Reference: Rule 2202, 2203, 2205
Revised date: October 3, 2009
The purpose of this policy is to set forth the terms and conditions on which skaters and synchronized skating teams (referred to herein individually as a “Skater” and collectively as “Skaters”) may earn and receive money, product and/or service (any of which being referred to herein as “Compensation”) while protecting their eligibility to compete in Skate Canada, international, ISU and Olympic competitions. In accordance with Skate Canada and ISU Rules and Regulations, any Skater receiving Compensation in violation of this policy shall be ineligible to compete in Skate Canada, international, ISU, and Olympic competitions.
2.0 THE ROLE OF SKATE CANADA
Skate Canada acts to protect the eligibility and future marketability of Skaters as well as the marketability of Skate Canada. Skate Canada invests heavily in its skater development and international teams and much of that investment is possible due to an active sponsorship program. This policy balances the interests of Skate Canada and the interests of Skaters in allowing Skaters to seek Compensation subject to the limitations contained in this policy which are to protect the current and future sponsorship programs undertaken by Skate Canada.
“Administration Fee” means a fee of 5% (exclusive of all taxes) of the gross amount of all Prize Money earned by a Skater.
“Approved Funding Body” means any entity or group that provides direct or indirect funding (for example, directly paying training costs would be an example of indirect funding) to a Skater that has been approved by the Skate Canada CEO. In considering whether to approve any such entity, the Skate Canada CEO shall be entitled to consider all relevant factors, including any requirements on the participating Skater, any terms and conditions to be imposed on the participating Skater by such entity and whether the funding duplicates funding or programs provided or coordinated by Skate Canada. In addition, the Skate Canada CEO shall be entitled to impose conditions on any such entity as a condition of approval, including, without limitation requiring that details of all funding provided by the funding entity be disclosed to Skate Canada on a timely basis. Any failure to comply with such conditions shall entitle the Skate Canada CEO to withdraw approval and the entity will immediately upon such withdrawal cease to be an Approved Funding Body.
“Compensation” has the meaning set for in section 1 above.
“Donations” means a gift of money, service or product in kind, where the Skater does not lend their name, image or likeness and is not required or expected to perform any service or make any personal appearances or performances in return.
“Eligible Compensation Sources” means Sponsorship Arrangements, Performances, Prize Money, Skating Instruction, Test Partnering and Donations.
“ISU” means the International Skating Union.
“Performances” means any participation in any capacity by a Skater in a skating show (live, televised or otherwise recorded), carnival, exhibition or competition, including, without limitation, participation on ice or in any off-ice or official capacity.
“Potential Skate Canada Sponsor” means a prospective sponsor of Skate Canada in respect of which Skate Canada has made a proposal for sponsorship or is in discussions or negotiations in respect of a sponsorship arrangement and where Skate Canada believes in good faith that a sponsorship arrangement with such Potential Skate Canada Sponsor is reasonably likely.
“Prize Money” means all compensation received by a Skater as a result of the Skater’s participation in a competition or ISU event, including, without limitation, all international and ISU competitions and exhibitions.
“Skate Canada Sponsor” means any entity with which Skate Canada has a sponsorship arrangement or relationship.
“Skater’s Trust Fund” means a trust fund established by a Skater.
“Skating Instruction” means providing any skating instruction to any person, including, without limitation, choreography, lessons and seminars.
“Sponsorship Arrangements” means any arrangements pursuant to which a Skater receives compensation for the use of their name, image, likeness, footage, picture or personal appearance to advertise commercial products, services or enterprises.
“Test Partnering” means providing partnering services to other skaters to assist such other skaters in participating in the Skate Canada test program as set out in Skate Canada’s rules and regulations from time to time.
4.0 ELIGIBLE COMPENSATION SOURCES
A Skater may receive compensation from Eligible Compensation Sources provided a Skater adheres to the guidelines as set out in this document.
5.1 SPONSORSHIP ARRANGEMENTS: Skaters may seek and enter into Sponsorship Arrangements subject to the following terms and conditions:
- all proposed Sponsorship Arrangements must receive the prior written approval of Skate Canada. In order to obtain such approval, the Skater must provide Skate Canada with the terms and conditions of the proposed Sponsorship Arrangement together with all documentation relating to such proposed Sponsorship Arrangement, including, without limitation, any draft agreement or proposal letter. Skate Canada reserves the right to reject sponsorship agreements that could reasonably be expected to adversely affect Skate Canada’s national sponsorship program (Rule 2205(1)(a)). Skate Canada shall act reasonably in this regard and shall in most circumstances approve the proposed Sponsorship Arrangement provided that:
- the proposed Sponsorship Arrangement is not with an entity that competes with an existing Skate Canada Sponsor or Potential Skate Canada Sponsor; or
- the proposed Sponsorship Arrangement is not with respect to goods and products that are included in a sponsorship category of an existing Skate Canada Sponsor or Potential Skate Canada Sponsor.
