According to just released financial records, Hockey Canada used player registration fees to pay $2.9 million in settlements this fiscal year.
One of those settlements involved a high-profile sexual assault allegation against members of the 2018 World Juniors team.
The new financial statements confirm that the controversial National Equity Fund was used to pay out all of the settlements this fiscal year. The funds holds player registration fees alone according to records.
“During the past year, the Organization has come under extreme public and media scrutiny with regards to its management and governance of litigation settlements and the use of player registration fees,” the auditing company, BDO Canada explained.
“… The organization is susceptible to lawsuits from various sources. As a result of this risk, the Organization has obtained insurance coverage which is supplemental by holding funds in reserve to cover uninsured claims.”
It’s been controversy after controversy for Hockey Canada, sexual assault allegations, secret payouts, lawsuits, loss of sponsorship deals and more.
It all began in April, after a woman filed a $3.5 million court action against Hockey Canada, the Canadian Hockey League and unnamed players. The woman claimed that she was sexually assaulted in a hotel room by eight male players, including some members of Canada’s 2018 gold medal-winning World Junior team.