Executive Director’s Report

2014 Annual Meeting of Player Representatives

While the 2013-14 season was not without its share of challenges for the Association, I can look back and unequivocally state that it was a “results-driven” year.

The Winter Olympics provided opportunity for a significant number of former PHPA Members, as well as an opportunity for nine (9) players from our current membership base. With a number of AHL affiliates (7) playing games in the facility of their NHL Parent Club, it provided an opportunity for NHL fans to watch the next generation of NHL players, while providing our Members with an unforgettable experience.

For the first time in my 33 years with the Association, I was sued, by the former Owners of the Central Hockey League (CHL). In doing my job protecting players’ rights in the CHL, and with very important health issues involving a player’s wife and player’s child, the former Owners felt that Allen and Rapid City were looking to leave the CHL for the ECHL due to my efforts in protecting the Membership. While the lawsuit is still pending between the CHL’s former Owners and the ECHL, the case against me was dismissed.

During the off season, the CHL was purchased by current CHL Owners, with Wichita’s Ownership owning both Wichita and Tulsa, while the Missouri Mavericks assumed ownership of the recently folded St. Charles Chill franchise. The Wichita Ownership group recently added yet another franchise, with their purchase of the Allen Americans. This situation will be reviewed as it could present some issues in the CHL for PHPA Members going forward.

Great results were achieved in numerous areas:

(*) A settlement was reached on the Global Grievance we filed against the CHL, where any / all outstanding issues not including Workers’ Compensation and medical (salary, travel, equipment, etc.), of which we were aware, were resolved. The settlement for $116,107.66 came on the eve of a scheduled National Labor Relations Board trial. All monies associated with this aspect of the settlement have been distributed to players party to this settlement.

(*) As a continuance of the above settlement, we are currently negotiating resolution on any / all outstanding unpaid medical and workers’ compensation benefits (Total Temporary Disability – TTD payments) with the CHL as this was part of the above settlement. It is our intention to have this finalized within the next 30-45 days. Should we not achieve resolution, we shall take whatever legal avenues we need to in order to ensure proper resolution.

(*) On the financial front, possibly the most influential impact strengthening our financial foundation was the U.S. dollar, which hit a high of $1.12 in a fiscal year where it began at par with the Canadian dollar. Taking advantage of the currency exchange, we generated an additional $115,000 in monetary resources. Any Canadian-based business, including costs associated with running our office, experienced better-than-budgeted results, given the additional spending power attributed to the strong U.S. dollar.

(*) The PHPA’s overhauled Public, Alumni, Player, and Agent-friendly website is experiencing more hits by the day, with our website consultants constantly upgrading to meet the needs of all its stakeholders.

(*) The PHPA worked diligently with Upper Deck who, in the coming weeks, is set to release an inaugural 100-card box set featuring some of the top AHL players. In addition, over 80 of the 100 players featured agreed to sign 250 autographs each for inclusion in the set, making this set a "must have" for hockey card collectors and fans of the AHL. Given Upper Deck's elite position within the trading card industry as well as their global distribution, this high-end set will enhance visibility of our Members while helping elevate the profile of the League.

(*) A PHPA mobile app is currently in development, and will be released at the Association’s Annual Meeting, with full completion once we secure feedback from the Executive Committee and Player Representatives.

(*) An initiative currently being put before various Canadian television networks is our NextGen – Hockey’s Highway television series where both Rochester’s Jamie Tardif and Hamilton’s Nathan Beaulieu were featured for the pilot episode. Should this endeavor prove successful, it will showcase our Members in front of millions of viewers.

(*) The Association’s Career Enhancement Program finalized an agreement with FESTI (Fire and Emergency Services Training Institute), whereby PHPA Members can train to be firefighters first through an online component, then in an affordable state-of-the-art facility located adjacent to Pearson International Airport in . The training facility will see its first wave of PHPA Members on site beginning in mid June.

(*) In addition, website revenues were better than budgeted by 63%, as were AHL dues (4.1%) and ECHL dues (6.8%), respectively.

With April 30 representing the Association’s fiscal year end, we look to the year ahead to once again be prosperous for Association Members and their families.

The 2013-14 season recap and thoughts on the season(s) ahead……

American Hockey League

The 2012-13 season ended last June with the Calder Cup-winning Grand Rapids Griffins playing in front of sellout playoff crowds in excess of 10,834 per game.

