Dear Members,
Below please find a summary of the final Taxable Player Consideration as reported by NLL Member Clubs during the 2022-23 Season. Section 6.14 Competitive Balance (Luxury) Tax of the Collective Bargaining Agreement governs the Luxury Tax payments.
Member Clubs which exceeded the 2022-23 Season Tax Threshold of $529,999 were the Buffalo Bandits, Calgary Roughnecks, Colorado Mammoth, Halifax Thunderbirds, Philadelphia Wings, San Diego Seals, Saskatchewan Rush, and Toronto Rock. A summary of each Member Club’s tax breakdown is as follows:
Buffalo Bandits
Final Taxable Player Consideration: $550,962.13
Amount Over Tax Threshold: $20,963.13
Calculation of Amount Taxed: ($20,963.13 * 25%) = $5,240.78
Calgary Roughnecks
Final Taxable Player Consideration: $544,681.61
Amount Over Tax Threshold: $14,682.61
Calculation of Amount Taxed: ($14,682.61 * 25%) = $3,670.65
Colorado Mammoth
Final Taxable Player Consideration: $575,726.76
Amount Over Tax Threshold: $45,727.76
Calculation of Amount Taxed: ($45,727.76 * 50%) = $22,863.88
Halifax Thunderbirds
Final Taxable Player Consideration: $555,386.86
Amount Over Tax Threshold: $25,387.86
Calculation of Amount Taxed: ($25,387.86 * 25%) = $6,346.97
Philadelphia Wings
Final Taxable Player Consideration: $582,687.82
Amount Over Tax Threshold: $52,688.82
Calculation of Amount Taxed: ($52,688.82 * 50%) = $26,344.41
San Diego Seals
Final Taxable Player Consideration: $564,604.50
Amount Over Tax Threshold: $34,605.50
Calculation of Amount Taxed: ($34,605.50 * 50%) = $17,302.75
Saskatchewan Rush
Final Taxable Player Consideration: $560,781.89
Amount Over Tax Threshold: $30,782.89
Calculation of Amount Taxed: ($30,782.89 * 25%) = $7,695.72
Toronto Rock
Final Taxable Player Consideration: $562,834.46
Amount Over Tax Threshold: $32,835.46
Calculation of Amount Taxed: ($32,835.46 * 50%) = $16,417.73
Additionally, please note the following supplemental information contained within the above table:
Section 6.1(N)
Under Section 6.1(N) of the Collective Bargaining Agreement, “Any player appearing on a club’s active roster for at least one game shall be paid a minimum of 7-days on a pro-rated basis, and shall be deemed to have been on the club’s active roster for a minimum 7-day period for Taxable Player Consideration purposes.” Per the League’s memorandum Re: CBA Section 6.1(N) dated February 7, 2020, amounts paid to Players under this Section which account for days that Players were not on a Club’s Active Roster are reflected in the ‘Other’ column of the above table.
Section 7.1(F) – Matched Contracts of Restricted Free Agents
Under Section 7.1(F) of the Collective Bargaining Agreement: “In the event any club matches an offer made to retain the rights to a Restricted Free Agent at a compensation rate greater than the player’s previous season contract, the increased compensation shall not count towards the Taxable Player Consideration of the club retaining the player’s rights. Clubs are only required to match base compensation and bonus to retain rights to Player’s services.”
During the 2020 offseason, Albany FireWolves player Doug Jamieson signed an offer sheet with the Halifax Thunderbirds which included a playing salary of $36,661 for the 2022-23 season, as well as an annual signing bonus of $25,750. Albany matched Halifax’s offer and retained Jamieson under the same contract terms. Jamieson’s total compensation during the 2019-20 season totaled $16,500. As such, Albany received a total tax exemption of $45,911 for the 2022-23 season, which is accounted for in the Taxable Base Compensation and Taxable Bonuses columns above.
During the 2022 offseason, Vancouver Warriors player Kyle Killen signed an offer sheet with the Panther City Lacrosse Club which included a playing salary of Veteran Maximum ($36,661) for the 2022-23 season, as well as an annual signing bonus of $7,500. Vancouver matched Panther City’s offer and retained Killen under the same contract terms. Killen’s total compensation during the 2021-22 season totaled $19,000. As such, Vancouver received a total tax exemption of $25,161 for the 2022-23 season, which is accounted for in the Taxable Base Compensation and Taxable Bonuses columns above.
Section 6.14(A)(3) – Off Field Employment Exemption
Under Section 6.14(A) of the Collective Bargaining Agreement: “Off-field Employment agreements approved by the League shall not be subject to inclusion as Taxable Player Consideration provided the employment is approved in advance as bona fide by the Commissioner.”
The League requested each Club with off-field employment agreements to submit various details regarding at least one Player’s performance of his approved duties during the 2022-23 season. The League has not included any such off-field employment compensation during 2022-23 as Taxable Player Consideration; provided, however, the League is still in the process of reviewing the Clubs’ submissions for compliance with the League’s governing documents.
Less than $530,000: 0%$530,000-$561,926: 25%$561,927-$593,853: 50%$593,854-$625,780: 75%$625,781 or greater: 100%
Luxury Tax Credits Deriving from the 2019-20 Season
As approved by the Board of Governors and the NLLPA following the cancelation of the conclusion of the 2019-20 season, the four Member Clubs which finished below the first Luxury Tax threshold during the 2019-20 season (Colorado Mammoth, New York Riptide, Rochester Knighthawks, Toronto Rock) did not receive a cash distribution. Instead, these Clubs were provided a credit of $17,448.49 to be used as an offset against Luxury Tax bills in future seasons. To the extent applicable (Colorado, Toronto), these credits were applied to the Clubs’ 2021-22 and 2022-23 Luxury Tax bills. As a result, the following adjustments reflect each team’s Luxury Tax Payment:
Colorado Mammoth
Credit Applied (2021-22): $17,448.49
New York Riptide
Amount Taxed: $0
Credit Applied: $0
Credit Remaining: $17,448.49
Rochester Knighthawks
Amount Taxed: $0
Credit Applied: $0
Credit Remaining: $17,448.49
Toronto Rock
Credit Applied (2021-22): $2,612.87
Credit Remaining (2021-22): $14,835.62
Amount Taxed: $16,417.73
Credit Applied: $14,835.62
New Tax Amount: $1,582.11
Should you have any questions, please do not hesitate to reach out.
Thank you,
Reid Reinholdt