- all Sponsorship Arrangements must include an acknowledgement by the sponsor that the Skater may be required to appear or lend their name and likeness to an Skate Canada Sponsor that competes with such sponsor. The purpose of this clause is to address situations where the Skate Canada Sponsor enters into a sponsorship arrangement with Skate Canada subsequent to a Sponsorship Arrangement. Skate Canada acknowledges that it shall not be entitled to require the Skater to terminate the Sponsorship Arrangement in such circumstances and shall only require the Skater to appear or lend their likeness to the Skate Canada Sponsor in accordance with the limitations set forth in the then current Skate Canada Athlete Agreement.
- Skaters must abide by all Skate Canada rules and policies and ISU Rule 102.5 regarding the display of advertising in qualifying events leading up to and including the Canadian, International, ISU and Olympic Championship regulations. Skaters must expressly inform prospective sponsors, prior to entering a Sponsorship Arrangement, of the limitations to displaying of advertising as mentioned above and the prospective sponsors must acknowledge in writing to Skate Canada that they will abide by all such regulations.
5.2 PERFORMANCES/APPEARANCES: All Performances by a Skater must receive the prior sanction of Skate Canada regardless of whether any compensation is received by the Skater. Skaters performing/ appearing without a sanction may be declared ineligible. Skaters should also refer to the ISU rules and regulations with respect to eligibility as non-compliance with such rules and regulations may result in loss of eligibility. Skate Canada strongly encourages Skaters to confirm with the Skate Canada National Office as to whether a competition, exhibition or show has obtained appropriate sanctions. Sanctions issued by Skate Canada shall be obtained as follows:
- Any Performance by a Skater who is a member of the Skate Canada National Team must receive the prior written approval of Skate Canada which must be issued by the Skate Canada National Office;
- Any Performance in a competition, exhibition, or carnival, above Section level and outside the geographic boundaries of the Section, must receive the prior written approval of the Skate Canada National Office; and
- A sanction may be issued on behalf of Skate Canada by a Section Chair for skating competitions, events or activities within the geographical boundaries of the Section that are organized by the Section or a Skate Canada club within the Section that comply in all respects with Skate Canada rules, regulations and policies.
Performances specifically does not include performances by a Skater during an international or ISU event (for example, the gala at a Grand Prix or ISU Championship). All compensation from such performances shall constitute Prize Money and be dealt with in accordance with the provisions with respect to Prize Money contained in this policy.
5.3 COMPETITIONS - OFFICIAL PRIZE MONEY: All competitions for which a Skater may receive Prize Money must be sanctioned by Skate Canada for domestic competitions and by the ISU or another ISU member through Skate Canada for international competitions. In accordance with ISU rules and regulations, all Prize Money earned by a Skater must be remitted to Skate Canada by the ISU or organizing committee, as applicable. All such Prize Money, net of the Administration Fee, withholding taxes and banking fees and charges shall be disbursed by Skate Canada in accordance with the provisions of this policy.
5.4 SKATING INSTRUCTION: A Skater may provide Skating Instruction subject to compliance by the Skater with all coaching requirements contained in Skate Canada rules, regulations and policies, including, without limitation, the requirements that all persons providing Skating Instruction have appropriate certification and insurance and that such persons are properly registered as a coach with Skate Canada.
5.5 DONATIONS: A Skater may accept a Donation provided that if a Donation is directed to a specific Skater, no charitable donation receipt can be issued to the person or entity making the Donation by Skate Canada.
5.6 TEST PARTNERING: A Skater may receive Compensation for performing Test Partnering services subject to compliance at all times with all Skate Canada rules, regulations and policies.
