The Malkin Affect: Will Russia accept the Transfer Agreement?

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            Ever since the days where Russia was the U.S.S.R and wore those intimidating red jerseys and

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dominated International play there has been a tension between North American Hockey and Russian Hockey. From Peter Stastny, Petr Klima, and Slava Fetisov many players under the iron curtain have had to defect from their homelands in the Soviet Union to come play in the NHL. Now almost two decades since the fall of the Soviet Union Russian players are still having difficulty making their way to the United States to play in the NHL.

            The other former Eastern block countries such as the Czech Republic, Slovakia, Germany, with Switzerland, Sweden and Finland have signed a player transfer agreement with the NHL through the International Ice Hockey Federation (IIHF). This agreement states that the NHL will pay the club of a player drafted and signed by an NHL team $200,000.00 USD (IIHF.com). Russia decided not to sign this agreement. The Russian Super League teams mostly owned by private businessman and rumored to have ties with Russian organized crime have stated they want up to $1,000,000.00 USD for their players. Russian Hockey President Vladislav Tretiak says that eighty percent of the Russian club teams are opposed to the current transfer agreement (Habsinsideout.com). 


What has caused Russian teams to oppose this deal while the hockey European hockey powers have? Does it have something to due with feeling spite from the past players they have lost? In 2004 Russian super prospect now NHL superstar Alexander Ovechkin was drafted #1 by the Washington Capitals. Drafted right after him at #2 was fellow Russian super prospect Evgeni Malkin. Alexander Ovechkin came to the NHL and was able to begin playing for the Washington Capitals after a court case found the Capitals and the NHL not guilty of any wrong doing. Moscow Dynamo filed suit against Ovechkin in 2005, claiming rights to him. Ovechkin left Dynamo in April 2005 after leading that team to the Super League title, and signed with rival Avangard Omsk. That contract contained an "out" clause, and Ovechkin exercised that in July 2005 to sign with Washington (Post-Gazette.com).                                                                                     

Then there is Evgeni Malkin. Malkin at the time was playing under a very lucrative contract in Russia (Russianprospects.com). In the summer of 2006 there were rumors that Malkin was ready to come to the NHL. But he was under contract with the Metallurg Magnitogorsk for 2 more years. Malkin had reworked his 2 year deal for a new 1 year contract enabling him to get over to the United States a year earlier than he planned. But this was not good enough for Malkin as he left his team's training camp in Finland and could not be found (Newsvine.com). Soon after his disappearance Malkin was found in Los Angeles, California getting ready to train with NHL players with his American agents Pat Brisson and J.P. Berry (Newslab.ru).

Metallurg Magnitogorsk took the Pittsburgh Penguins to Federal Court in the U.S. Metallurg sought to block Malkin from playing with the Penguins. The case was being heard at the same time as one in which Russian team Lokomotiv Yaroslavl has filed suit over prospects Alexei Mikhnov, who signed with Edmonton, and Andrei Taratukhin, who signed with Calgary (Post-Gazette.com). Metallurg was claiming an anti-trust violation against the Penguins. But, Malkin faxed a two-week contract termination notification to Magnitogorsk, which is allowable under Russian labor law (Post-Gazette.com). Later on an American Judge dismissed the case. The NHL contended that Malkin followed Russian labor laws in discharging himself from his Russian team contract. The U.S. Federal court agreed, and decided Wednesday that Malkin, the NHL and the Penguins had violated no labor laws (TSN.ca).

The Malkin dismissal meant another bitter loss for Russian Clubs at the hands of the NHL. Their loss was the NHL's gain. Malkin was the unanimous Calder Trophy winner as NHL Rookie of the Year (TSN.ca).  Russia meanwhile will continue to try and keep their top players at home. They will use strong arming to try and force them to sign long term deals with their club teams. What does this mean for the business side of the NHL? In the 2007 NHL draft Russian player Alexei Cherapanov was considered by many experts to be a top 5 talent in the draft. Yet he dropped all the way down to pick #17 for the New York Rangers. Many said that the ability to sign Cherapanov from his Russian club had a lot to do with him slipping down many spots in the draft. Increasingly, NHL teams seem to be taking the position on their Russian draftees (including older picks) that three things need to be in place to sign the player: 1) a specific team need for this type of player (read: a lack of suitable alternatives to a process that's become a major headache), 2) a willingness of the player to commit to competing for an NHL job without anything being handed to him, and 3) a clear indication the player can and will be contractually available. Last season, there were just 35 Russian players who played at least one NHL regular season game or 3.7% of the 942 players who played league wide). By comparison, there were 65 Czechs (6.9% of the league), 49 Swedes (5.2%) and 42 Finns (4.5%) (HockeyBuzz.com). Will NHL teams shy away from top Russian prospects in fear of getting sued? Because it does not appear Russia will ever sign the transfer agreement unless they get ridiculous compensation.

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This page contains a single entry by Brian Gutschwager published on September 14, 2007 1:38 PM.

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