hockey's business and legal updates for the period of August 1 through 15 include updates from Russia

Hockey’s Business and Legal Bi-Monthly Highlights August 1 Through August 15 Featuring Updates from Russia

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

Jeff Jackson Takes Over as Oilers CEO of Hockey Operations

Jeff Jackson, former agent for many notable players including Connor McDavid has been named CEO of Hockey Operations for the Edmonton Oilers. Jackson’s role began on August 3, 2023. Following eight-years playing professional hockey, he moved on to become an attorney. He practiced corporate and entertainment law at a leading national law firm before joining the Toronto Maple Leafs as Assistant General Manager and Director of Hockey Operations in 2006. He also served as the General Manager and Governor of the Toronto Marlies in the AHL. In 2010, he launched his own agency where he built up a solid list of clients including star player Connor McDavid. While Jackson obviously cannot continue to represent players, this may have some influence on McDavid’s future relations with the Oilers. This story also shows another example of players finding success in future careers in hockey. Specifically, in hockey’s business and legal arenas here.

U.S. Center for SafeSport Investigation into WHL Coach and GM Ends

The U.S. Center for SafeSport investigated a complaint made against Dennis Williams, head coach and GM of the WHL’s Everett Silvertips. Williams also coached Canada’s 2023 World Junior Championships team. The U.S. Center for SafeSport is an organization that independently investigates allegations of misconduct in amateur sports. It has jurisdiction because the Silvertips play in Washington. The complaint included allegations of Williams using the team’s shower and coming out in only a towel, making the players uncomfortable, taking a picture of a passed-out player and leaving him be after completing a VO2 max test, and creating a “fighting ring” during training camp in 2021. A Silvertips equipment manager also made similar complaints to the WHL.

Ultimately, the U.S. Center for SafeSport and the WHL did not find any conclusive evidence of criminal activity or WHL policy violations. Again, even though these investigations did not result in punishment, it is yet another important lesson for coaches out there to really be intentional about their conduct and how they run their team.

The Arizona Coyotes on the Prowl for a New Arena

The Arizona Coyotes have found a parcel of land that they are looking to potentially purchase and develop for a new arena. After moving to Mullett Arena and the fallout from the Tempe referendum, this should be a positive sight for Coyotes fans and players. But it also could be another story of false hope. At this point the Coyotes have just submitted a letter of intent to purchase the land and it is not clear exactly what the land is.

This story involves both hockey’s business and legal topics. Legally, a letter of intent is generally a nonbinding contract that outlines the prospective high-level terms of the deal. Depending on how they are drafted, they can operate somewhat like option contracts but generally they do not create any obligations on the parties to complete the deal. The Coyotes reportedly are also keeping an eye out on other locations, but this does signal an attempt to get something going. Arizona’s future was one item NHLPA director Marty Walsh recently stated was important amongst affected players.

More Arena News – This Time in Carolina

On Tuesday, August 15, the Carolina Hurricanes and the PNC Arena authority voted to extend their lease agreement until 2044. This agreement also includes the development of 80 acres around PNC Arena, home of the Hurricanes, renovations to the arena itself. As news of this potential had been swirling for a few weeks, part of this agreement includes a $300-million commitment from the Authority sourced from a local hospitality tax to pay for these renovations.

This gives the Hurricanes (specifically its ownership group) the right to develop the surrounding 80 acres into an entertainment district that purportedly will include a music venue, housing and parking decks. This agreement builds in a five-acre tailgating protection. Tailgating has become synonymous with Hurricanes hockey games too, so it is smart to attempt to maintain this. In a previous hockey’s business and legal updates article we discussed North Carolina’s legalization of sports betting. That could lead to specific enhancements within PNC Arena so don’t be surprised to see that as part of this deal. The NHL has committed to bring in another All Star Game and Stadium Series Game to Carolina after the renovations have been complete.

The deals are subject to the Raleigh City Council and Wake County Commissioners voting on more than $20 million in annual funding for the PNC renovations. The Hurricanes are currently one of the top teams in the NHL and this should be a big step forward in cementing their status in the league.

Peterborough Petes Executive Director of Business Operations Moves to New Women’s Pro League

Long time executive director of business operations of the OHL’s Peterborough Petes Burton Lee has accepted a role with the new professional women’s hockey league. He will serve as the league’s Director of Game Operations and Fan Experience. This could be a big step forward for Burton as he gets involved with a league at the ground level that has the opportunity to grow. With the Petes, Burton was a key piece in helping them develop and enhance their business side and fan experience over the last decade. It will be interesting to see what he does with this new league.

Brian Burke Joins Professional Women’s Hockey Union

Longtime NHL executive veteran Brian Burke reportedly will be leading the professional women’s hockey league players’ association (PWHLPA). Burke, an individual with many decades of NHL executive experience is no stranger to the inner workings of collective bargaining and other hockey labor related issues. Hockey Hall of Famer Jayna Hefford previously led the PWHLPA. This could signal further NHL involvement with this new league as Burke serving as yet another bridge between the two. Regardless, Burke will have his hands full in not only the league’s creation, but the foundation and direction of the PWHLPA.

Long Time OHL Commissioner Announces Retirement

David Branch announced that he is retiring from serving as the OHL’s commissioner after forty-four years at the helm. The 2023-24 season will be his last. Branch has led the OHL from its early, pre-CHL days up until its most current form. Additionally, he served as the CHL’s president from 1996 to 2019. Branch has spent a lot of time involved in Canadien junior hockey. During his tenure, the CHL has become one of the premier feeding grounds to the NHL. Of course, he has had his fair share of troubles to deal with including employment, concussion and hazing lawsuits. Hockey Canada named Branch to the Order of Hockey in Canada in 2016.

