Strong barriers to the business side of sports remain

Breaking through the systemic barriers in place for people of color on the mostly white business side of pro sports is a herculean task.

Why it matters: When often short-lived pro careers are over, many athletes are not welcomed into the established power structure within the sport. Instead, they face the lingering financial and physical tolls of retirement with sometimes limited earning potential as they make the transition.

Breaking through the systemic barriers in place for people of color on the mostly white business side of pro sports is a herculean task.

Why it matters: When often short-lived pro careers are over, many athletes are not welcomed into the established power structure within the sport. Instead, they face the lingering financial and physical tolls of retirement with sometimes limited earning potential as they make the transition.

Where it stands: The latest 2020 racial hiring report cards from The Institute for Diversity and Ethics in Sport show that despite an overwhelming majority of players being people of color, those numbers are nowhere near matched in coaching, management and senior administration — with the NFL having the furthest to go.

• “There should be serious concern in the consistent lack of representation of people of color within general manager and team CEO/President roles on NFL teams as representation at positions of influence is vital for improving racial and gender hiring practices within the League,” wrote Richard Lapchick, director of TIDES.

The big picture: A pro sports career can be broken into four end goals: playing, coaching, top-level management and ownership. Success on the field or court isn’t an easy way of “making it” to other levels.

• Yes, household names like Magic Johnson and Michael Jordan went from marquee NBA superstars to sports team owners and private sector moguls  — and LeBron James just became part-owner of the Boston Red Sox.
• But for the most, it is a difficult path from player to power broker.

Background: When Jackie Robinson became the first African American to play in Major League Baseball in 1947, he paved the way for racial integration in sports — NFL and NBA players are now 75.1% and 83.1%, respectively, people of color.

• However, the domino effect led to the destruction of the multimillion-dollar Black-owned and -run Negro Leagues, thanks to the MLB pilfering the talent pool, says Kenneth L. Shropshire, CEO of Global Sport Institute at Arizona State University.
• The impact has been felt for generations as minority-led groups have been shut out of ownership. Even Hall of Fame baseball player Reggie Jackson was repeatedly rebuffed on attempts to become an owner.

Fast-forward: A history of discrimination, coupled with a meteoric rise in team values, means people of color are still locked out of the opportunity to buy a team because of the tremendous racial wealth gap.

• Present-day teams are sold for $3-5 billion, a sum that precludes almost everyone aside from the predominantly white billionaire set, said Shropshire.

The impact: The lack of diversity at the top trickles down to hiring for senior management and coaching roles.

• The vast majority of NFL coaches are white even though coaches of color may boast better statistics, according to a Global Sport Institute analysis of hiring and firing trends.
• Despite a rule requiring teams to interview at least one diverse candidate for vacant head coaching positions, there are now three Black coaches in total — the same number as when the so-called Rooney Rule was implemented in 2003.
• And, more white head coaches are hired at a wider age range, and land jobs more frequently for senior positions after being fired, the report showed.

The bottom line: Progress has been made on representation of people of color in sports, but it has been uneven.

• “In some ways sports gets put out there as this great segment of society where merit allows you to be successful. Yes, on the field of play … but in terms of leadership and ownership — where dollars come into play — it is a much more difficult space,” said Shropshire.