HFBoards

Go Back   HFBoards > General Hockey Discussion > The Business of Hockey
Mobile Hockey's Future Become a Sponsor Site Rules Support Forum vBookie Page 2
The Business of Hockey Discuss the financial and business aspects of the NHL. Topics may include the CBA, work stoppages, broadcast contracts, franchise sales, NHL revenues, relocation and expansion.

Taxation of Individual Teams

Reply
 
Thread Tools
Old
12-10-2010, 10:34 PM
  #1
Rakunitz23
Registered User
 
Rakunitz23's Avatar
 
Join Date: May 2010
Country: United States
Posts: 989
vCash: 500
Taxation of Individual Teams

Hello All,

I'm an Accountant and applied for a job with NJD not long ago (that I didn't get), but it got me thinking, how is an NHL team taxed? Is the NHL itself taxed, and then each team sees a flowthrough of income? Or is each team taxed, and then the NHL takes a percentage of what is left over?

I assume the first is most likely because of revenue sharing, etc, but I was wondering if anybody knew the actual answer

Rakunitz23 is offline   Reply With Quote
Old
12-10-2010, 10:52 PM
  #2
LadyStanley
Elasmobranchology-go
 
LadyStanley's Avatar
 
Join Date: Sep 2004
Location: North of the Tank
Country: United States
Posts: 60,080
vCash: 500
The league is a not-for-profit entity.

Any central revenues in excess of (leauge) expenses are given to the teams (and they have to pay corporate income tax -- if appropriate/applicalbe -- in federal, state/provincial and/or local/county/city).

(Off to look up other "corporate" pieces of the NHL, like NHL Enterprises.....)

There's also local (state/provincial or whatever) sales tax/VAT that may be collected and due.

LadyStanley is offline   Reply With Quote
Old
12-11-2010, 02:10 AM
  #3
Jeffrey93
Registered User
 
Jeffrey93's Avatar
 
Join Date: Nov 2007
Country: Canada
Posts: 3,985
vCash: 500
You applied for a job with the Devils and didn't know if they paid tax themselves or if the league paid the taxes for the teams?

No slight....just trying to understand.

I bet taxation for the NHL gets AWFULLY complex.....the one stat I still remember is that the Montreal Canadiens pay more in property tax on the Bell Centre than all Eastern Conference US teams pay in taxes combined.

It'd be awesome if somebody knew the ins and outs of taxation on the NHL and shared the info.

Jeffrey93 is offline   Reply With Quote
Old
12-11-2010, 09:38 AM
  #4
Joe T Choker
Las Vegas Black Aces
 
Join Date: Oct 2002
Location: Melrose
Country: Italy
Posts: 25,847
vCash: 500
Quote:
Originally Posted by Jeffrey93 View Post
You applied for a job with the Devils and didn't know if they paid tax themselves or if the league paid the taxes for the teams?

No slight....just trying to understand.

I bet taxation for the NHL gets AWFULLY complex.....the one stat I still remember is that the Montreal Canadiens pay more in property tax on the Bell Centre than all Eastern Conference US teams pay in taxes combined.

It'd be awesome if somebody knew the ins and outs of taxation on the NHL and shared the info.
*Makes note to never move to Montreal*

Joe T Choker is offline   Reply With Quote
Old
12-11-2010, 10:05 AM
  #5
AllByDesign
Who's this ABD guy??
 
AllByDesign's Avatar
 
Join Date: Mar 2010
Location: Location, Location!
Country: Canada
Posts: 2,309
vCash: 500
Quote:
Originally Posted by Jeffrey93 View Post
You applied for a job with the Devils and didn't know if they paid tax themselves or if the league paid the taxes for the teams?
And if it wasn't for the Kovalchuk contract this poor soul would have got the job. Now Kovalchuk is stuck doing the accounting in his off time.

AllByDesign is offline   Reply With Quote
Old
12-18-2010, 12:01 PM
  #6
Mr Atoz*
I hid the Atavachron
 
Join Date: Apr 2010
Country: United States
Posts: 2,915
vCash: 500
Quote:
Originally Posted by Rakunitz23 View Post
Hello All,

I'm an Accountant and applied for a job with NJD not long ago (that I didn't get), but it got me thinking, how is an NHL team taxed?
No wonder you didn't get the job.

Quote:
Originally Posted by LadyStanley View Post
The league is a not-for-profit entity.

Any central revenues in excess of (leauge) expenses are given to the teams (and they have to pay corporate income tax -- if appropriate/applicalbe -- in federal, state/provincial and/or local/county/city).

(Off to look up other "corporate" pieces of the NHL, like NHL Enterprises.....)

There's also local (state/provincial or whatever) sales tax/VAT that may be collected and due.
I don't know whether the part about the NHL divvying up any profits to teams is true or what the formula would be. Do teams that generate more revenue get more? OK, maybe today it would all go to the Penguins but I digress.

Each team is a for profit entity and are taxed like any other corporation. They may be part of a larger group that owns the arena, etc. and may file consolidated tax returns with other entities.

Mr Atoz* is offline   Reply With Quote
Old
12-18-2010, 12:06 PM
  #7
Fugu
Guest
 
Country:
Posts: n/a
vCash:
Quote:
Originally Posted by Mr Atoz View Post
I don't know whether the part about the NHL divvying up any profits to teams is true or what the formula would be. Do teams that generate more revenue get more? OK, maybe today it would all go to the Penguins but I digress.

Each team is a for profit entity and are taxed like any other corporation. They may be part of a larger group that owns the arena, etc. and may file consolidated tax returns with other entities.

Some portion of central revenues goes towards funding the revenue transfer program to bring up lower HRR teams to the cap midpoint. But unless otherwise specified in the CBA, revenues are divided up 30 ways. Each team contributes equally to running the central NHL function (league offices, functions (e.g., officiating, discipline) and execs).

  Reply With Quote
Reply

Forum Jump


Bookmarks

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 07:22 AM.

monitoring_string = "e4251c93e2ba248d29da988d93bf5144"
Contact Us - HFBoards - Archive - Privacy Statement - Terms of Use - Advertise - Top - AdChoices

vBulletin Copyright ©2000 - 2015, Jelsoft Enterprises Ltd.
HFBoards.com is a property of CraveOnline Media, LLC, an Evolve Media, LLC company. 2015 All Rights Reserved.