Admiral Vladivostok Withdraw From the KHL for 2020-21 (More to Come)

(Image Source)

Per an announcement on the club’s official website, Admiral Vladivostok will not participate in the 2020-21 KHL season. This development follow a decision by the Primorsky Krai regional government to withdraw all funding from professional sports; those monies will now be used for measures to fight the COVID-19 outbreak. According to the reports, funding for youth hockey initiatives will be maintained, and Admiral’s MHL junior team, Taifun Primorsky Krai, will play next season.

Much more to come on this story today — below the jump are some questions and answers about the situation, with appropriate links, and there are more to come. And of course if you have questions that you do not see there, feel free to fire them into the comments section, and I’ll do my best to find answers!

Is this an April Fool’s thing? No, it does not appear so, unfortunately.

Why are Admiral withdrawing? Earlier this week, the Sports Ministry of Primorsky Krai (the region of Russian in which Vladivostok is located) announced that government funding for professional sports will be withdrawn and placed in a reserve fund to aid efforts to fight the coronavirus pandemic. That, combined with coronavirus-related financial difficulties for the club’s main sponsor (ПАО «ВМТП» — Vladivostok Commercial Sea Port), meant that Admiral’s leadership could not see a way to get enough funds to meet the KHL’s salary floor for next season.

What is the coronavirus situation in Russia, and in Primorsky Krai? As of this afternoon (April 2nd), there were 3576 cases reported nationally, with 237 people recovered from the illness and 31 deaths (Moscow and Moscow Oblast are the hardest-hit areas). In Primorsky Krai, there have been five cases officially announced (one new one today), with one person recovered and no deaths. Most regions of Russia have adopted emergency measures including the closure of non-essential businesses and schools and the cancellation of mass gatherings (including sports events), and people are being urged to stay home.

Has the KHL issued a statement on the situation? Not yet, that I have seen. However, Vice President (KHL Development) did speak about Admiral’s withdrawal to the TASS news agency:

“Everything was fine [with the club]. The only thing is that the situation in the country and in the world dictates conditions such that we must now focus on health and the battle against the coronavirus… We will hope that we will quickly defeat this virus, and that everything will recover speedily. Now the battle against the coronavirus goes ahead in the whole world. When we have won, then we will come together and decide what to do and how to do it. The main thing now is to get out of this difficult situation.”

Source

How big a blow is this to the KHL? Well, it is obviously not a good situation — it is one thing to lose teams when it is part of an overall strategic plan, and another to lose one due to a crisis. And a bit ominously, Admiral have gone out due to a withdrawal of state funding despite being middle-of-the-pack, by the most recent figures that I have, in terms of reliance on public monies. For 2018-19, 12 teams (out of 25, then) relied more on government funds than Admiral did; the caveat there of course is that we do not have the 2019-20 numbers yet, so perhaps that rankng has changed.

On the other hand, in the cold light of day, if there was one team that was going to be vulnerable to this kind of thing, it was Admiral. Their finances fell into disaster just a couple of years ago, and while some stability had been achieved since then, Admiral were still at the bottom of the table in terms of money. Per numbers published last October, the club had the smallest budget in the KHL (East figures are here, and for the West here), and would have had to actually increase it just to make the league’s salary floor for next season.

But could other KHL teams drop out as well? Unfortunately, that does remain a real possibility, even if, as mentioned, Admiral were likely the most vulnerable team in the league. Other regions, and companies, are likely to face a financial crunch as a result of the outbreak, and will almost certainly have an effect on sponsorship monies. Under particular threat at the moment due to Admiral’s withdrawal, I think, are Amur Khabarovsk. Amur have had their financial difficulties as well this season, and now lose their geographical partner and rival in the Russian Far East. We will keep an eye on what goes on there.

Could Admiral be saved for next season? It is possible, yes. We are in the very early stages of this story, and it is possible that the KHL or the federal government could step in with funding. However, much will depend on what happens with the coronavirus outbreak. I will be surprised if any measures to save the club’s professional team are taken in the near future. In the TASS article quoted above, when asked whether Admiral could be saved, Kamensky replied “naturally.” And outgoing coach Leonīds Tambijevs dropped just a tiny little bit of a hint that Admiral might think of joining the VHL for next season (costs would be less, and might be coverable by general sponsorship), although there has been no official expression of interest in that yet.

What happens now with Admiral’s players and staff? Presumably all players from the senior squad will become free agents on April 30th, when contracts expire in the KHL. Head coach Leonīds Tambijevs, just hired last week, has left the team and will seek other KHL employment.

If they are not rescued, will Admiral be replaced with another team in the KHL next season? It is far too early to say. The league could theoretically “promote” from the VHL, with Lada Togliatti probably the best candidate team. But that is sheer speculation right now, and as with other aspects of this story, the progress of the coronavirus outbreak will dictate much of what happens.

Is there any good news? Funding for youth sports has not been withdrawn, so many of Admiral’s hockey schools and programs for young players remain operational (even if temporarily shuttered because of the outbreak). That includes the club’s U20 team, Taifun Primorsky Krai, which as of now is still intending to play the 2020-21 MHL season.

And Admiral, on their official website, addressed the fans today (April 2nd), and re-emphasized that the intention is not to close the club, but to miss one and only one KHL season. Of course, we’re a long way from being able to say anything about the future of the team and indeed the league, but here’s hoping we’ll see Admiral Vladivostok in the big league again in 2021-22, if not before.

Thank you for reading!