The QMJHL Bans Fighting in New Safety Regulations

After some speculation, the QMJHL released its new safety regulations which notably prohibits fighting. Fighting has been synonymous with hockey, well almost forever. But with the increased pressure on leagues to enhance player safety, the QMJHL decided to affirmatively take action. The QMJHL Members’ Assembly approved the sanctions against fighting. A committee comprised of Owners, General Managers and some staff members from the Commissioner’s Office recommended these new guidelines. Specifically, per the new rules, as soon as a fight breaks out the refs are to break it up and eject the fighters. An instigator will get an automatic one game suspension while the “aggressor” in the fight will get an automatic two-game suspension. Any player that has fought more than once in a season will automatically get a game suspension in addition to the sanctions mentioned in the previous sentences.

Daniel Sprong Accused of Assault

Former INDYCAR driver Zach Claman DeMelo claimed Daniel Sprong, the Dutch Detroit Red Wings forward, assaulted him. The two engaged in a scuffle to which Sprong allegedly left DeMelo with a concussion and needing dental work. There is not much out on this right now beyond DeMelo’s brief statements. However, it is yet another example of the necessity of players at any level to be careful of their conduct. Even if technically innocent, better to avoid potentially detrimental situations. As of now these claims are simply alleged.

Hockey’s Business Updates – Endorsements and New Ventures

As we look at hockey’s business and legal updates for this period, one superstar has started a new business venture while a future star signed a new endorsement.

Future superstar Connor Bedard signed an endorsement deal with Sherwood Hockey. Bedard will use Sherwood sticks and gloves during his first season. Known as a historic hockey brand with classic wooden sticks, Sherwood has been on a mission lately to reposition itself with younger players. And has done so pretty successfully. Notable Sherwood players include Matthew Tkachuk, William Nylander, Alex DeBrincat, Quinton Byfield, Emily Clark, Artturi Lehkonen, Saroya Tinker, Connor Brown and Savannah Harmon. Canadian Tire Corporation acquired Sherwood in 2018.

While Bedard may be the future, current superstar Alex Ovechkin has also big business news as he continues to chase Wayne Gretzky’s scoring record. Ovechkin has released his own clothing line called OVIGR8. While Ovi certainly is busy chasing records, this shows another example of a player following a passion outside of hockey. It also provides another venture that he can potentially continue for years after retiring. Hockey players in entrepreneurship is a big thing. But even non-NHL players have that opportunity should they desire to do so. Playing hockey is a relatively short career and as these entrepreneurial athletes show, the competition doesn’t have to stop.

Hockey’s Business and Legal Featured Story: Updates from Russia

With hockey’s business and legal updates involving Russia, two stories come from the IIHF for this period. The first being that IIHF President Luc Tardiff stated that Russia returning to international hockey play will be discussed in March of 2024. Following the events in Ukraine, the IIHF banned Russia and Belarus from international tournaments in early 2022. This included men’s and women’s as well as junior play. Until further notice, Russia is still banned.

The IIHF Issues an Opinion on Fedotov

In one of the biggest updates from this period, the IIHF decided in favor of the Philadelphia Flyers in the case of Ivan Fedotov’s competing contracts with the Flyers and CSKA of the KHL. If you have not had a chance, check out the backstory in our hockey’s business and legal updates for last period here. The IIHF determined that CSKA’s signing of Fedotov violated Article II.4.1 of the IIHF International Transfer Regulations.

The IIHF gave Fedotov two weeks from signing with CSKA to go back to the Flyers or obtain a release. When neither happened, the IIHF issued a four-month suspension to Fedotov from playing in official national and international games during playing periods. The suspension takes effect September 1, 2023 (first CSKA regular season game) and concludes on December 31, 2023. Meanwhile, the IIHF issued a one season ban on CSKA completing International Transfers taking starting August 11, 2023, and concluding August 10, 2024. Under the rules, the IIHF presumed that CSKA induced Fedotov to violate his contract with the Flyers when they did not make it known otherwise.

The IIHF international player rules apply to member associations whenever they do not have their own player transfer agreement. While the NHL and KHL do not have their own player transfer agreement and their memorandum of understanding is suspended, their teams and players are operating sort of in limbo when it comes to international player transfers. However, even though the NHL is not actually an IIHF member subject to the IIHF player transfer rules, they can use the IIHF as a neutral decider in such disputes. (USA Hockey is a member organization of the IIHF but does not control the NHL). These sanctions, as mentioned above, will apply for international play under the IIHF’s jurisdiction. This ruling has the potential to heavily affect NHL/KHL relations for the foreseeable future, setting a precedent for contract disputes.

CSKA Responds

Obviously, CSKA is not happy with the IIHF’s decision. In response, they stated that the IIHF was biased in favor of the NHL. They also pointed out that the NHL is not an IIHF member and that they decided to suspend the memorandum of understanding with the KHL. Based on the translation, it reads a little like a statement of frustration BUT it also clearly indicates that they intend to ignore the IIHF’s ruling. It also seems like they may be willing to appeal this ruling higher as well if necessary. Regardless, this appears to be another example of sports playing into world politics. This may have effects down the road. It will be interesting to see what Fedotov does.

Post image attribution: By DarDarCH, CC BY-SA 4.0 https://creativecommons.org/licenses/by-sa/4.0, 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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