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WHL teams could be at risk if class-action lawsuit were to succeed, including the Lethbridge Hurricanes

May 17, 2018 | 10:00 AM

LETHBRIDGE – Western Hockey League Commissioner Ron Robison says the ruling by Alberta’s highest court on Tuesday, May 15, that a class-action lawsuit against the league can proceed with the players involved would have a devastating impact on all teams regardless of if they’re privately owned or community owned.

The suit contends that players have been paid less than the minimum wage – as little as $35 per week for between 40 to 65 hours of work – and it’s asking for back wages, overtime and vacation pay.

In a statement, the WHL responsed that the plaintiff’s claim fundamentally misunderstands the nature of amateur sport, including major junior hockey. They believe their players are not employees but amateur athletes, and they believe their case is strong.

“What the claim represents, the fact that we would have to potentially pay minimum wage to the players on top of the current benefits package they receive, would make it virtually impossible for teams to continue to operate,” Robison says.

The Court of Appeal dismissed various appeals calling for changes to the suit. “Absent a material change of circumstances or reversal on appeal, the order stands,” said the ruling released Tuesday in Calgary. “Certification does not forbid evolution of the action.”

The allegations contained in the suit have not been proven in court.

Robison says in order for them to move forward, they would have to consider altering the benefits package to the players.

“That’s certainly something we don’t want to do, in fact, I think our view is that the players and the parents want to continue with the current benefits package. But it would be a decision we’d have to make or otherwise teams would have to contemplate not operating.”

When it comes to those benefit packages, which include one of the most extensive scholarship programs available, Robison says they’re quite popular with players and parents.

“These are isolated cases from our standpoint, as our surveys and our indications from the players are that they’re completely satisfied with the current benefits package,” Robison continued. “The players can receive all the necessary expenses to play in the league, including travel and equipment which parents that have players playing very competitive hockey understand comes with a significant cost.”

There’s no indication right now that the players are concerned at all about the current benefits package, and Robison hopes that they can continue to operate in the same manner that they have for over 50 years as an amateur hockey league.

Fans and commentators alike have speculated what could happen should the class-action lawsuit filed by the Charney Lawyers PC be successful, including the potential of raising ticket prices and corporate sponsorships.

Robison says they would hope that wouldn’t be the case.

“We’d like to maintain current levels of moderate pricing, but there would certainly be pressure on teams to find ways to continue to operate. I think it’s important to understand first of all that the benefit package that we currently offer players far exceeds any minimum wage consideration. The challenge would be adding that to the current package, and I don’t believe that increases in ticket pricing and sponsorships would offset the financial demands on the team,” Robison stated.

The Lethbridge Hurricanes are a unique case in the WHL, as they are community owned by shareholders and governed by a Board of Directors.

The team turned a $197,000 profit in the 2015-16 season, and a profit of $731,710 during the 2016-17 season following years of financial hardship.

So, what would the impact be here?

“Every team would try and find ways to continue to operate, but I would indicate to you that the Lethbridge Hurricanes would be one of those teams at risk. The size of the market just couldn’t sustain adding another $400,000 to the operating cost of the team in addition to the exposure the team would have moving back to the origination of this case back in 2012,” Robison said, adding that liability combined with attempting to operate with those additional costs moving forward would have a very significant impact.

This is the second such court case against a major junior league in Canada, as the Ontario Supreme Court approved an action against the Ontario Hockey League last April and a similar suit against the Quebec Major Junior Hockey League is also pending.

The WHL statement on the case concluded with the following:

“We look forward to presenting our arguments regarding the merits of the case. This is an important case not only for the WHL, but other junior hockey leagues and amateur sport in Canada as well.”