It's going to be incredibly interesting to see how the IIHF determines which transfers to allow and which to decline. Either way, NHL teams could be without the services of some pretty talented youngsters — and someone will be upset.

"We hope that this can be resolved amicably and in a timely manner," said IIHF President René Fasel. "It is unfortunate that we are already facing such difficulties after the progress that was made last week. I am hoping that all sides can come to a solution."

UPDATE The KHL responds rather quickly:

"We do not accept the idea of suspending the contracts because this has not been agreed on by KHL and NHL. The mentioned players should not be made ‘scapegoats’ due to the fact that the Memorandum of Agreement has not been signed between the KHL and the NHL. In the absence of a signed Memorandum of Agreement between the KHL and the NHL, it is important to remember that the player is under contract with the individual clubs and the KHL can only enforce any such agreements with the NHL, once the Memorandum has been signed by all parties," said KHL President Alexander Medvedev.

KHL management calls on NHL to sign the Memorandum of agreement and to put it into force from July, 10 2008, which will legally prevent similar cases between the NHL and the KHL in the future.

I think that agreement's about to go out the window.