Some Clarification on Malkin and the Penguins

Here are some de facto clarifying notes about Pittsburgh and Malkin. In fact, most apply to all NHL teams, so this should be helpful regardless of which NHL team you follow. I thought this was long overdue since I keep reading misinterpretations of the situation by many on their posts. And althought I am sure these notes will not rid the site of erroneous comments about the situation, I wanted to help people who are interested in reading it, what is really going on instead of getting bad information from the uninformed. So here are some true factual points as things stand under the current CBA and player transfer agreement:

  • Malkin’s transfer from Magnitogorsk to Pittsburgh will cost $0 to the Pittsburgh Penguins. – All transfers from any league to the NHL, cost absolutely nothing to the NHL team. All 30 teams contribute to an NHL central fund used for the transfer of players as per agreement with IIHL countries (except for Russia at present). The NHL (or all 30 teams, whichever way you want to look at it) pays for these transfer fees. So in a way, the Penguins paid/will pay the Malkin transfer fee, when they put in their required part every year to be alloted into this fund. But the fact is they don’t actually pay for the transfer of the player, the NHL does. I am not versed on what these amounts are, but my understanding is that the amount is the same for all 30 NHL teams. Regardless, the Penguins will not have to come up with an extra amount on their budget just to pay off Magnitogorsk to get Malkin. Their regular alloted yearly budget already takes care of this.
  • The transfer costs for ANY player (regardless of draft position) under the present transfer agreement is $200,000. – It doesn’t matter if the player is 1st overall, or last overall, the fee is the same. The General Director for Magnitogorsk is apparently oblivious to this, because during an interview in Russia, he said he refuses to accept the Penguins’s transfer fee of $900,000. For one the Pens won’t even be involved in the actual transfer, and for two the fee is $700,000 less than he thinks. I think he will be mad when he finds out.
  • Due to the lack of an agreement for transfer of players with Russian clubs, signing deadlines for drafted players in Russian clubs are presently indefinite. – NHL clubs keep the rights to these players indefinitely until further notice. This means that the Penguins rights to Malkin, for now, will not expire. This already happened with another player for the Penguins. Pittsburgh’s rights to Sergei Anshakov (who they got in a trade with the Kings) were to have expired by now, but since the deadline has been removed, the Pens kept the rights to Anshakov without signing him. This also means that whether for next season, or even in two years when Malkin’s Russian contract expires, the Penguins will be able to sign Malkin to an entry-level contract which will not be far removed from Crosby’s $850,000 playing contract being that the current CBA put a cap on rookie salaries.
  • Malkin wants to play for the Penguins next year and things are looking up in that regard. – Unlike for this season (he wanted to stay in Magnitogorsk), Malkin has stated more than once that he wants to play next season in the NHL for Pittsburgh. His contract with Magnitogorsk ties him up for another two years (unless the Russian clubs and the NHL and IIHL can agree to a transfer agreement). But the signs are better that the Russians will agree to a transfer agreement for next season now that they have a new president (Hall-of-famer Vladislav Tretiak)of the russian hockey federation who is NHL friendly. And also because legal research interpretation of Russia’s labor law has turned up that unlike in North America, in Russia hockey players are not legally bound to their clubs, so under this interpretation Malkin could just tend a letter of resignation to his club, and head anywhere he wishes, which puts more pressure on the clubs and Magnitogorsk to agree to sign a transfer agreement.
  • Lastly, I did not research the actual material myself. Like most of us, I simply read the articles from the people who did the actual reasearch (like the Pittsburgh Post-Gazette). The information comes from several sources and articles, but were all reaserched by investigative reporters who took the time to clear these issues up with the NHL, the Penguins, player agents and the like, and all these points have yet to be refuted by any of the above. All of the information I supply above came from established professional and respectable news agencies (i.e. no fly by night “news” websites, fan sites, or BBs used).

    I hope this helps clearing up some of the misconceptions. Feel free to post, but if you expect a response please be patient it might take me a bit to get back here and respond.


    80 Responses to Some Clarification on Malkin and the Penguins

    1. kamullia says:

      Perhaps $200,000 is not such a stellar figure for a 1st round pick, but realize that the last guy in the entire draft also commands the same amount.

