In a significant legal development, the World Association of Icehockey Players Unions (WAIPU), the North America division, has filed a class-action lawsuit against the National Hockey League (NHL) and the Canadian Hockey League (CHL), along with its affiliated junior hockey leagues and clubs. The lawsuit, filed on Wednesday in the U.S. District Court for the Southern District of New York, accuses the leagues of violating antitrust laws and exploiting junior players within the professional prospects development system.

According to the lawsuit, the professional hockey leagues are operating what the union describes as a "cartel," enabling the systemic exploitation and abuse of junior players. The CHL, comprising the Ontario Hockey League (OHL), the Western Hockey League (WHL), and the Quebec Maritimes Junior Hockey League (QMJHL), along with more than 140 member clubs connected to the NHL and its major junior leagues, are named as defendants.

The lawsuit alleges that the leagues suppress the rights of junior players by dividing geographic territories, exclusively recruiting players from those areas, and allowing teams to secure exclusive rights to employ players for their entire junior careers. Additionally, the lawsuit contends that the leagues operate a draft without a collective bargaining agreement, limiting players' compensation for their name, image, and likeness, artificially reducing their overall compensation and impeding competition among junior players.

Historically, junior players have been apprehensive about challenging these alleged illegal agreements due to fears of negatively impacting their careers and chances of making it to the NHL, the lawsuit claims. It also points out that players who choose to play in the major junior leagues are barred from participating in college hockey, even after NCAA schools began allowing athletes to profit from their name, image, and likeness licensing revenue.

The lawsuit further accuses the leagues of illegally underpaying players. The filing states that WHL players are paid $250 a month, while OHL players receive $470 a month. Moreover, the junior players' rights to their name, image, and likeness are assigned solely to their respective teams, with no sharing of any subsequent proceeds with the players.

The complaint highlights the NHL's influence over the leagues through annual funding and substantial payments to each club, reportedly up to $175,000 per player selected in the NHL draft. The lawsuit emphasizes that no other developmental league in North America receives similar payments and funding from the NHL.

A comparison is made with the NHL's two developmental hockey leagues, the American Hockey League (AHL) and the East Coast Hockey League (ECHL), in which many European prospects play. Players in the AHL earn $5,000 a month, while those in the ECHL receive $2,800 a month, with both leagues being represented by a collective bargaining agreement, according to the complaint. However, the AHL and ECHL have allegedly agreed not to compete for junior league players, thereby further reducing competition.

This lawsuit follows a previous class-action lawsuit filed in 2020 against the CHL, which alleged various forms of abuse suffered by players, including bullying, hazing, and sexual abuse. Subsequently, the CHL appointed an independent review panel to examine its practices, which revealed a "code of silence" preventing players from reporting misconduct.

The class-action lawsuit seeks damages and three injunctions, one to put an end to the alleged exploitative practices, another to prohibit future drafts without a collective bargaining agreement, and a third against any league that boycotts a junior player for voicing complaints or participating in the lawsuit.

The CHL has responded by acknowledging the complaint but stating that WAIPU has not been certified to represent any CHL players and, therefore, cannot comment on the legitimacy of the lawsuit until a thorough review of the document has been conducted. The NHL has not yet responded to requests for comment.

The lawsuit represents a significant legal challenge to the development system for professional prospects in hockey and raises questions about the rights and fair treatment of junior players within the sport. The outcome of this class-action lawsuit could have far-reaching implications for the way junior players are recruited, compensated, and represented in the future.