Again, the AHL put an exclamation mark on why it is considered the best development league in any sport. With over 88% of NHL players having played in the AHL, the 2013-14 season provided 133 AHL players with their first NHL game.

A significant number of PHPA Members were recalled to the NHL and have made huge impacts, while being well on their way towards forging a great NHL career.

Utica joined the AHL, serving as the Vancouver Canucks’ affiliate and did a terrific job in what was once a great hockey city where a number of former New Jersey Devils began their pro careers. Having had the opportunity to view the locker room, training room, and video room, it is apparent that the Canucks did whatever they had to do in order to create a tremendous developmental environment.

A tough situation arose in Portland, Maine where the team was to be temporarily displaced while renovations were done at their home rink, the Cumberland County Civic Center. Unfortunately, negotiations towards a new lease took a turn for the worse, and the Pirates were forced to spend the entire season in Lewiston, Maine with their last game played at the 400-seat Ice Center in Saco. Fortunately, a new lease was finalized in February, which will see the Pirates return to a renovated Cumberland County Civic Center for the 2014-15 season.

AHL teams once again looked to capitalize on the latest successful trends by playing games outdoors, with Rochester hosting Lake Erie at Frontier Field (December 13, 2013) and Grand Rapids hosting Toronto at Comerica Park in Detroit (December 30, 2013).

By far, the most interesting development is the proposed westward shift of NHL Clubs / “AAA” affiliates as they seek to get their prospects closer to the NHL city. While neither the PHPA nor the NHLPA are involved in dialogue at this stage, as of this writing, and by no means is this 100% certain, my belief is that should such a Western shift materialize, it could take on this look:

(*) Anaheim wishes to leave Norfolk and put their players in San Diego.

(*) Los Angeles has focused on the current ECHL market of , CA as the future home for their prospects.

(*) San Jose is looking to depart Worcester and is pondering various markets including, but not limited to, Sacramento, CA and Fresno, CA.

(*) The recent purchase of the ECHL Bakersfield Condors by the Edmonton Oilers suggests that Bakersfield may one day be the city where Edmonton develops their “AAA” prospects.

(*) Calgary, which recently signed a one-year agreement to play in Glens Falls, NY for the 2014-15 season, is rumoured to be considering one of either Boise, Utah, or Las Vegas, with the latter being a key point of interest for a future NHL team.

(*) Despite ownership issues in Phoenix being stabilized, it appears that they will depart from Portland, ME, and their western destination will either be the current CHL market in Prescott Valley, AZ or Tucson, AZ.

(*) If the western shift comes to fruition, as a number of individuals in the hockey community feel it will, and given the recent departure of Calgary Flames, Vancouver may very well look to Abbotsford, BC as their “AAA” affiliate.

With Philadelphia departing Glens Falls for Allentown, PA beginning next season, and with Winnipeg looking to depart St. John’s, NL within the next couple of years, along with the aforementioned possibility of a western shift, the next 12-18 months will go down in history as a pivotal turning point in the minor league professional hockey landscape.

Although the NHL and NHLPA agreed to extend Performance Enhancing Drug (PED) testing to the AHL in the new CBA at NHL’s expense, it did not materialize for the 2013-14 season. However, discussion continues, and the implementation at the AHL level will occur once proper education vehicles / player awareness has been agreed to and presented to the players.

As per the AHL / PHPA Collective Bargaining Agreement, the AHL has provided written confirmation of its desire to extend the current CBA by one (1) year, with all economic issues being revised for the 2014-15 season, while utilizing the U.S. Consumer Price Index as of July 1, 2014. While no negotiations are currently scheduled in advance of the CBA expiry on August 31, 2015, we continue to ensure that we are fully prepared upon commencement of negotiations.

As of this writing, St. John’s and Texas are in the hunt for the Calder Cup with Texas leading the series 2 games to 1 with game 4 scheduled for Monday June 16 in St. John’s. Reoccurring topics of discussion every year, and certainly something that will be a point of conversation, is the time required to complete the first round, as well as the unacceptable attendance levels – both having a negative impact on our AHL Members’ playoff shares.

