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Selected Issues of (Good) Governance in North American Professional Sports Leagues

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  • Nelson Morales

    (School of Kinesiology, University of Western Ontario, London, ON N6A 3K7, Canada)

  • Mathias Schubert

    (Department of Social Sciences, Media and Sport, Institute of Sport Science, Johannes Gutenberg-Universität Mainz, 55128 Mainz, Germany)

Abstract

In recent years, sport governing bodies (SGB) have been the subject of serious questions regarding their governance structures and decision-making processes. SGB that fail to implement regulatory mechanisms and to improve their governance structures and processes risk being confronted with severe ethically sensitive issues outside and inside the fields, which may eventually result in negative publicity and reduced demand (e.g., fans, sponsors) or financial support (e.g., from governments). This study examines selected regulations and practices of North American professional sports leagues in light of good governance principles. By adopting a qualitative research design, we investigate if there is a need for reforms to be employed by the leagues to comply with core dimensions of governance and thus reduce the risk of not being prepared to deal with ethically sensitive issues that may come up. Our critical analysis suggests that essential reforms need to be employed by the leagues to comply with core principles of good governance. In terms of democracy, professional leagues need to recognise stakeholder interests, implement innovative participation mechanisms, and apply diversity and inclusion policies for board composition. On transparency, it is required to publish internal regulations and financial information despite lax regulations on disclosure policies in the United States. Concerning accountability, professional leagues should separate their disciplinary and executive branches to avoid the concentration of power and potential conflict of interest in the relationship between the commissioner and team owners.

Suggested Citation

  • Nelson Morales & Mathias Schubert, 2022. "Selected Issues of (Good) Governance in North American Professional Sports Leagues," JRFM, MDPI, vol. 15(11), pages 1-17, November.
  • Handle: RePEc:gam:jjrfmx:v:15:y:2022:i:11:p:515-:d:963871
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    References listed on IDEAS

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    1. Michael McNamee & Scott Fleming, 2007. "Ethics Audits and Corporate Governance: The Case of Public Sector Sports Organizations," Journal of Business Ethics, Springer, vol. 73(4), pages 425-437, July.
    2. Stefan Szymanski, 2010. "The Economic Design of Sporting Contests," Palgrave Macmillan Books, in: The Comparative Economics of Sport, chapter 1, pages 1-78, Palgrave Macmillan.
    3. Neil Longley, 2013. "An Absence of Competition," Sports Economics, Management and Policy, Springer, edition 127, number 978-1-4614-9485-0, February.
    4. Flynn, Michael A & Gilbert, Richard J, 2001. "The Analysis of Professional Sports Leagues as Joint Ventures," Economic Journal, Royal Economic Society, vol. 111(469), pages 27-46, February.
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