Predators GM Barry Trotz has admitted that due to certain tax-free states such as his, the salary cap is not equal for all 32 NHL teams.
The state of Tennessee is where the Predators play, and players there do not have to deal with the state levying a tax on their income, which allows them to take home much more of their pay compared to players elsewhere. Players who call the Florida Panthers, Tampa Bay Lightning, Vegas Golden Knights, Dallas Stars, and Seattle Kraken home all get to enjoy this perk as well.
Trotz was on TSN's Overdrive, where he fully admitted to his team having a heavy advantage over the rest when it comes to signing players.
"It is an advantage because your dollar goes a little bit farther."
Trotz said that during the free agency period, having no state income tax has been a useful tool in convincing players to sign there, which is why the Preds were seen as big free agency winners this year, signing the likes of Jonathan Marchessault, Steven Stamkos and defenceman Brady Skjei.
"When you talk to Stamkos or Marchessault or players that are serial winners, guys that have gone deep, have had good careers, and made a lot of money, it doesn't go that far," Trotz continued. "But it does help the middle group a little bit. For the elite players, the top players, they're just looking for a place that's serious about winning, wants to win, fits in their window."
Fans of the game need to look no further than the most recent Cup champions, as four of the last five have come out of tax-free states. The Lightning won in 2020 and 2021, the Golden Knights in 2023 and most recently the Panthers in 2024. The last time a heavily taxed Canadian franchise won the Cup was way back in 1993.