Recently we brought you an
exclusive look at Evgeni Malkin’s entry level NHL deal , which showed how top rookie deals are structured.
I thought it would be interesting to also take a detailed look at Malkin’s last Russian contract (with Metallurg Magnitogorsk) to see what he was making before joining the Penguins and the bonuses that were available.
Turns out that there isn’t much detail to review.
While Malkin’s NHL Standard Player’s Contract came in at 14 pages (including the Addendum A), his Russian contract for the 2005-06 season was just one page. And it was handwritten.
Assuming that I’m not the only one who can’t read Russian, here is the translated version:
Evgeni Vladimirovich Malkin earned the equivalent of $900,000 US in base salary, plus bonuses for team success in the regular season and playoffs plus additional bonuses under the “goal + assist” system which added an extra $1,000 US per point.
Although the document doesn’t say much, there are three interesting points on the second page:
1. “HC Metallurg shall not interfere with the player’s further career choices but shall factor in the existence of the contract with the player through 2008 and the possibility of contract transfer per mutual agreement.”
As we know, the team did attempt to force Malkin to stay another season, but he exercised his rights under Russia law and opted out of the contact, clearing the way for him to come to North America after much controversy and a trial. Here are his opt-out letters, the first of which was torn up and thrown in the trash by the team’s GM, Gennady Velichkin.
2. “Drunk appearance at the training practice or before a game or in public incurs a fine in the amount of 2,000 (two thousand) US dollars.”
Interesting that there are only a couple clauses in this deal but one of them talks about being drunk at practice or before a game. Must be somewhat common for that to be written in there, something that was apparent in reading Dave King and Eric Duhatschek’s
“King of Russia: A Year in the Russia Super League”, which details King’s year in Russia, coaching Metallurg Magnitogorsk during Malkin’s final year there. (It's a must-read)
3. “The Agreement shall not be disclosed by the club or the player.”
Since we have the contract, those details now can be disclosed. So how much did EVM earn in his final year in Russia? By my calculation..
Compare that with:
It’s worth noting that in Russia I believe the team would have paid Malkin the money he would owe in taxes in addition to his salary (salary is often reported as tax-free but it's not) as well as his living expenses.
Malkin was offered $3.45 million in salary to stay in Russia and spend the 2006-07 season with Metalurg – the deal that he signed under duress and soon after opted out of.
This season, according to the KHL website and translation/conversion from
Under Review (
via James Mirtle), Metalurg Magnitogorsk’s total payroll is $18.9 mil US. At the time that Malkin left (prior to the formation of the KHL), the team’s General Manager stated that the team’s payroll was over $10 mil so things have changed quite dramatically in the past two years.
In an upcoming post we’ll take an in-depth look at the 2005 NHL-IIHF transfer agreement.
And of course with cutdown day coming and real hockey getting underway in North America on Thursday, we’ll be going pretty much non-stop here between now and next July 1.
Danny –
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