hockey's business and legal

Hockey’s Business and Legal Updates December 16 through 31 Including Kraken Trademark Lawsuit

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. Oh, and want to wish everyone a Happy New Years!

Hockey’s Business and Legal News

Juuso Välimäki’s Medical Treatment Received NHL Scrutiny

Arizona Coyotes defenseman Juuso Välimäki sustained a facial injury in Dallas when the Coyotes were playing the Stars. The injury required Juuso to go to the hospital in Dallas. Following this event, there were questions about whether the Coyotes “left” Juuso in Dallas. Upon further finding, it was more about the medical treatment received itself posed by the NHL rather than the Coyotes handling. There are certain protocols for how NHL teams and the NHLPA handle injuries during the game. Specifically, away teams typically rely on home team physicians for medical care and do not bring their own. While the protocols are not made public, it does not appear that there is any wrongdoing by the Coyotes or the Stars.

PWHL Names Cassie Campbell-Pascall as Special Advisor

The PWHL has hired Cassie Campbell-Pascall as a special advisor. This is a strong add for the PWHL as Pascall is a Canadian hall of famer and former Olympian with multiple gold medals with the Canadian women’s hockey team. Since winning those golds and serving as Canada’s captain, she has worked in broadcasting with TSN, ESPN, Sportsnet, and CBC. She also served as part of Hockey Canada’s transitional Board of Directors (which we discussed some changes involving it in our last hockey’s business and legal highlights article).

IIHF Dismisses Ivan Fedotov Appeal

The Ivan Fedotov saga continues as the IIHF has dismissed an appeal filed by Fedotov and CSKA Moscow following its implementation of sanctions against the Russian netminder and the KHL Club. If you are not familiar with this ongoing story, check out our previous hockey’s business and legal highlights as we have tracked this story for months now.

Long story short, Fedotov had a contract with the Philadelphia Flyers. He then took a year in Russia to serve in the military and the Flyers thought his NHL contract would slide. However, he signed a deal with CSKA Moscow and remained in Russia. Because there is no player transfer agreement between the NHL and the KHL, and its memorandum of understanding was suspended following the events in Ukraine, this type of situation has no real governing source outside of some limited authority of the IIHF. When the decision was left to the IIHF, it sided with the Flyers.

But Fedotov, the KHL, and CSKA Moscow didn’t seem to care and moved forward. The IIHF then placed sanctions on the club and player to which both filed an appeal. The independent IIHF Disciplinary Board dismissed the appeal. In doing so it determined that Fedotov’s contract with the Flyers was valid and was clearly breached. Don’t be surprised to see more on this keep coming.

Russia Firing Back on Players Jumping Leagues

Recent reports have indicated that the Russian government may be working on issuing rules preventing Russian players from leaving the country before a set amount of time. This was first provided by agent Shumi Babaev who has many clients in Russia. This could significantly affect many NHL teams with prospects playing in the KHL. Some notable names include Alexander Nikishin of the Carolina Hurricanes and Matvei Michkov of the Philadelphia Flyers. It may be a scenario where they cannot negotiate out of their current KHL contracts, or worse. Keep an eye on this story as it progresses.

The GTHL Bans Team’s Manager from Handling Finances

As league misconducts are becoming more and more transparent, the Greater Toronto Hockey League has stepped in to handle an issue in its league. Reportedly, the Markham Majors AAA team manager failed to provide record or accounts of fees and funds being raised or how they were used. Further investigation revealed some misuse of these funds. As a result, the team’s manager is barred from managing team funds for five years and the team must review and update their financial policies.

The GTHL is the largest minor hockey league and has been grappling with transparency issues for some time now. The Majors are an under 12 AAA team. This shows that at any level with any age, there is always a risk for misconduct without transparency.

Bally Sports Agrees to Pay Regional TV Rights Fees through End of Season

With Bally Sports’ parent company Diamond Sports Group going through bankruptcy proceedings, the question of who would handle regional broadcasting for 11 of the NHL’s teams has been a constant question. There was worry that Bally would not pay the regional rights fees through the end of the 2023-24 NHL season. But now they have agreed to do so. After that, the teams will own the regional rights.

This is big for the NHL as these fees are worth hundreds of millions of dollars per season and count toward the hockey-related revenue that determines the salary cap. We previously discussed the impact of TV on the salary cap in an article here. We also discussed Bally Sports issues in previous hockey’s business and legal highlights. The league says it has contingency plans but figuring out the regional broadcasting will be a big focus this offseason. What was once guaranteed revenue is now completely up in the air (no pun intended).

Air Canada to be a Premier Sponsor and the Official Airline for the PWHL

Air Canada announced that it will be a premier sponsor for the PWHL this season. It will also be the official airline for the league. Specifically, it will be a jersey sponsor for the team in Montreal. Keep in mind that the PWHL does not operate like most other professional sports leagues in that it is a single entity unlike the NHL which operates more like a joint venture of individually owned teams. So, with Air Canada sponsoring Montreal, that agreement is with the league and not necessarily just the team.

This partnership continues Air Canada’s campaign of partnering with hockey as such a cornerstone aspect of Canada. But it also works in Air Canada’s marketing campaign to become more involved in showing support for women. The PWHL follows Air Canada’s other deals partnering with professional women’s sports including the WNBA and Project 8.

Hockey’s Business and Legal Updates Featured Story: Seattle Kraken Faces Trademark Lawsuit

The Seattle Kraken will take on the Vegas Golden Knights on New Year’s Day in this year’s NHL Winter Classic. With all of the excitement surrounding this event, the Kraken face an issue they were likely not expecting. Or at least hoping to avoid. This is a trademark infringement lawsuit involving its use of the “S” logo on their Winter Classic jerseys.

Typically, teams playing in the Winter Classic will use custom jerseys designed to resemble either older jerseys of the team or jerseys of a previous team to which they have a connection. For Seattle, the design was based on aspects of the old Seattle Metropolitans who won the Stanely Cup in 1917. The problem is that they could not use the Metropolitans logo without permission due to it being owned by Paul Kim.

Logo Ownership

Kim bought the rights to use the Metropolitans logo in 2014 and has been using that to create merchandise for years. Reportedly, the Kraken reached out to Kim and tried to license the use of the Metropolitans logo. However, Kim stated that the offers were significant low balls. Kim then told the Kraken not to use any logo or marks of the Metropolitans but the Kraken moved forward with their current Winter Classic logo and Kim sued for trademark infringement.

Kim and his company, Seattle Metropolitans Hockey LLC, claim the Kraken’s use of confusingly similar branding cost it an estimated $2.5 million in lost sales and goodwill and is seeking at least that amount and possibly more from the Krakens owners Seattle Hockey Partners LLC. The concept of if a symbol is “confusingly similar” is paramount for a determination of trademark infringement. The lawsuit also seeks a temporary and permanent injunction blocking the Kraken from using Metropolitans trademarks. However, there isn’t really time to block the Winter Classic jerseys for the game. Keep an eye on the court’s decision here.

Post image attribution: Public Domain

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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