NHL Entering Critical Times

This is an increasingly important time in the history of the National Hockey League and the direction the league is heading.  The impending Collective Bargaining Agreement negotiations, NHL players eligibility status for future Olympic Games, the financial climate of the U.S. and it’s effect on the league, and the growing threat from the Kontinental Hockey League, these are indeed important days.

NHL’s Stance on Olympic Eligibility Crucial

In an October interview with The Canadian Press, NHL Commissioner Gary Bettman said the following regarding the participation of NHL players in upcoming Olympic Games:  ”The benefits of going to the Olympics when you’re in  Salt Lake City or Vancouver, to name two cities, are way different than if you’re in Japan, Italy or Russia“.

NHL players’ participation in upcoming Olympic Games.  It’s something that not too many of us contemplate or even realize the magnitude concerning the issue.  But after watching Alexander Ovechkin being interviewed by Jeremy Roenick yesterday in Vancouver, some interesting thoughts came to mind.

JR asked Ovie what he thought about any such possible ruling by the NHL heirarchy that would make NHL players ineligible to participate in the 2014 Winter Olympic Games.  Ovechkin made it perfectly clear that he really doesn’t care, he will be playing…no matter what Bettman or anyone else says.

Competition From the Kontinental Hockey League

With Russia’s KHL luring players away from the NHL, Bettman and Company had better tread lightly with how they handle this issue in the coming years.

In Ovechkin’s case, the Washington Capitals have their franchise player locked up for years to come.  Caps’ owner Ted Leonsis inked number eight to a 13-year deal in January of 2008.  In signing one of the top two or three players in the world, Leonsis guaranteed that a Russian national treasure would be kept in America’s capital for the better part of his playing career.

But what if “Alexander the Great” decided that he didn’t want to stay in North America if it meant that he would have to miss the 2014 Games, which just so happens to be in Russia, Ovechkin’s home country?

No need to worry, Ovie has a contract, right?  Remember Russian winger Alexander Radulov, who had a valid deal with the Nashville Predators?  Radulov still had one year remaining on his 3-year pact that he had signed in 2006, when he turned around and signed a 3-year deal with Salavat Yulaev Ufa of the KHL.  Despite the legal wranglings of the NHL, the KHL, and the International Ice Hockey Federation, Radulov played last season in the KHL…and remains there today.

So why would Ovechkin be any different if he decided to bolt and return home?  And would it make enough of a difference to Ovie if the KHL assured him that he could play in every Olympic competition that he chose to in addition to an astronomical contract offer?

And let’s not forget the bidding war for another top Russian player, Evgeni Malkin of the Pittsburgh Penguins.  In an effort to bring instant credibilty to the newly-formed Russian league, a multi-year offer for $12.5 million (tax free) was made to Malkin’s agent to bring the NHL superstar back to Russia.

Luckily for the league and the Penguins, Malkin wanted to stay here and signed a new long-term deal to remain in Pittsburgh.  But if Malkin had decided he desired to play in his homeland, there were probably 100 million ($) good reasons for him to do so.  And what if the league told Malkin that he could not play for Russia in the 2014 Olympics?

People point to a similar challenge to the NHL’s superiority by the World Hockey Association back in the 1970′s, and the ultimate failure of that league, with four teams being absorbed into the NHL.  This is a competely different economic climate than during the WHA’s bid and nor more than ever, money not only makes the world go ’round, it also makes the hockey world go ’round.

And the KHL has plenty to spend.

Maybe the NHL should be worried.  Another prominent player, Jaromir Jagr of the Czech Republic, signed a KHL deal after playing out his contract with the New York Rangers.  This was at a time when he could have received bids for his service from numerous NHL teams.  But the 2-year contract he signed was worth approximately $10 million U.S. annually.  With the NHL salary cap in place and needing to sign present younger players with tight budget constraints, it’s doubtful that any NHL team could have competed with that salary.

Upcoming NHL Armageddon?

There are also economic issues that could throw the balance of the ever-growing NHL / KHL choice into chaos.  The U.S. recession has made every aspect of American businesses cut back, and look for the NHL to do the same.  Already claiming that many franchises are losing millions of dollars each season, the posturing for the expiration of the current Collective Bargaining Agreement has already begun.  The CBA expires after the 2010-11 season.

But there is much danger in any repeat of the lockout of NHL players that cost the league the entire 2004-05 season.  In addition to hopefully learning a lesson on how the sport has been treated since the resumption of play, the KHL will almost certainly be active in any type of NHL work stoppage, whether created by the owners, the players, or a combination of both.

If the owners and NHLPA intend on once again digging their heels in for another win-at-all-costs fiasco, there is little doubt that the KHL will be waiting with open arms.  Many NHL players went overseas to play in Europe during the ’04-’05 lockout.  With NHL instability and the weakening U.S. economy, will more players go to the KHL during any such stoppage?  And if so, will they be offered exhorbitant contracts while in Russia, whether or not they have a valid deal still in effect with an NHL club?

All things considered, the NHL is running along pretty smoothly for the time being.  But to say there are unsettling times ahead could be a tremendous understatement.