Disgraced former NHL Players Association director Alan Eagleson's fall from power was stunning. And in this THN Archive story, Eagleson's actions led to dire consequences.
Former NHL Players Association executive director Alan Eagleson was drummed out of the sport in disgrace in the 1990s for his actions defrauding the NHLPA. And in this in-depth feature story from THN's Jan. 23, 1998 edition -- Vol. 51, Issue 19 -- THN associate editor Bob McKenzie chronicled the legal ramifications of Eagleson's acts.
JUSTICE FINALLY SERVED
By Bob McKenzie
When Alan Eagleson was challenged from 1989 through 1991 to account for his actions as hockey’s most powerful man for two decades, he steadfastly and repeatedly denied impropriety.
“I have never received any direct or indirect benefit of international hockey,” Eagleson said back then. “Neither I nor any member of my family nor any company with which I am associated has ever received money either directly or indirectly from any international hockey event.”
Lies, lies and more lies.
Now, though, the truth is there for all to see, even if so many of Eagleson’s friends choose to remain blind to it.
R. Alan Eagleson, 64. is a criminal in two countries, having pleaded guilty Jan. 6 in Boston court to three mail fraud charges, resulting in a $1 million (Cdn.) fine. A day later, he pleaded guilty to three fraud charges in a Toronto court and was sentenced to 18 months in prison.
“He dipped into the till and took money directly out of the players’ pockets,” U.S. Attorney Donald K. Stem said, describing Eagleson’s deeds as “horrendous, heart-wrenching, double-dealing.”
Eagleson’s pleas represent a stunning fall from grace for a man who. as founder and executive director of the NHL Players’ Association, chief international negotiator for Hockey Canada and agent to many of the game’s biggest stars, abused his power and position for personal profit.
His crimes were not minor indiscretions, pinching a penny or two from petty cash. This admittedly brilliant man, who could be as charming as he was cruel, schemed and manipulated to complete complex financial maneuvers that bilked players, the Players’ Association, Hockey Canada and Labatt Brewery of millions.
As Crown attorney Susan Ficek said, these were “sophisticated and planned acts of fraud.”
One would do well to ask how. How did one man do so much for so long without reprisal?
The answers are many. Power, influence, fear and self-interest. Eagleson is not the only one who stands guilty. His clients, naive as some of them may have been, allowed him full reign over their financial affairs. The membership of the NHLPA, for the most part, permitted him to do business as he saw fit. He cozied up to league power brokers such as John Ziegler and Bill Wirtz and they to him. He counted not only hockey’s movers and shakers as his friends and allies, but the creme de la creme of the Canadian establishment, prime ministers, premiers, clergy, media. Many in the media, especially in Canada, turned a blind eye to his activities, as did, for a time, police and justice officials.
Why?
“He wasn’t just the most powerful man in hockey,” said ex-NHLer Carl Brewer, who led a successful legal challenge to recoup misappropriated NHL pension fund money. “He was one of the most powerful men in Canada.”
“There were no checks and balances in place to monitor Al and his activities,” said Bob Goodenow. the man who succeeded Eagleson as NHLPA executive director.
Eagleson had some critics. Ex-NHLer Mike Milbury was one. So, too, was Brewer, who originally helped Eagleson set up the NHLPA and was godfather to his daughter. Sports Illustrated went after him on a couple of occasions. But they were in the minority, always dismissed.
Even when an uprising within the NHLPA in 1989. led by agent Rich Winter, picked up steam, Eagleson was, for the most part, able to stomp down on his opposition and maintain himself in the manner to which he had become accustomed.
And then along came Russ Conway. The investigative reporter for the Lawrence Eagle-Tribune began looking into Eagleson’s affairs in June of 1990 and still isn’t finished (probing Eagleson’s finances is Conway’s latest task). Between then and now, his journalistic work was the foundation on which the FBI and U.S. attorney’s office built their case.
If one individual deserves credit for exposing Eagleson, it’s Conway.
“Forget about my role,” Conway told THN, “I’m gratified justice has been served.”
Initially, Conway, like anyone who criticized Eagleson at the time, was treated as something of a pariah by many in the hockey establishment. He remained undaunted, publishing five separate series of investigative works and a best-selling book that, by his count, shows Eagleson misappropriated funds in excess of $4 million.
