Hockey's business and legal

Hockey’s Business and Legal Bi-Monthly Highlights September 1 Through 15 Featuring More Mike Babcock Troubles

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

Kasperi Kapanen Suspected of Aggravated Drunk Driving

St. Louis Blues forward Kasperi Kapanen is suspected of aggravated drunk driving according to a Finnish report. The incident occurred in Finland with a hearing scheduled for February of 2024. Aggravated drunk driving in Finland, according to the report, includes when the driver’s blood alcohol concentration is at least 1.2 per thousand or has at least 0.53 milligrams of alcohol per liter of exhaled air during or after driving or when the driver has used intoxicating substances in such a way that their ability to drive is noticeably impaired, and the crime is capable of causing a danger to the safety of another person.

While the incident is only suspected at this point, no immediate discipline from the Blues or NHL seems likely. However, there are certain actions either may take under the NHL’s CBA including a suspension. There are also off-ice incidents that could amount to a “material breach” of the player’s contract that could warrant termination. But that is not a clearly defined standard. Regardless, it’s an unfortunate time for Kapanen as he is entering a contract year. While hockey and personal events can be separate, there are crossovers where one can affect the other. Stay tuned to see how this plays out.

Hockey Canada’s Inaugural Beyond the Boards Summit Concludes

Following many issues in hockey with regards to hazing, abuse etc. and the handling of such by Hockey Canada, the organization hosted its first ever Beyond the Boards summit on September 8th and 9th in Calgary. This event concluded after participants engaged in multiple difficult conversations on hockey’s toxic culture. Program participants included representatives from the NHL, PWHL, IIHF, and CHL, along with all 13 provincial and territorial governing bodies. While the event does not solve anything, it could be a good launching point for lasting change in the sport IF the participants take the lessons learned and turn it into action.

Fanatics Names New Commerce CEO

Jersey and apparel manufacturing company Fanatics announced that Andrew Low Ah Kee will be its next Commerce CEO. This role leads the arm of Fanatics responsible for licensed fan gear, jerseys, apparel and hardgoods. Kee will take over shortly before Fanatics will become the exclusive provider of NHL jerseys starting in 2024. Additionally, Fanatics is likely to move towards planning an IPO in the near future. Kee comes from a background in leadership, his last role being president of real estate marketplace Opendoor. This role will provide its own challenges to Kee but it will be interesting to see his effect on the company as it relates to NHL products.

Western University Investigating Alleged Misconduct in Women’s Hockey Program

Western University in Ontario has hired outside counsel to investigate allegations of misconduct against women’s hockey coach Candice Moxley and strength and conditioning coach Jeff Watson. These allegations include Moxley forcing players to play injured and repeatedly saying she didnt care about their mental health. Meanwhile, allegations against Watson involve sexual harassment. The players making these allegations also provided that certain players made Moxley aware of Watson’s actions, but she did nothing. At this point the investigation is open, and it is the school’s decision whether to make the findings public or not.

Again, we have another instance of experienced coaches coming under fire for alleged misconduct involving forms of abuse. Moxley has been the head coach at Western since 2018 and Watson handles strength and conditioning for all of Western’s varsity sports. Whether the allegations will prove true or not, it’s another lesson for coaches and people in power. With more issues rising to the surface and fear of speaking out subsiding, coaches should realize the impact they have on the lives of their players even outside of the sport.

BioSteel Files for Bankruptcy

This story hits on both hockey’s business and legal sides. Sports drink company BioSteel announced it is filing for bankruptcy. BioSteel replaced Gatorade as the official sports drink of the NHL and NHLPA in 2022. Former NHLer Michael Cammalleri with business partner John Celenza started the company in 2009 as an alternative healthy sports drink. Over the last year or so BioSteel has had its name all over most NHL and NHLPA events. Canopy Growth, the largest cannabis company in North America bought BioSteel in 2019 to diversify its offerings. Since that time, Canopy Growth has pumped money into BioSteel but the company kept losing a lot of money.

While sales are growing, expenses routinely exceeded revenues, largely due to expansive sponsorship deals including the NHL one. Meanwhile, BioSteel is the subject of an SEC and Canadian regulatory authorities’ inquiry related to revenue recognition overstatements. Due to all of this, BioSteel initiated bankruptcy protection in Canada and the United States. Additionally, Canopy Growth is looking for a buyer for the sports drink company.

