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If the CHL is unionized, small market teams like the Raiders are doomed

Jul 31, 2014 | 12:52 PM

Unifor, Canada’s biggest private sector union which represents 300,000 workers in several industries, is looking to unionize the CHL.

If they’re successful, it could mean the beginning of the end for the Prince Albert Raiders—as well as many other small market teams in the all three of CHL’s leagues, the WHL, the OHL and the QMJHL.

Unifor is looking to require the CHL to play its players minimum wage, which could cost Saskatchewan-based teams in excess of $230,000 per year—an expense that would be a death blow to small market teams.

In an interview with TSN, Unifor president Jerry Dias estimated that the average full-time job amounts to 2,000 hours per year, meaning a hockey player would put in roughly 1,000 hours per season.

If Raiders’ players were paid the Saskatchewan’s minimum wage of $10.2 per hour (which will be in effect on Oct. 1) for half of the year, it would total to $10,200 per player for a minimum of $234,600 for a 23-man roster—the number of players the Raiders ended with last season. The expense would likely be higher than that, as teams have to call up players to fill in for injured players and those on international tournament duty. 

To put it bluntly, the Raiders would not be able to afford this.

In the last Raiders’ annual general membership meeting in Sept. 2013, the Raiders reported a $78,986 profit for the 2012-2013 season. By all accounts, it was a great financial year for the Raiders, in which they saw their operating deficit reduce to 45 per cent.

But had the Raiders been required to pay their players minimum wage, they would have lost at least $155,614 that year.

Even without the union, the Raiders have already been in financial trouble recently and were in danger of losing the team. They announced in Sept. 2011 that they were working under an operating deficit of $176,082 and were worried about keeping the team in Prince Albert. 

The Raiders declined any comment about the union matter. Jeff Hubert, WHL’s director of communications, did not return a phone message.

There are other WHL teams that are in much worse shape than the Raiders.

The Lethbridge Hurricanes have lost $1 million in the last five years, and announced Feb. 7 they are now in $100,000 in debt. Imagine if they had to swallow in excess of $230,000 in each of those years.

The WHL’s other prince, the Prince George Cougars, lost $650,000 last year alone and were sold after the season’s completion.

The Swift Current Broncos reported a paper loss of $135,000 (a $13,000 cash loss) in their last annual general meeting.

Like the Raiders, the Moose Jaw Warriors did report a profit that was well under the $234,600 figure, making $61,566 in their latest annual general meeting.

These teams, among others in the WHL and the other CHL leagues, would be in serious financial trouble should the union go forward. Some teams, especially Prince George and Lethbridge, have had a hard enough time as it is.

Why unionize?

Unifor believes that major junior players are being “exploited” by the CHL owners and teams that are turning in great profits.

The team used as an example of a major junior money making giant in the TSN story was the OHL’s Kitchener Rangers, who reported $6.2 million in total revenue in August 2013, and sold $470,000 worth of merchandise.

But for Unifor to assume that every one of the 60 teams in the CHL are even in the same neighbourhood as the cash cow Rangers, or the Portland Winterhawks or the Halifax Mooseheads is lazy and ignorant. 

CHL commissioner David Branch said a third of the teams make money, a third are close to even and a third lose money.

Not every team publically releases their profits or deficits, so it’s tough to know how much every team makes. However, teams do release their average attendance, which is a good gauge for comparison.

The Rangers had an average attendance of 7,056 per game this year, second in the OHL to the London Knights.

In the QMJHL, 13 of the 18 league teams averaged less than 2,758 fans per game, with two of those teams finishing under 2,000 per game. The Val d’Or Foreurs had the second lowest average of 1,749 per game, and they won the QMJHL championship—the President’s Cup.

Four WHL teams, including the Raiders, and six OHL teams finished below the 3,000 per game mark this past season.

For every huge market, cash cow franchise there is in the CHL, there are two or three small market teams hoping to break even and making ends meet. 

What do the players get now?

The players do get paid, but it is only a modest stipend—nothing more than pocket change. CHL players are also considered ‘student-athletes,’ which is why they don’t get paid a wage.

They are also provided with room and board by staying with billet families, whose expenses are covered by the team.

The players’ equipment is also paid for by the team, as well as travel expenses to and from games throughout the year.

CHL players are also given a one-year scholarship to a post-secondary school for every year they play in major junior.

The CHL has been criticized for this initiative as the scholarships become ineligible 18 months after the player leaves junior, or if the player plays in the NHL. 

First time didn’t go over well

Unifor’s push for unionization is the second time in the past two years the CHL has been threatened with unionization.

The Canadian Hockey League Players’ Association (CHLPA) tried to unionize the CHL in 2012, but the attempt fizzled over controversy. The CHLPA’s founder, Glenn Gumbley, tried to conceal his involvement in the initiative because his brother, Randy Gumbley, has been twice convicted of defrauding youth hockey players. Glenn Gumbley himself is facing a fraud charge as well—from a failed business attempt with an ex-girlfriend. 

Gumbley is also involved in Unifor’s attempt as well, despite initial denials from Dias.

Even without any additional controversy, the unionization process will be a long, confusing and headache-filled one.

This is a huge initiative that involves 60 times across nine provinces and four states. Each of those provinces and states have different labour laws and their minimum wages vary, as well.

According to reports now, Unifor has only begun meetings with Kathleen Wynne, the Premier of Ontario. They have a ton of work to do before the CHL is unionized.

But if it ever is, many teams will have to work just as hard to survive.

jdandrea@panow.com

On Twitter: @jeff_dandrea