http://www.thestar.com/Sports/article/446583

some of you may have seen this by now, but supposedly the Continental Hockey League, in Russia, is prepared to offer Malkin a 12.5 Million/yr tax free contract.

In a move that would surely send a shock through the NHL, whose executives are gathered today in Ottawa for the amateur player draft, the Russian teams are poised to offer the Russian-born Pittsburgh Penguins forward a multi-year contract worth at least $12.5 million (all figures U.S.) tax free per season, said a source familiar with the matter.

The offer would be equivalent to at least a $15 million per year in the NHL, where players have to pay state (or provincial) and federal taxes.

By contrast, Washington Capitals star Alex Ovechkin is the top-paid player in the NHL at just under $9.6 million a season

Buoyed by a booming economy and aided by former NHLPA executive director Bob Goodenow, the Continental league is preparing to be the worlds top competitor to the NHL.

The catch, as far as the Russian teams salary cap is concered is:

And while the Russian league will use a salary cap to control player expenses, the salary of a player who quits an NHL contract to play in Russia won't count against their cap.

Russian hockey execs apparently arent scared of any legal ramifications, stating:

"What happened with Malkin when he came to the NHL?" the official said.

After the Penguins drafted Malkin in 2004, he remained in Russia, where his club team argued he had an existing contract. After Malkin left for North America, his team unsuccessfully filed an antitrust lawsuit against the NHL, arguing he had an existing contract in Russia.

The IIHF, for its part, says:

We would view any signing, from either side, of a player under a valid contract, who does not have any legally valid out-clause, to be a clear violation of the mutual understanding and existing principle. It would potentially be punishable with suspended national team eligibility and suspension from all competition or activity organized by the IIHF or any IIHF member national association. This would include events like the Olympic Winter Games, the IIHF World Championship or international club competitions like the Champions Hockey League."

That last part was from the pens web page. http://penguins.nhl.com/team/app/?service=page&page=NewsPage&articleid=366415