      Regardless, the NHL as a whole could not afford to pay more than double that amount for every player. It would become quite a sum when you start to look at the amount of players they get from other leagues.

      One thing you also might not know, is the fact that Malkin was told by Magnitogorsk, and Magnitogorsk repeated this publicly several times before this year, that any time Malkin wanted to leave for the NHL they would not stop him or hold him in anyway, especially over money. They said that what was important to them was to help him mature as a hockey player. Unfortunately, it was nothing but a verbal talk and was never put down on paper and aparently that does not hold much water legally in Russia. And now that Malkin wants to leave, they are literally holding him for ransom. Now in my view that is just plain disgraceful because they mentioned it to the Penguins before they even drafted Malkin.

      Also, the actual amount that would make Magnitogorsk happy has never been mentioned, but they used as an example the transfer of a futbol player in Europe. Here is an excerpt from this article [www.post-gazette.com]:

        “Velichkin said he wants compensation for Malkin, similar to some of the major deals that have been seen in international soccer, including the $25 million that AC Milan paid Dynamo Kiev for player Andriy Schevchenko in 1999.”

      I think that is outright ridiculous, especially when his salary in the NHL will be closer to $1 million and when the highest paid NHLer makes less than $10 million.

    2. FlyersfanKyle says:

      but im still not abandoning the dream of nhl hockey returning to Quebec City and Winnipeg

    3. tacitus says:

      Remember when Fedorov defected and signed with the wings. Thats what happens worst case scenario. These Russian teams expect these players to miss big pay days??? If he fails in the NHL dont worry he willgo back like Morozov did. Wake up and smell the capatalism

    4. kamullia says:

      Someone thought of that also, but that it is a totally different situation.

      I explained why it can not happen that way with Malkin here [www.hockeytraderumors.com].

    5. kamullia says:

      Ooops. I gave the wrong link above. My apologies.

      Here [www.hockeytraderumors.com] is the right link.

    6. kamullia says:

      Well, I feel better. It wasn’t my fault. I used both times the correct tags and links but for some reason it doesn’t work today. Go figure.

      Just copy and paste the following entire address into a browser for the the answer. Caution, since the address is very long, it will probably by put into two lines. Make sure if this happens you take the second line and place it right after (without spaces) the first line into the browser:

        http://www.hockeytraderumors.com/modules.php?name=News&file=comments&op=showreply&tid=179955&sid=6632&pid=179905&mode=&order=&thold=#179955

      Sorry for the inconvenience. Still not sure why this happened. Something to ponder.

    7. Aetherial says:

      I would not trade Malkin for anybody, with the exception possibly of Crosby and Ovechkin, and that, only because we now know how good those two can be in the NHL.

      Other than that though, The first time I saw Malkin, he was on the Russian juniors with Ovechkin… Malkin was by far the most polished, complete and dangerous player on the ice.

      Seriously, he is in the top 3 of players I would start a team with, with the two mentioned above.

    8. Kraut182 says:

      Yes, $200,000 is high for the last guy in the draft, but it isn’t ofter (ever) that the last guy in the draft is someone you want to rush over and get in an NHL uniform. A more fair system (IMO) would be a sliding scale based upon the players position in the draft.

      Magnitogorsk was wrong to lie to Malkin and the Pens, but I can see why they did it. By doing so they keep their best player happy and performing well, and away from trying to escape from Russia at the earliest opportunity.

      The $25 million is ridiculous and if Velichkin really believes he should get that then Malkin looks like he could be stuck in Russia. Or it could just be bargaining and trying to get the fans on his side, Russians likely understand soccer transfers better than they do hockey transfers.

    9. wingerxxx says:

      That is a good, informative article. There is no way that the Pens will trade his rights. What could you possibly get in return, that would have more upside than this kid. No, he may not be the most likeable kid on the planet, but he is insanely talented. The organization knows how dangerous a Crosby-Malkin tandem at center ice will be.

