Due to the previous seasons problems with fixture congestion it was decided not to have divisional playoffs this season. Each section of the league had to declare a champion before July 31.
Clubs and players
Sons of England signed 11 of the players that won the previous year’s Canadian national junior champions. Most of their players were in the 18-21 years old range.
Maple Leafs were strengthened with ten players from the defunct British Consols team. They were led by Adam Inch who had won international honors with the Scottish Schoolboy team.
Review of the season
The Western Division season was scheduled to open on Wednesday May 1 but the match between England United and Toronto Scottish was rained out. Instead the season opened on Sunday May 5 with England United meeting Hamilton City in Toronto and Ulster United meeting Stelco in Hamilton.
After 12 years as members of the league Maple Leafs qualified for their first Atholstan Cup Final. By beating Toronto Scottish 4-1 on Friday July 19 they clinched the championship of the western section and earned the right to meet the winners of the eastern section.
Carsteel won the Eastern Section with only the loss of one point during their league schedule.
After the season had finsihed the finances of the Toronto clubs were so poor that all four clubs planned a series of monthly dances to build up finances for the next season. The two Hamilton-clubs dropped out of the league and joined the Hamilton & District League.
Results and standings
Lord Atholstan Cup Finals
October 5, 1940 Maisonneuve Grounds, Montreal
Montreal Carsteel 3
Toronto Maple Leafs 2
October 6, 1940 Glen Yards Grounds, Montreal
Montreal Carsteel 2
Toronto Maple Leafs 1
Carsteel won the two-game total-goals series 5-2.