The Canadian Soccer Players’ Association has filed a $40 million lawsuit against 15 current and former Canada Soccer board members.
The players union filed a notice of application on Feb. 16 against Canada Soccer, as well as a statement of claim against the 15 current and former board members on Feb. 20. The documents were filed in Toronto’s Ontario Superior Court.
In the filing, the CSPA alleges a “negligence and breach of fiduciary duty” through Canada Soccer’s deal with Canada Soccer Business, signed in 2018. The deal gives CSB all of Canada Soccer’s marketing and sponsorship rights in exchange for an annual fee.
The lawsuit states that the 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, deprive Canada Soccer of revenue that could be spent on development, and at worst, could compromise Canada Soccer’s ability to operate as a going concern,” the lawsuit reads. “In 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.”
Under the agreement, Canada Soccer receives a fixed annual fee of roughly $3 to $4 million, which will grow “only slightly over the initial nine-year years of the CSB agreement and not at all during the 10-year renewal period.”
“All other revenue generated by CSB in respect of the national teams is retained by CSB,” it adds.
Five of Canada Soccer’s board members named in the lawsuit currently reside on the board of directors.
“We have been made aware of a legal proceeding filed 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.”
Canada players are set to begin their Concacaf W Gold Cup tournament on Thursday against El Salvador. Coach Bev Priestman said that despite the timing, players are “currently focused on what’s in front of them.”
“To be honest, it’s something that’s being dealt with in the courts, and so I think from a players’ perspective we’re not going to comment on it right now,” newly-named captain Jessie Fleming said. “Just reiterating what Bev said, the mood in camp is really good and we feel really good as a group right now. It’s not just something that’s being talked about among the players at this point in camp.”