CHL settles class action suit over minimum wage payments

LadyStanley

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Sep 22, 2004
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Executives across the CHL declined comment, as did attorneys from Charney Lawyers PC — which represented the plaintiffs. According to several sources, each CHL team will be responsible for paying approximately $250,000 in damages. Some clubs can handle that easier than others, but it is not an insignificant amount at a time when the COVID-19 shutdown is wreaking havoc on businesses worldwide.
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There was a belief the provincial changes showed the CHL to be on the right side of the law, but legal advice indicated the case could continue for up to another decade. That would cost millions in fees and, according to sources, the insurance fund topped out at $30 million. Clearly, that was a major factor in deciding to settle the case.

Now to see the terms and how the dust settles.

(Canadian provinces, US states changed the law so that CHL players are exempt.)
 
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LeHab

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Interesting timing given COVID situation. Are leagues betting on a govt bailout?
 

PensFan101

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As a fan of one of the CHL's smallest markets, this outcome concerns me depending on where the 250000 per club is supposed to come from. The timing and logistics which will obviously be divulged later make this scary on its face.

From a legal standpoint, I think it's disappointing that the legal staus of the players is essentially set now. Even though my team and fans like me benefit from seeing future NHLers at just $25 a seat per game, I think the 'student athlete' legal status is wrong.

Doesn't seem like this will prompt any meaningful change to the system on the surface.
 

gstommylee

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Jan 31, 2012
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As a fan of one of the CHL's smallest markets, this outcome concerns me depending on where the 250000 per club is supposed to come from. The timing and logistics which will obviously be divulged later make this scary on its face.

From a legal standpoint, I think it's disappointing that the legal staus of the players is essentially set now. Even though my team and fans like me benefit from seeing future NHLers at just $25 a seat per game, I think the 'student athlete' legal status is wrong.

Doesn't seem like this will prompt any meaningful change to the system on the surface.

Well they are getting benefits from just being a CHL player. Room, board, college scholarship. If they want to be treated as employees then all those benefits go poof imo. CHL made the right decision to settle. it would have cost 10's of millions more to continue to fight even if they win.
 
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Mightygoose

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Nov 5, 2012
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Is the 250K per club a one time payment or does it get amortized over a number of years? The later would make it more manageable for the smaller market clubs.

Since all relevant jurisdictions have amended their laws regarding this issue, it shouldn't come up again. Better to settle this now. There will likely be bigger fish to fry in the fall.
 

LeHab

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Aug 31, 2005
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Is the 250K per club a one time payment or does it get amortized over a number of years? The later would make it more manageable for the smaller market clubs.

Since all relevant jurisdictions have amended their laws regarding this issue, it shouldn't come up again. Better to settle this now. There will likely be bigger fish to fry in the fall.

Don't think we have these details. Expect teams to come knocking on Trudeau's door for a slice of the +300 billion pie. Don't think settlement timing is accidental.

[update]Heard today on RDS settlement was actually reached back in February before all the storm. Still good timing to knock on the door for assistance. If CFL is asking for up to $150m so should CHL.
 
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Skinnyjimmy08

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Mar 30, 2012
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teams just wont be as generous with handing out equipment, sticks, meals etc etc for many years now to make up for it.

Teams will make up for this money lost guaranteed
 
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GordonGraham

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Really happy to see players getting some money, had no problem with CHL wanting to call them student athletes but if thats the case then the draft and trades should be abolished
 
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gstommylee

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Really happy to see players getting some money, had no problem with CHL wanting to call them student athletes but if thats the case then the draft and trades should be abolished

Might as well shut it all down no more jr majors leagues if you want to play it like that cause it would be impossible to even build a roster or even get players. Btw there are restrictions on how teams trade players in the CHL.

The draft exists so the CHL can assign players specifically each of the leagues by region WHL for western half of US/canada, OHL for most of eastern half of us/canada then the QMJHL for the northeast corner of US/canada.

When you are a CHL player you get benefits, room/board, insurance, college sponsorship and an monthly announce for stuff for school and what not. If you want them to be treated as employees then no more benefits as being a CHL player.
 
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GordonGraham

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Might as well shut it all down no more jr majors leagues if you want to play it like that cause it would be impossible to even build a roster or even get players. Btw there are restrictions on how teams trade players in the CHL.

