After the long Summer break, the KHL opened its second season when Ak Bars Kazan, the champion, beat last year's finalist Lokomotiv Yaroslavl 3-2 in overtime. This preview look at some of the hottest issues sorrounding KHL's sophomore season.

As in the inaugural season, the KHL features 24 teams from Russia, Latvia, Belarus and Kazakhstan, which are divided into four divisions with six teams each. The novelty this season is that the teams will compete within a dual conference system inspired by the NHL. The new system, which has forced a number of geographical realignments, imply that the top eight teams from each conference qualify for the playoffs and that the playoffs take place within the conferences right until the Gagarin Cup final which feature the winner of the Western and Eastern conference. Due to the geographical realignments, a repetition of last season's semifinals between Lokomotiv Yaroslavl and Metallurg Magnitogorsk and Ak Bars and Dynamo Moscow is no longer possible-

According to the new system, each team will furthermore face their division rivals for a total of 20 games (two games at home and two on the road) and play the 18 teams from the other three divisions for a total of 36 games (one game at home and one on the road). In the regular season, each team will thus play a total of 56 games.

WESTERN CONFERENCE
Bobrov  Division: Dynamo Moscow, Dynamo Minsk, Dinamo Riga, Spartak Moscow, SKA St. Petersburg, CSKA Moscow
Tarasov Division: Atlant Mytischy, HK MVD Balashikha, Lokomotiv Yaroslavl, Torpedo Nizhny Novgorod, Severstal Cherepovets, Vityaz Chekhov

EASTERN CONFERENCE
Kharlamov Division: Ak Bars Kazan. Lada Togiliatti, Neftekhimik Nizhnekamsk, Metallurg Magnitogorsk, Traktor Chelyabinsk, Avtombilist Ekaterinburg
Chernyshev Division. Avangard Omsk, Metallurg Novokuznetsk, Sibir Novosibir, Amur Khabarovsk, Barys Astana, Salavat Yulaev Ufa.

On the competitive balance of the new conference system
While the new system may seem attractive in that it focuses on local rivalries and reduces the team's travelling, it raises the question whether the conferences and not least the divisions within the two conferences are competitive balanced? Due to the huge differences in salary budget, the KHL suffered trom competitive imbalances in its first season. According to a study which will be published shortly, in 2008/09 the KHL was in fact the least competitive balanced league among the major European leagues. All teams, however, mathematically had an equal chance of making it to the playoffs regardless of their geographical location. This may change with the new system.

At this point, it is of course impossible to make an objective assessment of the teams' strength. However, virtually all experts as well as the bookmakers agree that Ak Bars Kazan and Salavat Yulaev Ufa by far are the strongest favorites to win the title. Both teams virtually score top points in all the categories that matter: goaltending, defense, offensive, coaching and budgetary clout.

Compared with last season, Ak Bars, the champion seems in particular to have upgraded its already potent offense (Morozov, Zaripov, Kapanen etc.) with very skillful players such as Janne Pesonen, Jarkko Immonen and Evgeny Kettov who are younger and more hungry than the players they replace (e.g. Hentunen and Oleg Petrov). The first line with Aleksei Morozov and Danis Zaripov has furthermore been bolstered with the addition of center Aleksei Tereschenko (f. Salavat), one of the very best playmakers in KHL. Only question mark remains over goaltending. The new Swedish goaltender, Mikael Tellqvist (f. Buffalo Sabres, NHL) is at times brilliant, but he is also known for his lack of consistency. Fortunately, Ak Bars has the young and rising Stanislav Galimov as a backup, and it would not be a surprise if Galimov at some point replaces Tellqvist as the starting goaltender. If both fails, Ak Bars still have the financial means to find a capable substitute.

Salavat Yulaev Ufa has made several impressive signings during the off-season. Goaltending has been bolstered with the addition of Vitaly Kolesnik (f. Atlant). Kolesnik who produced impressive stats with Atlant last season (GAA 1.59 and SVS% 94.5). Kolesnik will split time with Aleksander Eremenko, the Russian national team goaltender. With the addition of Kolesnik, Salavat undoutedly has the best goaltender pair in the KHL. Salavat also aspire to have the best blue lines in the KHL. The defense which already features national team players such as Vitaly Proshkin, Kirill Koltsov and Oleg Tverdovsky has been reinforced with Dmitri Kalinin (f. Phoenix Coyotes), Maksim Kondratiev (CSKA Moscow) and Andrei Kuteikin. Salavat's offensive have been strengthened with the addition of Viktor Kozlov (Washington Capitals, NHL), Patrick Thoresen (one of the top scoring leaders in the Swiss NLA last season) and Sergei Zinoviev (Dynamo Moscow) who is at least as capable a playmaker as Aleksei Tereshenko, the player he replaces. To top it all, Salavat has managed to hire no other than Vyacheslav Bykov as the head coach-

