Hockey's Business and Legal Updates for June 1 through 15

Hockey’s Business and Legal Bi-Monthly Highlights June 1st Through 15th Featuring a Final Winner for the Ottawa Sale

Alec Roberson

It’s that time of the month when we take a look at what’s been happening in hockey’s business and legal world. Twice a month we cover the big and not so big stories in this arena. We also include a featured story of the period. Let’s take a look at what has been happening this period.

Hockey’s Business and Legal News

New NHL/NHLPA Trial Off-Season Training Agreement

Following the NHL fining the Vancouver Canucks for violating the offseason training rules provided in the NHL/NHLPA Collective Bargaining Agreement, the NHL and NHLPA have agreed to a one-summer trial agreement for adjustments to this rule. In Section 15.10 of the CBA an NHL team may only hold one offseason training session. However, such session is limited to drafted but unsigned players, players on entry level deals with limited NHL experience, and other similar inexperienced players. Coaches or other hockey operations personnel of the team are not supposed to be on the ice with any players skating in the offseason. Reportedly, under this trial agreement, one skills coach can be on-ice with a player, but it must be at the player’s request. In addition, the player must go through the NHLPA, which will contact the team and league. This rule change did not relieve the Vancouver Canucks of their penalty.

North Carolina May See Online Sports Betting Soon

Both houses of the North Carolina legislature have passed a bill allowing for online sports betting on mobile devices and at select sporting events. Online sports betting has become a huge market with about half the states allowing it. Additionally, through the development of advanced analytics, online sports betting continues to be in a major growth state. North Carolina is looking to get some tax revenue from that industry. For the Carolina Hurricanes, this may allow for increased sponsorships and other revenue generating opportunities including a possible building expansion to house such betting. Currently, the bill is awaiting the governor’s approval. Reportedly, that approval seems likely.

Updates on the NHL’s Finances

After the conclusion of the 2022-2023 NHL season, various reports rose providing updates on some financial statuses of the NHL as well as predictions. First, the $1.1 billion held in escrow from the pandemic that is due to the owners from the players will be down to around $70 million after the season.

However, Bettman has stated that because there is still debt owed, the salary cap will likely only increase $1 million with a larger increase expected in 2024. The NHL’s salary cap is based on projected revenues with such revenue split 50/50 between the owners and the players. However, due to COVID-19, the normal system where players’ money is held in escrow and later paid out was sort of turned on its head due to essentially no reveneue. Check out our article on that for more detail here. Keep an eye on this moving forward.

The NHL’s Investigations into Prior Domestic Incidents

The NHL’s deputy commissioner Bill Daly recently made various statements regarding updates to Valeri Nichuskin and the NHL’s probe into the 2018 World Junior Championship sexual assault allegations. On Nichuskin, Daly stated that there was no ongoing investigation into the incident involving Nichuskin and an intoxicated female in Seattle during the playoffs. The Colorado Avalanche had handled the situation appropriately. In addition, Nichuskin is able to play next season.

Meanwhile, Daly also provided that the NHL’s investigator looking into the alleged sexual assault incidents involving the 2018 Canadian World Junior Championship team had completed the investigation. Members of the Canadian 2018 World Junior Championship team allegedly sexually assaulted a woman during a gala event. Since the actual sexual assault claim was settled, the issue was more about Hockey Canada’s handling of that and similar situations. The investigator should provide the report to the NHL in the summer.

Harvard Women’s Hockey Coach Retires Following Abuse Allegations

Following reports of alleged abuse, Harvard’s women’s hockey coach Katey Stone announced her retirement. The Athletic and the Boston Globe released these reports and provided allegations of widespread abuse and a culture of hazing. This has become a big topic lately as more and more of these stories have come to the surface. Stone’s tenure as coach lasted almost three decades but following these reports, the University hired an independent law firm to launch an external investigation. Reportedly, the law firm has completed the investigation but has not released it to the public yet.

ECAC Hockey Names Doug Christiansen as New Commissioner

The Eastern College Athletic Conference (ECAC) has named Doug Christiansen as its new hockey commissioner following the departure of long time commissioner Steve Hagwell. Twelve NCAA Division One schools including this year’s national champion Quinnipiac University make up ECAC Hockey. It also includes other notable hockey schools such as Harvard, Yale, Princeton, Cornell, Brown, and Union College. As an ECAC alumni, Christiansen, who competed for four seasons on the men’s hockey team at Union College, most recently served as Deputy Commissioner of the United States Hockey League (USHL). There he oversaw USHL Hockey operations and properties and served as the primary point of contact for USA Hockey, NHL Central Scouting, and media entities.

Michael Andlauer Will Be the Next Ottawa Senators Owner

After much speculation and many bids, the group led by Toronto based businessman Michael Andlauer will likely be the Senators next owner. In addition, in his bid Andlauer agreed to keep the team in Ottawa and submitted plans for the building of a new arena. While the final purchase price has not been fully released, it is estimated around $1 billion.

The next steps include completing the NHL’ s approval process to purchase the team. Both the buyers and sellers need to complete any other necessary formalities to complete the transaction. For example, Andlauer currently owns a 10% stake of the Montreal Canadiens. To get NHL board approval, he will have to divest himself of said interest. (For a more in depth look at the process, check out our previous three-part series on purchasing an NHL team.)

Also part of the deal, Melnyk’s daughters will retain a ten percent ownership of the team.

Interestingly as reported by Sportico, the prospect of a new arena likely drove the price up on the team. The competition for this bid didn’t hurt either. However, the price is still notable considering they generate some of the lowest revenues in the NHL.

Post image attribution: By Alaney2k, CC BY-SA 3.0 https://creativecommons.org/licenses/by-sa/3.0, via Wikimedia Commons

Alec Roberson

Alec Roberson grew up in coastal North Carolina, taking a somewhat unconventional path to hockey. With hockey being almost nonexistent in that area, Alec found his passion for the game following the success of the Carolina Hurricanes in 2001 and 2006 and later played club hockey in college. After going through law school and practicing for some time, he now continues his love for the game through writing. Find him on twitter @roberson_alec

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