Hockey's business and legal updates August 15 through 31

Hockey’s Business And Legal Bi-Monthly Highlights August 15 Through August 31 Featuring Big Updates in Women’s Hockey

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

Hockey Canada Releases Plan on Equity, Diversity and Inclusion

Following all of the ground shaking turmoil hitting Hockey Canada recently, the organization has made another step towards improving the game. Specifically, it released its newest plan on equity, diversity and inclusion. Hockey Canada’s EDI Advisory Group – a collection of Hockey Canada staff members and external subject matter experts put together in 2022 to support the initial recommendations from the EDI Task Team – put together this plan. It outlines Hockey Canada’s path forward in ensuring the game is diverse, welcoming and inclusive. Whether this plan will have a lasting impact or not is to be determined, but it is at least another step forward for Hockey Canada.

In Bally Sports/Diamond Sports Group Bankruptcy, the NHL May Seek Emergency Relief

Diamond Sports Group, Bally Sports’ parent company, is currently in bankruptcy proceedings following its Chapter 11 bankruptcy filing. Chapter 11 bankruptcy involves a restructuring/reorganization of the company to alleviate its debt burdens. Bally Sports televises 12 NHL teams. With the court granting Diamond Sports Group until September 30 to present a reorganization plan, the NHL let the court know that if negotiations are not completed soon regarding the 12 Bally Sports Regional Network contracts, it may seek emergency relief. This would allow those NHL teams to exit those contracts. This bankruptcy may have a large impact not only on the 12 NHL teams, but on the league as a whole. It may even affect salary cap numbers. The NHL is looking to proactively protect its interest here.

Alex Galchenyuk Pleads Guilty and Heads to Russia

Following Alex Galchenyuk’s arrest and release from the Arizona Coyotes, he issued a formal apology and entered in the NHL/NHLPA’s player assistance program as we discussed in previous hockey’s legal and business updates. But now Galchenyuk has plead guilty to a misdemeanor threatening charge. By doing so, five of the six charges against Galchenyuk have been dropped. He will need to spend 30 days total in prison unless he reduces it by completing a participant recovery program and committing to 12 months without alcohol.

Additionally, Galchenyuk signed a two-year contract with SKA Saint-Petersburg in the KHL.

Ivan Fedotov Appears to Be Playing in Russia – Against the IIHF’s Ruling

The ongoing saga of Ivan Fedotov, the Philadelphia Flyers, CSKA and the IIHF keeps going. Last period we discussed the IIHF’s ruling in Fedotov’s contract dispute between the Flyers and CSKA in the KHL. After the IIHF ruled in favor of Philadelphia, CSKA released a statement expressing its disagreement with the decision.

Well, CSKA appears to be intending to ignore the IIHF’s ruling as Fedotov appears to be looking to play in Russia. With all of the dynamics involved between the NHL, KHL and the IIHF (as we previously discussed), this is a complicated and somewhat sensitive subject. While the NHL was the one who canceled its memorandum of understanding with the KHL, could this be a sign that the KHL is taking that to heart? Or is it just an honest disagreement over contract interpretation? Going against the IIHF’s ruling seems to point to the former. Meanwhile, the IIHF has threatened further sanctions if Fedotov does in fact play in the KHL.

NHL and NHLPA Working on International Play

The NHL and NHLPA continue to work on agreeing to NHL players participating in the Olympics and some form of a World Cup of Hockey. The goal would be for the Olympics and World Cup to alternate every two years. But they also discussed some international competition to be held in 2025. As is discussed in the NHL CBA, this is a discussion that requires agreement on both sides. The players want it while the league has been more hesitant due to scheduling disruptions. Another question is how they will allow or disallow Russia’s participation in said events. Stay tuned as they iron the details out on this.

Hockey’s Risky Business: Insurers May not Pay for CHL Abuse Lawsuit

As we previously covered, Hockey Canada, the CHL, and the CHL’s member leagues are facing a lawsuit regarding allegations of hazing, abuse and bullying. For a backstory on this lawsuit check out our article here. It is very common for organizations to maintain insurance to pay for various lawsuits. Although there has been a lot of heat about whether that and reserve funds should be used for sexual abuse settlements, it is generally common practice. But they do not cover everything.

Hockey Canada recently filed lawsuits alleging its insurers have indicated they may not honor their policy obligations in connection with this hazing lawsuit. While these leagues have maintained a “Sexual Misconduct Liability Endorsement” that provides up to $20 million worth of coverage for sexual misconduct claims, the insurers argue about the dates of coverage applicable to these policies. If the court agrees with the insurers, it will be interesting to see how the leagues pay for these claims.

