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Former NY Islanders Captain John Tavares Faces Canadian Court Battle Over 2018 Toronto Maple Leafs Contract

ByMichael Stahurski|
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Apr 4, 2026; Los Angeles, California, USA; Toronto Maple Leafs center John Tavares (91) against the Los Angeles Kings during the first period at Crypto.com Arena. Mandatory Credit: Gary A. Vasquez-Imagn Images
Apr 4, 2026; Los Angeles, California, USA; Toronto Maple Leafs center John Tavares (91) against the Los Angeles Kings during the first period at Crypto.com Arena. Mandatory Credit: Gary A. Vasquez-Imagn Images | IMAGN IMAGES via Reuters Connect

It’s been eight years since John Tavares departed the NY Islanders in favor of his hometown Maple Leafs. Though it’s been nearly a decade since losing their captain to free agency, Tavares’ name still resonates across Long Island in a negative light.

The contract Tavares signed with Toronto, a seven-year deal with an $11M AAV, caught the attention of the Canada Revenue Agency, which is seeking $8M it believes is owed due to Tavares’ signing bonus. The CRA is seeking $6.85M in taxes, plus $1.2M in interest. 

Tavares in court

During Tavares’ first season with the Leafs, he earned a base salary of $650k, while also receiving a $15.25M signing bonus for that season. Tavares paid a 15% tax on that signing bonus to the U.S. as he was still in New York. The payments were spread over several years, and the CRA believes it is normal income rather than a bonus. 

Tavares was in search of a contract heavy on bonuses to protect the income from any unforeseen circumstances. 

“Much of that is in a signing bonus, so it can’t be bought out, and it’s protected during a lockout,” Tavares said in court. 

In court, Tavares spoke in detail regarding the negotiations between himself and then-GM of the Maple Leafs, Kyle Dubas, who Tavares said texted him one minute after he was eligible to speak with other organizations on July 1, 2018.

“If you really want me, why can’t we agree on $11M (AAV)?” Tavares said regarding the negotiation. 

The precedent of this case could ripple throughout the NHL if found in favor of the CRA. Players from American teams who sign with Canadian teams typically have much of the first year of their contract paid out in signing bonuses, keeping more money in the players' pockets rather than the government's. If Tavares doesn’t come out on top in this case, it could become a major factor in a player's willingness to sign with a franchise North of the border.

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