I'm Randy Gumbley. I'm a consultant with WAIPU.
You're about to hear a story about a deeply flawed business model between the CHL and Hockey Canada that exploits young children. We use some strong language such as “cartel”, “conspiracy” and “collusion”. These words that we express don't come lightly and are not used without merit.
In 1968, then prime minister Pierre Trudeau appointed a special task force to investigate amateur sport in Canada and the effects that professional sport had within the amateur system.
The task force found that amateur and professional sport should have no affiliation. They demanded that immediate and drastic actions be taken in the following areas: the supremacy of the hockey system, the binding of minors to contracts, contracts that denied players' rights and indentured players in a form of slavery, and how major junior hockey operated under the guise of the amateur system.
The Downey report of 1976 recommended the following changes: the creation of an ombudsman for hockey; the prohibition of teams from entering into contracts with minors; restriction of contracts and conspiracies that prohibited players from having the freedom to associate both in inter league and intra league; and the separation of pro and amateur sports. These recommendations helped form what is known as section 48 of the Competition Act.
Sadly, a half century later, these young children are still at the mercies of the NSOs in a cartel-like hockey group with the very same issues that are still alive and well today.
To Prime Minister Justin Trudeau and to this committee, your father had a vision to protect amateur sports and athletes in Canada. You passed laws to protect those athletes, but, sadly, history has shown that all levels of government have failed to enforce the existing laws. This government now has an extraordinary opportunity to follow in his footsteps by enforcing the existing laws and recognizing athletes' rights.
The Competition Bureau of Canada received a complaint from athletes in 2018 that involved the cartel hockey groups, and alleged criminal violation of section 48. The bureau took nearly four years to review the complaint. While athletes faced a real threat of feared reprisal from NSOs and the CHL for speaking out about abuses, the Canadian government still turned a blind eye to the blatant violations of the Competition Law, child labour laws, CRA regulations and human rights violations.
WAIPU believes that the government's primary responsibility is to protect the rights and freedom of all individuals, including children and athletes. We believe that the government must monitor, check, and, if need be, curtail the powers of NSOs that exist that exercise unreasonable restraints upon athletes' rights and freedoms.
The direct result of the government non-action is quite evident. It created a higher supremacy within the hockey community that hockey was untouchable and above the laws of Canada. This allowed a cartel to be formed, which runs right up to the very top echelon of hockey, the National Hockey League.
The system as it stands today has a power imbalance in favour of the NSOs. This has dramatically affected competition and has put athletes in a vulnerable position.
Canadians and this government need an inquiry to fully understand how we got to this point. Why did the Competition Bureau of Canada take four years to act on the complaint? Why are minors subject to a $500,000 release fee if they choose to leave the Canadian Hockey League and offer their services to another organization? Why did the NSO allow a professional sports league to benefit from insurance that was paid for by the amateur system? Finally, how is the CHL able to lobby across Canada, not only the provincial governments but also the federal government, to change laws in the middle on an ongoing litigation?
I thank you for your time.