5.7 NON-COMPLIANCE: Failure by a Skater to comply with these guidelines will result in the Skater becoming ineligible to participate in any Skate Canada, international or ISU competition or event. Notwithstanding the foregoing, in the case of non-compliance by a Skater with any of the terms and conditions in this policy, such non-compliance may be waived by the Skate Canada CEO where:
- all information with respect to the non-compliance has been provided to the Skate Canada CEO;
- in the sole and final opinion of the Skate Canada CEO, either (A) such non-compliance is minor in nature; or (B) the Skater and any third party involved in the non-compliance (such as a sponsor of the Skater) take corrective actions that result in the non-compliance being minor in nature; and
- the Skater agrees to any reasonable requirements of the Skate Canada CEO with respect to the non-compliance.
An example of such a situation would be a failure to provide the information required by this policy but where the actions by the Skater have not otherwise violated the terms and conditions of this policy.
In the case of any non-compliance by a Skater with the guidelines that is not minor in nature, as stated above, the Skater will be ineligible to participate in any Skate Canada, international or ISU event. Should the Skater wish to be re-instated, they must comply with the re-instatement provisions as set forth in the Skate Canada rules and regulations.
6.0 DISBURSEMENT OF SKATER COMPENSATION
The skater has the option to receive payment from Eligible Compensation Sources either: (i) directly; or (ii) into a Skater’s Trust Fund.
7.0 TAXATION RESPONSIBILITIES
7.1 WHEN INCOME IS TAXED: In general, when a Skater receives Compensation directly (whether flowed through Skate Canada or directly from another source), the Compensation is subject to government tax in the year it is earned and when a Skater directs compensation into a Skater’s Trust Fund, it only becomes taxable to the Skater in the year it is actually withdrawn from the Skater’s Trust Fund.
7.2 T4A TAX SLIP: At the end of each calendar year, Skate Canada will issue to the Skater, a T4A Income Tax Slip (Statement of Earnings) reporting the amounts paid directly to the Skater net of bank charges, the Administration Fee and other such charges. Where amounts are paid by Skate Canada directly to a Skater’s Trust Fund, no income tax slips are issued by Skate Canada.
7.3 REPORTING OF INCOME: It is the responsibility of the Skater each year to report to all applicable taxation authorities all sources of income. Skate Canada has no obligations or liabilities in this regard. Without limitation, a Skater with a Skater’s Trust Fund is responsible for all filings, notices, reporting and taxes relating to such Skater’s Trust Fund. Please consult all applicable taxation authorities for more information on reporting your income and the expenses that can be claimed against such income or seek professional assistance.
7.4 FOREIGN TAXES PAID: It should be noted that the amount received by Skate Canada in respect of Prize Money related to competitions held outside of Canada is generally net of foreign income taxes and other related fees. Skate Canada does not receive this foreign tax and therefore is not in a position to report this amount. It is therefore very important that the Skater consult professional assistance in the preparation of his/her tax return.
8.0 GRANTS, BURSARIES, AWARDS
Grants, bursaries, awards, etc., from Skate Canada, Skate Canada member organizations, family members, Canadian government entities or any Approved Funding Body may be accepted directly by a Skater. It is the Skater’s responsibility to ensure compliance with all applicable laws in respect of any such monies or support.
9.0 PAYMENT PROCEDURES
Instructions for payment of funds must be made in writing and signed in original form by the Skater. If the Skater is a minor, the Skater’s signature is accompanied by the signature of a parent or legal guardian. The instructions will specify whether the funds are to be payable directly to the Skater or to a Skater’s Trust Fund and funds will be forwarded to the Skater by way of cheque or electronic funds transfer as directed by the Skater (minus applicable banking fees).
Payment instructions by email will be accepted provided that the Skater, and where the Skater is a minor, the Skater’s parent or legal guardian executes an “Electronic Authority and Release” form pursuant to which the Skater consents to Skate Canada releasing funds against an email request and further the Skater releases Skate Canada from any liabilities as a result of following such email request.
10.0 TRANSITION PROVISIONS
Prior to the approval of this policy, Skate Canada maintained trust accounts on behalf of Skaters. While this practice will be discontinued from this date forward, all existing skater trust accounts maintained by Skate Canada will be maintained in accordance with the provisions of Article 9 of the Skater Trust Program Guidelines effective January 1, 1997. All such existing skater trust accounts shall terminate in accordance with such Article 9 or where required to terminate in accordance with applicable law.
11.0 FORMS AND INQUIRIES
All inquiries with respect to this policy may be directed to:
Director High Performance, Skate Canada, 865 Shefford Road, Ottawa, ON K1J 1H9
Tel: (613) 747-1007 or 1-888-747-2372
Fax: (613) 748-5718 or 1-877-211-2372