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Legal battle to force Leafs John Tavares out of Toronto: his future with the team in doubt

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Daniel Lucente
September 9, 2024  (2:16 PM)
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Maple Leafs John Tavares speaks to the media
Photo credit: NY Times

John Tavares and the CRA have been in a legal dispute for nearly a year over the $15.25 million in signing bonus money he received, and the CRA wants it back.

John Tavares enters the final year of his big-money deal with the Toronto Maple Leafs, and the speculation is picking up. Much of the talk has been about how he will no longer be the team's captain, and some believe that he won't be a part of the Leafs after this season.

It might be in the best interest of the Leafs to consider a move for John Tavares purely as a means of avoiding potential internal friction and allowing Auston Matthews, the new captain, an opportunity to start fresh. There is another matter quietly pulling the strings on Tavares' future in Toronto, which is the possibility of an ugly legal battle with implications that could affect his financial future.

Let's revisit 2018 when John Tavares bolted from the New York Islanders to sign a massive seven-year, $77 million contract with the Leafs that was frontloaded with a $15.25 million signing bonus.

Here's where it gets messy. Despite being a Canadian citizen, because he had lived in the United States previously, John Tavares was an American taxpayer at the time of his signing. After moving to Toronto and signing with a Canadian team, the CRA stepped in, claiming he must pay Canadian taxes on that bonus.

The CRA claims he owes upwards of 50% in taxes on that bonus, while John Tavares, who was still a U.S. resident when he inked his deal, maintains he is not. The dispute between Tavares and the CRA has made its way to the courts, with the outcome potentially providing a turning point in his future with the Leafs.

If John Tavares wins, he could walk away with $8 million and a legal victory that could set a precedent for future NHL players living in Canada. But if the courts rules against him, and they already have once, he may want to bail on Toronto and seek out a team based in a U.S. state with lower taxes, such as Florida or Texas.

Regardless, this lawsuit could change the way the Leafs, and all other Canadian NHL teams, sign their star players.

Source: MarkerzoneJohn Tavares' time in Toronto may be over due to legal dispute: he may have no choice

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Legal battle to force Leafs John Tavares out of Toronto: his future with the team in doubt

Will John Tavares be forced out of Canada by the CRA?

Yes16336.1 %
No28863.9 %
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