Malkin '100%' coming over next year. RSL club threatens legal action

Spetzky

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The Moose said:
I think this is entirely between Dynamo and Malkin. The main point is whether russian law treats hockey contracts as any other job contract and a worker/player can just walk out, voiding the contract. If this is the case, then Malkin can just walk out and Dynamo gets squat. But if the contract are binding, then it doesn't matter what Malkin wants, he has to play out his contract, unless the club releases him. Should he decide to leave, Dynamo will sue him personally for damages (not Pitt), in a russian court. And if the contract is binding they will win. He either pays or gets his *** thrown into the slammer the next time he sets foot in Russia.

I think the frustration of the russian clubs is understandable, considering the money they pour into player development. In North Amrtica the player supports the cost of his own development (well,...his parents) and he gets his money worth by the eventual pro contrcts he signs. Obviously a different story in Europe so it is normal clubs want to make some profit in order to keep the program going. If player's parents would pay the bills in Russia, then the entire program would colapse.

On the other hand, as some other posters pointed out, is ridiculous to compare Malkin with Sheva. Not only Sheva was a established star but the soccer market and hockey market are two very very different things. It wasn't ridiculous to pay 25 mil for Sheva transfer because Milan got their investemnt back many times over. No hockey market justifies paying this kind of money for Malkin or for any other player as a matter of fact. In the end these are bussines decisions, no owner would pay just because he likes some player. Abramovich invested huge amounts of money in Chelsea but the club still makes a hefty profit; it wasn't all just for the sake of soccer.

Malkin is signed to and plays for Metallurg Magnitogorsk.
Malkin has proven he can play a heavy workload including tournaments he's played close to 90 games.
Malkin has the highest PPG in the RSL.

I say that Pittsburgh should pony up on some cash something like 1.8 million sounds fair.
Hust get the GREAT fans of the Pens to pitch $5 each.
 

DJ Spinoza

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Burke's Evil Spirit said:
Wow, somehow the crazy European Football Transfer Fees can also be applied to the NHL?

Don't forget that AC Milan is valued at $1 billion by Forbes. Pittsburgh is worth about one-tenth that.

Don't forget that when bidding on Footballers there are several clubs involved. However, the only NHL team that can have Malkin is Pittsburgh.

Bingo. And to suggest that what happens in European professional soccer leagues sets a precedent for transfering a young, talented Russian who entered the Entry Draft into the NHL is ludacris, to say the least. Apples and oranges.

Only a few things can happen with this. If the transfer agreement is signed, they accept the payment and Malkin comes to the NHL, or they refuse to accept payment and Malkin probably comes to the NHL anyways (it seems to be his only intention for this fall) and they fight it out in the courts. If the transfer agreement is not signed, he will either stay and finish his contract with Magnitogorsk, or he will come over as is his intention and they will fight it out in the courts.

The NHL isn't going to let the Penguins negociate directly with Velchkin for Malkin's rights, and they aren't going to want to anyways. That is such a slippery slope for the NHL to go down.

I am unclear of what would happen if the transfer agreement is signed and Pittsburgh offers to pay but Velchkin refuses. I don't see how they would have any ground to stand on, since there is an agreement in place.

The bottom line for me is that it comes down to whether Tretiak gets an agreement done with the NHL.
 

kingpest19

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Sep 21, 2004
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I think it was brought up earlier in the thread. What happens if they dont get him signed to a deal? Do they lose his rights or does the NHL step in and say well because of outside circumstances the time period is extended or does he fall under the old CBA?
 

jekoh

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Jun 8, 2004
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The Moose said:
It wasn't ridiculous to pay 25 mil for Sheva transfer because Milan got their investemnt back many times over. No hockey market justifies paying this kind of money for Malkin or for any other player as a matter of fact.
Noone said the Pens should pay 25 million for Malkin.
 

WalterSobchak

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jekoh said:
Noone said the Pens should pay 25 million for Malkin.

http://tsn.ca/nhl/news_story/?ID=164521&hubname=nhl

When asked how much the Penguins should have to pay for the services of Malkin, Velichkin made a comparison to soccer star Andriy Shevchenko's move from Dynamo Kiev to AC Milan for $25 million.