Yes, Ak Bars and Salavat appear to be in a league of their own. Only problem is that both teams cannot reach the Gagarin Cup finals as the are placed within the same conference. Both teams, however, should have a smooth sailing during the regular season since the two Eastern Divisions -- Kharlamov (Ak Bars' division) and Chernyshev (Salavat's division) appear to be less competitive balanced than the Western divisions. Metallurg Magnitogosk, which will see the return of the legendary Sergei Fedorov, and Avangard Omsk which has largely kept its roster from last season intact, should also easily reach at least the playoffs and are both projected to reach the conference semifinals where they will most likely face Ak Bars and Salavat--a choice between two evils. From these four teams there seem to be a pretty big gap to the other eight teams in the Eastern conference.

If there is a problem with the competitive balance of the new conference system of the KHL, it would concern the Western conference. The socalled Bobrov division which includes the most Western teams of the KHL--Dynamo Moscow, SKA, Dynamo Minsk, Dinamo Rig, Spartak and CSKA not only appears to be the strongest division but also the competitively most balanced. During the offseason, Dynamo Moscow and  SKA St. Petersburg have both seriously upgraded their strength. Dynamo Moscow's biggest new signings include forwards Jiri Hudler (f. Detroit Red Wings, NHL), the young and extremely talented Swedish duo, Linus Omark and Johan Harju, Vadim Epachintsev and Oleg Saprykin (former leading players of CSKA Moscow) and national team defenseman, Dmitri Vorobiev (f. Salavat). SKA's biggest new signings comprise defensemen Sergei Zubov (Dallas Stars, NHL) and Joel Kwiatkowski (Severstal) and forwards Aleksei Yashin (f. Lokomotiv Yaroslavl), Petr Cajanek (Dynamo Moscow) and Albert Leschev (Atlant).

If Dynamo Moscow and SKA played in the Western conference, they should both comfortably reach the playoffs. Within the Western Bobrov division, however, they will face some very serious opponents, namely the two other Dynamos, Riga and Minsk. Dinamo Riga was by far the best KHL team in the preseason as the team only suffered one defeat in 11 games. The ethnical coherent Latvian team will be tough to beat since it not only fight for the Gagarin Cup but also for national pride. In the run up to the new season, Dynamo Minsk's team budget as been trippled with a lot of help from the hockey crazy Belarussian government. The flood of new money has helped the team to make many significant signings. The new lineup is a mix of Belarussian, Finnish and Canadian players. The new Finnish quintet include defensemen Ossi Väanänen (Vancouver Canucks, NHL), and Mikko Jokela (Jokerit, FIN) and forwards Ville Peltonen (Florida Panthers, NHL), Jussi Makkonen (HPK; FIN) and Hannes Hyvönen. Glen Hanlon, the Canadian coach, has furthermore added the Canadian  trio Duvie Westcott (Riga), Geoff Platt (Tampere, FIN) and Byron Ritchie (Keramin). Other new additions include wellknown Belarussian national team players such as goaltenders Andrei Mezin (Met. Magnitogorsk) and Vitaly Koval (Neman Grodno, BLR), defensemen Aleksandr Ryadinsky (Yunost, BLR) and Andrei Bashko (Amur) and the young forward Artem Demkov who returns from the Canadian junior league. In any other division, it is unlikely that Dynamo Minsk would once again would become a bottom dweller but it cannot be ruled out in the Bobrov division where Minsk will also be up against the two other Moscow teams, Spartak and CSKA. Spartak, which is coached by the Czech, Milos Riha, have made few new signings in the off-season. New additions include Jaroslav Obsut and Martin Cibak who adds to the already Slovak-centred lineup (Baranka, Ruzicka and Radivojevic). CSKA is the only team that has suffered in the offseason. Not only did the team lose Vyacheslav Bykov, the head coach (replaced by Sergei Nemchinov) but also a number of key players such as Oleg Saprykin, Anton But, Vadim Epachintsev. The former Russian powerhouse now appears to be the weakest link in the Bobrov division but it will still form a stronger opponent than many of the teams of the other divisions.

