Charged 2018 WJC player Alex Formenton involved in a massive lawsuit of over $20 million

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Daniel Lucente
November 1, 2024 (6:28 PM)

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Alex Formenton has been in the news for all the wrong reasons over the last two to three years, and once again, he's made headlines involving a massive lawsuit.

Former Ottawa Senators forward Alex Formenton filed a lawsuit against his former agent, Wade Arnott, and Newport Sports Management Inc., over financial losses he incurred allegedly due to the agent's mismanagement. With a career still on the rise with the Senators at the time, Formenton is now asking for damages due to lost earnings he blames on his agent.

Formenton, along with four other players, was investigated by police in London, Ontario, due to an alleged incident. Per Kate Dubinski of CBC, Formenton has begun constructing buildings in Ontario since leaving his career in the NHL. This massive career shift comes after Formenton didn't take to the ice during the 2022-23 and 2023-24 seasons, something he says was because of his agent's negligence and mishandling of contract negotiations.

According to Rick Westhead of TSN, Formenton is seeking $20 million in damages, plus an additional $500,000 in punitive damages. Counts of negligence, breach of contract, and breach of fiduciary duty are levied against Arnott and Newport Sports Management Inc. in a complaint that Formenton was undermined in his possible NHL career by his agent mismanaging his affairs and not looking out for his interests.

In the lawsuit, Formenton cites that he wasn't offered a contract after the 2021-22 season in which he scored 18 goals and 32 points in 79 games. He blames this on the poor handling of his career by Arnott, including advising him against signing a $787,500 qualifying offer that would have kept him in the NHL. The advice reportedly caused Formenton to miss the deadline and made him not eligible for the 2022-23 season.

The lawsuit demonstrates the complexities in Alex Formenton's career trajectory and how severe this could be based on his agent's alleged actions. This also underlines the challenges athletes may face when they trust agents to handle their careers. If Formenton's case prevails, it would most likely bring into light the critical role of fiduciary duty in sports management and probably set a precedent for accountability in the industry.