In the wake of Hockey Canada’s controversial self-funded National Equity Fund – which was used by the organization to pay for harassment and sexual misconduct claims – a regional branch of the sports body has stepped up to dispel claims that a second “slush” fund exists.
Hockey Saskatchewan sent out letters to parents and its minor hockey associations to inform them that the Participants Legacy Trust Fund is not a fund of Hockey Canada but is instead a fund operated by 13 members of the organization. Hockey Saskatchewan further explained that the Participants Legacy Trust Fund was created and used from September 1986 to August 1995, because at the time Hockey Canada was unable to secure insurance and was forced to self-insure.
“Fees collected from participants registered with members (approximately $18 per participant at that time) were placed into the National Equity Fund and used to cover expenses for lawsuits primarily in the areas of injury lawsuits (for example, people who experienced paraplegic or quadriplegic injuries; spectators being hit and injured by pucks, etc.),” Hockey Saskatchewan’s letter said, as reported by local Saskatchewan radio station 980 CJME.
Hockey Saskatchewan also noted in the letter that on June 01, 1999, Hockey Canada had transferred about $7.1 million into the Legacy Trust Fund, which belongs to the original contributors of the self-insured period based on their level of contributions.
“This Legacy Trust fund continues to exist today and provides annual funding to Members of Hockey Canada and the CHL by way of realized annual investment income. The income is distributed to Members and the CHL based on the percentage they originally contributed into the Trust,” the letter read.
Since 2007, the Legacy Trust fund has paid out some $5.4 million to Hockey Canada members and the CHL, Hockey Saskatchewan said.
But while Hockey Saskatchewan explained that the Legacy Trust fund was used to pay for injuries from 1986 to 1995, The Globe and Mail had reported that according to documents from Hockey Canada, the money was earmarked “for matters including but not limited to sexual abuse.”
Last week, commercial general liability insurance provider BFL Canada announced that it was dropping its sponsorship of Hockey Canada’s upcoming men’s hockey season. But the company explained that it will continue its support for women’s and para hockey teams, as well as youth hockey.
