Sport And Business Leadership. Are They The Same?

Sport and business leadership. Are they different? Sure, there are similarities between the two domains: each requires strong communication skills, strategic thinking and motivation of others. But there are significant differences.

Business leaders often focus on numbers and results, while sports leaders are mandated to inspire and create winning cultures.

Evidently, there is cross-pollination between the two domains. That said, each fosters a unique leadership approach. Consequently, sports leadership is typically more hands-on and emotional, while business leadership is often strategic and cerebral, according to research.

But are these two domains really that different? After all, both require goal-setting, teamwork, and a clear vision. Several key differences should be considered when debating the issue, observes Ian Mills, CEO of Transform Performance International. Mills, an expert on leadership development, believes that stakes are often higher in business than sport, thus making decision-making under pressure more difficult. For example, a CEO is typically responsible for the livelihoods of employees, while a sports leader’s primary concern is beating opposition. Business leaders deal with the possibility of financial losses, while sports leaders worry about injuries—these can not only end careers, but cause long-term health problems.

While the skills required for success in one field can often be transferred to the other, distinctions should be considered, concludes Vijay Pereira, editor, and Boria Majumdar, executive academic editor of the Sport in Society journal.

Both editors recently embarked on a large project involving researching and publishing the business of sport, including extensive coverage of the upcoming Paris 2024 Olympic games. They agree with Mills and subsequently believe that commercial settings are more competitive than sport because there is often more at stake regarding financial success within the former. Pereira and Majumdar conclude that sports leadership uses teamwork and communication more. For example, a basketball coach might need to give a halftime speech that inspires their team to come back and win the game. In contrast, a business leader might need to present the company’s growth plans to shareholders.

Each leader, regardless of domain, must find a style that works for them and their team, posits Pereira and Majumdar. They conclude that the traditional model of sport–an amateur pursuit–has given way to the modern model of professional sport, which is increasingly commercial: The business of sport is now a multi-billion dollar global industry. Thus, Pereira and Majumdar promote the term ‘sportainment’ when describing this fusion.

Sportainment is examined in Majumdar’s recently released title, Maverick Commissioner- The Lalit Modi Saga, which narrates the untold cricketing story of the Indian Premier League’s (IPL) founder Lalit Modi. Majumdar argues that Modi was not a maverick but a visionary who saw the potential for cricket to become a global commercial success. However, his lack of business acumen and understanding of the game’s politics meant that Modi could not sustain the growth of the IPL and eventually lost control of the tournament. Majumdar’s book is a timely reminder that cricket is not just a sport, but a business as well.

One primary area Pereira and Majumdar agree that business leadership is required in sport is negotiation. Evidently, the advent of satellite television and the internet has resulted in a boom in the broadcasting of sport. Consequently, the most prominent sporting organisations, such as the English Premier League (EPL), profit millions from selling television rights. To maximise their income, organisations such as the EPL must negotiate the best possible deals with broadcasters. This requires a high level of business acumen and negotiation skills, according to Pereira and Majumdar. Both academics also believe that such skills extend to the area of player contracts. To maximise their income, clubs need to be able to negotiate the best possible deals with players. This again requires a high level of business acumen and negotiation skills. These deals’ sheer scale means they are often worth billions of dollars. Paris Saint-Germain, for example, recently agreed to pay French soccer star Kylian Mbappé $250m over three years. His deal includes a big say in how the Parisian club is run.

In conclusion, there are many similarities between the domain of business and sport. However, there are also several key differences. Business leaders must be aware of these and tailor their approach accordingly.

The world of sport is a complex and ever-changing environment. As such, it requires a high level of business acumen and leadership skills to succeed. Ultimately, the best leaders are those who can adapt their style to the specific situation and context they find themselves in. And that means sometimes combining the best of both domains: the world of business and the world of sport.