When the Russian Superleague was dissolved to make way to the modern-day KHL, the Kontinental Hockey League Players' Trade Union (KHLPTU) agreed to the implementation of a salary cap. When first implemented there was a salary cap, as well as a salary floor. As of the 2009-10 KHL season, the salary cap was 620 million rubles ($US18.3 million) and the salary floor was 200 million rubles ($US5.9 million). The KHL's cap operates despite the KHL's multinational nature, with teams in Belarus, Kazakhstan, Latvia, Slovakia (from 2011–12), the Czech Republic (from 2012–13), and Ukraine (also from 2012–13), in addition to its primary base of Russia. Each of the non-Russian countries uses a different currency, and all of them currently float against the ruble. Kazakhstan has never sought to peg its currency to any other. Belarus has in the recent past attempted to peg its currency to the ruble and the US dollar with limited success, while Ukraine's currency is currently pegged to the US dollar. Slovakia uses the euro, while Latvia's currency is closely tied to the euro via the country's membership in ERM II. Although the Czech Republic is obligated to eventually adopt the euro, it is not expected to do so in the immediate future; in the meantime, its currency is not closely tied with that of any other entity.
Also, in 2011-12, each team could sign up to two "designated players" whose salaries are not counted against the cap. The KHL salary cap was, until the 2011-12 KHL season, a soft cap, with a luxury tax amounting to 30% of the payroll that is over the cap, paid to the special stabilization account, which helps KHL teams facing financial hardship. From the 2012-13 KHL season onward, the KHL salary cap is a hard cap and, for 2012-13, is set at $US36.5 million.
Interesting.. thanks for that info. $36.5 million salary cap is pretty low compared to the NHL. So unless you're one of the 'designated players', your salary would be pretty small compared to the NHL salaries. And how much are these 'designated players' making? I know Jagr made a fortune there, but was he an exception?
Interesting.. thanks for that info. $36.5 million salary cap is pretty low compared to the NHL. So unless you're one of the 'designated players', your salary would be pretty small compared to the NHL salaries. And how much are these 'designated players' making? I know Jagr made a fortune there, but was he an exception?
Interesting.. thanks for that info. $36.5 million salary cap is pretty low compared to the NHL. So unless you're one of the 'designated players', your salary would be pretty small compared to the NHL salaries. And how much are these 'designated players' making? I know Jagr made a fortune there, but was he an exception?
I don't think the designated player thing is in effect anymore since that would make it a soft cap..
Local and international media were reporting that Jagr will be paid $35 million for two years. However, in an interview with TSN, Jagr, himself, says the deal would pay him $5 million annually.
So, they stay in Russia while still having an active contract in the NHL. So the IIHF blocks their ability to play in any international tournaments. Then they come back and do the right thing.
I think these types of statements end up hurting future young Russian players. NHL teams already are apprehensive to draft any Russians, I think if this happens, it wouldn't be surprising that zero Russians get drafted.
If Datsyuk and Ovi and Malkin stay in Russia, IIHF isn't going to ban them...They'll figure out a way.
It isn't like the IIHF owes much to the NHL anyway.
These types of statements don't hurt young Russian players. Nothing hurts young Russian players except idiotic NHL owners who design systems that are going to prevent the best talent in the game from coming to North America.
And really, that doesn't hurt Russian players. It hurts the NHL. The young Russians will make their money either way.
The interesting thing will be when the #1 overall NHL pick from North America looks at his 5-year, $850,000 contract... and then realizes h can't be a UFA until 29...
So he says screw it, and signs a $4M a year contract to play in Moscow as an 18 year old.
That's when the NHL owners will realize how seriously stupid they are.
And a judge would quickly laugh them out of court - since their current contracts explicitly state that they are subject to the terms of the current and any future CBA.
If the NHLPA agrees to an explicit rollback or an implicit one through higher escrow, a player has zero recourse.
If Datsyuk and Ovi and Malkin stay in Russia, IIHF isn't going to ban them...They'll figure out a way.
It isn't like the IIHF owes much to the NHL anyway.
These types of statements don't hurt young Russian players. Nothing hurts young Russian players except idiotic NHL owners who design systems that are going to prevent the best talent in the game from coming to North America.
And really, that doesn't hurt Russian players. It hurts the NHL. The young Russians will make their money either way.
The interesting thing will be when the #1 overall NHL pick from North America looks at his 5-year, $850,000 contract... and then realizes h can't be a UFA until 29...
So he says screw it, and signs a $4M a year contract to play in Moscow as an 18 year old.
That's when the NHL owners will realize how seriously stupid they are.
I don't think that the NHL owners are really worried about Russian players. I mean... we both love watching them play, but you would watch the NHL without Datsyuk and Malkin.
NHL would miss most of the exposure in Russia. But so what? Russia is not a big market for them. And in 10-15 years it would a bunch of unfamiliar names playing in the KHL, not the established NHL superstars Datsyuk, Ovechkin, Kovalchuk and Malkin.
Would the NHL be worse? Yes. Would it less popular in NA and make less money? No.
The IIHF has contracts with Hockey Canada and Hockey USA. As such they must consider NA law in any decision unless the NA courts rules the NHL contracts invalid or the clause covering retirement/non-competition.
Any direct ruling without consideration could have unintended consequences regarding their legal contracts with Canada and the US. International business is a very confusing area and can be even harder to straighten out when things get muddy.
If Datsyuk and Ovi and Malkin stay in Russia, IIHF isn't going to ban them...They'll figure out a way.
It isn't like the IIHF owes much to the NHL anyway.
These types of statements don't hurt young Russian players. Nothing hurts young Russian players except idiotic NHL owners who design systems that are going to prevent the best talent in the game from coming to North America.
And really, that doesn't hurt Russian players. It hurts the NHL. The young Russians will make their money either way.
The interesting thing will be when the #1 overall NHL pick from North America looks at his 5-year, $850,000 contract... and then realizes h can't be a UFA until 29...
So he says screw it, and signs a $4M a year contract to play in Moscow as an 18 year old.
That's when the NHL owners will realize how seriously stupid they are.
With a 36M cap how many rookies can they sign to 4M/ contracts can they sign?
It will be awesome to see all these hypocrites sitting out the olympics in their home country or swallowing their "pride" and playing a game for millions according to the LEGAL document they signed.
It will be awesome to see all these hypocrites sitting out the olympics in their home country or swallowing their "pride" and playing a game for millions according to the LEGAL document they signed.
Even in US court, its not a given that NHL contracts are enforceable as it relates to retirement, termination and non-competition.
