THIS STORY HAS BEEN FORMATTED FOR EASY PRINTING

NHLPA exodus continues

Interim director Penny is next to leave union

By Kevin Paul Dupont
Globe Staff / October 31, 2009

E-mail this article

Invalid E-mail address
Invalid E-mail address

Sending your article

Your article has been sent.

  • E-mail|
  • Print|
  • Reprints|
  • |
Text size +

Chaos inside National Hockey League Players’ Association headquarters in Toronto continued yesterday with the departure of Ian Penny, who in recent weeks filled the dual role of general counsel and interim executive director.

Penny, increasingly under fire since the suspicious and controversial firing of Paul Kelly as executive director Aug. 31, packed up not even three months after receiving a five-year, $3.5 million extension on his contract as legal counsel. He became the interim executive director at the start of September, immediately after Kelly was dismissed by the executive council in a 3 a.m. vote in a Chicago hotel room - a decision that sent shockwaves through the membership and now has the union in shambles.

Yesterday afternoon, a statement from the union office attempted to explain Penny’s sudden departure:

“Interim executive director Ian Penny informed the NHLPA staff and the NHLPA executive board earlier today that it is his position he has been constructively dismissed as interim executive director of the NHLPA and can no longer work in the present circumstances. Effective today, Ian Penny is no longer employed by the NHLPA.’’

The wording of the release is significant. It’s likely that Penny, by claiming he was constructively dismissed, will look to be compensated for the remainder of his contract. He was not fired, although he ran that risk, pending a review of the union’s operations that will begin soon under the aegis of a review committee headed by Bruins forward Mark Recchi, San Jose defenseman Rob Blake, Detroit defenseman Nicklas Lidstrom, and blue line legend Chris Chelios.

Formed less than two weeks ago, the committee revealed earlier this week that it would retain legal counsel to guide its response to Penny’s perception, which he outlined earlier this week in an e-mail to the executive board, that he had been constructively dismissed.

The night before Penny walked out, three members of the union’s advisory board resigned for reasons not yet made public. According to a source with direct connections to the union office, the resignees included Steve Larmer, Ron Lloyd, and Dan O’Neill.

The union also was rocked early yesterday with the resignation of Toronto attorney Paul Cavalluzzo, who for years represented the NHLPA in a variety of legal matters. According to a source familiar with the resignation, Cavalluzzo pulled out because of what he deemed “ethical considerations’’ that developed within the union in recent weeks.

Following the departure of the three advisory board members, then the resignation of Cavalluzzo, Penny departed the union offices, which are located within walking distance of the Air Canada Center, home to the Maple Leafs.

Upon learning of Penny’s decision, Rogers Sportsnet commentator Nick Kypreos alerted readers of sportsnet.ca that the union had suspended operations - a report dismissed as “inaccurate’’ by the NHLPA in the same statement it issued regarding Penny.

“The NHLPA staff continues to work very hard on behalf of the players in all areas of the Association’s business,’’ read the release, “and will continue to do so going forward.’’

But it begs the question, who is running what now appears to be a rudderless, sinking ship? Mike Ouellet last night was named the interim executive director. Ouellet was an NHLPA employee for a dozen years who most recently has directed the union’s department of business affairs. Roland Lee, the associate counsel, was promoted to interim general counsel.

Kelly last night was home in Needham, refusing to comment, no doubt eager to learn whether the union intends to pay him the $1.9 million remaining on his contract. Penny is out, no doubt soon to claim he is due full payment on the contract extension he received as general counsel in June.

Amid the turmoil, there remains at least the theoretical chance that Kelly, the former federal prosecutor who paved Alan Eagleson’s path to jail for crimes against the NHLPA, could be restored as the executive director. It certainly would be the quickest, most efficient fix. It also likely would trigger a long-needed total overhaul of the office that now counts executive directors Bob Goodenow, Ted Saskin, Kelly, and Penny as former employees.

Kevin Paul Dupont can be reached at dupont@globe.com.

Bruins player search

Find the latest stats and news on:
 

Tweets on the Bruins

Check out what everyone on Twitter is saying about the Bruins.   (Note: Content is unmoderated and may contain expletives)

Bruins audio and video

Bruins-related multimedia from around the web.