Gretzky's Agent Declines GM Position

Ceding to Union Pressure, Gretzsky's Agent Declines Coyotes GM Position

Conflict of interest cited

Phoenix, October 19, 2000 -- Under pressure from the National Hockey League Players' Association, agent Mike Barnett turned down Wayne Gretzky's offer to join him in the Phoenix Coyotes front office. Instead, Barnett will remain a player agent with International Management Group (IMG) where he is the head of the hockey division. In a statement issued by his office, Barnett said, "Having represented players for nearly twenty years, I have arrived a the conclusion that, at this stage of my life, my current responsibilities within IMG hockey division are the most suitable for myself and for my family." (National Post - October 19, 2000). In making this decision, Barnett was forced to sever a twenty-one year relationship with the "Great One." As you can imagine, Barnett's decision was not purely voluntary.

Last week, Bob Goodenow, the executive director of the NHL's Players' Association (NHLPA), sent a letter to Barnett about the possibility of a conflict of interest if he were to accept the position. In the letter, according to the Canadian Press, Goodenow threatened to revoke Barnett's certification as a player agent if he didn't publicly announce his intentions to either stay in the agent business or move to management.

The fear, at least by the NHLPA, is that Barnett would be able to share negotiation tactics used by agents with other owners and therefore, hinder the negotiation process between players and management. These fears are not hollow. Barnett is currently one of the most important agents in the game when it comes to planning strategies for dealing with management. In fact,
Barnett has invented many innovative strategies that have helped the players win most of the contract fights in recent years. These strategies have been shared with all agents by Goodenow, who informs them on the latest information and on these types of innovative strategies.

Much of the attention to this situation can be traced back to Alan Eagleson, former head of the NHLPA, who went to jail in 1998 on theft and fraud charges. Eagleson was executive director of the NHLPA from 1967 to 1991. During his tenure, he acted in many capacities such as agent, attorney, realtor, investor, promoter and scout. Eagleson was also a key figure in the organization of the NHLPA and helped negotiate the first collective bargaining agreement in NHL history. Eagleson's multiple roles resulted in numerous conflict of interest disputes. At one point, five former players filed a RICO (Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. §1694) lawsuit against him and the NHL alleging that the NHL had maintained a collusive arrangement with Eagleson, pursuant to which Eagleson had abandoned the players' interests in collective bargaining in return for the NHL's facilitating of and acquiescence in his self-enriching schemes. [click here to read Third Circuit's opinion in Forbes v. Eagleson.

If the players' allegations were true, Eagleson and the NHL would have been guilty of violating section 302 of the Labor-Management Agreement Relations Act which prohibits employers from paying employee representatives and prohibits employee representatives from accepting payment from employers. (For more information about Alan Eagleson, I refer you to the recent book by Russ Conway entitled, "Game Misconduct: Alan Eagleson and the Corruption of Hockey").

Barnett's involvement with Gretzky may not be completely over. Sources say the NHL and the NHLPA will be asked to determine whether Barnett can handle other Gretzky business interests while remaining a player agent.

Nate Allen