For months TJHN sources have been reporting that AAU or AAU’s Hockey Division may be preparing a lawsuit against USA Hockey or certain members/affiliates of USA Hockey.
With the announcement of NA3HL expansion into what some people consider WSHL, or AAU markets, the rumors are picking up steam today. The recent departure of the Marquette Royales from the AAU sanctioned MWJHL to the USA Hockey sanctioned Minnesota Junior Hockey League certainly helped the movement gain momentum.
The basis for the rumored suit? An illegal monopoly claim or some argument of the sort.
AAU sources are saying that a lawsuit would claim that USA Hockey has illegal control over the governance of amateur hockey in the United States.
Sources are citing that they can prove USA Hockey or its affiliates/members are interfering with legitimate ongoing business concerns. Terms like “intimidation”, “deception”, “threats”, and “coercion”, are being used to describe activity that some are saying would force people out of business or to experience losses when without that activity the losses or closures would not take place.
Sources within USA Hockey have said they are aware of the rumor. Those same sources also asked the question; “If AAU doesn’t want us as the governing body then why are they using our rule books and editing our documents to suit their needs? Shouldnt they be able to write their own rules and prove to everyone they can do a better job?”
USA Hockey is actually given its authority and power to regulate by the International Ice Hockey Federation and the United States Olympic Committee. You would have to believe that both of those bodies would need to be challenged in order to attempt any change in the ruling structure.
What is the real basis for a lawsuit?
Could it really start at the Tier III hockey level? Does anyone really believe any court will consider the battles of Tier III anything more than one business model competing with another?
Texas and the Western United States are the likely battle grounds. The Western States Hockey League is likely right in the middle of the arguments along with the Texas Amateur Hockey Association. Unfortunately those that may advocate in favor of a legal battle will likely find little ground to stand upon in the form of substantial legal arguments if this is attempted.
Teams, leagues, arenas, and people have a right to choose who they do or do not do business with. It is called the consumers right to choose. If one group prefers USA Hockey over AAU, then they can choose USA Hockey. If one group prefers AAU then they are also free to choose. The argument that one group may be stronger than another is simply a matter of business.
If you own the real estate in one area being developed and you turn down an offering to purchase your property, you are free to do so. If all the property around you is bought up, you will likely end up selling in the long run, or hold on to property that becomes isolated from the rest of a development. Either way, you always have options.
Right now, sources are saying that a WSHL franchise is being sold for $150,000.00. Sources are also saying that a NA3HL franchise is being sold for $100,000.00 or so. A $50,000.00 swing in price is no small amount of money. People are free to choose one over another depending on which they value more as an investor. It is no different from buying a McDonald’s or Burger King franchise.
It is also no different in that any other competing franchise owner from another company is free to set up shop right next door to its competition. There is nothing stopping AAU from opening up franchises in Detroit, Wilkes-Barre, or Sault Ste Marie.
While Burger King will not usually set up another Burger King right next door, they have no problem setting up another franchise on the opposite side of town. Its called a free market economy, and open competition. The argument that USA Hockey or AAU may be somehow involved in taking the competitors markets and damaging the competitor is just business. The strongest business providing the best product will survive.
Leagues can develop territory rights within their own league and create certain protections within that league. Multiple leagues can decide to work together and honor those rights between the leagues if they so choose. The ECHL and CHL used to have an agreement honoring each others contracted rights to players, both were under the PHPA Union. That agreement no longer exists and both are still under the PHPA, the strongest franchises will survive.
USA Hockey and AAU leagues have no such agreements, and it is unlikely that any would ever be made. Without any written document proving anyone violated an agreement, any lawsuit would likely be thrown out of court. Individual owners and operators may file suit against each other for any number of reasons, but in the end, it is unlikely any court will step into what is essentially a business argument.
Any change in who the IIHF and United States Olympic committee would see as the governing body in the United states would take an act of congress.
The History:
AAU became the sole national governing body for ice hockey in 1931 after other groups fell apart and for six years enjoyed uncontested rule. That all changed in 1937 when people got together and formed AHAUS over what they perceived as harsh regulations on amateurism. AHAUS is now USA Hockey.
In 1948 both groups sent mens national teams to the Olympics in St. Moritz, Switzerland, causing an embarrassing international scene.
Eventually, USA Hockey was recognized as the sole governing body for ice hockey in the United States. Since that time, many have said AAU wants to be back in control. AAU is also involved in the USOC with other sports and does have influence within the committee.
It is unlikely though that the USOC or IIHF would consider making any changes given the success of the United States in international play.
That said, this is the United States, and anyone can file suit against anyone else. The key question anyone must ask themselves before taking action against anyone else is a simple one; what is the likelihood that I will win in this action, and if I win at what cost am I winning?
