The opinion of the court was delivered by: Shadur, Senior District Judge.
MEMORANDUM OPINION AND ORDER
Johnny's Icehouse, Inc., Johnny's Chicago Chill Girls Hockey
Club, 16 members of the Johnny's Chicago Chill Girls Hockey 15
and Under Team, their parents and their coach (collectively
"Johnny's Icehouse") have asserted a number of claims against
Amateur Hockey Association of Illinois, Inc. ("AHAI"), its
directors (Richard Becker, Jay Cohen, Mike LeBarre, Kevin Mann
and Bob Saliba), Central District Representative to USA Hockey
Norman Spiegel and Advanced Arenas Inc. In brief the Complaint
alleges that defendants discriminated on the basis of sex in the
administration and promotion of amateur hockey in Illinois,
engaged in monopolistic and anti-competitive behavior, breached
their contracts with plaintiffs, engaged in self-dealing and
conspired to commit those acts in violation of state and federal
AHAI and its cohorts (for convenience referred to here
collectively as "AHAI," treated as a singular noun) have moved to
dismiss Complaint Count I, which charges it with violating Title
IX of the Education Amendments of 1972, 20 U.S.C. § 1681-1683
("Title IX"). According to AHAI it is not subject to Title IX
because it is not a recipient of federal funds. Both sides'
counsel have addressed that issue in their respective
memoranda.*fn1 For the reasons set out in this memorandum
opinion and order, AHAI's motion is granted in a limited
Because AHAI labels its motion as brought under Fed.R.Civ.P.
("Rule") 12(b)(6), this Court accepts the Complaint's
well-pleaded factual allegations as true, while also drawing all
reasonable inferences in Johnny's Icehouse's favor (Sherwin
Manor Nursing Ctr., Inc. v. McAuliffe, 37 F.3d 1216, 1219 (7th
Cir. 1994)). Under Rule 12(b)(6) no claim will be dismissed
unless "it is clear that no relief could be granted under any set
of facts that could be proved consistent with the allegations"
(Hishon v. King & Spalding, 467 U.S. 69, 73, 104 S.Ct. 2229, 81
L.Ed.2d 59 (1984), quoting Conley v. Gibson, 355 U.S. 41,
45-46, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957)).
AHAI is an Illinois not-for-profit corporation qualified for
federal tax exemption under 26 U.S.C. § 501(c)(3) ("Section
501(c)(3)") (¶ 9). AHAI was founded in 1975 as a sanctioned
affiliate of USA Hockey, Inc. ("USA Hockey"), which has been
appointed by Congress pursuant to the Amateur Sports Act as the
national governing body for the sport of United States amateur
hockey (¶ 37).
AHAI's mission is to promote and expand amateur hockey in
Illinois. To further that mission AHAI sponsors tournaments,
provides clinics for players and coaches, facilitates college
scholarship assistance to deserving players and establishes a
code of ethics applicable to all member teams (¶ 41). Virtually
every organized amateur hockey team and virtually every high
school hockey team in Illinois is a member of AHAI. Each member
team is subject to AHAI's By-Laws and Rules and Regulations (¶
42). There are no other amateur hockey associations in Illinois
For high school teams AHAI has established a special committee
to establish exclusively applicable rules and procedures,
including rules for eligibility, competition and coaching
certification (¶¶ 39, 42, 43). AHAI has the authority to impose
discipline on any high school player, coach or team for any rule
infraction (¶ 42). AHAI's High School Committee also organizes
all high school related tournaments, including the state
tournament (¶ 42).
Each hockey team and its players and coaches pay membership
fees to AHAI (¶ 49). Members are also required to be registered
with and to purchase insurance through USA Hockey (¶ 75). AHAI
reserves the right to void any AHAI member's insurance if that
member plays in a game or tournament that includes another team
that is not registered with and has not purchased insurance
through USA Hockey (¶ 76).
Johnny's Icehouse, Inc. is an Illinois corporation that
operates a state-of-the-art hockey arena just west of downtown
Chicago (¶ 17). Johnny's Chicago Chill Girls Hockey Club consists
of two teams: a 19 and Under team and a 15 and Under team. Both
teams play out of the Johnny's Icehouse arena. Johnny's Chicago
Chill Girls Hockey Club is a member of AHAI, as are each of the
16 members on its 15 and Under team and its coach (¶¶ 18, 35).
AHAI divides the boys' league into three tiers of
competitiveness. Tier I (also referred to as the AAA tier) is the
most competitive, Tier II is a less competitive level that
includes travel teams and Tier III is the developmental or
recreational level composed of house leagues (¶ 47).
AHAI organizes girls' hockey differently. It has authorized two
teams — Team Illinois and the Chicago Young Americans — to play
at the most competitive level of the Central States Girls Hockey
League (¶ 48). Girls who do not make one of those two teams may
play for one of the few all-girls house league teams or may try
out for a boys' team (id.). Team Illinois and the Chicago Young
Americans used to be designated as AAA teams, but AHAI
purportedly eliminated the AAA/Tier I designation for Illinois
girls' hockey teams in July 2000 (id.). Earlier in 2000
Johnny's Chicago Chill 15 and Under team had petitioned AHAI to
play in the Central States Girls Hockey League at the AAA level.
Although the team has performed successfully against other AAA
teams, AHAI voted not to admit Johnny's Chicago Chill 15 and
Under team as a AAA team (¶¶ 62, 64).
For Illinois boy skaters, AHAI has expanded house leagues and
sponsored youth tournaments, Learn-to-Skate programs and college
nights and has in other ways promoted recreational and
competitive hockey, but it has done comparatively little to
promote and expand hockey opportunities for girls (¶¶ 54, 55,
57). As a result the number of girls' hockey teams sponsored,
promoted or encouraged by AHAI is less than 1% of the number of
boys' teams (¶ 57). In addition, by contrast with AHAI's formal
adoption of By-Laws regulating boys' hockey, it has issued only
Rules and Regulations for girls' hockey, a procedure that allowed
AHAI to ...