Antitrust Lawsuit Filed in U.S. Against CHL, Major Junior Leagues and NHL

Plaintiffs in a lawsuit filed in New York against the CHL, its major junior leagues and the NHL allege that teenage hockey players are "treated like disposable objects."

A new antitrust lawsuit filed today in New York federal court alleges the CHL, its major junior leagues, the NHL and member clubs are systematically exploiting “teens pursuing their dream of playing in the NHL.” 

The plaintiffs in the class action lawsuit are alleging the system used to draft and control teenage players is a “hockey cartel.”

Plaintiffs include the World Association of Ice Hockey Players Unions North America division, as well as former WHL players Tanner Gould and Isaiah DiLaura. 

"It's time for change within major junior hockey,” said Gould in a joint press release from Constantine Cannon LLP and Zelle LLP, the law firms representing the plaintiffs. “I’m proud to be a part of this case because I want to make sure that the players coming up after me are protected in a way that I was not."

According to the press release, the plaintiffs allege players “were denied the freedom to choose where they played hockey, were paid only a collusively determined $250 a month for their hockey services, and were separated from their families at a vulnerable age and traded against their wishes — all to maximize profits for the NHL, the major junior hockey leagues, and each of their member clubs.”

Added DiLaura: “Teenage players continue to be treated like disposable objects, just like I was. I am hoping this lawsuit will put an end to that.”

Also among the allegations are the inability of CHL teams to compete for players outside their geographic regions, specifically “once they had been involuntarily drafted by another team,” and that players’ rights are then owned by those teams, ensuring “players cannot move teams or leagues unless they can be sold, usually for cash.”

Other issues outlined by the legal representatives for the plaintiffs included restrictive negotiating rights for players and lack of compensation for the use of a player’s name, image, and likeness.

The allegations have not been tested in court.

According to the plaintiffs, the NHL’s role in these allegations stems from the multi-million-dollar payments NHL teams make to major junior hockey organizations and other stipulations set in the NHL-CHL Transfer Agreement. Among those items is the ability of NHL teams to assign signed players back to major junior clubs, which, the plaintiffs allege, “allows NHL clubs to avoid paying these draftees higher salaries while at the same time avoiding the loss of a year on their entry-level contracts.”

The CHL said in a statement to the Canadian Press that it was only made aware of the complaint Wednesday. It added the World Association of Ice Hockey Players Unions has not been certified to represent any player in its leagues, and that it cannot "comment as to the legitimacy of its contents" until it can thoroughly review the document.

The Hockey News has reached out to the NHL for comment and will update this story if there's a response.