Central Hockey League

Just prior to the start of the season and in advance of both a scheduled National Labor Relations Board (NLRB) trial and Collective Bargaining negotiations, we finalized a monumental settlement involving a significant number of outstanding issues that had plagued CHL players for years.

The settlement ($116,107, 87 players) involved payment of any outstanding issues pertaining to equipment, travel reimbursement, salary, housing, etc. for players dating as far back as the New Mexico Scorpions (2008-09). Furthermore, the settlement required the League and the PHPA to agree on amounts due for all players with outstanding hockey-related medical bills, and unpaid workers’ compensation benefits, etc., with advancement to arbitration where agreement is not reached. We continue to work towards a settlement.

On the CBA negotiations front, prior to the 2013-14 season, we turned to outside Advisors to provide expertise in a couple of areas. David Feher, a highly regarded anti-trust lawyer, joined us for the first bargaining session, with Charles Bennett, a CPA and Forensic Auditor, guiding us through various financial matters during a subsequent bargaining session.

The Owners originally proposed a number of clawbacks and requested that the players pay for premiums associated with their families’ off-ice health insurance. The loss of Bloomington and Fort Worth created a situation where the League was looking to the players to “stop the bleeding”. While nothing of significance was gained (apart from CHL teams fully funding the off-ice insurance program), nothing was lost, with a number of provisions maintaining the status quo, or remaining similar to that of the expired Agreement.

Once again, we experienced a host of issues with the CHL, particularly with the Canadian franchise (Brampton) participating in the League. Only recently, we were advised that Brampton did not have Workers’ Compensation in place that would provide an injured player with a benefit in the off season should he not be able to work. We are currently formalizing a grievance to ensure that those who were injured in Brampton this past season and unable to work due to the injury or subsequent medical treatment will receive benefits similar to that of other CHL players.

St. Charles was and continues to be a mess with players looking to secure equipment, travel reimbursement, medical treatment and, in some cases, unpaid salary. We have filed a grievance in order to ensure that this matter is resolved to the players’ satisfaction. On May 2, 2014, the team ceased operations.

With CHL Owners owning multiple teams, and with obligations not being met (most notably St. Charles and Brampton), CHL players should value the importance of the Union. However, with a number of players not wanting to pay their share, expenses for our representation of CHL players were $324,960 with only $113,782 in revenues being generated through CHL dues, as well as $10,000 from Player Likeness fees.

Tremendous uncertainty and concern surrounds the manner in which both workers’ compensation and off-ice insurance will be handled going forward, which are two of the most significant aspects of a CHL player’s employment. At this level of the sport, proper team-provided off-ice health insurance for players and their families is a must, as is adequate protection in the event that a player sustains a hockey-related injury. Players deserve protection in season with timely medical care and off-season benefits should they be unable to provide for themselves and their families.

Face-to-face meetings were held with CHL Commissioner Steve Ryan and League Counsel Brian Christensen on June 10. We are looking to put closure to open issues and address concerns that we have going forward as there is no CBA for next season. We have communicated our intentions to have the Workers’ Compensation settlement resolved, and to have a clear understanding of the CHL’s plan going forward (structure of the League) before engaging in any CBA discussions for 2014-15. Irrespective of whether or not the PHPA continues its bargaining relationship with the CHL, the Association will have costs / expenses as we fulfill our Duty of Fair Representation in resolution of outstanding issues.

With St. Charles out, the League is searching for new owners to take over that market, which the Missouri Mavericks funded this season. While there was talk of Casper, WO possibly becoming part of the CHL, it will not occur for the 2014-15 season.

Congratulations go out to the Allen Americans (Darryl Bootland) in capturing back-to-back Ray Miron Cup Championships.

ECHL

While the League began the season with 22 teams, it lost the San Francisco Bulls, which ceased operations on January 27, 2014. This mid-season demise created a ripple effect that adversely impacted a number of ECHL players. NHL and AHL contracted players assigned to San Francisco were reassigned to other AHL (Worcester) and ECHL teams, with a number of Bulls ECHL-contracted players picked up by other ECHL teams. Fortunately, our San Francisco Members, as well as the League office, kept us apprised on a daily basis as to the status of the situation. This “finger on the pulse” pre-emptive action resulted in the Association being able to quickly address any and all player obligations (medical treatment, workers’ compensation, travel reimbursement, etc.). This is contrary to our history with the CHL teams, where teams attempt to skirt player obligations. The Reserve System gains of the new ECHL / PHPA CBA will be experienced in the near future as teams that are extending Qualifying Offers to players (maximum 8 players; no more than 4 vets) will be required to provide those players who have played 40 or more regular-season games in the ECHL or any PHPA-recognized professional league with a minimum 5% increase of a player’s 2013-14 average weekly salary.

