Judge Dismisses North Shore Youth Hockey Club's Antitrust Suit

CHICAGO — A federal judge last week tossed out a lawsuit from a North Shore youth hockey club claiming a violation of antitrust laws because it was not permitted to be a part of the top tier of youth teams in the state.

Reapers Hockey Association filed suit in February against the Amateur Hockey Association of Illinois, or AHAI, as well as the four clubs competing at its "Tier I" level — Chicago Fury, Chicago Mission AAA Hockey Club, Chicago Young Americans and Team Illinois Hockey Club.

The club then asked a judge to intervene, declare that AHAI's four-club limit violated the Sherman Act and the Illinois Consumer Fraud and Uniform Deceptive Trade Practices Act and issue an order that "the Reapers are rightfully entitled to a charter to sponsor a Tier I club."

In a 43-page complaint, Reapers claimed that AHAI has "monopoly power over amateur hockey in Illinois" and it "conspired to maintain and abuse" that power along with the four clubs it allows to participate at its top tier of competition.

It said an "insular 'boys' club' culture" at AHAI led to "lackadaisical decision-making and arbitrary enforcement" of its own rules. The complaint further alleges conflicts of interests among the governing body's board, with some board members also serving administrative roles with Tier I clubs.

The suit also claims that the Illinois affiliate of USA Hockey had cut off the North Shore from having "ready access" to top-tier youth hockey, since the four chartered clubs at the top tier are based in Palatine, Chicago, Woodridge and Orland Park.

U.S. District Judge Manish Shah granted AHAI's motion to dismiss in a Sept. 27 opinion. He said the four-club limit for Tier I had pro-competitive justifications, there was no evidence of a conspiracy and the injuries identified by Reapers are not the type covered by antitrust laws.

"Reapers, Inc., alleges that a fifth team would provide 'multiple benefits' to many different 'individuals who are currently playing Tier I or II youth hockey,' but none of those individuals are listed as plaintiffs," Shah said.

Reapers President Steven Dry, a Highland Park hockey dad and the president of a Tier II club, applied for a charter for a fifth Tier I team last year, but AHAI voted in January not to undo its four-club cap, Shah's opinion recounts.

Although the complaint alleges that Tier I hockey is "unique," Shah said, "the four-club rule does not appear to restrain Reapers, Inc. from offering 'competitive amateur youth hockey,' and does not apparently restrain a rising star player from getting the attention of scouts" through other means than the four top-tier clubs.

Even if one accepts the claim that Tier I clubs offer opportunities otherwise unavailable in Illinois, "it does not suggest a plausible economic market," Shah said.

"It offers no reason to believe that an amateur hockey player living in the North Shore suburban region of Chicago (the apparently harmed consumer according to the complaint) has no options among economic substitutes — other sports, other states, other ways to play hockey that are challenging and satisfying," the judge said.

There is significant money at stake in competitive youth hockey. According to Crain's Chicago Business, many participating families pay more than $10,000 a year, and many administrators of top-tier clubs take home more than $100,000 a year from the nonprofit organizations.

"This is not how you get your child onto a hockey team," attorney James Mutchnik, who represented AHAI, told the Chicago Tribune, "Everyone has to follow the rules."

Shawn Gebhardt, a lawyer for the Reapers, has not responded to a request for comment.

Shah gave lawyers for the Reapers until Oct. 25 to file an amended complaint to resolve the myriad legal reasons for the failure of its claims against the AHAI and four youth hockey clubs.

Read complete Sept. 26 memorandum opinion and order from Judge Manish S. Shah dismissing Reapers Hockey Association's lawsuit against the Amateur Hockey Association of Illinois: