The Ontario Hockey League and Niagara IceDogs have reached a settlement with regard to the club's violation of player recruitment rules.

In a statement released by the League on Wednesday, the IceDogs acknowledged that it violated recruitment rules and it agreed to comply.

On Feb. 15, the OHL announced the IceDogs would lose $250,000 and two first-round selections. TSN Senior Correspondent Rick Westhead reports that the IceDogs had filed an application in Ontario Supreme Court asking a judge to push those penalties aside until a claim by a former player's allegedly unfulfilled contract could be heard in an arbitration hearing.

A law firm hired by the Ontario Hockey League concluded that the IceDogs breached the league's player recruitment rules by entering into a secret side deal with a former player.