Hockey’s Business News with Legal Steps: Michael Andlauer Clears Another Hurdle in Becoming the Next Senator’s Owner

Michael Andlauer (or his investment group) is tentatively set to become the next owner of the Ottawa Senators after agreeing to purchase the franchise from Eugene Melnyk’s estate. One more hurdle in that process has been cleared as the NHL’s executive committee approved the sale. The process to purchase an NHL team doesn’t happen overnight. There are multiple steps involved including the executive committee and the NHL’s Board of Governors’ approvals. For more information on the process check out our three-part series here.

At this point, Andlauer’s group can keep moving forward as the attorneys work out the details to close the transaction. At least two-thirds of the Board of Governors still have to approve the sale but that is expected to be unanimous. Meanwhile, Andlauer owns a minority interest in the Montreal Canadiens. He will have to divest himself of that interest before this sale closes. But that also should not be an issue as the interest will be placed in trust if a sale cannot happen prior to the Senators sale closing.

Pittsburgh Penguins Owner to Buy AT&T SportsNet Pittsburgh

Fenway Sports Group, the Pittsburgh Penguins owner, reportedly will be the new owner of AT&T SportsNet Pittsburgh. This network is the local broadcaster for Penguins games. The deal is supposed to take place in October as Fenway will purchase the broadcasting network from Warner Bros. Discovery (WBD). WBD announced its intentions to exit regional sports in February which could have left the Penguins without a local network to televise its games. After much speculation, its owner Fenway has stepped in to “save the day.” Fenway also owns New England Sports Network (NESN).

Mitchell & Ness Names Former Nike Executive as CEO

Mitchell & Ness, the throwback clothing brand responsible for a lot of traditional and nostalgic based hockey apparel announced that they are naming Eli Kumekpor as their next CEO. Recently acquired by Fanatics, Mitchell & Ness is making this move to replace their CEO of seven years Kevin Wulff after retiring. Kumekpor previously worked as global vice president and general manager of men’s product at Jordan Brand under Nike. This move also comes as the company is making strides to expand its business and specifically licensing rights. Notably, Mitchell & Ness entered into a league wide licensing deal with the NHL.

Ontario to Prohibit Athletes from Appearing in Gambling Ads

Effective February 28, 2024, the Alcohol and Gaming Commission of Ontario (AGCO) updated its Registrar’s Standards for Internet Gaming to prohibit the use of athletes in internet gaming advertising and marketing in Ontario. The goal is to restrict marketing by athletes or celebrities that may appeal to minors. The exception is if the marketing uses the athlete for the exclusive purpose of advocating for responsible gambling practices. Companies have used hockey players including Auston Matthews, Connor McDavid and Wayne Gretzky in such ads. Hockey’s stars will have to be careful engaging in this business as the legal framework is changed. The legal specific requirements are found here.

Hockey’s Business and Legal Featured Stories: Further News in Professional Women’s Hockey

This hockey’s business and legal updates featured story centers around women’s hockey again. These coming from both Europe and North America.

Players’ Union Formed in the EWHL

First, the European Women’s Hockey League (EWHL) announced the creation of a players’ union. Players’ unions are synonymous with most professional sports in the United States, including the newly created Professional Women’s Hockey League. In the NHL, the union is the NHL Players Association (NHLPA). These unions are responsible for collective bargaining with the team owners for adequate working terms and conditions. The EWHL features professional women’s teams in Austria, Hungary, Italy, Kazakhstan, Poland, and Slovakia.

The New Professional Women’s Hockey League Announces its Inaugural Cities

In big news for the newly created Professional Women’s Hockey League (PWHL), they announced the “original six” cities to host teams. These include Montreal, Ottawa, Toronto, New York City, Boston, and reportedly St. Paul, Minnesota. While some but not all of the cities from the previous PHF league are occupied, this will cover a lot of the hot hockey areas with substantial populations in the United States and Canada.

Additionally, the NHL stated it will work with the PWHL to host games at neutral site venues. This may include NHL and non-NHL cities as well as NHL facilities. More to come on this.

Also, key dates and parameters for the PWHL draft and free agency have been announced. Teams may sign three players starting September 1 for ten days. September 18 is the date of the player draft and it will last for 15 rounds. After that point, teams are free to sign remaining players to round out their rosters. Following, training camps will start the week of November 15. The regular season is scheduled to start in January of 2024. While the plan is to have a 24-game schedule for the inaugural season, subsequent seasons will start in November and have 32 games.

PWHL Trademarks

In a final note, the PWHL trademarked its name for memorabilia and branding purposes. This is in addition to receiving a trademark for the league name as a league in July. This is fairly routine but another showing of the seriousness and traction of the league. Be on the lookout for new merchandise soon!

Post image attribution: By Phwayne, 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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