At the heart of the lawsuit is the controversial 2018 agreement Canada Soccer signed with Canadian Soccer Business, which gives Canada Soccer’s marketing and sponsorship rights over in exchange for an annual expense.
The Canadian Soccer Players’ Association, which represents the Canadian ladies’ team, has recorded a $40 million lawsuit against 15 current and previous board members of Canada Soccer alleging “negligence and breach of fiduciary duty.”
The association’s statement of claim was recorded 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’s marketing and sponsorship rights over to the CSB in exchange for an annual expense.
The lawsuit alleges the CSB deal “has created and continues to create serious risk to the ability of Canada Soccer to carry out its mandate.”
“The 2018 Canada Soccer board knew or should have known that the CSB agreement would, at best, deny Canada Soccer of income that could be spent on development, and at worst, could compromise Canada Soccer’s ability to operate as a going concern,” says the lawsuit.
It continues by saying: “In approving the CSB agreement, the 2018 Canada Soccer directors failed to demonstrate prudence, honest intentions, and any reasonable belief that such approval was in the best interests of Canada Soccer.”
Allegations in the statement of claim have not been demonstrated 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 previous presidents Nick Bontis and Steven Reed.
“We have been made aware of a legal proceeding recorded by the Canadian Soccer Players’ Association against the members of the 2018 Canada Soccer board,” said a Canada Soccer spokesman. “Our organization is currently seeking advice on this matter.”
The timing of the lawsuit, just before Canada’s opening game against El Salvador at the CONCACAF W Gold Cup, does not seem coincidental.
“I know news broke today however you could never have known that,” Canada coach Bev Priestman told a news conference in Houston when asked about the lawsuit. “That tells you that this team is currently focused on what’s before them. There’s been no side conversations. It’s all been about what’s going to happen on a football pitch.”
Recently appointed Canada captain Jessie Fleming had barely anything to say on the matter.
“Frankly, something’s being dealt with in the courts and so I think according to a players’ perspective we’re not going to comment on it at the present time,” she said. “Just reiterating what Bev said, the state of mind in camp is great and we feel great as a group at this moment. Frankly, not just something’s being talked about among the players at this point in camp.”
Both the Canadian people’s teams are currently negotiating labor agreements with Canada Soccer.
The ladies’ previous deal lapsed at the finish of 2021. The men are negotiating their first formal agreement in the wake of forming their own players association, the Canada Men’s 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 ladies’ transition to boycott training over their displeasure at the labor negotiations and their subsequent re-visitation of 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 tenth ranked Canadian ladies have been drawn in Group C with No. 43 Costa Rica, No. 50 Paraguay and No. 104 El Salvador.