According to a vote by the KHL club directors, there will be a salary cap of 900 million rubles in the 2020-21 season.
On April 30, the KHL board gave clubs the opportunity to raise the salary cap to 1.3 billion rubles ($ 17.5 million). However, after a distance poll, the directors voted to leave Article 50 of the KHL rules unchanged. The KHL board of directors therefore approved implementation of the salary cap for the coming 2020-21 season at the planned level of 900 million rubles (just over $ 12 million). For this reason, there will be a strict salary ceiling of 900 million rubles next season.
Igor Yesmantovich, member of the board of directors and president of CSKA, wrote to Gennady Timchenko, the chairman of the board, and KHL president Alexei Morozov a proposal to raise the salary cap to 1.3 billion rubles. In accordance with the KHL Charter, this proposal was submitted to the Board for review. Following this process, the Board of Directors overwhelmingly voted not to increase the salary cap and to maintain the existing provisions of Article 50. The additional funds referred to in Article 51 of the KHL Regulation will be retained in full. These funds are not taken into account when calculating the hard upper salary limit.
The time for the introduction of a strict upper salary limit with the limit values to be determined was developed by a working group in collaboration with the Russian Hockey Association and the KHL teams. In July 2018, the KHL Board of Directors approved changes to the KHL regulations and set a fixed ceiling of 900 million rubles. The start of this upper limit is to be implemented in the 2020/21 season. These changes were unanimously approved by the KHL Board of Directors, elected by the member clubs and also approved by the Russian Hockey Association. As part of this strict salary ceiling, the league also set a two-year transition period so that all clubs can prepare for the change.
This decision not to exceed the originally set upper salary limit is fully in line with KHL’s long-term development and planning strategy. One of the most important goals is an even stronger competition on the ice. However, this can only be achieved if the financial competitive conditions for all clubs are balanced and an even distribution of the top players among the teams is encouraged.
The decision to comply with the upper wage limit of April 30 is in line with the ideas of the Presidential Council for the development of sport and physical culture in Russia. The goal of the Presidential Council is to significantly reduce the dependency of professionally managed sports organizations on the funds of state-owned companies and organizations. It should also be mentioned that under the current “COVID-19” situation and the socio-economic circumstances, the need to reduce the state funds for professional sports is more relevant than ever.