Explaining NHL Compensation for Latvia's Record-Breaking Draft
Four Latvian hockey players were drafted in the 2026 NHL Draft, a historic achievement. This article explains how the NHL compensates clubs and federations for drafting and signing players, with specific implications for Latvian hockey.
This year's NHL Draft was the most successful in Latvian hockey history, with four players selected: Alberts Šmits (5th overall), Rūdolfs Bērzkalns (58th), Patriks Plūmiņš (114th), and Olivers Mūrnieks (124th).
The NHL's compensation system has four main components. First, a transfer fee: if a player has a contract with an IIHF club, NHL teams can sign him without penalty until July 15, but later they must pay $125,000. Second, a draft payment to the federation where the player played the season before the draft: $40,000 for first-round picks and $25,000 for lower rounds. Third, a payment for the player's first NHL contract: $315,000 split among federations based on the player's four previous seasons. Fourth, a development bonus: $10,000 per season for each active NHL player who appears in at least 30 games.
For Latvia, the main beneficiary is the Latvian Hockey Federation (LHF). Plūmiņš will trigger a $25,000 draft payment because he played in Latvia before the draft. If Plūmiņš or Mūrnieks sign NHL contracts, LHF could receive up to $315,000, depending on their development history. In 2025, LHF received nearly €96,000 from NHL development bonuses.
