Daily Faceoff Live: Should the NHL introduce luxury taxation?

Tyler Yaremchuk and Colby Cohen spoke about the need for the NHL’s commercial market to open up on the latest episode of Daily face-to-face live.

Tyler Yaremchuk: It’s a bit strange to slip into the end of January and get closer to the deadline without a single move yet to be made on the trade front. The idea was raised that the cap system would really put a brake on trade and transactions.

We had quality players like Jakub Vrana and Alex Nedeljkovic going through waivers. Vrana is a guy who can score 30 goals very easily and no one wanted to touch him for free, because of the salary cap issue. Is the hard cap really the best thing for the NHL, should they consider a soft cap situation to open more trades.

I know it can be a little complicated but it’s such a shame Colby that we’re sitting here as guys talking about the sport for a living, we’ve been doing it for five months into the season, and no big exchanges again. The kind of stuff that keeps fans engaged, that gets you front and center on ESPN and in the headlines when big moves are made.

And the NHL just sat here, because every GM has their hands tied.

Coby Cohen: There are a lot of big names that could be on the move. If the cap wasn’t such a problem as it is, if we weren’t living in this COVID cap crisis world that we are. I think we need to sort that out because I think there are a number of teams, I bet more than half of NHL owners would be willing to spend more. And I think if you create a luxury tax system, I think it would be a system where you can actually do more for teams that don’t want to spend more because the luxury tax money can go into the revenue sharing.

The money can go to teams that don’t want to spend. I don’t believe in parity, look at baseball, I mean the Yankees don’t win the World Series every year. The Mets, they’re going to have a $500 million payroll this year. Will they win this World Series? I don’t bet on it. I think there is enough parity in hockey, there are enough good players. I think I have some sort of luxury tax where you can spend more, or I go back to something I said on this show last month. I think there needs to be some sort of system where GMs get relief from the cap for signing drafted players and let smart people come up with the ins and outs of the rules.

You can watch the rest of the episode here…

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