Ruling clears way for Malkin, Penguins (Pittsburgh Tribune Review)
Ruling clears way for Malkin, Penguins
By Denis Gorman
FOR THE TRIBUNE-REVIEW
Thursday, November 16, 2006
NEW YORK - Penguins rookie sensation Evgeni Malkin can play the remainder of the NHL season, a federal court judge ruled Wednesday.
Judge Loretta A. Preska denied a request for a preliminary injunction filed by Metallurg Magnitogorsk, Malkin's former team in Russia, in a two-hour hearing, saying the case was "always about money. The only question was how much."
The motion was filed against the Penguins, and Malkin was not named in the suit. The Calgary Flames and Edmonton Oilers also were named in the case, which also included Russian Super League team Lokomotiv Yaroslav as a plaintiff.
"The plaintiffs could not show irreparable injury after filing a complaint until the season began," Preska said. "The plaintiffs slept on their rights, hid in the tall grass while players quit (the Russian teams), signed (with NHL teams), went to training camp and the season started."
She also said the timing of the suit was designed for the players' "maximum inconvenience" and was an effort to gain "more money."
Malkin left his Russian team in August and signed an entry-level NHL contract with the Penguins on Sept. 5. The lawsuit was filed Oct. 18.
"Obviously, we're very pleased with the decision," said Tom McMillan, the Penguins' vice president of communications. "We've been confident all along in our position, but it was still important to hear from the bench. It was great to hear he can keep playing. We're very happy for Evgeni, his family and Penguins fans."
NHL vice president and chief of legal operations Bill Daly also was pleased with the ruling. He hoped the decision would be the impetus for the Russian Ice Hockey Federation to sign the NHL-International Ice Hockey Federation transfer agreement. Russia declined to sign the most recent transfer agreement, which called for a $200,000 fee from the NHL when it signs European players.
In a statement, Daly said: "We are hopeful that today's decision will persuade the plaintiff Russian clubs to discontinue their strategy of litigation and to join with the Russian Ice Hockey Federation ... in good-faith negotiations intended to facilitate Russia's participation in the global agreement that governs European players' transfer to the NHL."
It is unknown whether Metallurg Magnitogorsk will appeal the ruling.
Alexander Berkovich, the lawyer for Metallurg Magnitogorsk and Lokomotiv Yaroslav, unsuccessfully argued that the losses of Malkin to the Penguins and Alexei Mikhnov and Andrei Taratukhin to Edmonton and Calgary, respectively, were "irreplaceable" losses and that the NHL violated the Russian teams' rights.
"They have created an environment that is status quo," Berkovich argued. "They have raided our clubs. (The Russian clubs) want to be left alone; we don't want our contracts disturbed."
Berkovich said that while the Russians develop players, the NHL simply drafts and signs them. He said Russian teams could not compete for its players with the NHL's deep pockets, and that the NHL desires to have Russian hockey act as a "feeder" system.
The league, represented by Bradley Ruskin of the New York-based law firm Proskauer Rose, argued that the Russians' primary objective was to hold up the NHL for money. During the hearing, it was revealed that Metallurg Magnitogorsk attempted to extract $1.8 million in exchange for Malkin's rights.
Malkin and the two other Russian players used a clause in Russian labor law, known as Article 80, which states any employee can give two weeks' written notice to the employer. Since there is not a qualifier for contracted employees, Preska found there was not an "anti-trust injury, thus no injury."
Berkovich argued that Article 80 was not applicable because it could make Russian contracts "meaningless" and "a joke," Russian sports law should overrule it. However, Russian labor law states that in any conflict, Article 80 supersedes all other rules.
It was the third loss in as many hearings for the Russians. Moscow Dynamo's case against the Washington Capitals and Alexander Ovechkin was thrown out of court last year. Three years ago, U.S. courts ruled in favor of the Columbus Blue Jackets and right wing Nikolai Zherdev.
http://www.pittsburghlive.com/x/pittsburghtrib/sports/steelers/s_480014.html
By Denis Gorman
FOR THE TRIBUNE-REVIEW
Thursday, November 16, 2006
NEW YORK - Penguins rookie sensation Evgeni Malkin can play the remainder of the NHL season, a federal court judge ruled Wednesday.
