Jagr Leaving NHL For Russia's Continental Hockey League

Jagr Inks Two-Year Deal With Team In Russia's Continental Hockey League

Free agent RW Jaromir Jagr Friday signed a two-year contract with Russia's Continental Hockey League (CHL) team Avangard Omsk in a deal "believed to be the equivalent of $7[M] U.S., tax-free, per season," according to Steve Zipay of NEWSDAY. Jagr played for Omsk during the NHL's '04-05 lockout season. The NHL Rangers Thursday told Jagr that they "couldn't wait any longer to try to negotiate a new deal." The team reportedly offered Jagr a "one-year deal with incentives," while the Oilers offered "more cash" (NEWSDAY, 7/5). Sources indicated that Jagr has a "no-out" clause in his contract with Omsk, "locking him into staying in Russia for the length of the deal -- at least two years with a third possible at Jagr's discretion." A source added that if Jagr plays three seasons with Omsk, he "could collect [US$35M] over the life of the deal" (ESPN.com, 7/4). The GLOBE & MAIL's Eric Duhatschek reported the Oilers offered Jagr a one-year, $8M deal, but Jagr "wanted a multiyear deal to stay in the NHL and no team was prepared to offer him that." Omsk's contract offer was "attractive because, under Russian tax law, players pay virtually no tax themselves, meaning a $7[M] contract means $7[M] in Jagr's pocket." In order to make that much playing in the NHL, Jagr "would need to sign an NHL deal worth between [$10-12M] a season, depending upon the tax laws in the state or province in which he plays." Duhatschek notes thus far, "most of the players recruited to play in the Russian league ... were those having a difficult time getting NHL contracts" (GLOBE & MAIL, 7/5). 

REASON TO WORRY? ESPN.com's Scott Burnside wrote the "alarmists in the hockey media -- and there is no shortage of them -- will suggest Jaromir Jagr's decision to turn his back on the NHL ... will signal a flood of NHL talent jumping to the cash-soaked league." But he added, "If there's something Jagr is not, it's a trendsetter" (ESPN.com, 7/4). THE HOCKEY NEWS' Ken Campbell wrote the CHL "has done nothing but prove it can be a home for NHL castoffs, Jagr included." How will the CHL, a league "that is supposed to have a $22.5[M] salary cap going to be able to compete" with the NHL, which next season will have a $56.7M salary cap. Campbell noted the CHL has signed former NHLers Andrei Zyuzin, John Grahame, Wade Dubielewicz and Chris Simon (THEHOCKEYNEWS.com, 7/4).