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Players sue Soccer Canada directors for $40M over 2018 business deal

lawsuit alleges deal creates B次元官网网址榮erious risk to the ability of Canada Soccer to carry out its mandateB次元官网网址
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Canada Soccer Interim President Charmaine Crooks at the Canadian Championship soccer final in Vancouver on Wednesday, June 7, 2023. The Canadian Soccer PlayersB次元官网网址 Association, which represents the Canadian womenB次元官网网址檚 team, has filed a $40 million lawsuit against 15 current and former board members of Canada Soccer, alleging B次元官网网址渘egligence and breach of fiduciary duty.B次元官网网址 THE CANADIAN PRESS/Darryl Dyck

The Canadian Soccer PlayersB次元官网网址 Association, which represents the Canadian womenB次元官网网址檚 team, has filed a $40-million lawsuit against 15 current and former board members of Canada Soccer alleging B次元官网网址渘egligence and breach of fiduciary duty.B次元官网网址

The associationB次元官网网址檚 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 SoccerB次元官网网址檚 marketing and sponsorship rights over to the CSB in exchange for an annual fee.

The lawsuit alleges the CSB deal B次元官网网址渉as created and continues to create serious risk to the ability of Canada Soccer to carry out its mandate.B次元官网网址

B次元官网网址淭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 SoccerB次元官网网址檚 ability to operate as a going concern,B次元官网网址 says the lawsuit.

It continues by saying: B次元官网网址淚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.B次元官网网址

The statement of claim says under the CSB agreement, Canada Soccer receives a fixed annual fee of approximately

$3 million to $4 million B次元官网网址渢hat escalates only slightly over the initial nine-year years of the CSB agreement B次元官网网址 and not at all during the 10-year renewal period.B次元官网网址

B次元官网网址淎ll other revenue generated by CSB in respect of the national teams is retained by CSB,B次元官网网址 it adds.

The lawsuit alleges the 2018 Canada Soccer board B次元官网网址渁cted not only negligently but also with wilful neglect with respect to their approval of the CSB agreement.B次元官网网址

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.

B次元官网网址淲e have been made aware of a legal proceeding filed by the Canadian Soccer PlayersB次元官网网址 Association, against the members of the 2018 Canada Soccer board,B次元官网网址 said a Canada Soccer spokesman. B次元官网网址淥ur organization is currently seeking advice on this matter.B次元官网网址

Canadian Soccer Business, which shares the same ownership as the Canadian Premier League, was announced in March 2018 as B次元官网网址渁 new sports enterprise representing commercial assets and inventory for marquee soccer properties in Canada.B次元官网网址

It represents corporate partnerships and broadcast rights for the womenB次元官网网址檚 and menB次元官网网址檚 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 CanadaB次元官网网址檚 opening game against El Salvador at the CONCACAF W Gold Cup, does not seem coincidental.

B次元官网网址淚 know news broke today but you wouldnB次元官网网址檛 have known that,B次元官网网址 Canada coach Bev Priestman told a news conference in Houston when asked about the lawsuit. B次元官网网址淭hat tells you that this team is currently focused on whatB次元官网网址檚 in front of them. ThereB次元官网网址檚 been no side conversations. ItB次元官网网址檚 all been about whatB次元官网网址檚 going to happen on a football pitch.B次元官网网址

Newly appointed Canada captain Jessie Fleming had little to say on the matter.

B次元官网网址淭o be honest, itB次元官网网址檚 something thatB次元官网网址檚 being dealt with in the courts and so I think from a playersB次元官网网址 perspective weB次元官网网址檙e not going to comment on it right now,B次元官网网址 she said. B次元官网网址淛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, itB次元官网网址檚 not just something thatB次元官网网址檚 being talked about among the players at this point in camp.B次元官网网址

Both the Canadian menB次元官网网址檚 and womenB次元官网网址檚 teams are currently negotiating labour agreements with Canada Soccer.

The womenB次元官网网址檚 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 MenB次元官网网址檚 National Soccer Team Players Association.

B次元官网网址 of the lawsuit evokes memories of Canada at the SheBelieves Cup in the U.S. last February. That tournament was overshadowed by the Canadian womenB次元官网网址檚 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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