What do you do when the coaches kid is clearly the worst player on the team? Can't keep up with the pace of the game. Do you bring it up to the owner? Surely, they must care about the quality of the product, right?
The owner knows, they just hope that people don't leave because of it, and as long as suckers stay or keep coming you will have teams with kids whose dad are coaches that don't belong !
This is rampant and has been going on for as long as hockey has been around.
This stuff eventually works itself out, but often times especially early, the coaches kid does get way more ice than the other kids, invited to tournaments he has no business being at and will often still be at the front of the line at the bench door even as his skills start to diminish and others begin to develop and pass him.
As owner said to me "he is a good coach and you can hide 1 kid through Pee wees". If the team is winning and other kids are coming to the team they are happy to keep a kid and sometimes two.... at the end of the day at those ages they are so young and most realize it does not really matter... That said, it is tough to watch and is the elephant in the room which is not great for the team moral and the poor kid as everyone knows it.