    10. habs_punk says:

      Next time you’re going to bash another team, do a bit of research. Throwing stats out there that are completely false makes you look just plain stupid. Both Koivu and Kovalev broke 60 points this year, and missed a combined 23 games due to injury. How many players on the Pens broke 60 points? Crosby and Recchi (who obviously isn’t still on the team anymore).

      The only reason losing three games to Crosby’s Pens was an embarrassment was because of how incredibly awful this team was. So you win that argument, but your team is still horrifically awful.

      Anyways, I don’t think anyone was at all surprised with Crosby’s performance against the Habs. This was the team he was most excited, most pumped up about playing against.

    11. habs_punk says:

      I hope there’s no more expansion. The fewer teams the better. Better rivalries, more games against rivals, less teams to spread the available talent around to. Imagine an Original 6 league with the talent that is out there right now. It would be incredible hockey. 30 teams is too many in my opinion.

    12. kamullia says:

      I do not think there is a good system that will work for everyone.

      One thing you have to understand is that the IIHF is the one who asked for a flat fee, and will more than likely continue to do so in the future.

      Their thought is that if there was a sliding scale the NHL would take even more players from their leagues in the generic thought that players in European leagues (who are the vast majority of the IIHL) have better puck control. So the high price for non-stellar talent is in a way a deterrent to having European clubs ransacked by the NHL.

      In the case of players like Malkin the amount seems low, but I can not name too many other players where that price would be considered low past Malkin that are in this situation right now. And that includes Alexei Morozov who has had more than excellent showings in Russia the past two seasons, even when their league had NHL players during the lockout.

      On a sliding scale I think Morozov is not worth $200,000 in a transfer fee, especially from his past doings in the NHL. Morozov will be an UFA as far as the NHL come July and still has a year in his Russian contract, if my memory serves me right, not that it matters because the fee applies to the year played prior to the transfer (i.e. if the contract for the non-NHL club expires this year, and the NHL team wants the player to play NEXT season in the NHL, the non-NHL club still gets $200,000 from the NHL even though his contract is expired).

      In short, I don’t think a sliding scale is the answer either.

      Greedy clubs, like Magnitogorsk has turned out to be, regardless of what system is in place will continue to ask for higher and higher amounts.

        Warning, you must have an open mind the read the following: Here is a twisted idea I have knocked around with others and we shared some level of agreement on these measures.

        The problem: Greedy clubs asking for ridiculous amounts for an unproven player at the NHL level. Solution: Take away the ability from the greedy clubs to ask for exorbitant amounts by taking away the big bank account (or perceived big bank account of NHL teams, if you like).

        How could it work? The NHL passes down the responsibility of transfer to the player who is being transfered. Sort of a “membership fee” if you like (even thought the money would not go to the NHL), with the real thought of keeping costs reasonable. A sort of You want to play with us in the NHL and make more money than anywhere else playing hockey? Then it is up to you to compensate your team in the contry you are coming from. After all, you signed the contract that binded you, therefore it is up to you to release yourself from it.

        Now this is not fair to the player, but it is one way that the greedy clubs out of the NHL will quit asking ridiculous amounts because they know the players do not have exorbitant amounts to spare with. And the NHL could compensate the players for it after all. Like the idea given to me by a friend: A reimbursement payment from the NHL to the player for the entire transfer fee if the player completes three years of playtime at the NHL level, or say a third of the transfer fee per year until full repayment. That way players who stick around end up reimbursed, and players who are borderline will think twice to coming over because of fear of not sticking in the NHL for three years at the least and losing a lot of money on a failed venture. It might also work as a deterent to too many players leaving their clubs for the NHL and therefore keeping a good level of competition in those leagues.

        But it’s nothing but a dream considering how things are run and thought of presently. I seriously doubt this would come to actually ever materialize, especially if the NHLPA has anything to say about it and believe me they would, but it is a way to keep the costs to everyone to reasonable levels.

        Now if you’ll excuse me I have to go answer the emailed death threats from the NHLPA. At least it’s not Goodenow anymore. He was a bully!

