Exploring the dynamics of governance: An examination of traditional governance and governance innovation in the United States professional sports leagues

Abstract

Leveraging governance structures: Shaping Power Relations and Decision-Making Processes within Organizations. While traditional governance approaches tend to favor hierarchical structures with concentrated authority, the growing demand for increased stakeholder engagement and empowerment has spurred the emergence of innovative governance models. This article examines traditional and evolving governance approaches in major United States professional sports leagues—the National Football League (NFL), Major League Baseball (MLB), National Basketball Association (NBA), and National Hockey League (NHL). Through a review of literature and governance documents, the traditional hierarchal models of the NFL and MLB are analyzed. Their incremental shifts toward more inclusive structures are also explored. In contrast, the NBA's adoption of a franchise model with decentralized authority and the NHL's establishment of a Players' Association are examined as examples of governance innovation. The impacts of these evolving approaches are considered in the context of league operations, labor relations, and overall stakeholder interest representation. This paper shows insights into the dynamics of governance change and the factors influencing shifts toward more collaborative and empowering structures within professional sports organizations.

Keywords

• Governance
• Professional sports
• Stakeholder engagement
• Inclusive decision-making
• Governance innovation