The Bankruptcy Filings

BioSteel filed for bankruptcy under the Companies Creditors Arrangement Act (CCAA) in Canada. In the United States, the company filed for Chapter 15 bankruptcy which allows for bankruptcy protections based on an initial filing in a different country. Chapter 15 will follow the original country’s bankruptcy process closely as an ancillary process for efficiency. If the assets in the United States are complex enough the company many need to file separately for Chapter 7 or 11 bankruptcy.

BioSteel has an upcoming payment due to the NHL that it does not intend to make under these protections. It will be interesting to see if a buyer arises and what happens to the partnership between BioSteel and the NHL.

NHL Assessing Digital Advertising on Boards

As previously discussed in one of our hockey’s business and legal updates articles, the NHL’s new digital advertising on its boards is breaking technology but has come with mixed reactions. Due to some of the feedback received, the NHL is considering implementing some changes this upcoming season. The NHL previously announced it had partnered with MVPindex for the Digitally Enhanced Dasherboards (DED) program. Even though the league is taking consumer feedback into consideration, it seems largely like it is a constantly evolving item that will need time to iron out.

Additionally, the league hopes to use this technology to provide other information on the boards for viewers. The NHL may use this largely in pregame and in overtime and shootouts to provide team and player names. This may actually be a great innovation to increase revenue for the league as sponsorship and advertising opportunities can be more closely tailored to viewers. But ironing out some of the glitches still remains a task at hand.

Atlanta Getting Another Bite at the Apple?

The Atlanta Flames, the Atlanta Thrashers, and the Atlanta [Insert Team Name Here]. NHL Deputy Commissioner Bill Daly recently stated that he believes another team in Atlanta would work. This is largely due to the growth of the game and the success shown in the latest two expansion teams in Vegas and Seattle. Atlanta is a major market and one the NHL would love to enter. But history has not been so kind as both of its previous two teams ultimately left. With the increasing exposure of the sport in nontraditional markets this time could work, however.

It is a decision that should not be made lightly, whether it is an expansion or a relocation. The process of either takes many steps including finding a willing owner, but they are out there. Possible sites for the team include Alpharetta and south Forsyth County. A new proposed mixed-use development in South Forsyth seems like a likely place to house such a team. This development proposal includes an arena and interest in bringing in an NHL team. Being in the suburbs versus downtown Atlanta may also help the success of the team. Time will tell but it could be another round of NHL hockey in Atlanta.

Hockey’s Business and Legal Featured Story: More Alleged Mike Babcock Issues

For this period’s hockey’s business and legal featured story, we turn to Mike Babcock, the coach of the Columbus Blue Jackets. As was first brought up on the popular podcast Spittin Chiclets, Babcock allegedly asked for players’ cell phones and showed their pictures on a tv screen. Since that episode, Babcock as well as players Boone Jenner and Johnny Gaudreau spoke out providing that this was blown out of proportion. They collectively explained how Babcock would ask if they had pictures of their families and he would show some of his. This was a way Babcock was getting to know them.

This apparently had been something Babcock has done for many years including with the Detroit Red Wings and Toronto Maple Leafs. In some instances, he would ask the players or staff members to describe their family with the pictures on a screen in a presentation. Some people found this uncomfortable while others had no issues with it. There appeared to be some current Blue Jackets players who also found it uncomfortable.

Further Investigation

This may be harmless and blown out of proportion, but Babcock’s history is not really on his side. He had issues with players in Toronto. That ultimately led to his departure. So, a story like this being less innocent is not farfetched. But nothing is completely verified at this point. Regardless, it has now become an issue that both the NHL and NHLPA, as well as the Blue Jackets, have to look into. NHLPA executive director Marty Walsh and assistant executive director Ron Hainsey went to Columbus to interview players as part of the investigation. It is the NHLPA’s responsibility to look after the players’ well-being. Given this necessity to travel in person to investigate, the issue may be more serious than initially thought.

Likewise, there was a scheduled NHLPA/NHL meeting on September 15th. This situation was the main focus even though other items were on the agenda. Further investigation including interviewing former Babcock players will likely occur. Ideally, the league, team, and the NHLPA would like to have this resolved as soon as possible.

Lasting Implications

But the decision needs to be right. Has Babcock changed and this is innocent? Or is this a reversion back to previous patterns? If this is found to be an issue, is Babcock let go again? This shows how hockey’s business and legal worlds get closely intertwined. And once again, it’s another lesson for coaches out there to be conscientious of their actions. You can’t predict every possible future issue but putting the players’ well-being first should be paramount.

Post Image Attribution: By Tom Gromak, CC BY-SA 2.0 https://creativecommons.org/licenses/by-sa/2.0, 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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