A $40-million lawsuit has been filed by the Canadian Soccer Players’ Association against 15 current and former board members of Canada Soccer, alleging negligence and breach of fiduciary duty.
Filed in the Ontario Superior Court of Justice, the association’s claim targets individuals involved in the controversial 2018 agreement between Canada Soccer and Canadian Soccer Business (CSB), which transferred marketing and sponsorship rights to CSB in exchange for an annual fee.
Central to the lawsuit is the assertion that the CSB deal poses significant risks to Canada Soccer’s operational capabilities. The agreement, according to the lawsuit, limits Canada Soccer’s revenue potential, potentially compromising its developmental activities. The lawsuit accuses the 2018 Canada Soccer board of failing to exercise prudence and good faith in approving the CSB agreement, suggesting a lack of consideration for Canada Soccer’s best interests.
Under the CSB agreement, Canada Soccer receives a fixed annual fee with minimal escalations over the agreement’s duration, while CSB retains all other revenue generated from national teams. The lawsuit alleges negligence and wilful neglect on the part of the 2018 Canada Soccer board concerning their approval of the CSB agreement. However, these allegations remain unproven in court.
Among those named in the lawsuit are current president Charmaine Crooks and former presidents Nick Bontis and Steven Reed, with five of the named individuals still serving on the board. Canada Soccer acknowledges the legal proceeding and is seeking advice on the matter.
Canadian Soccer Business, linked to the Canadian Premier League, was established in 2018 to manage commercial assets and inventory for various soccer properties in Canada, including national team programs and grassroots initiatives.
The timing of the lawsuit, coinciding with Canada’s participation in the CONCACAF W Gold Cup, suggests potential distractions for the teams, although coach Bev Priestman emphasized the players’ focus on their upcoming matches. Both the men’s and women’s teams are currently negotiating labor agreements with Canada Soccer, with past disputes and labor actions adding complexity to the situation.
The lawsuit also recalls previous tensions between players and Canada Soccer, notably during the SheBelieves Cup in February, where the women’s team boycotted training over labor negotiations. Despite these distractions, the Canadian women’s team enters the CONCACAF W Gold Cup as the 10th-ranked team, grouped with Costa Rica, Paraguay, and El Salvador.
