Major financial backer cuts ties with CWHL

Venture capitalist Graeme Roustan says he has lost faith in league Graeme Roustan had been a supporter of the CWHL for more than a decade.

Graeme Roustan, a venture capitalist and one of the biggest fundraisers for the Canadian Women’s Hockey League, has cut ties with league, citing a lack of faith in the new leadership while questioning their handling of expenses.

Roustan told the Star he got fed up with the league’s new leadership when he was denied access to how the not-for-profit association approved its expenses.

“I requested detailed financial information regarding expenses incurred by the executive committee, specifically, but all directors of the CWHL,” said Roustan, a governor and board member. “For the first time, they rejected my request and refused to provide me with the detailed financial information on director expenditures and reimbursements.”

He said it was the first time in his 11-year association with the league such a request was denied.

“I have no faith in the current chair and vice-chair of the CWHL,” he said. “I had no choice but to resign as a member, and withdraw all financial support of the CWHL.”

Laurel Walzak, who replaced Brad Morris after he stepped down as board chair of the league’s executive committee a year ago, confirmed Wednesday that Roustan resigned Monday on the eve of the league’s annual general meeting. “Mr. Roustan’s comments with respect to the refusal of the association to provide any highly detailed information to him in advance of the AGM provides a small, one-sided view of a much larger governance issue between Mr. Roustan and the association,” Walzak said. “It’s regrettable that the differences of opinion between the association and Mr. Roustan has led to his resignation but we’re not going to get into the specifics of his opinion.”

The league operates on a budget of about $3 million a year from revenues, fundraising drives and sponsorships. It includes travel and accommodation among the cities, including the team in China. Players mostly earn between $2,000 and $10,000 a season with the teams’ payrolls capped at $100,000.

It’s not exactly a bloodletting — more like a slow bleed — but the CWHL has seen a dozen key donors and executives exit over the past 18 months.

Commissioner Brenda Andruss, who brought the lucrative Chinese market into the league, resigned in the spring, replaced on an interim basis by Hall of Famer and former CWHL player Jayna Hefford.

Other well-heeled and wellconnected governors who have resigned include former Maple Leafs president Brian Burke, former Olympian Cassie Campbell-Pascall, executive director of the Maple Leaf Sports and Entertainment Foundation Michael Bartlett, businesswoman Arlene Dickinson and philanthropist Sandi Treliving.

Another five at the director level also left.

Walzak said she would not comment on why so many have left. She did says the result is a new board and a new direction.

The names of the new board members were not available on the league’s website. Walzak promised a news release was forthcoming.

Roustan — who began his involvement when he was chairman of Bauer — said the money he used to give the CWHL will now go support women’s hockey in other ways. Roustan owns Roustan Media, which publishes the Hockey News.

“It is my believe the leadership is not practising best practices when it come to corporate governance,” Roustan said.

Roustan told the Star he sent a letter to Hefford and Mike Strickland, the CWHL general counsel, asking for legal and travel expenses for each director, member and employee.”

Roustan was shut out after asking for any records pertaining to directors’ expenses to determine the possibility league funds covered the cost of a trip taken to China, and whether the league had also improperly paid any legal fees of any director.

Walzak said the trip was approved by the board, which felt it “was right to honour a specific relationship we have in China for our business.”