Weekly Column: The New Middle Class in Sports Power

In this week’s column, California Sports Lawyer® CEO and Managing Attorney Jeremy M. Evans reflects on changes in sports management governance, power, and decision-making.

Delegation in management and leadership, when clearly defined and allowed to function without interference, is also why this new middle class of sports executives can navigate conflicts early.

You can read the full column below. (Past columns can be found, here).

Power in sports leadership has not disappeared, it has been reallocated. Owners of sports franchises remain highly visible in the press and on game days, but they are increasingly less determinative in how leagues and teams actually operate. There is now an emergence of a professional middle layer that controls process. The middle class in sports leadership and front offices is who controls franchises and processes.

The middle class of sports leadership consists of league executives, committee members, governance professionals, and outside advisors—often including investors—who collectively control process rather than perception. Power in decision-making in sports is more about structural influence versus public perspective or visuals. Sports executives are the power players behind the owners. This is not a new concept as delegation is common and preferred in leadership and business.

Delegation in management and leadership, when clearly defined and allowed to function without interference, is also why this new middle class of sports executives can navigate conflicts early. The collective bargaining process also helps, but it is the league rules, procedures, and approval process that resolves disputes before they can arise publicly. There is also a common theme in professional sports of mutually assured distribution (MAD). MAD was a Cold War-era strategic doctrine stressing that a full-scale nuclear attack by one superpower (United States or the former USSR) would trigger a, equivalent counterstrike, resulting in the total destruction of each other and the world. The point is simple: pushing labor disputes too far risks destroying the very economic ecosystem both sides depend on. Fans are also less inclined to weather the work stoppage storm as they have many options to keep them engaged (and distracted).

As new investors enter the sports space, it would be wise to manage expectations on influence. This is especially true for entertainment capital as dollars do not always equal influence. In most cases, dollars mean a return on the investment if profitable. Sports governance is more complex and far less flexible than entertainment studios, streamers, or creative content businesses. And remember, sports leagues are also consolidated into leagues so dealmaking is within a more confined space.

The middle class of sports executives control processes and decision-making without much fan faire. They rarely appear in the headlines and would take a search on LinkedIn to find them (if they have a profile). Their leverage increases precisely because their power is procedural, not performative. It is probably best that they come without a press release since decisions have to be made consistently, neutrally, and often with ultimate competitiveness in mind. You want someone unbiased by public opinion.

Understanding and finding success in sports and entertainment depends on understanding the middle-class sports executive and the power yielded. Strategically, owners, investors, and athletes need to be aware of the governing body and decision-makers. In many ways, the owners, investors, and athletes are deferring their power to sports executives as the new middle class grows. Again, in a competitive space, you want reasoned and evaluated opinions and the new middle class does that for now.

About Jeremy M. Evans:

Jeremy M. Evans is the Chief Entrepreneur Officer, Founder & Managing Attorney at California Sports Lawyer®, representing entertainment, media, and sports clients in contractual, intellectual property, and dealmaking matters. An award-winning attorney and industry leader, Evans is based in Los Angeles and Newport Beach, California. He can be reached at Jeremy@CSLlegal.com. www.CSLlegal.com.