The Canadian Soccer Players91Ƶ Association, which represents the Canadian women91Ƶs team, has filed a $40-million lawsuit against 15 current and former board members of Canada Soccer alleging 91Ƶnegligence and breach of fiduciary duty.91Ƶ
The association91Ƶs statement of claim was filed Tuesday in the Ontario Superior Court of Justice.
At the heart of the lawsuit is the controversial 2018 agreement Canada Soccer signed with Canadian Soccer Business, which gives Canada Soccer91Ƶs marketing and sponsorship rights over to the CSB in exchange for an annual fee.
The lawsuit alleges the CSB deal 91Ƶhas created and continues to create serious risk to the ability of Canada Soccer to carry out its mandate.91Ƶ
91ƵThe 2018 Canada Soccer board knew or should have known that the CSB agreement would, at best, deprive Canada Soccer of revenue that could be spent on development, and at worst, could compromise Canada Soccer91Ƶs ability to operate as a going concern,91Ƶ says the lawsuit.
It continues by saying: 91ƵIn approving the CSB agreement, the 2018 Canada Soccer directors failed to demonstrate prudence, good faith, and any reasonable belief that such approval was in the best interests of Canada Soccer.91Ƶ
The statement of claim says under the CSB agreement, Canada Soccer receives a fixed annual fee of approximately
$3 million to $4 million 91Ƶthat escalates only slightly over the initial nine-year years of the CSB agreement 91Ƶ and not at all during the 10-year renewal period.91Ƶ
91ƵAll other revenue generated by CSB in respect of the national teams is retained by CSB,91Ƶ it adds.
The lawsuit alleges the 2018 Canada Soccer board 91Ƶacted not only negligently but also with wilful neglect with respect to their approval of the CSB agreement.91Ƶ
Allegations in the statement of claim have not been proven in court.
The lawsuit names the 2018 Canada Soccer board of directors, five of whom are still currently board members. Those named include current president Charmaine Crooks and former presidents Nick Bontis and Steven Reed.
91ƵWe have been made aware of a legal proceeding filed by the Canadian Soccer Players91Ƶ Association, against the members of the 2018 Canada Soccer board,91Ƶ said a Canada Soccer spokesman. 91ƵOur organization is currently seeking advice on this matter.91Ƶ
Canadian Soccer Business, which shares the same ownership as the Canadian Premier League, was announced in March 2018 as 91Ƶa new sports enterprise representing commercial assets and inventory for marquee soccer properties in Canada.91Ƶ
It represents corporate partnerships and broadcast rights for the women91Ƶs and men91Ƶs national team programs, all commercial assets of the CPL, the Canadian Championship and Canadian soccer grassroots programs.
The timing of the lawsuit, on the eve of Canada91Ƶs opening game against El Salvador at the CONCACAF W Gold Cup, does not seem coincidental.
91ƵI know news broke today but you wouldn91Ƶt have known that,91Ƶ Canada coach Bev Priestman told a news conference in Houston when asked about the lawsuit. 91ƵThat tells you that this team is currently focused on what91Ƶs in front of them. There91Ƶs been no side conversations. It91Ƶs all been about what91Ƶs going to happen on a football pitch.91Ƶ
Newly appointed Canada captain Jessie Fleming had little to say on the matter.
91ƵTo be honest, it91Ƶs something that91Ƶs being dealt with in the courts and so I think from a players91Ƶ perspective we91Ƶre not going to comment on it right now,91Ƶ she said. 91ƵJust reiterating what Bev said, the mood in camp is really good and we feel really good as a group right now. To be honest, it91Ƶs not just something that91Ƶs being talked about among the players at this point in camp.91Ƶ
Both the Canadian men91Ƶs and women91Ƶs teams are currently negotiating labour agreements with Canada Soccer.
The women91Ƶs previous deal expired at the end of 2021. The men are negotiating their first formal agreement in the wake of forming their own players association, the Canada Men91Ƶs National Soccer Team Players Association.
News of the lawsuit evokes memories of Canada at the SheBelieves Cup in the U.S. last February. That tournament was overshadowed by the Canadian women91Ƶs move to boycott training over their displeasure at the labour negotiations and their subsequent return to the field under the threat of legal action from Canada Soccer.
Canada lost two of three matches at the SheBelieves Cup, finishing last in the four-team competition.
At the CONCACAF W Gold Cup, the 10th-ranked Canadian women have been drawn in Group C with No. 43 Costa Rica, No. 50 Paraguay and No. 104 El Salvador.
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