Judge Loretta A. Preska denied a request for a preliminary injunction filed by Metallurg Magnitogorsk, Malkin's former team in Russia, in a two-hour hearing, saying the case was "always about money. The only question was how much."
The motion was filed against the Penguins, and Malkin was not named in the suit. The Calgary Flames and Edmonton Oilers also were named in the case, which also included Russian Super League team Lokomotiv Yaroslav as a plaintiff.
"The plaintiffs could not show irreparable injury after filing a complaint until the season began," Preska said. "The plaintiffs slept on their rights, hid in the tall grass while players quit (the Russian teams), signed (with NHL teams), went to training camp and the season started."
She also said the timing of the suit was designed for the players' "maximum inconvenience" and was an effort to gain "more money."
Malkin left his Russian team in August and signed an entry-level NHL contract with the Penguins on Sept. 5. The lawsuit was filed Oct. 18.
"Obviously, we're very pleased with the decision," said Tom McMillan, the Penguins' vice president of communications. "We've been confident all along in our position, but it was still important to hear from the bench. It was great to hear he can keep playing. We're very happy for Evgeni, his family and Penguins fans."
NHL vice president and chief of legal operations Bill Daly also was pleased with the ruling. He hoped the decision would be the impetus for the Russian Ice Hockey Federation to sign the NHL-International Ice Hockey Federation transfer agreement. Russia declined to sign the most recent transfer agreement, which called for a $200,000 fee from the NHL when it signs European players.
In a statement, Daly said: "We are hopeful that today's decision will persuade the plaintiff Russian clubs to discontinue their strategy of litigation and to join with the Russian Ice Hockey Federation ... in good-faith negotiations intended to facilitate Russia's participation in the global agreement that governs European players' transfer to the NHL."
It is unknown whether Metallurg Magnitogorsk will appeal the ruling.
Alexander Berkovich, the lawyer for Metallurg Magnitogorsk and Lokomotiv Yaroslav, unsuccessfully argued that the losses of Malkin to the Penguins and Alexei Mikhnov and Andrei Taratukhin to Edmonton and Calgary, respectively, were "irreplaceable" losses and that the NHL violated the Russian teams' rights.
"They have created an environment that is status quo," Berkovich argued. "They have raided our clubs. (The Russian clubs) want to be left alone; we don't want our contracts disturbed."
Berkovich said that while the Russians develop players, the NHL simply drafts and signs them. He said Russian teams could not compete for its players with the NHL's deep pockets, and that the NHL desires to have Russian hockey act as a "feeder" system.
The league, represented by Bradley Ruskin of the New York-based law firm Proskauer Rose, argued that the Russians' primary objective was to hold up the NHL for money. During the hearing, it was revealed that Metallurg Magnitogorsk attempted to extract $1.8 million in exchange for Malkin's rights.
Malkin and the two other Russian players used a clause in Russian labor law, known as Article 80, which states any employee can give two weeks' written notice to the employer. Since there is not a qualifier for contracted employees, Preska found there was not an "anti-trust injury, thus no injury."
Berkovich argued that Article 80 was not applicable because it could make Russian contracts "meaningless" and "a joke," Russian sports law should overrule it. However, Russian labor law states that in any conflict, Article 80 supersedes all other rules.
It was the third loss in as many hearings for the Russians. Moscow Dynamo's case against the Washington Capitals and Alexander Ovechkin was thrown out of court last year. Three years ago, U.S. courts ruled in favor of the Columbus Blue Jackets and right wing Nikolai Zherdev.
http://www.pittsburghlive.com/x/pittsburghtrib/sports/steelers/s_480014.html
posted by Denis P. Gorman at 2:26 PM
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