The Kontinental Hockey League and the National Hockey League have signed a new Memorandum of Understanding. The agreement confirms the need to respect the professional contracts of players in both leagues and obliges both parties to regularly follow a set of procedures designed to avoid conflict situations arising during the transfer of players from one league to the other. The first agreement of this kind was signed last year, on the 30th of June, and the new Memorandum bears the same two signatures: those of KHL president Alexander Medvedev and NHL Deputy Commissioner Bill Daly. The term of this year’s agreement expires on the 30th of June, 2013.
“The new Memorandum is yet another very important stage of progress between the KHL and the NHL. The previous agreement ran for one year, during which there was not a single failure – every transfer of a player between one league and the other was conducted without a single conflict situation arising. This shows how both organizations are playing by the same rules. In the near future we will be able to regulate with more precision any transfers of players from the NHL to the KHL and vice versa,” said Alexander Medvedev.
The new Memorandum of Understanding is an eight-point agreement:
1. From July 16, 2012, both parties should exchange data on any players who have existing contracts with KHL or NHL clubs. The data should include the player’s name, surname, date of birth, club, contract expiry date and his status. On demand of one of the parties, the other party shall supply a full copy of the player’s contract.
2. The KHL and the NHL are obliged to update the players’ contracts database every week with the latest information on any changes.
3. Both leagues should exchange their lists of free agents.
4. The KHL and NHL respect each other’s contracts. Both parties recognize and support the main principle: players under contract with a club from one league cannot fulfill any obligation to a club from another league during the term of the player’s contract.
5. In the event of any conflict or disagreement arising, both parties shall appoint their official representatives to hold negotiations.
6. Prior to such negotiations the parties undertake to provide all documents confirming or in any way associated with the player’s signing of a professional contract with any hockey club.
7. Toronto or New York shall be the venues for the negotiations between the official representatives of both leagues.
8. The NHL and the KHL are obliged to do everything in their power to reach a consensus concerning each player’s disputed contract status, including cases of labor conflicts, contractual disputes, etc. In the event of any failure to reach a consensus, each party reserves the right to act in the way it considers appropriate in such circumstances.