"Dynamo received millions from Milan for Shevchenko, why can't we get that?, asked Velichkin. "But I can't name the exact price for Malkin. We must wait for Pittsburgh's offer first."

as long as TSN isn't getting sued for liebel, then it came right from the horses mouth. Did he specifically say the number 25, no.
 

Burke's Evil Spirit

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Spetzky said:
Malkin is signed to and plays for Metallurg Magnitogorsk.
Malkin has proven he can play a heavy workload including tournaments he's played close to 90 games.
Malkin has the highest PPG in the RSL.

I say that Pittsburgh should pony up on some cash something like 1.8 million sounds fair.
Hust get the GREAT fans of the Pens to pitch $5 each.

$1.8 million is not an unreasonable figure.
 

spiny norman

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kingpest19 said:
I think it was brought up earlier in the thread. What happens if they dont get him signed to a deal? Do they lose his rights or does the NHL step in and say well because of outside circumstances the time period is extended or does he fall under the old CBA?

IMHO, the Penguins will continue to hold Malkin's NHL rights until the transfer agreement is signed and then after reasonable time has passed; let's say 2 years.
 

jekoh

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ZaphodBeeblebrox said:
as long as TSN isn't getting sued for liebel, then it came right from the horses mouth. Did he specifically say the number 25, no.
What he says is "millions" not "25 millions".
 

WalterSobchak

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Moose had it right. This issue is between Malkin and Metallurg Magnitogorsk. If Malkin is legally obligated to play for them, there is no reason for Metallurg to let Malkin go without compensation. If Malkin leaves to play for Pittsburgh, that is a rule for the CBA and International Law to deal with. If Malkin has the option to walk away from the contract or void it otherwise, Metallurg deserves as much as Rimouski Oceanic received for Crosby.

What we are dealing with is a Socialist system clashing with a Capitalist system
 

WalterSobchak

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Fredrik said:
It's true but this time the Russians are the capitalists. Drafts and similar are socialist systems, like it or not.

heh, nice. Essentially (at least on the surface) the Russian Federation would like compensation for the years spent on a program that pays the way for these kids to develop hockey skills. Nobody knows at age 7 that Evgeni Malkin is going to be a superstar.

But yeah, now it flips to that league and that club bartering within a capitalist market.
 

Jaded-Fan

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Mar 18, 2004
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To clarify a question posed here. Bettman extended the deadline for signing Russian Prospects by a year because of the impass on the transfer agreement with Russia. Call it the Malkin extention. By coincidence it will expire right when Malkin's contract with his RSL team expires. So if his team is successful in making him stay an extra year, Pittsburgh for sure gets him for nothing the year after next. How many think that it will come to that?
 

NYR469

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can't really blame the russian club for making this kind of demand, doesn't hurt to ask you can always come down during negotiations. my guess is that they will start with this insane demand and then during negotiations they will come down significantly but still end up getting more $$ than if they just took whatever the pens would give them. if i had to guess i'd say somewhere in the $2 mil range will be the final price
 

NYR469

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Smail said:
He can breach his own contract. Then he wouldn't be able to play in Russia again, but maybe he doesn't care.

he might not care about going back to play in the RSL (of course i'm sure he'd prefer keep that option open) but the place that this might be a real concern for him is international play. he can thumb his nose as the russian hockey federation and come over and there is really little they can do to stop it but they could then in return refuse to let malkin play for russia in any future olympics, world championships, etc. and yes that would be hurting themselves but that stuff is important to euro players so i'm sure malkin wants to do everything possible to get this done without burning bridges if possible.
 

Hawkster

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The Moose said:
Abramovich invested huge amounts of money in Chelsea but the club still makes a hefty profit; it wasn't all just for the sake of soccer.

Chelsea made a loss of £140m ($255m) last year.

They won't break even for at least another 5 years.

That much money is peanuts to Abramovich though..
 

jekoh

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Jun 8, 2004
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ZaphodBeeblebrox said:
Re-read what I posted and try again, please.
Reading your post, I don't even know if you agree with me or not.

My point is that Magnitogorsk are not saying they should get 25 million, merely "millions". They're not saying anything more than that. They even say they can't name the exact price. Shevchenko is used as an example of a big club paying big money.
 