We also completed the first season with the ECHL rookie cap and career development fee. We are currently evaluating the impact it had on our ECHL Members. For the first time since the Association became the recognized bargaining representative for ECHL players, the players and their families were provided, at a minimum, basic dental care, a benefit we sought to secure for years. In addition, ECHL players preparing for life after hockey, who take and successfully complete education courses, are receiving a $400 reimbursement due to team contributions that were negotiated into the most recent CBA.

With the ECHL being the only recognized “AA” minor league within the NHL / NHLPA CBA, it continues to supply players to the AHL. This season, 309 ECHL players performed in both the ECHL and AHL; and 7 ECHL players played in both the ECHL and NHL.

Although the League lost San Francisco this past season, the ECHL welcomes a team in Indianapolis (Indy Fuel), which will begin play this fall. It is certain to be a success as it establishes rivalries with the likes of Fort Wayne and Cincinnati, proving to be a great environment for the players.

Coached by former PHPA Executive Committee Member Rob Murray, congratulations go out to Alaska Player Rep Tom Mele and the entire organization in their winning the 2014 Kelly Cup. Alaska joins South Carolina in being the only three-time Kelly Cup Champions in League history.

2014 C.W. Leichner Distinguished Member Award

The 2014 recipient of the Association’s prestigious C.W. Leichner Distinguished Member Award is Buffalo Sabres Head Coach Ted Nolan, who was also Head Coach of the Latvian men’s hockey team at the 2014 Winter Olympics in Sochi. The Award, named in honour of former PHPA Executive Director Curt Leichner, is presented annually to a member of the hockey community who has made significant contributions towards the advancement of professional minor-league hockey, and who has continued to diligently serve the sport.

Nolan played eight seasons of professional hockey from 1978 to 1986 primarily in the AHL where he was a member of the 1980-81 Adirondack Red Wings Calder Cup Championship team. He also amassed 78 games in the between Detroit and Pittsburgh. Throughout his playing career, Nolan took an active role in the PHPA, first serving as a PHPA Player Representative and later as an elected member of the PHPA Player Executive Committee. As a member of the Executive, Nolan successfully fought for increases to per diem, safer working conditions, and he helped initiate discussion towards enhancing the off-ice insurance program for players and their families.

Shortly after his retirement as a player, Nolan became Head Coach of the Ontario Hockey League’s Sault Ste. Marie Greyhounds and led them to three consecutive Memorial Cup tournament berths, winning the championship in 1993. He was hired by the Hartford Whalers in 1994 as an Assistant Coach before accepting the position of Head Coach with the Buffalo Sabres in 1995, where he was awarded the Jack Adams Trophy as NHL Coach of the Year in 1997. Nolan returned to the NHL in 2006 as Head Coach of the New York Islanders until 2009, and is currently the Head Coach of the Buffalo Sabres. Nolan has also devoted himself to First Nations causes, including teaching hockey to First Nations children. His work in this area earned him the National Aboriginal Achievement Award, the Sault Ste. Marie Medal of Merit, and the Order of Ontario.

Having played against Ted in the AHL, there was no doubt he was a formidable opponent on the ice. However, it was working alongside him as a member of the PHPA Executive Committee where I realized he brought the same characteristics to negotiations with management. He was a key contributor who wanted to take the PHPA to new heights, while advancing and protecting the rights of all players in professional hockey’s minor leagues.

“I am honored to be chosen as the recipient of the Curt Leichner Distinguished Member Award,” said Nolan. “The PHPA award recognizes the importance of collaboration amongst all parties involved in what I feel is the greatest game in the world - the game of hockey. I have had the privilege to grow personally and professionally, both playing and coaching in this great game of ours. This game has given me an opportunity to work in a profession that I have a passion for and for this I feel privileged. So it is with this that I say thank you for the PHPA Curt Leichner Distinguished Member Award. It is an honor to be recognized.”

