How Much is a $1 Million NHL Salary?
There was a time when, if you made $1 million in a season as a hockey player, you were living on Easy Street. It was almost like winning a lottery. That is not the case these days. This is not to suggest earning $1 million a year is no big deal. It most certainly is. It’s not as much as it seems on the surface and if a player isn’t careful, he could go through his money quickly.
So what is the breakdown of a $1 million salary?
$500,000 – Income Tax. Depending on where a player lives, assume an average tax rate of 50%.
$90,000 – Escrow, currently at 18 per cent. Escrow is calculated after taxes and players have always received some of that money back.
$70,000 – Hockey-related Expenses. Things such as agent fees, personal trainer, disability insurance, trainer tips, supplements, workout equipment, etc. Players pay their agents between 3% and 6% depending on the amount of services they are provided.
$50,000 – Rent and Utilities. A younger player normally takes on a roommate to split costs, however an older family guy renting a house in New York or California can be closer to $100,000.
$70,000 – Basic Living Expenses. Food, clothing, entertainment, gifts, car, insurance, etc.
At the end of the day the player is left with a net salary of around $220,000.
Poor suckers eh?
