Professional Hockey Leagues Face New Antitrust Lawsuit

On February 14, 2024, lawyers for a union representing junior hockey players filed an antitrust lawsuit in the Southern District of New York that has the potential to reshape professional hockey in North America. This action was brought by the World Association of Icehockey Players Unions and former juniors players Tanner Gould and Isaiah DiLaura. These plaintiffs are suing the Ontario Hockey League (OHL), the Western Hockey League (WHL), and the Quebec Maritimes Junior Hockey League (QMJHL)—which are all members of the Canadian Hockey League. In all, the lawsuit names more than 140 member clubs connected to the NHL and its major junior leagues. [1]

The NHL and its teams were also named as defendants because they exert substantial control over major junior hockey leagues, and aid the other defendants in their restrictive practices. [2] According to the plaintiffs, the influence and control exercised by the defendant hockey leagues unfairly restrain the North American market for professional hockey players between the ages of sixteen and twenty. Specifically, the plaintiffs’ complaint claims that the leagues violate the rights of junior players by divvying up geographic territories, recruiting exclusively from those areas, and allowing teams to sign the exclusive rights to employ the player for his entire junior career. [3]. The lawsuit also states that the defendant hockey leagues artificially reduce compensation and restrict competition for junior players by operating their drafts without a collective bargaining agreement and restrict their players’ ability to earn revenue from their name, image and likeness. [4]

In addition to these restrictive practices, major junior players permanently lose their NCAA eligibility and cannot play college hockey once they agree to play in those leagues. [5] This arrangement has remained in place even after the NCAA allowed college athletes to earn revenue from their name, image, and likeness. The defendant hockey leagues, however, consider their players as “student athletes,” which allows them to pay their players significantly less than minimum wage. [6] The plaintiffs’ complaint alleges that the defendant junior leagues retain the rights to and revenues from their players’ name, image, and likeness, while significantly underpaying them. For example, WHL players are paid $250 a month, while OHL players are paid $470 a month. [7]

The Complaint also alleges that the NHL has significant control over the junior leagues by providing “annual funding” and “substantial payments” to each club. It says that the NHL pays teams as much as $175,000 per player selected in the NHL draft. [8] No other developmental hockey league receives that much funding from the NHL. Another agreement between the NHL and the Canadian Hockey Leage allows NHL teams to assign signed players back to major junior clubs, which allows NHL teams to avoid paying its draftees higher salaries while at the same time avoiding the loss of a year on their entry-level contracts. [9]

The plaintiffs hope that the suit will end the practice of treating teenage players as disposable objects. [10] Currently, junior hockey players do not have a union for collective bargaining with their leagues, but this lawsuit could solve that if it is successful. Other minor leagues have successfully used lawsuits to help improve their pay. For example, Minor League Baseball obtained a labor contract with Major League Baseball in 2022 that more than doubled its players’ salaries and led to better working conditions. [11]

The lawsuit asks the court for monetary damages and three injunctions; one that will effectively end the league’s anti-competitive practices, another that will prevent future drafts without a collective bargaining agreement, and a third against any league that boycotts a junior player who complains about league practices or participates in the lawsuit. [9] The plaintiffs are anticipating a potential class action encompassing thousands of current and former players. Right now, it is too early to tell how this case will end; but one thing is certain – professional hockey in North America will be changed.