The draft exists so the CHL can assign players specifically each of the leagues by region WHL for western half of US/canada, OHL for most of eastern half of us/canada then the QMJHL for the northeast corner of US/canada.

When you are a CHL player you get benefits, room/board, insurance, college sponsorship and an monthly announce for stuff for school and what not. If you want them to be treated as employees then no more benefits as being a CHL player.


Lets just say i completely disagree with 100% of what you just wrote and leave it at that
 
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hizzoner

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Jun 19, 2006
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Minor league baseball players - at least probably a majority of them-probably receive less in overall benefits than do the teenagers in the chl. While some of the teams do well many more of them scrape to get by. Pride of ownership, a love of the game, and instilling a sense of community are key features rather than making any profit. Quite frankly the idea of having these kids travelling all over, out of their homes is something only those driven kids-and parents-would accept. Just like the minor league baseball players trying to get by on a thousand dollars a month with the stars in in their eyes thinking of the "show".
 

Juniorhockeyguru

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Nov 18, 2012
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Lets just say i completely disagree with 100% of what you just wrote and leave it at that
So you don't believe they get a lot of goodies? Do you notice there are no NHLers on the list of these ingrates? Bitter towards the fact that they weren't good enough. That partly what it looks like to me.

Top of the line equipment, the best coaches and experiences to have a pro career and make a living. Scholarships, and these guys are crying about minimum wage?
 

gstommylee

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Jan 31, 2012
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So you don't believe they get a lot of goodies? Do you notice there are no NHLers on the list of these ingrates? Bitter towards the fact that they weren't good enough. That partly what it looks like to me.

Top of the line equipment, the best coaches and experiences to have a pro career and make a living. Scholarships, and these guys are crying about minimum wage?

Yea they get a lot of benefits just from being in the CHL of the 3 jr major leagues and they cry foul and demand minimum rage. They are only complaining cause they weren't good enough to be NHL players.
 

golfortennis

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Oct 25, 2007
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Minor league baseball players - at least probably a majority of them-probably receive less in overall benefits than do the teenagers in the chl. While some of the teams do well many more of them scrape to get by. Pride of ownership, a love of the game, and instilling a sense of community are key features rather than making any profit. Quite frankly the idea of having these kids travelling all over, out of their homes is something only those driven kids-and parents-would accept. Just like the minor league baseball players trying to get by on a thousand dollars a month with the stars in in their eyes thinking of the "show".

You would be completely correct, except look how big a check you need to write for a junior team will be. The things you describe do not line up with items selling for those kinds of prices.
 

golfortennis

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Oct 25, 2007
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So you don't believe they get a lot of goodies? Do you notice there are no NHLers on the list of these ingrates? Bitter towards the fact that they weren't good enough. That partly what it looks like to me.

Top of the line equipment, the best coaches and experiences to have a pro career and make a living. Scholarships, and these guys are crying about minimum wage?

The CHL calls them "Student-athletes" when it suits their purposes, despite the fact very few guys over 18 actually attend school. But at other times, these "student-athletes" can be shipped 100s of miles away at the drop of a hat, and because they get "goodies" like you mention, well, the CHL gets to have it both ways? And scholarships... yeah, unless you sign a pro contract. Cause most 20 year-olds who have played hockey all their lives are going to see the wisdom in passing up the offer to make $20k to play more hockey to use the scholarship.

I don't know if you ever played Major Junior, but you sure sound like someone who is better they could never even get that far. Or do you buy a ticket and watch the owners' box all night?
 

joelef

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Nov 22, 2011
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when are people in north america going to learn . You cant leagues run liek professional or semi professional sports and expect it to be amateur. You goig to continue to get lawsuits like this. The olympics and rugby got that.
 
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tarheelhockey

Offside Review Specialist
Feb 12, 2010
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when are people in north america going to learn . You cant leagues run liek professional or semi professional sports and expect it to be amateur. You goig to continue to get lawsuits like this. The olympics and rugby got that.

For that matter, this issue came to a head in senior hockey over 100 years ago. "Shamateur" leagues dissolved into the pro leagues which eventually consolidated into the NHL.

It's only the most exploitable group (boys and young men who don't know better) that continuously has this issue of being paid anything BUT a wage.
 

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