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Sportsnet.ca's Brophy says Russian stars might be lured to KHL by tax free millions

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01-13-2010, 08:32 PM
  #1
Scoopyten
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Sportsnet.ca's Brophy says Russian stars might be lured to KHL by tax free millions

http://www.sportsnet.ca/hockey/2010/...ovalchuk_ovie/

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Could the lure of $20 million a season cause Ilya Kovalchuk to leave the NHL and return home to play in the KHL?

At least one NHL general manager thinks it is possible.

"(Alexander) Medvedev is on a mission," said the GM, who requested anonymity. "He’s paying (Sergei) Fedorov $14 million this season so how much do you think he’d pay to get Kovalchuk? Twenty million a season? That’s what I’ve heard."

Medvedov is the president of the KHL.

Considering players in the KHL do not pay taxes, nor do they pay escrow like they do in the NHL, if this is true then Kovalchuk stands to make a lot more playing in Russian than he could in North America. Not only that, there has been speculation NHL players could face another salary rollback during the next collective bargaining agreement talks.

Kovalchuk, currently 11th in NHL scoring with 26 goals and 50 points in 39 games, is in the midst of contact negotiations with the Atlanta Thrashers and there is all kind of speculation the team will trade him if they cannot get his signature on an extension. It has been reported he is looking for in the neighborhood of $10 million a season for 10 years.

Said one NHL player: "That is impressive. For one year, wow, that's like six-to-seven years here after taxes."

Considering the Thrashers are struggling at the gate, it seems highly unlikely they could pay one player that kind of money – unless, of course, they sign him in order to sell the franchise. There is speculation the owners would like to sell the team and they suspect it is worth more with him than without him.
I guess the NHL failed to consider the impact of tax free contracts to play in a guy's homeland when they got their cost certainty


Last edited by MiamiScreamingEagles: 01-13-2010 at 10:58 PM.
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01-13-2010, 08:35 PM
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Let them leave. The KHL won't be able to pay the salaries with their unstable money flow. I'm pretty sure I heard some teams have already failed to pay players at the correct time and if the Russians want to deal with that let them.

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01-13-2010, 08:37 PM
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Originally Posted by Hollywood Cannon View Post
Let them leave. The KHL won't be able to pay the salaries with their unstable money flow. I'm pretty sure I heard some teams have already failed to pay players at the correct time and if the Russians want to deal with that let them.
This is exactly what I've heard. Sure they can offer you 20mil a season, but will you actually get that money?

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01-13-2010, 08:39 PM
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Originally Posted by Hollywood Cannon View Post
Let them leave. The KHL won't be able to pay the salaries with their unstable money flow. I'm pretty sure I heard some teams have already failed to pay players at the correct time and if the Russians want to deal with that let them.
They're not paying North Americans. The Russians are getting their money

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01-13-2010, 08:41 PM
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Quote:
Originally Posted by Hollywood Cannon View Post
Let them leave. The KHL won't be able to pay the salaries with their unstable money flow. I'm pretty sure I heard some teams have already failed to pay players at the correct time and if the Russians want to deal with that let them.
That's certainly true but you would have to assume that a star like Kovy or Ovechkin would have a contract paid directly by Gazprom rather than the team itself. Medvedev wouldn't want to be embarrassed by having a high profile player not get paid. But, you are right, the league is retardedly set-up. They will never be able to draw Swedish or Finnish or German teams into the KHL until the Russians stop running the league like it's their own personal inferiority complex therapy.

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01-13-2010, 08:44 PM
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Originally Posted by Valhoun View Post
That's certainly true but you would have to assume that a star like Kovy or Ovechkin would have a contract paid directly by Gazprom rather than the team itself. Medvedev wouldn't want to be embarrassed by having a high profile player not get paid. But, you are right, the league is retardedly set-up. They will never be able to draw Swedish or Finnish or German teams into the KHL until the Russians stop running the league like it's their own personal inferiority complex therapy.
That's exactly what it is though, so it would be impossible for them to run it differently ...

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01-13-2010, 08:46 PM
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I have to say it again, the KHL is UNSTABLE long term. With the fluctuation in oil prices, the Russian currency and the mob that runs some of the teams, it's very shaky, even if the government supports them.

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01-13-2010, 08:48 PM
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Also, good luck with Ovechkin ever getting out of his contract in the US and the IIHF allowing it.

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01-13-2010, 08:50 PM
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Whoever doesn't want to play in the NHL can leave. When they come crawling back, the joke will be on them.


People say what they will about a few of those guys who didn't split (not many), I'm sure Maxim Afinogenov could have gotten a boatload if he went home, but he stuck it out for a try out and is making peanuts this year and was having a good season.

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01-13-2010, 08:53 PM
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Originally Posted by go kim johnsson 514 View Post
Whoever doesn't want to play in the NHL can leave. When they come crawling back, the joke will be on them.


People say what they will about a few of those guys who didn't split (not many), I'm sure Maxim Afinogenov could have gotten a boatload if he went home, but he stuck it out for a try out and is making peanuts this year and was having a good season.
Exactly. I'm not foolish enough to believe that all players play for the love of the game but at least they will stay in the NHL where the best competition in the world is. The players that leave for boat loads of cash, I want no part of them. Good Riddance.

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01-13-2010, 09:04 PM
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Quote:
Originally Posted by KimiFerrari View Post
This is exactly what I've heard. Sure they can offer you 20mil a season, but will you actually get that money?
I imagine the larger more successful teams can afford to pay stars, though that is a lot of money. I think I read somewhere on the boards that there are some teams that have rather small amounts to spend on players when compared to others (that may seem like an obvious statement but oh well )

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01-13-2010, 09:07 PM
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Originally Posted by Hollywood Cannon View Post
Also, good luck with Ovechkin ever getting out of his contract in the US and the IIHF allowing it.


