As the Montreal Canadiens prepare to potentially trade Carey Price's contract, a significant factor complicating the deal revolves around the intricacies of tax rules and the timing of a substantial signing bonus.
Carey Price, the Canadiens' star goaltender, has unofficially retired due to a severe knee injury that effectively ended his career in April 2022. He is entering the final season of an eight-year, $84 million contract he signed in July 2017, which carries a $10.5 million cap hit. Although Price hasn't played since the 2021-22 season, his contract continues to impact Montreal's salary cap flexibility.
The Canadiens have managed Price's cap hit by placing him on long-term injured reserve (LTIR), where his salary doesn't count against the cap. However, trading Price's contract outright would provide the team with more flexibility during the upcoming season.
One key detail that complicates a potential trade is the timing of Price's $5.5 million signing bonus, which is due on September 1. Any team acquiring Price's contract before that date would be responsible for paying the bonus themselves. After the Canadiens pay the bonus, the acquiring team would owe only a fraction of Price's remaining salary.
The tax implications further complicate the situation. NHL teams operate under different tax laws depending on their location, which can impact a player's net salary. These tax differences can influence a player's willingness to be traded to a specific team and a team's desire to acquire a player with a high salary.
Several teams have been identified as potential trade partners, including those looking to reach the salary cap floor, such as the San Jose Sharks, Chicago Blackhawks, and Anaheim Ducks. The Pittsburgh Penguins have also been mentioned as a possible destination.
Trading Price's contract would provide the Canadiens with significant cap relief, potentially allowing them to pursue a top-six forward, particularly a center. General Manager Kent Hughes is reportedly willing to trade picks, possibly including a first-round pick, to acquire a natural center.
While the Canadiens are motivated to trade Price's contract, they are not rushing the process and may wait well into the season to make a move. The team's front office is evaluating all options to ensure they make the best decision for the organization's future.
