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Russia's KHL Set For More Losses As Three More Teams Face Financial Breakdowns

More Russian clubs in the Kontinental Hockey League (KHL) are facing financial difficulties as local authorities cut funding for Avangard Omsk and Avtomobilist Yekaterinburg, making both squads’ KHL future uncertain. Another KHL squad, Atlant Mytishchi, officially announced it is pulling out of the league next season and will only play in the Junior Hockey League (MHL). A spokesperson for Avtomobilist Yekaterinburg told SBD Global that local authorities in the Sverdlovsk region are cutting funding for the squad next season from 450M rubles ($7.8M) to 350M rubles ($6M). The rest of the squad's 850M ruble ($14.7M) budget this season came from private sponsors, and it is unclear if they will stay onboard. An Avtomobilist spokesperson said, "Local authorities have promised to try to find other funding options."

LOSING LOCAL SUPPORT: Avangard found itself in a similar situation as local authorities are completely terminating funding for the squad as of next season. Avangard President Vladimir Shalayev said, "[The club's main sponsor] Gazprom Neft will cover the main part of the budget, but not all of it. The player's payroll is to go down significantly as we will have to spend more on travel, catering and equipment."

FALLING OUT: Meanwhile, Russian news agency TASS quoted several sources close to Atlant, which has faced financial problems throughout this season, as saying that next season, the squad won't be able to stay in KHL because of financial constraints, but will take part in the MHL. In the regular season, Atlant finished ninth in the Western Conference and did not make it to the playoffs. Avangard and Avtomobilist took fourth and eighth place, respectively, in the Eastern Conference. Avtomobilist was knocked out in the conference's quarterfinals and Avangard in the semifinals.
Vladimir Kozlov is a writer in Moscow.

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