Alexander Radulov says Hi.

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01-13-2010, 09:09 PM
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This is also why there are less and less Russians being drafted in the early rounds.

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01-13-2010, 09:09 PM
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Originally Posted by Hollywood Cannon View Post
Exactly. I'm not foolish enough to believe that all players play for the love of the game but at least they will stay in the NHL where the best competition in the world is. The players that leave for boat loads of cash, I want no part of them. Good Riddance.
If you lose players like Malkin, Ovechkin and Kovalchuk, others will follow and there will be an eventual talent drain from the NHL. The claim of being the best league in the world might not be true if that happens.

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01-13-2010, 09:11 PM
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David Beckham signed a $250 million dollar contract to play soccer in the US. Doesnt mean they have deep enough pockets to give that kind of cash to every good soccer player worldwide.

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01-13-2010, 09:11 PM
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Quote:
Originally Posted by JSaq View Post


Alexander Radulov says Hi.
Alexander Radulov was getting paid $1M+ and was not a household name. Alexander Ovechkin is one of the faces of the NHL and has 11 years (I believe) left on his deal at $9.5M/yr.

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01-13-2010, 09:13 PM
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Originally Posted by CannonGoBoom View Post
David Beckham signed a $250 million dollar contract to play soccer in the US. Doesnt mean they have the cash to give that kind of money to every good soccer player worldwide.
And he is also loaned backed almost every year now.

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01-13-2010, 09:13 PM
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Quote:
Originally Posted by JSaq View Post
If you lose players like Malkin, Ovechkin and Kovalchuk, others will follow and there will be an eventual talent drain from the NHL. The claim of being the best league in the world might not be true if that happens.
I like the majority of Russian players and I am glad they play in the NHL but the NHL would absolutely still be the best league in the world even without Malkin, Ovechkin, or Kovalchuk. And it would be a slightly better league without the lazy Russians.

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01-13-2010, 09:15 PM
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Originally Posted by Hollywood Cannon View Post
Alexander Radulov was getting paid $1M+ and was not a household name. Alexander Ovechkin is one of the faces of the NHL and has 11 years (I believe) left on his deal at $9.5M/yr.
And why would the IIHF fight for the NHL, which they dislike as it is, over Ovechkin? The NHL can't pressure the IIHF. If they try to pull out of the Olympics, then they'd probably face more guys jumping to the KHL.

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01-13-2010, 09:22 PM
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Originally Posted by Valhoun View Post
I like the majority of Russian players and I am glad they play in the NHL but the NHL would absolutely still be the best league in the world even without Malkin, Ovechkin, or Kovalchuk. And it would be a slightly better league without the lazy Russians.
What happens when the KHL expands into Sweden, the Czech republic, Finland and other hockey mad countries in Europe?

What happens when the next NHL lockout happens in 2012 or 2013?

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01-13-2010, 09:26 PM
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And why would the IIHF fight for the NHL, which they dislike as it is, over Ovechkin? The NHL can't pressure the IIHF. If they try to pull out of the Olympics, then they'd probably face more guys jumping to the KHL.
Because Alexander Ovechkin is under contract in the United States.
http://slapshot.blogs.nytimes.com/20...jumping-cases/

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Offending players would also be banned from international competition for one to three years.
The players that would leave under contract would not be allowed to play in the Olympics or other International Competition for that time period anyway.

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01-13-2010, 09:28 PM
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Quote:
Originally Posted by JSaq View Post
What happens when the KHL expands into Sweden, the Czech republic, Finland and other hockey mad countries in Europe?

What happens when the next NHL lockout happens in 2012 or 2013?
Do you understand that the KHL business model is sustainable only in Russia? And maybe not even there.

In Russia, you can get away with paying the best guys 15 mill and the worst guys peanuts and then not even paying them, in a place like Sweden, you aren't going to be able to get away with that because Sweden isn't an authoritarian country.

Plus, do you think that Canadians, Americans, and Swedes (3 of the major talent-producing countries) are going to be jumping over each other to go play in Russia?

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01-13-2010, 09:35 PM
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Originally Posted by Hollywood Cannon View Post
Because Alexander Ovechkin is under contract in the United States.
http://slapshot.blogs.nytimes.com/20...jumping-cases/



The players that would leave under contract would not be allowed to play in the Olympics or other International Competition for that time period anyway.
So, if Ovechkin jumped this summer, he'd be banned from the Olympics for 3 years...in other words, he'd miss ZERO olympics.

If defections by Kovalchuk, Ovechkin and other star players led to a mass exodus, the IIHF may well decide to waive the punishment for contract jumpers, as the more notable players jumped, the KHL would gain bargaining powers.

Also, what happens in 2011 when we have the next NHL lockout?

Another possible factor is the case currently before the Supreme Court involving the NFL. Every sports league and player union is watching that one closely, because if the NFL wins, it could kill collective bargaining as it exists in pro sports today.

That could lead to further player defections to the KHL.

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01-13-2010, 09:37 PM
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Quote:
Originally Posted by JSaq View Post


Alexander Radulov says Hi.
Alexander Radulov is exactly the same as Ovechkin.

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01-13-2010, 09:42 PM
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Originally Posted by FlyHigh View Post
Do you understand that the KHL business model is sustainable only in Russia? And maybe not even there.

In Russia, you can get away with paying the best guys 15 mill and the worst guys peanuts and then not even paying them, in a place like Sweden, you aren't going to be able to get away with that because Sweden isn't an authoritarian country.

Plus, do you think that Canadians, Americans, and Swedes (3 of the major talent-producing countries) are going to be jumping over each other to go play in Russia?
I doubt that North American players would, however, if European players could make as much money staying at home as they could in the NHL, a lot of them would stay.

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