Pondering if You're Ready to Join a Sporting Club?
Dreaming of working for a professional sports team? Well, the reality might not shine as bright as your fantasy. Let's cut to the chase: those powerful, iconic entities you see like the NFL, MLB, NBA, NHL, MLS, WNBA, and NWSL are not your typical public companies. These private playgrounds boast hidden financial dealings, gossamer transparency, and absent regulations.
While publicly traded companies are subject to a panoply of federal laws and fiercely scrutinized, these sports giants operate in a vacuum, unlike their brethren in the stock market. Instead of being overseen by a BOARD of independent directors, their closeted owners (with a few exceptions, like the Green Bay Packers, Atlanta Braves, and Maple Leaf Sports & Entertainment) continue to skate through the shadows.
The supposition that these controlling bosses might act beyond the boundaries of best practices and legality is hardly far-fetched, given the hefty pile of scandals that have splattered the sports world. Dan Snyder – once the owner of the Washington Redskins and, more recently, the Football Team - was rumored to engage in financial improprieties and alleged sexual harassment. Zygi Wilf, whose portfolio includes the Minnesota Vikings and Orlando SC, was found guilty of civil fraud and required to dish out a whopping $84.5 million. Jimmy Haslam, the owner of the Cleveland Browns and Columbus Crew, was nearly caught in a criminal fraud web that cost his organization about $177 million in settlements and penalties.
The NBA has experienced its fair share of controversies, too. In 2022, Robert Sarver was compelled to sell the Phoenix Suns due to revelations of a racist and sexually hostile work environment. The Dallas Mavericks, previously accused of creating a similarly untenable workplace, had their dirty laundry aired in 2018. Even the NWSL, the women's league that promises reform, has continued to face accusations of hostile work environments at teams like the San Diego Wave and Bay FC.
In the absence of public disclosures and stringent regulatory oversight, the sports world remains shrouded in mystery, leaving aspirants to contemplate whether they're ready to dabble in such gray waters. The role of a team's internal legal counsel may offer a protective barrier, as they're expected to advocate for the company's best interests. However, their ethical obligation to flag irregularities can put them in a precarious position, particularly when the organization's highest hierarch is the culprit. And if the head honcho decides to relieve them of their duties for raising their concerns, they're sworn to secrecy about the reasons for their dismissal (unless exceptional circumstances arise).
Moving beyond the dark underbelly, let's discuss the humdrum aspects of employment – salary and hours. Glenn Wong, an expert on the sports industry, points out that positions in the sports realm are fiercely competitive, resulting in lower pay compared to other industries. Paychecks often lag behind their non-sports counterparts by as much as 25%. Working hours, too, prove lengthier, encompassing late nights, weekends, and holidays, all in the name of being part of the magic that sports create.
Recent changes in league procedures might bring a glimmer of hope. Skyrocketing team values (the average NFL team is estimated to be worth $5.93 billion, while an MLS club hovers around $678 million) have prompted leagues to redesign their ownership rules, welcoming investments from private equity firms. With strict rules governing these investments, the aim is to safeguard against financial dominance that might compromise team performance or community engagement.
Their diligent approach could breathe new life into long-standing teams, scrutinizing operations, rooting out inefficiencies, and pushing for sound management practices. Perhaps these financial titans can bring the sports industry closer to the transparency and accountability we long for.
- In the unregulated realm of sports law, in-house counsel of sports teams, like Glenn Wong, face an ethical dilemma when they must balance their obligation to flag irregularities with the potential risk of dismissal, especially when the organization's highest authorities are involved in questionable activities.
- The sports industry, despite its glamorous facade, offers lower pay compared to other sectors and longer working hours, stretching beyond regular business hours and into nights, weekends, and holidays.
- The sports world, often riddled with scandals involving powerful figures such as Dan Snyder, Robert Sarver, and Jimmy Haslam, has reportedly been alluding to changes, with private equity firms being increasingly welcomed as investors due to stricter rules governing their investments for the sake of transparency and accountability, as exhibited by skyrocketing team values in leagues like the NFL and MLS.
