The Canadian Hockey League Is in an Ongoing Court Battle over Player Wages

As lawsuits from former players continue to draw attention to the issue of player wages in amateur and collegiate sport, the Canadian Hockey League is having its own NCAA moment.

In a court ruling handed down Friday, an Alberta judge ordered that all financial records and relevant tax information be presented by the Ontario Hockey League and Western Hockey League—two of the three leagues that comprise the CHL—to determine if the leagues are profitable. The rulings are a product of an ongoing lawsuit filed two years ago by a group of former major junior players, who have argued that since the CHL and its umbrella leagues—the WHL, OHL and QMJHL—operate as a business, the group is claiming its members should be treated (and paid) as employees and not amateur athletes. They believe the major junior teams should be sharing more profits with players, and paying them at least minimum wage.

In the court ruling obtained by TSN's Rick Westhead, the suit alleges that the CHL makes millions of dollars through sponsorships, ticket sales and TV deals, without properly paying or compensating its players. The group involved in the lawsuit is requesting that in addition to the teams paying current players at least minimum wage, that they should be covering outstanding costs like holiday pay and vacation pay to current and former players.

A similar ongoing battle between the NCAA and its student athletes has been waging for years. Big money "amateur programs," especially at the Division I basketball and football level, profit millions of dollars annually off the performance of student-athletes, who don't earn any salary or income, and often struggle financially while their schools get rich marketing their names. The scholarships players receive as compensation are often riddled with loopholes and out-clauses, leaving essentially no security for players in case of injury or poor performance.

In addition to every club in the OHL and WHL being asked to present their financial statements and tax returns, WHL commissioner Rob Robison was also ordered to produce all revenue-sharing agreements and any agreement which brings in revenue to the league. CHL president and OHL commissioner David Branch has been ordered to do the same.

In a statement sent to Sportsnet, Branch said "Nothing about the decision rendered [Friday] changes our position that our players are, and have always been, amateur athletes and not employees."

Robison dismissed profit reports, saying that the majority of WHL clubs either break even or lose money each year.

Further, Robison wrote in a recent editorial that the leagues cover expenses as it relates to equipment, room and board, and travel, while also stating that the CHL provides its players with one year of tuition, textbooks, and compulsory fees for each year they play, according to the CBC.

Both Robison and Branch have argued in the past that the CHL simply can't afford to pay its players, and that doing so could lead some franchises to bankruptcy.

"These franchises are not profitable. The industry is not profitable," said Robison. "We're trying to preserve these opportunities for these young players to play in leagues like the WHL and continue to provide a world-class experience."