Nolan will be presented with the Award during the closing banquet at the 2014 PHPA Annual Meeting of Player Representatives.

401(k)

We continue to examine means by which we encourage players to realize the value of putting money aside now for future years. The 401(k) plan provides such an opportunity but this past season we experienced only 23 new participants with the total contribution of all participants being $514,136. With AHL salaries up by over 8% in the last year, players should seriously consider the pre-tax retirement savings plan and whether it is suitable for them.

Career Enhancement Program

It has been another successful and productive year for Program Coordinator Rick Gorman and those who participated in the Career Enhancement Program (CEP).

While the program welcomed 49 new enrollees, the first group of Members participating in the inaugural Fire and Emergency Services Training Institute’s (FESTI) on-site training exclusively for PHPA Members begins this June. Overwhelming response was generated for the 20-22 slots created via our agreement with FESTI for firefighting training. This is a reasonably priced, excellent opportunity for players who are considering a career in firefighting once they hang up the blades. If firefighting is something you are considering, I encourage you to reach out to Rick Gorman, as it appears a waiting list is building. As outlined earlier, ECHL players who participate in the program and subsequently complete their studies are being reimbursed up to a maximum of $400 per player.

There are some great success stories of players who have participated in the CEP, but none more surprising than that of Randy Rowe. Randy, a 12-year PHPA Member, Player Representative and Executive Member, retired this year and became a volunteer firefighting trainee in Trenton, Ontario. The opportunity to participate in the NFPA 1001, a key training global certificate program through the CEP, presented an incredible option for preparing for a career in firefighting. His training with the Canadian Armed Forces Base in Trenton was upgraded by the approval of the Forces to have Randy register in the FESTI training facility at the Toronto Pearson International Airport in the NFPA 1001 certification.

The CEP is a great program, and one worth looking into whether you need high-school equivalency (GED), a few courses for your post-secondary degree, have desires of completing a Masters degree, need assistance with resumes, or are just looking for career coaching.

Workers’ Compensation

An area of a player’s employment that receives a great deal of attention from our office surrounds various actions that must be taken when a player sustains an injury that requires medical care or treatment. With a great deal of focus on concussions, players and their families are realizing and embracing the importance of being honest to Club Athletic Trainers and / or Club physicians.

Our revamped website, which provides a user-friendly interface to the injured player, has enabled us to further streamline the manner in which we facilitate the process in order to ensure timely filing of Workers’ Compensation claims where necessary. While we had 183 players complete Workers’ Compensation questionnaires for over 260 claims during the 2013-14 season, we are concerned with the fact that some players remain reluctant to follow through with a claim, even after we outline the importance of doing so. There is no doubt that the Workers’ Compensation premiums / costs are a significant expense for any professional sports team, but Workers’ Compensation benefits are significant and important for players and their families, especially once their hockey career is over, and it is a cost of doing business that Teams fully understand.

Various states have attempted to have their government change Workers’ Compensation laws in an effort to reduce or deny Workers’ Compensation benefits to professional athletes. These states are introducing / advancing various bills at the urgency of the Owners of professional sports teams. In the most recent such occurrence with the state of Louisiana, upon introduction of the law, the Owners quickly discovered how the various Players’ Associations will fight attempts by states to diminish an injured player’s Workers’ Compensation benefits. While all Players’ Associations, including the PHPA, are part of a coalition to do so, it was the NFLPA that directed correspondence to all agents suggesting that they “strongly consider whether they should have players sign with the Saints” due to the Owner’s efforts to claw back Workers’ Compensation rights for NFL players. Working with other players, a Saints quarterback led the charge, and the proposed bill was withdrawn. The Players’ Association Coalition has dealt with similar situations in both and South Carolina.

All Associations spend a great deal of time in this area, with both the NFLPA (Spring) and PHPA (Fall) holding Workers’ Compensation Panel Meetings that are attended by attorneys on the respective Panel. Most attorneys on the Panel represent injured Members of the NFLPA, MLBPA, NBPA, NHLPA, PHPA, MLSPA, WNBAPA and NLLPA. The reason that results have been attained for injured athletes is the fact that the Workers’ Compensation Panel of Attorneys includes the very best of Workers’ Compensation attorneys from each state across North America.