In the recently updated version of the book, Conway reveals the 1996 World Cup tourney produced a $14.7 million profit, which was more than Eagleson’s five Canada Cups combined. He also wrote Eagleson was attempting to pay his $1 million fine in Boston with monies from his own NHLPA pension, which prompted this response from Goodenow: “This guy has no shame. He screws the players left and right for years. Now he wants to come back and screw them one more time.”
In Canada, despite a written complaint from agent Winter and Conway’s body of work, the RCMP and Crown attorney’s office were slow to become involved, but finally got into the game.
“Thank God for the United States of America,” Brewer said. “This never would have occurred in Canada.”
Were it not for Conway, Eagleson may well be free and clear of any charges today.
“Russ is the first star, no question about it,” said Winter, who also cited CBC reporter Bruce Dow-biggin as someone who helped break ground on the Eagleson case in Canada.
“If not for Russ, none of this would’ve happened,” Brewer said. “We wouldn’t be here today.”
Conway’s work not only bolstered the FBI and U.S. attorney, it inspired others.
Mike Gillis, a former player who believed he was cheated on a disability pension payout, filed a civil suit against Eagleson and won a judgement worth more than $500,000. Just as sweet, though, was Judge Joseph O’Brien’s assertion that Eagleson possessed the “ability to mislead and lie with documents and in his testimony.”
Of all his crimes, Eagleson’s bids to defraud players from disability payments tops the list.
“That’s as low as you can go,” Conway said.
It’s why Glen Sharpley, whose career was ended with an eye injury, felt it necessary to be in Boston and Toronto to see justice served. Conway said he detailed 46 cases of Eagleson working against players trying to get disability pay.
Eagleson’s troubles are far from over.
The Law Society of Upper Canada filed 44 charges of professional misconduct against Eagleson and Thomas Lockwood, the investigator, said “it’s likely disbarment will be recommended.”
There is a massive class-action civil suit filed in Philadelphia on behalf of hundreds of NHL players charging collusion during Eagleson’s tenure as executive director. Eagleson, along with Wirtz and Ziegler, are named as co-defendants.
Former NHLer Andre Savard also has a civil suit, vis-a-vis disability insurance, pending in Boston.
The Hockey Hall of Fame board of directors will decide March 31 whether Eagleson should lose his status as an honored member in the builder category. Hall of Fame defenseman Brad Park has issued an ultimatum to the Hall-expunge Eagleson or Park will withdraw. “I do not want to be on the wall with that man,” said Park, echoing the sentiments of others.
“We have no by-laws right now to deal with this and there’s no precedent,” Hall chairman Scotty Morrison said. “We’ll review the entire situation and make a final decision (March 31).”
The advisory council for the Order of Canada, an honor bestowed upon Eagleson in 1989, is also exploring expulsion options.
And yet in spite of all that, Eagleson remains a man whose connections to the rich, famous and powerful remain intact. Eagleson received 30 glowing letters of reference from a who’s who of Canadian hockey, politics and society. Many, including Hall of Earners such as Bob Clarke and Bob Gainey and former Prime Minister John Turner, remain fiercely loyal to Eagleson and had no problem looking beyond his crimes.
The burning question, though, doesn’t actually involve Eagleson per se. It’s whether this situation could play itself all over again.
“I’d like to think not, because there are more checks and balances now,” Goodenow said.
Conway concurs. “Times have changed,” he said. “Whether it’s Bob Goodenow or Gary Bettman, they’re under a lot more scrutiny (than Eagleson was). I think the players are more aware today, too. You never say never, but it would be surprising to me if there were anything on the same scale (as Eagleson). He had too much power for too long.”
Brewer, though, isn’t convinced times have changed all that much. He said the NHLPA is still involved in every aspect of the game today, be it international hockey, licensing and marketing. Besides, he said, it happens in every walk of life all the time, why not hockey?
“Bre-X, the list goes on and on every day,” Brewer said, disputing that today’s players are any wiser than their predecessors. “Hockey players haven’t really changed, no (expletive deleted) way.”
If there’s any truth to that, then the wisest words spoken came from ex-Boston Bruin Terry O’Reilly, who said: “My dad always told me you should have a watchdog to watch your watchdog. Well, Alan Eagleson was our watchdog and we didn’t have anyone watching him.”
The same mistake should never be repeated.