Hockey Canada loses round one of its jersey fight with the IIHF

Hockey Canada went to court to control who makes its sweater, and it walked out with a 30-day appeal window and not much else. On Tuesday, a Swiss court threw out the request from Hockey Canada and USA Hockey and lifted the temporary orders that had tied the IIHF's hands since May.

The federations picked a fight over apparel with the body that runs their favorite tournaments, and round one went the way it looked like it would.

What happened

The fight is over the IIHF's deal with TRUE Hockey, the Brantford, Ont., manufacturer owned by Graeme Roustan. That deal covers IIHF events except the Olympics and the men's and women's world championships. It does include the World Juniors, the one tournament Canadians treat like a national holiday.

Hockey Canada has its own long-term partner in Bauer, with an extension announced last December. It argued that it, not the IIHF, should decide what Team Canada wears and sells. A Zurich court sided with it on a temporary basis in May.

That's over now. The court found the IIHF's rules give it broad commercial rights at its own events, uniform supply included. It also found the TRUE deal isn't materially different from the IIHF's old Nike arrangement.

USA Hockey joined the challenge and lost with it. The amount in dispute is 21.2 million Swiss francs, a little over C$36 million.

Why it matters

Follow the money and the federations' case looks thinner. The TRUE agreement sends 15 per cent of revenue back to member associations, Hockey Canada included. This was never about whether Hockey Canada gets paid. It's about whose supplier gets the sweater and whose contract gets honored.

Hockey Canada isn't conceding. "No ruling has been made on the merits of this matter," it said, adding it will "continue to evaluate all options to ensure Hockey Canada has the sole discretion."

That's accurate. It's also the sound of a federation that just lost the part of the case that matters this winter.

The Ferda take

Appeal if you want, but the smart move is to settle. Hockey Canada and USA Hockey need the IIHF far more than they need control of a replica-jersey contract.

A long legal war with the body that runs the World Juniors and the Worlds is a bad trade for a merch margin, and the IIHF holds the stronger hand. A court just said so.

Our call: nothing changes before Boxing Day. Whatever Canada wears at the World Juniors this winter, the IIHF has the final say on who makes it.