Mirror, Mirror On The Wall

I fully admit that I'm not a lawyer or sports agent nor have I ever played one on television. Therefore, my legal knowledge is very limited at best and my expertise in the area of sports law is probably even more limited. What I do know, however, is that if a hockey player has been accused of committing a crime, it's likely his employment by any team in the NHL drops to virtually zero. NHL teams want nothing to do with players who may miss team, so finding contracts for players accused of serious crimes will be a challenge for any agent. One such player who is accused of a serious crime and isn't skating in North America is Alex Formenton, but it seems the 25-year-old views his situation differently than most of the planet does.

According to a lawsuit filed in Ontario Superior Court in Toronto last week, the aforementioned Alex Formenton has filed a lawsuit against his former representative in agent Wade Arnott and former player agency Newport Sports Management Inc. that alleges negligence, breach of contract, and breach of fiduciary duty.

Somehow, Formenton feels that the agent and player agency cost the player some $20 million in income and $500,000 in damages from the 2022-23 and 2023-24 NHL seasons plus future income he could have earned in the NHL due to the misconduct by Arnott and Newport Sports Management Inc. in those two entities not "exercising their duties as agent to Alex and did not meet the required standard of care expected of a professional agent".

As per Formenton's lawsuit, he alleges "the Senators presented Formenton with a one-year, $787,500 US qualifying offer in July 2022, which was rejected, after his entry-level deal expired". When he contacted Arnott for advice on how to proceed, Formenton alleges that "Arnott failed to advise Formenton that by accepting the qualifying offer the player could negotiate a third contract in January 2023 for the following season" and that "Arnott and Newport did not advise Formenton the offer could be extended past July 15, 2022, if the Senators agreed," while adding that "Arnott and Newport didn't request the team's offer be extended".

Formenton's lawsuit continues by stating,

"For the remainder of July to December 2022, Wade continued to represent and hold out to Alex that he would yet be offered a new contract," Formenton's lawsuit reads. "Wade advised that even without an accepted offer or extended qualifying offer his dealings with the Ottawa Senators on behalf of Alex was 'business as usual' and that Alex should rely on Wade and Newport Sports to secure a favourable offer.

"Wade's advice was wrong. The Ottawa Senators did not propose or agree to a new contract with Alex prior to Dec. 1, 2022, and accordingly, Alex was ineligible to play in the NHL for the remainder of the 2022-23 season."

There's a few things to work through here. While Formenton is correct in that he could have accepted the qualifying offer in order to negotiate another contract down the road, the qualifying offer made by Senators allowed them to retain his playing rights. With Formenton rejecting the qualifying offer on his agent's advice, he could have signed with another team where the Senators could either match the offer or decline it and take the RFA compensation based on the AAV value of the deal. In no way was Formenton guaranteed negotiations for "a third contract in January 2023 for the following season" nor is there any guarantee that the Senators would have agreed to extend the offer.

If Arnott and Newport Agency were seeking a significant contract increase from the Senators for their client, why would they tell Formenton to accept the qualifying offer so that he's being underpaid? As his agent and/or player agency, it's their job to get him the best contact possible. They aren't going to tell the Senators that Formenton accepts their offer if they believe they can get him a better contract. Yes, it's a gamble to reject the qualifying offer, but, if Formenton wanted to sign, he could have ignored his agent's advice. It's not like that hasn't happened before.

Normally, this case would gain a lot of attention from the NHLPA if an agent and/or agency had acted inappropriately, but Alex Formenton seems to be forgetting one major detail that overshadows this case: HE'S ACCUSED OF SEXUAL ASSAULT.

It seems odd that Formenton may have forgotten that he's one of five men charged with sexual assault in the Hockey Canada scandal that happened in London, Ontario that has resulted in all five accused men not being employed or being excused by their respective NHL teams while the investigation and trial plays out. In Formenton's case, he was a restricted free agent in the summer of 2022 while rumours of his involvement swirled.

Regarding the contractual statuses of the five men accused, Carter Hart did not receive a qualifying offer from the Flyers on June 30, making him a free agent; both Michael McLeod can Cal Foote did not receive qualifying offers from the Devils on June 30, making both players free agents; Dillon Dube did not receive a qualifying offer Calgary Flames on June 30, making him a free agent; and, Alex Formenton failed to come to an agreement with the Senators who retain his NHL rights, but allowing him to sign with any other team if he chose. In short, all five men were "released" by their NHL teams.

I'm not saying that Formenton may have disagreed with the advice he got, but there are some extenuating circumstances that make it easier to see why Formenton wasn't signed, including:

• On July 1, 2022, the Senators' qualifying offer was far too low for a player who scored 18 goals, and Formenton was likely advised by his agent to not accept the qualifying offer. He chose to accept this advice, and he did not sign the contract.
• After failing to negotiate a contract worth more money, the negotiating window closed on December 1, 2023 with the Senators and Formenton still no closer on signing a deal. As such, he was ineligible to play in the NHL in 2022-23 by CBA rules. That's the gamble he chose to take in not signing the original deal offered.
• Formenton signed a $125,000 deal with Ambri-Piotta on December 14, 2022 to play the remainder of the season in Switzerland while his agent and the Senators worked on a new agreement. Ambri-Piotta officials released a statement on Formenton's signing, acknowledging that he was part of ongoing Hockey Canada scandal investigation and reserving the right to cancel the contract pending further developments.
• On October 12, 2023, it was reported that Alex Formenton has re-signed with Ambri-Piotta through Christmas with the option to leave if he were to sign with an NHL team.
• On January 24, 2024, Formenton was granted a leave of absence from Ambri-Piotta as he returned to Canada to face the changes levied against him by the London Police.
• On February 5, 2024, the London, Ontario Police Service formally charged Formenton, along with four other players, with sexual assault as part of the investigation into the 2018 Hockey Canada scandal.

At no point anywhere in this process does it seem like Alex Formenton directed his agent or agency to sign a deal with Ottawa or any other team for less than $1 million, and it's hard to imagine that any team was going to offer sheet Formenton when Ottawa could easily match it. If he truly wanted to play in the NHL, he could have gone back to Ottawa and signed for the league minimum, but it seems that was an option that the client didn't want. While an agent may recommend against this option, if Formenton truly wanted a shot at an NHL roster spot, he had to sign a contract for any value.

The value of the lawsuit is absolute madness, but it's quite arbitrary if one considers that the value of the contract he declined - whether good advice or bad - is less than 1/20th of the value of the lawsuit. As we know, NHL teams award contracts to players based upon production and play, and Formenton's one season where he played 79 games and scored 18 goals may have been a one-off. There's no guarantee that Formenton would be able to replicate that season's output, and there's no guarantee he's going to be in the NHL ever again with the pending trial he's facing. Asking for $20 million in lost income is pure lunacy.

The only person to blame for Formenton's lost future wages is Alex Formenton. Yes, he may have gotten some bad advice from an agent who was trying to get him a better deal, but that's the risk one takes in a negotiation. To claim that he lost $20 million in future NHL contracts is wildly insane, especially when he may be facing a long prison sentence for his supposed role in the Hockey Canada scandal. He can be unhappy that he didn't sign the qualifying contract that Ottawa offered, but that's a lesson learned.

Mirror, mirror on the wall... who filed the dumbest lawsuit of all?

Until next time, keep your sticks on the ice!