The Canadian Soccer Players鈥� Association, which represents the Canadian women鈥檚 team, has filed a $40-million lawsuit against 15 current and former board members of Canada Soccer alleging 鈥渘egligence and breach of fiduciary duty.鈥�
The association鈥檚 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 Soccer鈥檚 marketing and sponsorship rights over to the CSB in exchange for an annual fee.
The lawsuit alleges the CSB deal 鈥渉as created and continues to create serious risk to the ability of Canada Soccer to carry out its mandate.鈥�
鈥淭he 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 Soccer鈥檚 ability to operate as a going concern,鈥� says the lawsuit.
It continues by saying: 鈥淚n 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.鈥�
The statement of claim says under the CSB agreement, Canada Soccer receives a fixed annual fee of approximately
$3 million to $4 million 鈥渢hat escalates only slightly over the initial nine-year years of the CSB agreement 鈥� and not at all during the 10-year renewal period.鈥�
鈥淎ll other revenue generated by CSB in respect of the national teams is retained by CSB,鈥� it adds.
The lawsuit alleges the 2018 Canada Soccer board 鈥渁cted not only negligently but also with wilful neglect with respect to their approval of the CSB agreement.鈥�
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.
鈥淲e have been made aware of a legal proceeding filed by the Canadian Soccer Players鈥� Association, against the members of the 2018 Canada Soccer board,鈥� said a Canada Soccer spokesman. 鈥淥ur organization is currently seeking advice on this matter.鈥�
Canadian Soccer Business, which shares the same ownership as the Canadian Premier League, was announced in March 2018 as 鈥渁 new sports enterprise representing commercial assets and inventory for marquee soccer properties in Canada.鈥�
It represents corporate partnerships and broadcast rights for the women鈥檚 and men鈥檚 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 Canada鈥檚 opening game against El Salvador at the CONCACAF W Gold Cup, does not seem coincidental.
鈥淚 know news broke today but you wouldn鈥檛 have known that,鈥� Canada coach Bev Priestman told a news conference in Houston when asked about the lawsuit. 鈥淭hat tells you that this team is currently focused on what鈥檚 in front of them. There鈥檚 been no side conversations. It鈥檚 all been about what鈥檚 going to happen on a football pitch.鈥�
Newly appointed Canada captain Jessie Fleming had little to say on the matter.
鈥淭o be honest, it鈥檚 something that鈥檚 being dealt with in the courts and so I think from a players鈥� perspective we鈥檙e not going to comment on it right now,鈥� she said. 鈥淛ust reiterating what Bev said, the mood in camp is really good and we feel really good as a group right now. To be honest, it鈥檚 not just something that鈥檚 being talked about among the players at this point in camp.鈥�
Both the Canadian men鈥檚 and women鈥檚 teams are currently negotiating labour agreements with Canada Soccer.
The women鈥檚 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 Men鈥檚 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 women鈥檚 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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