can keep more of their money, as Tennessee does not levy a state income tax. Talk has flown around the league about the distinct advantage that may provide to a team. Barry Trotz, Nashville’s general manager, was asked to comment about the impact of managing a team in a tax-free state during an appearance on TSN’s Overdrive.
“I think it is an advantage because your dollar goes a little bit farther,” Trotz said. “There’s no question it is a little bit of an advantage. But, when you talk to Steven Stamkos or Jonathan Marchessault or the players that are serial winners, guys that have gone deep, had good careers, made a lot of money, it doesn’t go that far.
“But it does help probably the middle group a little bit. For the elite players, the top players, they’re just looking for a place that is serious about winning, want to win, and fit in their window. It is [an advantage] for some guys. I think it’s more for the guys that are sort of in the second and third tier in your group.”
While Trotz asserts that star players aren’t as impacted by the state policies, some of the results of free agency suggest otherwise. The Florida Panthers, Tampa Bay Lightning, Vegas Golden Knights, Dallas Stars, and Seattle Kraken all share the same advantage as the Predators and the six clubs combined to spend almost a quarter of the $1 billion-plus committed when free agency opened.
Panthers star Sam Reinhart re-signed with the Panthers. Top defense target Brandon Montour and in-demand forward Chandler Stephenson signed with the Kraken. Vegas extended Noah Hanifin to a big contract before he could hit free agency. Tampa Bay brought in former Pittsburgh Penguins star Jake Guentzel.
“I guess that’s always a good thing if you can make more money,” Guentzel told the AP’s Stephen Whyno. “There’s just the positives about Tampa, and there just seems to be so many of them: living the lifestyle, the atmosphere in the rink is unbelievable, and if that’s part of it, too, that’s great. There’s just a lot of things behind the scenes that you’re really excited for.”
The Panthers (2024), Golden Knights (2023), and Lightning (2021, 2020) make up four of the last five winners of the Stanley Cup. The NHL’s salary cap remains the same for all 32 teams despite the inherent advantage that the six, tax-free teams have.
