Quoting: TN_T
I just dont understand why the KHL is much leverage. Years ago when they were pushing it, guys like Jagr were making 8mil clear... but their finances are much different now. Top players in that league are lucky to make over 1mil USD. I get that its a backup option if NHL teams arent offering more than league min deals, but even tax free you have no room for growth.
High six figures or low 7 figures in the KHL is worth significantly more than the equivalent dollar value in the NHL because there is no escrow, and there is little to no income tax. Add in the risk of ending up in the AHL and having to ride the bus, along with the fringe benefits of playing at home in Russia, and you can easily see why there is leverage.
I am not talking about Kravtsov being in a position to ask for 5 million per season, but he will absolutely be in a position where a team might have to give him 1.5M-2.0M with term to match what he will get in the KHL.
For example, with escrow capped at 6 percent, Kravtsov would take home 969k from a 2M per season deal in Vancouver.
He may not get 900k+ in the KHL, but even 600k in the KHL would require Vancouver to pay him roughly 1.4M. Add in that there is no guarantee that he doesn't get waived and sent down to the AHL, and he probably would want more to justify risking playing in the NHL.
That's the reason why he went for nothing. Failing top prospects usually aren't worth a ton anyways. Lias Andersson went for the 60th pick in the 2020 draft. Without the KHL issues, he is probably worth a 3rd round pick. The KHL leverage makes it to where whoever trades for him cannot be a playoff team because they need to have room to audition him in their lineup over the last 20 or so games without worrying about whether that spot should be given to a better player. Then they have the high risk that if he doesn't show enough, they aren't going to be able to offer him enough (without overpaying) to keep him from going back to the KHL.