Hockey Canada’s persistent despite sponsorship exodus is ‘implausible,’ expert says

A corporate governance expert is baffled by Hockey Canada’s recent response to intense criticism over its mishandling of alleged sexual assaults.

And he adds that “scorched-earth” approach could bring about the end of the sport’s national governing body in its current form.

Hockey Canada has been under intense scrutiny since the spring, and despite mounting public outcry, along with calls for change from Prime Minister Justin Trudeau, parliamentarians and corporate sponsors, the organization has further dug in its heels – with both former and interim board chairs this week backing the current leadership.

“I’ve never seen this in almost 30 years,” York University law and governance professor Richard Leblanc said in an interview. “The job of the board of directors is not to defend management. The job of the board of directors is to act with a view of the best interests of the organization.

“It’s implausible to see that the best interests of the organization are served by continuing a scorched-earth, entrenchment policy.”

Former Hockey Canada chair Michael Brind’Amour and interim chair Andrea Skinner were grilled Tuesday during testimony before the Standing Committee on Canadian Heritage in Ottawa about why president and chief executive officer Scott Smith had not been fired amid a string of scandals.

Skinner said she would give Smith – who’s only held the top job since July 1, but has been with the organization in various roles going all the way back to 1997 – an ‘A’ grade for how he’s conducted himself over the past few months, adding hockey shouldn’t be made a “scapegoat” for toxic culture that exists elsewhere in society.

“The board of directors and management have fused together,” Leblanc said. “Management might be in denial, but a board of directors should never be in denial.”

Hockey Canada has seen sponsors jump ship and three provincial organizations publicly speak out this week alone, while Trudeau even floated the idea of creating a new governing body for the sport.

Trending Stories

Nova Scotia Premier Tim Houston added that “meaningful changes” are needed before Halifax and Moncton, N.B., host the world junior hockey championships in December and January.

“When you have sponsors and provinces that are withdrawing financial support, it’s indefensible that the status quo was adequate,” Leblanc said. “The stakeholders have been unambiguous.

“This is not a game that any board of directors can win. I don’t see the endgame here.”

Read more: Hockey Manitoba would support leadership change at Hockey Canada

Trudeau’s suggestion that a new hockey organization could take over from Hockey Canada isn’t as far-fetched as some might think, according to Leblanc.

“This is our public pride,” he said. “If the organization is unable or unwilling to change, then you make it defunct and you replace the organization from the ground up.

“If the prime minister is smart, and I think he is, he’s working on the legislation as we speak. I think sometime in the next couple of weeks, Hockey Canada may be ruled to be defunct.”

The organization initially came under fire in May when it was revealed an undisclosed settlement had been paid to a woman who alleged in a $3.55-million lawsuit she was sexually assaulted by eight players – including members of the country’s world junior team – after a 2018 gala in London, Ont.

The allegations have not been proven in court.

The federal government froze its funding in the immediate aftermath, while a number of sponsors followed suit.

Hockey Canada’s summer of ugly headlines continued with the revelation of a fund partly maintained by minor hockey registration fees to pay for uninsured liabilities, including sexual assault and abuse claims. Halifax police were also asked to investigate an alleged sexual assault by members of the 2003 junior men’s team.

Hockey Canada officials testified on Parliament Hill in July that the organization had paid out $7.6 million in nine settlements related to sexual assault and abuse claims since 1989. That figure didn’t include this year’s payout to the London plaintiff.

Hockey Canada responded by releasing an action plan to address safe sport issues and has appointed former Supreme Court justice Thomas Cromwell to conduct a governance review.

“The board needs to lead by example,” Leblanc said. “There’s only one right decision, which is a leadership change at the top. If they don’t do that, then the board ultimately is going to be replaced. Laws will either be enacted or they will be administrated.

“Government regulators have incredible power.”

Leblanc added, as it stands, there are no good outcomes for Hockey Canada.

“There is no winning,” he said. “The deck chairs on the board have shifted a tiny bit, but the messaging has not. It tells me that the board is in denial. Both the board and management are advocating for this entrenchment strategy.

“It’s a fallacy that this will go away. This will not end well.”

© 2022 The Canadian Press