If you have sustained an injury but have yet to take proper steps to protect your rights, at a minimum, give us a call to discuss. Looking Ahead……

As we wind down the 2013-14 season, which was a busy and exciting year, we continue to prepare for the challenges that occur year after year at this level of the sport.

In no particular order of importance, a crucial decision will have to be made regarding the future of the Association with the Central Hockey League (CHL). While we continue to advance any and all player disputes / grievances to resolution, I do not foresee the CHL advancing player compensation, benefits, and rights to an acceptable “AA” standard.

As the CHL is not a recognized minor league entity within the NHL-NHLPA CBA, players on NHL 2-way contracts are not required to report should they be assigned to the CHL. We do not want players subjected to varying standards within each dressing room, particularly with regards to insurance, both off-ice health insurance and Workers’ Compensation for those who may be injured while employed with a CHL team. Furthermore, we will continue to strive for completion of the settlement surrounding outstanding Workers’ Compensation benefits, unpaid medical, etc., with advancement to the courts in the event a sincere effort towards resolution is not put forth by the CHL.

A New York – Los Angeles NHL Stanley Cup final has the potential to elevate interest in our sport, something positive for our Members and their respective Clubs.

With the L.A. Clippers recently having been sold for 2 billion dollars, the NHL was quick to state that if the Clippers are worth that amount, then many NHL teams are worth more. This will have a domino effect, and could very well increase interest in ownership at the minor league level.

Should NHL teams finalize plans to shift their affiliates west, they will need to purchase current AHL franchise rights from those who will be impacted by the move. This may inflate future values of AHL franchises, which could have a further domino effect on the ECHL. There are a number of parties interested in ECHL franchises, some of which will operate in markets that will be impacted by the proposed western shift of “AA” affiliates of the NHL. I am of the belief that in the not-too-distant future, Peoria will again become an ECHL franchise, joining the geographic rivalry with Cincinnati, Fort Wayne, and the newest ECHL market – Indianapolis.

The interest in outdoor games is such that the Toledo Walleye will play Kalamazoo on Saturday December 27, 2014 and the Fort Wayne Komets on Saturday January 3, 2015 at the Fifth Third Field – home of the Toledo Walleye.

Once again, members of our AHL Executive Committee will accompany me to the AHL Board of Governors Meetings in Hilton Head, where we will attend various functions and engage in two-way dialogue with key decision makers in our sport. Certain to be a focal point of discussion will be the western shift of “AAA” and “AA” affiliates, the length of the season, Calder Cup playoff scheduling, and the Playoff Pool. Furthermore, with the AHL exercising its option to extend the CBA by one year, we will finalize various financial aspects of the CBA, which will be adjusted to the July 1, 2014 Consumer Price Index (CPI).

Jumping on the excitement created by outdoor and neutral site games, the Syracuse Crunch will be hosts to the Utica Comets in the Frozen Dome Classic on November 22, 2014, with the game played in Syracuse University’s Carrier Dome.

Given the fact that the off-ice health insurance programs are of significant importance to players and their families, we are constantly adapting to the various changes that have been created by Obama Care. It seems that each and every time we sit down with the various carriers, we are advised of additional requirements necessary to comply with Obama Care. Rest assured, all is being done to ensure that the off-ice programs provide the best possible benefits, while simultaneously ensuring that delivery and payment of benefits does not adversely impact players and their families.

We are confident that the implementation of the Association’s mobile app will be paramount in our delivery of timely and relevant information to the Membership, and will serve as a catalyst towards our digital social media marketing platform.

Excitement is building with what we are confident will become an episodic television series featuring our Members. NexGen Sports is nearing completion of the pilot episode, which will then be pitched to various Canadian networks this summer.

It is our intention to utilize various experts in the field of Digital and Social Media Marketing this year, with multi-faceted goals of:

(i) educating players on the do’s and don’ts of the various social media platforms and (ii) generate more followers of the PHPA, which will transcend to the branding of our Members as well as potentially increase the Association’s sponsorship revenues

In closing, I would like to thank the Executive Committee, Player Representatives, Alternate Player Representatives, PHPA staff and advisors for their tireless efforts in what was a very results-driven year.

Enjoy a safe and healthy off season!!