Several months ago, there was a lot of talk in Canada about NCAA programs making CHL players eligible to play NCAA hockey. This talk was based upon the NCAA itself determining that there may be a legal vulnerability in their banning of professional athletes from NCAA competition.
That leagal vulnerability was created by the new Name, Image and Likeness rules regarding compensation. Now, the first lawsuit has been filed and is seeking class action certification.
Freedman Normand Friedland LLP filed the suit on Aug. 12 to the United States District Court in western New York on behalf of former junior hockey player Rylan Masterson. The 19-year-old alleges the NCAA and member teams block the movement of CHL players to the NCAA not because of their perception of amateurism but because they intend to deter top players from choosing the CHL altogether.
The lawsuit is a lesson in how legal arguments are framed with little substance to sustain its argument.
The primary argument is that the NCAA is illegaly blocking CHL players because they sign professional contracts. Straightforward argument, but the player was fully aware of the rules when he signed his CHL agreement. Now the player comes back, and wants to blame the result of his decision making on the NCAA because he never actually played in a single CHL game.
The secondary argument is that “This scheme (referred to herein as the ‘boycott’) prevents competition between the CHL and NCAA for top-end players and thus artificially suppresses compensation for players and artificially creates less competitive leagues,” the antitrust lawsuit alleges. “Not only that, the boycott also puts 16-year-olds in the impossible position of deciding, at that young age, whether they will ever want to play Div. I hockey. It is per se illegal under the antitrust laws, including because it constitutes a group boycott.”
A boycott of NCAA coaches is impossible, if they are simply following the rules provided. If you want to claim a violation of law for someone following the rules, that is not a very strong argument.
Claiming “artificially creates less competitive leagues”, is simply not an argument that is supported by any evidence. Are CHL leagues less competitive? Not according to anyone of note. Are NCAA programs less competitive? Not when the NCAA leads all hockey in the number of NHL free agent signings.
The lawsuit also alleges that European players who have played in professional leagues in Europe are still playing NCAA hockey. Clearly demonstrating the lack of knowledge concerning European players being allowed to play in professional leagues under amateur contracts starting at seventeen years of age. This also shows a lack of knowledge understanding the penalties some players have paid by sitting out games over the European contract issue when entering NCAA hockey.
Another interesting item being discussed is whether or not any Canadian has a “right” to challenge NCAA rules, as it is a United States institution. Have the persons seeking damages availed themselves to the jurisdiction of the court or defendants? Have the persons alleged to have been damaged gone through an NCAA appeals process concerning their individual cases?
It is very important to note the law firm in this case. This is not Freedman Normand Friedland LLP’s first venture into antitrust class action lawsuits. It recently challenged an Ivy League agreement not to pay athletic scholarships, as well as another lawsuit for allegedly “colluding to limit financial aid for admitted students.” That suit resulted in a $166-million settlement.
The timing of this lawsuit is also very important. The NHL/CHL development agreement ends in 2026. Potential NCAA rule changes to allow CHL players into NCAA programs could take place in 2025, but are likely to be held in discussion until the 2026 CHL/NHL agreement is made.
Keep in mind, that the vast majority of NCAA programs do not want to add CHL players. A dicussion group was created to examine the issue, and no decisions have been made. No vote is scheduled to be taken.
While I fully expect that CHL players will eventually be allowed to play NCAA hockey, a lawsuit of this kind is unlikely to move the NCAA to act more quickly. The NHL will play a big role in what happens moving forward.
The idea that there will suddenly be a tidal wave of CHL players joining NCAA ranks when the rule is changed is also not supported by any evidence. Many CHL players will not meet the standards for admissions as they relate to core classes, GPA and other test scores.
Expanded number of scholarships, recently enacted for NCAA programs though, was a direct indication of NCAA programs preparing for the eventual ability of CHL players to play NCAA hockey. Keeping in mind though that the expansion of scholarships is voluntary for each program.
To learn more on how this may effect you in the future, please email [email protected]
