The NHL is swimming in money. The salary cap for the 2026-27 season will soar to a record $104 million per team — an $8.5 million jump from last season's $95.5 million ceiling[reference:5]. The maximum individual player salary will hit $20.8 million (20% of the cap), and the projections show the cap reaching $113.5 million by 2027-28[reference:6].
Kirill Kaprizov just inked the richest deal in Minnesota Wild history: eight years, $136 million — a $17 million annual cap hit that resets the market for elite talent[reference:7]. Free agents like Sergei Bobrovsky, Alex Tuch, and possibly Alex Ovechkin are about to cash in[reference:8].
But there's a catch — and it's called escrow.
NHL players have a 50-50 revenue split with owners baked into the Collective Bargaining Agreement. To enforce this split, the league withholds a percentage of every player's paycheck into an escrow account. When league revenues fall short of covering the players' share of hockey-related revenue (HRR), that escrow money flows to the owners — and players never see it again.
The escrow rate fluctuates, but it has averaged around 10-12% in recent years. For Kaprizov, that's approximately $1.7 million to $2.04 million per year withheld from his $17 million salary — gone before he ever sees it.
Let's follow the money on Kaprizov's record deal:
| Deduction | Amount (Approx.) |
|---|---|
| Gross Annual Salary | $17,000,000 |
| Federal Tax (37% U.S. top rate) | -$6,290,000 |
| Minnesota State Tax (9.85%) | -$1,674,500 |
| NHL Escrow (est. 10-12%) | -$1,700,000 to -$2,040,000 |
| Agent Commission (5% max) | -$850,000 |
| Jock Tax (away games in Canada & U.S. states) | -$340,000 to -$510,000 |
| FICA (Social Security & Medicare, 2.35%) | -$399,500 |
| Estimated Take-Home | ~$5.7M - $6.1M |
Bottom line: Kaprizov's $17 million headline salary translates to roughly $5.7-6.1 million in actual take-home pay — about 33-36% of the advertised number. He'll keep roughly one-third of what the contract says he earns.
If Kaprizov played for the Maple Leafs or Canadiens instead of the Wild, the tax picture gets even worse. Canadian federal tax tops out at 33%, plus provincial tax (Ontario: 11.16%, Quebec: 11.53%). Cross-border filing obligations multiply the paperwork and the tax bills. A player earning $17 million in Toronto might see their take-home drop below $5 million.
A rising cap is good news — it means hockey revenue is growing, and the escrow bite should theoretically shrink as the league's finances strengthen. But history shows that escrow returns are unpredictable. In some years, players get a portion back. In others — especially pandemic-impacted seasons — the escrow was as high as 20%, and players got virtually nothing back.
The lesson for any NHL player (or their agent): never budget based on the gross contract number, and never count on escrow returns. Plan your finances around what actually lands in your account after the league, the IRS, your state, and your agent all take their cut.
Further reading: No State Tax Teams vs. High Tax States · Agent Commission Across Leagues
See how your NHL contract actually breaks down after escrow, taxes, and agent fees:
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