The new class action lawsuit seeks increased rights and compensation for players in the Canadian Hockey League, North America's largest junior hockey system and the NHL's main source of talent, alleging that the league has violated U.S. antitrust laws.
The lawsuit, filed Feb. 14 in New York federal court, names the NHL and CHL, which consists of the Ontario Hockey League, Western Hockey League and Quebec Maritime Junior Hockey League, as defendants. Plaintiffs also include the North American chapter of the World Association of Ice Hockey Players Unions and former major junior players Tanner Gould and Isaiah DiRola.
In the CHL, Canadian and US players are assigned to one of three leagues based on their place of residence. The team that drafts a player retains his rights for up to five years unless he is traded to another club, and he receives a monthly salary of no more than $250. The CHL argues that its players are amateurs, not professionals, and therefore not subject to general terms and conditions of employment.
“This is a terrible system and it needs to be addressed,” said Jeff Synder, an attorney for one of the plaintiffs and managing partner in the New York office of the law firm Constantine Cannon. Athletic“That's why this lawsuit was inevitable, and we're proud to be leading this effort.”
This allegation has not been proven in court.
What is the lawsuit alleging?
Simply put, the lawsuit alleges that U.S. antitrust laws make players' employment conditions exploitative and illegal. Other leagues, like the one in NBA history, restrict players' rights through salary caps and draft systems, but these are negotiated and legalized as part of collective bargaining agreements. The CHL does not have a CBA, and other challenges to the system have been unsuccessful in Canada, but not in the U.S., home to the CHL's eight teams.
“No one has ever methodically unraveled everything like this and challenged it under[U.S.]antitrust law,” Synder said. “It's unprecedented, and that's the most direct answer as to why this case is different.”
“Under the Sherman Act, it's impossible (to do business) without a union representing the players. It's completely impossible. This is not a sensitive issue.”
The CHL has “just become aware of the complaints,” the league said in a statement Wednesday. Athletic.
“Until we have thoroughly reviewed the document, we cannot comment on the validity of its contents,” the statement said.
What about NHL involvement?
The lawsuit alleges the NHL helps maintain the system through millions of dollars in annual payments and agreements that allow it to send drafted players back to CHL teams to avoid paying them higher salaries or starting entry-level contracts, which the lawsuit alleges encourages a “conspiracy” by junior leagues.
“This is a conspiracy that spans borders and both sides of the 49th parallel,” Synder said. “The NHL is involved. The AHL and the East Coast Hockey League, which are affiliates of the NHL teams, are involved. And here we are.”
The N.H.L. Athletic.
Why is this happening now?
While the filing date has no inherent meaning, the recent ruling that Dartmouth College players are employees of the school and therefore eligible to form a union, the 2021 Supreme Court's landmark decision in Allston v. NCAA, which gives NCAA athletes expanded control over their name, image and likeness, among other factors, have convinced the plaintiffs that they chose the right time to file their lawsuit.
“(These cases) are events we've been watching closely and they represent a major legal and cultural shift that's happening,” Synder said.
What is the World Ice Hockey Players Union?
The U.S. chapter of WAIPU describes itself as a “non-profit organization dedicated to supporting players of all ages involved in the game of hockey.” It is not authorized to represent CHL players and is not a union.
“This lawsuit serves as a catalyst for fundamental reform across major junior hockey and highlights the urgent need for a new governance model that prioritizes player welfare over profits,” WAIPU U.S. president Sandra Slater said in a statement. “This is a defining moment in the fight to build a hockey ecosystem that is fair, safe and respectful for all players.”
How will the ruling affect the game?
The lawsuit seeks an unspecified amount of monetary damages for the plaintiffs, an end to contracts restricting player transfers, and a suspension of the CHL draft until a collective bargaining agreement is reached. While the theoretical terms of a CHL CBA are hard to imagine, it's reasonable to assume it would change the sport at least as much as the introduction of NIL money and the transfer portals of NCAA football and basketball.
(Photo: Bruce Bennett/Getty Images)