Gumby

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First thing...the comparison with th Ovechkin situation is wrong. Ovechkin was basically a FA as his Dynamo contract ended and signed a contract that had an out clause in it because the labor agreement wasn't finalized yet and Dynamo tried to match it with the same $ amount but no out clause (which it wasn't even clear if Dynamo had a right to match), thus it's not a match, which is much of the reason Dynamo wound up with nothing.

Secondly....could the same situation happen with Malkin as did with Semin this past year? Semin had a contract with the Caps but stayed in Russia and the courts couldn't do anything about it. There was the sketchy claims of military obligations but that seems like BS now since a new deal and suddenly Semin is ready to jump the next flight here when all season he said he'd be stuck tere till Nov.

I knew he was stupid to sign that long deal when he did, and in fairness I think his RSL team should be able to get whatever they can for him since theres no IIHF deal.

Whoever is responsible for him signing a 4 year deal after his draft year should be the ones blamed for any problems that come from this...it was really utterly stupid.
 

Haute Couture

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Beesfan said:
If the Russian government or a franchise wants to pay money to develop players starting at age 7 rather than private leagues where kids pay, then that is their business, but this does not give them a claim on this person for the rest of eternity. USA hockey now has the NTDP, and they do this for the sake of advancing the sport and improving US performance in international tournaments, but they don't ask for compensation for a player like Phil Kessel even though they put a lot of resources into him.
1. It doesn't give them any claim for the rest of eternity. But it should give them some right to reap the benefits of their seeds. If players will start leaving Russia with barely any compensation at the age of 18, like Kovalchuk, then Russia won't have any incentive to produce good athletes. Why?

2. Because all the good ones are leaving for America, that's why. Because NTDP promotes hockey in US - yes, but it also has an emphasis on developing GOOD hockey players that will play professionally some day and maybe even represent their country. No one will expect Erik Johnson to go to Russia to entertain Russian fans. We expect him to stay here in North America. That's why it's so much harder for the Russians.
My opinion is that Pittsburgh should try every tactic they can to get Malkin to the USA, but at the end of the day, they must comply with the law. If it is not possible to lawfully get Malkin over here, then they need to pay up or wait.
Pittsburgh will comply with the law, definitely. Mario spoke to Velichkin a dozen times this year, and obviously has been utmostly professional.


Sammy said:
I dont really understand your point, but do you think here in Canada ,hockey schools, the time of all the volunteers, the cost of all the equipment, the cost of icetime, the cost of going to tourneys, membership , hotels....etc is all free?
ummm... The consesus is that North American families are able to support their kids. That's number one. And number two - the kids aren't really going anywhere. A youngster from Saskatchewan might go to Florida, yes, but he's still in the same league. He still works for the North American audience. He basically contributes to the overall North American economy. It's not the same when Russian hockey coaches develop players and then see them wave goodbye on the first plane across the ocean. And there are many many many more ice rinks in Canada than there are in Russia. You can blame the Russian government for this (as for many other things), but even in USSR with all the humongous investments that went into sports, Montreal alone had more closed rinks that the whole USSR combined. Puts things into perspective, doesn't it?


Kirk Muller said:
No. Investing into developing a hockey player is a free choice. It does not obligate the player to do anything in return other than play hockey for you at the present time. There is no contract that binds them to do anything more than that.
Yes, it IS a free choice. But don't you think that the NHL benefits with talent like Kovalchuk, Malkin, Ovechkin, etc... ? I think it does.

The obligation is only contractual and moral. Malkin has a contract until 2008. That's contractual. He already spent an extra year in Magnitogorsk. That's the moral side. Meaning that the contract has to be dignified. And I'm not sure that he's in any way angry at his own club (yet) about the situation. He understands that Metallurg should get the compensation.


