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SBD/23/Leagues Governing Bodies
CANADA MAY ASK U.S. TO CUT TAX BREAKS TO NHL TEAMS
Published April 23, 1998
Canada may ask the U.S. to stop providing tax breaks for NHL teams "because the incentives may violate the North American free-trade agreement between" the U.S., Canada and Mexico, according to a report in the Toronto GLOBE & MAIL. The purpose of the '94 NAFTA agreement was to prevent any of the three countries from providing unfair trade incentives. The Canadian federal government has hired Toronto lawyer Dennis Mills to examine the issue. Mills will present his findings to a nine-member government subcommittee in June. Vivaldo Latoche, a spokesperson for Mills, said the Canadian government "is serious about this now. The American government is giving its teams an unfair advantage." An NHL official said that NAFTA had nothing to do with "team movement" out of Canada. NHL VP/Legal Affairs Bill Daly: "With respect to where our franchises are located, and the subsidies they receive, there is absolutely no impact of NAFTA on the NHL" (Toronto GLOBE & MAIL, 4/23).