Putting some capital into an appreciating asset

Alexander Ovechkin may very well be singing along with Pink Floyd this morning, that is if he’s finished counting his stash.



The numbers and length of the contract announced on Thursday boggle the mind, a sign for smaller markets that maybe the ice isn't going to be as level as everyone thought after all.

The Washington Capitals opened up the vaults to sign their Russian superstar to a 13-year, $124 million contract extension on Thursday. The deal makes Ovechkin the first NHL player to sign a nine figure contract. It also becomes the largest sports contract in Washington sports history, which will make for an interesting trivia question in about thirteen years or so.

The thirteen year deal will pay Ovechkin 9 million a year for the first six years and then ten million for the remaining seven, giving his accountant time to find some tax shelters for all of that currency.
.
In what will no doubt be bad news for agents across the NHL, Ovechkin’s monster deal was negotiated without the benefit of a player agent, instead Ovechkin dealt directly with the Capitals, breaking from time to time to check in with his parents and brother. Suddenly that sound you hear is hundreds of player agents trembling in their offices, afraid to answer the phone.
.
Ovechkin’s contract will for now, once again give him a leg up on rising star Sidney Crosby, who only last summer signed his own contract extension for five-years at what must now seem like a paltry $43.5 million.

The decision by the Capitals to secure their future to that of their latest phenom comes with of course a bit of a history lesson, it wasn’t that too long ago that they flashed a fairly sizeable stash of cash at Jaromir Jagr, a decision for which Ted Leonis is still making payment on, even though Jagr now stick handles for the New York Rangers.

No doubt the Capitals are expecting (hoping, praying, maybe sacrificing small animals for) that things will work out a little differently this time, with Ovechkin and the rising group of talent that they have in Washington leading them to the Stanley Cup sooner rather than later.

Washington Post--Ovechkin Scores Big Deal
Washington Times--Ovechkin breaks the bank
Canada.com--Ovechkin signs huge 13-year deal with Capitals
Globe and Mail--Capitals lock up Ovechkin
National Post--Caps, Ovechkin agree on $124-million extension
The Hockey News--Ovechkin deal proves owners can spend

Ovechkin puts it into overdrive

“Everybody had lots of points and it's good for fans but not for the goalies”

A sold out crowd at Scotiabank Place probably would agree with Alexander Ovechkin, who had a pretty impressive Saturday night as he scored four goals and helped on another, on the way to an 8-6 Washington Capital victory.

The Caps who seem to bring out their best games when they play the Sens took a commanding 3-1 lead in the second over the Sens, as Ovechkin showed why he’s considered one of the most exciting players in hockey these days.

The Senators while launching a comeback of sorts seemed at times to be ready to sit down in the crowd and watch Ovechkin as well, as he held a clinic of puck control and pinpoint shooting. Their efforts on the night did not impress head coach John Paddock very much, who described his teams performance as ridiculous.

By the time the game had come to an end the score was a tad more respectable at 8-6, with seven goals scored in the final twenty minutes, but that did not particularly reflect the flow of the play. The Capitals were by far the more impressive team on the night, jumping out to a quick two goal lead and then not panicking when the Sens got close.

Ovechkin’s five point night will be something that the Ottawa fans will be buzzing about for a while; it may even have overtaken the Ray Emery sideshow of the last few days.

In fact, Emery is either being eased back into the swing of things or is really in the dog house, as Paddock left Martin Gerber in the nets to face all 29 Capital shots, surrendering 7 of the eight goals, the final one an empty netter for the proficient Mr. Ovechkin.

By the time the third period had reached the midway point, Gerber probably was wondering what he had to do to get out off the firing lines. While Emery was probably trying to be as invisible as possible at the end of the Sens bench.

Tracking their favourite sons

While North Americans marvel at the skills of Evgeni Malkin and Alexander Ovechkin on a nightly basis, it's a little harder for the folks back home to keep track of their top exports to the money league.

The Malkin and Ovechkin showdown of Monday night was featured in a Russian newspaper Tuesday, with a short but concise report on how they fared in their first ever match against each other in the NHL.

While the Russians seem to understand the importance of the game, one has to wonder what was going through the NHL schedule makers mind when they put this on one the schedule board.

A Monday night game, up against the religion of Monday Night Football probably wouldn't fare well at the best of times. But add to that the rather meagre offerings of the NHL broadcast partners these days and the dwindling audiences they provide and you have to wonder if the league is not wasting its marquee playes.

Beyond the obvious itnerest in Malkin and Ovechkin, the Pens brought a rather entertaining hockey team into Washington for the game, which turned out to be a barn burner of a finish as the Pens came from behind to steal away the win.

It's a pity no one at the NHL had the foresight to plan the schedule so the game could have at least been featured across Canada on TSN, Monday night they are committed to NFL football, but you can bet had they carried the game the ratings would have been a postive trend.

The folks in Russia knew the game was a big one, as did the hockey fans of Canada, the quetion is did anyone in the head office understand the opportunity lost on Monday night.

Below is the article from the homeland of the two stars of the night, they're paying attention in Moscow, too bad they don't seem to be doing the same in New York!

Russian Hockey Players Shines in the NHL

Kommersant

Wednesday, December 13, 2006

The two best-known Russian hockey players working overseas, Evgeny Malkin and Alexander Ovechkin, faced off for the first time in a National Hockey League championship. The Pittsburgh Penguins beat the Washington Capitals 4:5, and Malkin was named best player of the match. A week before that, Ovechkin had been named one of the three best players of the championship, along with the New Jersey Devils' Martin Brodeur and Tampa Bay Lightning's Vincent Lecavalier.

Malkin and Ovechkin, who played together on the Russian Olympic team and the Russian world junior team, greeted each other warmly before the game and gave a joint interview to the Pittsburgh Tribune-Review (Malkin using a translator), which became part of extensive coverage of them in that newspaper.The match was broadcast throughout the North American continent and extensively advertised as the showdown between Ovechkin and Malkin's teammate, popular Canadian player Sid Crosby. Crosby is leading in the fans' vote for the all-star game, in which Malkin ranks 14th (third among Russians, after Ovechkin and Maxim Afinogenov of the Buffalo Sabers). Last year, Ovechkin beat Crosby to be named rookie of the year.

It was Malkin who stole the show yesterday, however, when he scored the decisive point. After that he was sent to the sidelines for a foul, but played again in overtime.

Евгений Малкин блеснул ярче звезд

For those with Russian language skills, here's the link to a lengthy story on the match up.

www.commersant.