The other Western division, the Tarasov division, not only appears to be less competitive balanced but also weaker than the Bobrov division. Lokomotiv Yaroslavl, last years finalist, will most likely be head and shoulders above the other teams of the division. Lokomotiv has made few transfer moves in its already strong lineup, but new players include the three former NHL'ers Daniel Tjärnqvist (Colorado Avalanche), Radek Bonk (Nashville Predators) and Richard Zednik (Florida Panthers). Atlant Mytischy which finished second overall in last years regular season has had a chaotic preseason. Deep into the preseason, Atlant annulled the contracts with projected firstliners Jan Bulis and Fredrik Bremberg and Evgeni Gladskikh got the silverline on the very eve of the new season. Other significant subtractions include goaltenders Ray Emery and Vitaly Kolesnik (two of the very best goaltenders in the KHL last season), Atlant's best defenseman, Magnus Johansson and forward Esa Pirnes. The most significant new additions include goaltender Martin Gerber (Toronto Maple Leafs), Oleg Petrov (Ak Bars) and Oleg Kvasha (Traktor), but overall it seems that Atlant has been seriously weakened compared with last season. Atlant, however, benefits from the fact that it plays in the weakest division of the KHL and it would be a surprise if it doesn't reach the playoffs. Torpedo Nizhny-Novgorod should also be able to clinch one of the marginal playoff spots in the Western conference. In the new season, the team will be led by Jaroslav Bednar, one of the very best players from the Czech league. Torpedo appears on paper to be stronger than last year. Severstal Cherepovets is projected to finish 4th in the division. Whether this will be enough to clinch a playoff spot remains to be seen, but compared with the six teams in the Bobrov division, the other Western division, Severstal will profit from the fact that they will get six games more against HK MVD and Vityaz Chekhov which arguably are the weakest teams in the KHL.

Financial woes in KHL
Another issue that is likely to resurface in the new season is the financial situation of the teams and the league as such. It is no secret that the financial crisis has severely hit hockey all over the world. In the past months, not a day has gone by without reports on the financial difficulties of hockey clubs in Europe, North America, and elsewhere. The impact of the economic turmoil on the various hockey leagues differ from country to country and from region to region. Nevertheless, one can identify a distinctive pattern: leagues that are particularly dependent on sponsor income and have worked with overstretched salary budgets have generally faced the biggest troubles. This is the main reason why Europe has been worse affected by the financial crisis than North America. But even within Europe there is much variation. For instance, the Swedish Elitserien, where the sponsor income only combines for 40-50 percent of the club's revenues, has in general been much less affected than the Czech Extraliga where sponsor income account for more than 80 percent of the revenues. The KHL is potentially in an even more precarious state as the sponsor income covers no less than 90 percent of the teams' income. unlike in the Czech Republic, however, many teams are funded by local governments which provide more secure sponsorships. On the other hand, the budgets of the KHL teams are in general far bigger than in other European leagues, and they have in many cases also been overstretched in the KHL's quest for competing with the NHL.

During the first season, five teams (Khimik Voskresensk, Vityaz Chekhov, HK MVD, Metallurg Magnitogorsk and Sibir) struggled with their payments of salaries and bonuses. In the end, Khimik didn't get its KHL license renewed and the team was replaced by Avtomobilist Ekaterinburg. At least another half a dozen of teams have reported severe budget strains. Lada Togliatti announced that it had lost its main sponsor Auto VAZ. Even at the point of writing, the team's budget for the new season has not been secured. Barys Astana, which is sponsored by the Kazakhstani raiilways, has announced a budget cut of no less than 1/3 (from US$32 mio. to US$20 mio. Metallurg Magnitogorsk enforced a unilateral 30% salary cut in November last year, and in Spring, the local government of Chelyabinsk transferred US$2.5 mio. of the tax payer's money to bail out Traktor's debt on salaries and bonuses in order to ensure the club's license for the next season.

Meanwhile, the KHL has taken a centralized path to reduced the budget costs of the KHL teams. In April, the KHL initiated a waiver draft which led to salary cuts up to 50% for the players who were listed in the draft. Meanwhile, the KHL imposed a new CBA which will lead a further salary cut in the range of 5-20% (depending on the level of salaries) as well as a limitation of duration of contracts. To smoother the "deal", the CBA also introduced a new minimum wage (which is in fact not noteworthy) and a crisis compensation fund ($31 mio) which will be used to pay bonuses to players for high performance outside their individual club contracts as well as compensate players for income losses caused by the depreciation of the Russian ruble. The real objective of the compensation fund is to make the KHL an attractive alternative to the NHL. The new CBA also introduced a new team salary ceiling of US$18.7 mio., a ceiling which can, however, easily be circumvented by the exploit of several exceptions (for instance, star players are not counted against the cap) and a team salary floor of US$8 mio.

As indicated, despite these measures, the financial situation of several of the KHL teams is far from secure, and it is likely that we will witness another season with delayed payments of salaries and bonuses, and perhaps even the financial collapse of a couple of teams, something that will harm the KHL's quest to become an even rival to the NHL.