If Malkin did indeed sign a contract that said he would play for them through 2008, then yes, there should be compensation. On the other hand, it is no clear what type of contract he signed. Apparently, in Russia, you can simply resign from your hockey contract just like any other job. In this case, there is no reason to give Metallurg any compensation. They can posture and threaten, and then sue and lose just like Dynamo did with Ovechkin.
He signed a typical Russian contract. The laws are a little different in Russia, yes, but that's for American (yes, I said American) courts to decide. That's why going to court about this is a good idea. Velichkin, Magnitogorsk's GM, said that they would some clarity on this, and he trusts American courts. Here's the deal - in Russia an athlete is not an official profession. That could give both parties a couple of problems to discuss. If the courts say that Russian contracts can be nulled and voided, then that's the decision. It means that Russia will have to conjure a good judicial system before its citizens want to go and question other nations' business laws. I'm more discussing the moral side of this, anyway.

The NHL would have an interest in signing an agreement that allows for the secure and systematic transfer of players without any surprises and without having to negotiate individually with any team. It's not necessarily right, but it's in the NHL's interest.
I think it's in everyone's best interest. There are aspects of American sports leagues that are extremely positive - like strict organization and emphasis on humane, but professional treatment.



Kirk Muller said:
So what ?

If they decide to invest tons of resources and time into a player, that's their free choice. It does not give them any claim over the player.

I find it comical that the only people who defend the idea of Ovechkins or Malkins being stopped from playing in North America are either the frustrated old boys of the RSL, or expatriate Russian nationalist youths who've lived most of their life in the priviledge of North America.
What is so comical about it? I think it's very logical to expect Russians (and people of other nationalities, as well, as evidenced by responses in this thread) to be in generally for compensation. I would love to enjoy the kids play here, but being Russian gives me some perspective on what things are. And insofar, I've lived most of my life in Russia, and there has only been one or two really good competitive athletes coming out of my city of 700,000 inhabitants on Russia's Pacific Coast. And it's frustrating enough to see the best go to Moscow. But then at least we'd see them on TV or something. NHL is the whole other planet. And I'm not saying that our city would get compensated in any way - actually, a team like Magnitogorsk would probably snatch our best talent anyway by the time they'd reach 13-14 years of age (like what happened with Chistov (from Chelyabinsk, I think), Zherdev, Babchuk (both from Kiev), and some other kids). But when we're talking about a kid like Malkin, Magnitogorsk's home-boy, I would expect Metallurg to ask some compensation for him. A few million dollars, perhaps, depending on contractual agreements, but something tangible for years and years of determined hard work. You can laugh about it, but I find NOTHING comical in trying to help my home-country get back on its feet. Who knows if this money will be spent on another Pavel Rosa or on a couple of kids who would otherwise roam the polluted streets of Magnitogorsk. It would still be a plus. Laugh all you want, but the joke's on you.
 
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Kirk Muller*

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The Moose said:
I think this is entirely between Dynamo and Malkin. The main point is whether russian law treats hockey contracts as any other job contract and a worker/player can just walk out, voiding the contract. If this is the case, then Malkin can just walk out and Dynamo gets squat. But if the contract are binding, then it doesn't matter what Malkin wants, he has to play out his contract, unless the club releases him. Should he decide to leave, Dynamo will sue him personally for damages (not Pitt), in a russian court. And if the contract is binding they will win. He either pays or gets his *** thrown into the slammer the next time he sets foot in Russia.

You can't be sure of that. A Russian arbitrator decided that Ovechkin owed Dynamo a year of hockey, and he went off to play for Washington. I don't see him being thrown in jail when he goes back to Russia. I'm not saying you're wrong that Metallurg would win a case against, only that there is a lot of confusion, and that I personally don,t know what's the difference between his case and Ovechkin's.
 

Kirk Muller*

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b-mad said:
First thing...the comparison with th Ovechkin situation is wrong. Ovechkin was basically a FA as his Dynamo contract ended and signed a contract that had an out clause in it because the labor agreement wasn't finalized yet and Dynamo tried to match it with the same $ amount but no out clause (which it wasn't even clear if Dynamo had a right to match), thus it's not a match, which is much of the reason Dynamo wound up with nothing.

And according to what I've read, a Russian labour arbitrator eventually decided that he must play with Dynamo. I'm assuming this means he would have to play for them on the terms of the no-out clause, but I really don't know. "Nevertheless, a Russian arbitrator ruled Ovechkin had a valid contract to play for Dynamo this season." http://www.nhl.com/features/pond/russia033006.html
Maybe Eugene could explain this.
 

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