    13. FlyersfanKyle says:

      6!!!! lol yea right i think 30 is enough but i still wanna see teams in Hartford Quebec City and Winnipeg

    14. AHLoldie says:

      I think a lot of people are forgetting one important fact. Malkin made more money this past year than Crosby and Ovechkin combined. There is no cap on his salary. He will make at least 4Mil next season if he plays in Russia. Do you think he’ll come to the NHL for the rookie max of $900,000? I know he’s expressed a desire to play here, but I don’t think the league will allow exceptions in the salary structure. Remember, Malkin’s Russian owner is one of the wealthiest men in Russia, and he can always up the ante.

    15. kamullia says:

      Could you supply a link to the official salaries of the Russian league, please? Or where you got the trustworthy notion of Malkin’s present salary? I have been looking for this information for a while now.

      It is my understanding up to now that they keep their salaries strictly confidential and I have yet to find a reputable renoun trustworthy source that has reported on Russian contracts. I have only found trustworthy references to ranges of salaries and they were between $2,500 USD per month to around $12,500 per month for prominent established veteran players. Now, I am sure superstars are out of that range, but you would have to take that top number and multiply it by 18 times to come up to the numbers you mention and even if quite believable, that sure looks like a great disparity between salaries.

      Malkin’s agent in Russia, Dmitri Goryachkin, has repeatedly declined to mention what is the compensation received from Magnitogorsk.

    16. habs_punk says:

      I’m not saying they should cut it down to 6 teams, I’m just saying, think about what the NHL would be like with only 6 teams. Every team with an all star calibre goalie, potentially every team with 4 incredible lines. The quality of hockey would be rediculous.

    17. FlyersfanKyle says:

      yea teams would have superstars at every position

      but thats not always good look at the Rangers of old and now look at buffalo no superstars just players

    18. FlyersfanKyle says:

      yea teams would have superstars at every position

      but thats not always good look at the Rangers of old and now look at buffalo no superstars just players

    19. AHLoldie says:

      I’ve read in many places about Malkin’s salary. One place in particular was the Pittsburgh Post Gazette when they reported Aleksey Morosov was making a reported 1.8 Mil in Russia and the Pens wouldn’t match it. He had an escape clause in his contract. The same article mentioned Malkin’s salary to be approximately the same. When the Olympics were over, I read that the Russian owner would double Malkin’s salary to keep him.

    20. AHLoldie says:

      What do you mean by an original 6 League? Are you talking pre-1967 or a really original? Because the original NHL was:

      Montreal Wanderers

      Montreal Canadians

      Ottawa Senators

      Quebec Bulldogs

      Toronto Arenas

      That was the original 5 members!

      The Boston Bruins, Pittsburgh Pirates and New York Americans joined a few years later to make an 8 team league. There was never an original 6.

    21. kamullia says:

      I will do a search on their site for the article, thanks.

      This will not give me the actual salary of Russian players in general, but at least is a reputable reference of what Malkin’s salary’s might be coming from the Post-Gazette.

      One key note, if other sources were TSN. I do not trust TSN for this kind of information because way too often they turn in retractions and give wrong information (without retraction) because they based their article from another news agency erroneous input. When TSN does their actual investigation they are typically accurate, but when they relly on others investigations they are not so accurate.

      Thanks.

    22. kamullia says:

      Do you have an actual link to this story on the Post-Gazette?

      I have searched their website’s past articles all the way to July of 2005 and I could not find the article in the Post-Gazette.

      The only thing I found in reference to 1.8 Million and Morozov was a table of salaries from August of 2005 where they listed Morozov’s Penguins qualifying offer to be 1.8 Million. Not his salary at Ak Bars Kazan.

    23. goleafsgo1991 says:

      JUST TO MAKE IT CLEAR…AS I’VE SAID BEFORE…

      MALKIN COSTS THE PENS $0, AND THE NHL $0!!!

