Malkin awaiting Russian team's next legal challenge

PITTSBURGH (AP) -- A Russian arbitration panel ruled that Pittsburgh Penguins rookie Evgeni Malkin violated his contract by leaving his Russian pro team to play in the NHL.

The ruling issued Friday appears to be meaningless unless Malkin's former team, Metallurg Magnitogorsk, can find a United States court to uphold the decision. The Russian Super League club also could sue the NHL or the Penguins.

Malkin, who was not represented at the Russian Ice Hockey Federation arbitration hearing, has one week to appeal the ruling to Russia's arbitration court for sports.

Neither the Penguins nor the NHL would comment on the arbitration panel ruling. Malkin declined to talk about it.

Malkin, a 20-year-old forward who starred for Russia during the Turin Olympics in February, said he was pressured into signing a one-year contract with Magnitogorsk earlier this summer despite his avowed intention to play in the NHL. Malkin was the No. 2 pick in the June 2004 NHL draft by Pittsburgh.

Days after agreeing to the Magnitogorsk deal, Malkin skipped out on the team when it arrived in Finland for training camp last month and turned up a few days later in Los Angeles. He worked out there for several weeks before arriving in Pittsburgh for training camp nearly two weeks ago.

Malkin's agents, J.P. Barry and Pat Brisson, contend the forward followed Russian law by giving two weeks notice and resigning from his job. The NHL has allowed teams to sign players who exercise this legal option.

Because Malkin left Russia and is in the Penguins' camp, Magnitogorsk team officials have said they are resigned to losing him, but they apparently want to be compensated. The NHL and the Russian hockey federation have been unable to reach a transfer agreement that would pay Russian teams when their players leave for the NHL.

The transfer agreement between the NHL and Europe's hockey federations call for teams to receive $200,000 when they lose a player. Magnitogorsk argues Malkin's rights are worth at least 10 times that much.

The Penguins, Malkin's agents and the NHL are awaiting Magnitogorsk's next legal move. The Russian team could ask a U.S. court to uphold the arbitration panel ruling or sue either the Penguins, the NHL or both for compensation. Magnitogorsk has hired New York-based lawyer Alexander Berkovich to handle its case.

Malkin is one of three NHL rookies who handed in resignation letters and left their Russian teams to play in North America this season.

The Russian arbitration panel ruled Sept. 9 that Andrei Taratukhin, of the Calgary Flames, and Alexei Mikhonov, of the Edmonton Oilers, violated their Russian Super League contracts with Lokomotiv Yaroslavl when they resigned their jobs and left the team.

Russian tribunal rules against Evgeni Malkin; but what's next?

Canadian Press
September 15, 2006
MOSCOW (CP) - The Evgeni Malkin saga is far from over.

A Russian arbitration tribunal issued a court order Friday prohibiting the Russian centre from playing in the NHL. But exactly what that means isn't clear.

"We are happy to review and consider anything that may be provided to us," NHL deputy commissioner Bill Daly told The Canadian Press on Friday. "Having said that, we remain very dubious as to the validity or binding effect of a private arbitration panel's decision on the matters that are at issue here."

A Pittsburgh Penguins spokesman said Friday that Malkin would be at camp as scheduled this weekend. Pittsburgh's first pre-season game goes Tuesday night in Halifax against the Ottawa Senators.

Said Malkin's agent Pat Brisson: "Our legal advisors will respond at the appropriate time."

The Penguins signed the 20-year-old rookie to a three-year, entry-level contract Sept. 5 after he slipped out of Russia in late August.

The tribunal Friday ruled that Malkin can't play anywhere else other than Russian club Magnitogorsk, where he signed a new one-year deal just days before changing his mind and fleeing the country.

"Metallurg has several options," New York lawyer Alexander Berkovich, representing Magnitogorsk, told Reuters. "The first option is to seek enforcement of the Russian arbitration award in a U.S. court. This is pursuant to the (1958) treaty for the enforcement of tribunal awards to which both the U.S. and Russia are signatories. Other options for Magnitogorsk include filing a lawsuit against the NHL and the Pittsburgh Penguins in a U.S. court."

Metallurg knows Malkin won't return to play for them this season but wants financial compensation for his loss. The NHL is adamant it would not negotiate compensation packages with any Russian club after the Russians refused to sign the IIHF transfer agreement which other European countries belong to.

Malkin, the second overall choice behind Alexander Ovechkin in the 2004 NHL entry draft, had 21 goals and 26 assists in 46 games with Metallurg last season, his third with the Russian club. He's the early season favourite for the Calder Trophy as NHL rookie of the year.