      BECAUSE THE NHL AND RUSSIA HAVE NO TRANSFER AGREEMENT, THERE IS NOTHING THAT OBLIGATES THE PENGUINS OR THE NHL TO PAY MALKIN’S RUSSIAN TEAM ANYTHING AT ALL. YES, THE RUSSIAN TEAM MAY SUE LIKE THEY DID WITH OVECHKIN (OR I BELIEVE MAYBE SEMIN) BUT STILL, SINCE THERE’S NO WRITTEN AGREEMENT BETWEEN THE TWO LEAGUES, NO MONEY HAS TO BE PAYED. MALKIN JUST HAS TO FLY TO PITTSBURGH, SIGN A CONTRACT, AND BUY A HOUSE. SIMPLE AS THAT. NOW GET OVER THE WHOLE WILL MALKIN COST _______(THE NHL/PITTSBURGH) A LOT OF MONEY. HE COSTS THEM NOTHING TO COME OVER AND PLAY.

    24. AHLoldie says:

      You would have to contact the Post Gazette for past links. I read this almost a year ago. Fox Sports Pittsburgh did a piece with Dave King, a coach in Russia, who provided a lot of information on Malkin. He mentioned Malkin’s salary as way higher than any other player with the exception of Morozov’s. He didn’t give details. Also, a lot of the facts that you refer to concerning the salaries of Russian players are obsolete and from pre the year 2000. You probably got them from the old Hockey Zone Plus articles.

    25. kamullia says:

      Not worth contacting the Post-Gazette, they probably never did have it on their site because they do not delete their links for a long while. It is often that some of what makes the print edition does not make it to the website and since I did a thorough search, I suspect this is what happened (assuming you read it on print). Besides all that, a transfer agreement has been agreed to today (Friday 6/9). TSN reports that it is in princeiple, while the the Russian media says it has been finalized and signed by Tretiak.

      As far as my info on Russian clubs, my information comes from several sources like the Russian Hockey Digest, THN and the like, but not one of them was Hockey Zone Plus because I have never been to this site you mention. But all the info is current (within the last 2 months) according to my search criteria, unless where I specified otherwise.

      I think it is time for me to subscribe to Fox Sports Pittsburgh and add them to my channel lineup, since I have that option.

      Thanks for the input.

    26. mike7psu says:

      TSN.CA is reporting that the transfer agreement has been reached in principle and all that is left is the writing and signing of the official do*****ent.

      http://www.tsn.ca/news_story.asp?ID=168310&hubName=main

    27. kamullia says:
      1. I suggest you take a course on reading comprehension, since you obviously did not process the information on the article correctly.
      2. You are quite mistaken of the fact that Malkin is able to just get on a plane and flee Russia, as you suggest. The NHL for one would not accept Malkin to play for any NHL team, because of legal agreements with IIHL who the Russians are still a part of. And even if they did, then the Russians could certainly sue and most certainly would win in a court of law either in the US, Russia, or International tribunal since breaks laws all over the spectrum. You may read some of the posts above where Fedorov was mentioned to understand some of this, but your inability to digest the information may prove the effort to be futile. Let alone having to comprehend law principles.
      3. The entire conversation is pointless regardless, not that I would reply to any further idiotic and uninformed posts from you, because a transfer agreement is now in place with Russian clubs and the NHL, according to the latest reports. Malkin will still cost $0 to the Penguins and that appears to be a sore point for you. But I suggest focusing on more important things, like learning etiquette or assimulating verbose. Either one will be a vast improvement on your life. In fact, here is a LINK [www.m-w.com] to get you started.
    28. kamullia says:

      Yes. Reports from the Russian media say similar information, although the differ on the TSN report by saying that Tretiak has already signed the proper do*****ents.

      They had reported earlier that on Friday (today June 9th) the deal would be finalized.

    29. kamullia says:

      The Russian Federation has agreed to sign the transfer agreement with the NHL. Vladislav Tretiak, president of the Russian Hockey Federation, is set to sign the proper do*****ents to finalize the deal and send this do*****ents to the NHL. It is foreseen that the deal will be signed and set by next Friday (June 17th), so expect to see players in Russia being signed starting in two weeks.

      This takes care of any remaining hurdles, and Malkin is almost 100% assured to be in a Penguins uniform come October.

      Almost to the point of vindicating, to the unbelievers who posted above. the story in the Post-gazette announcing this agreement mentions all the points I raised. Feel free to read it HERE [www.post-gazette.com],

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