The Blade

Our enjoyment for playing and watching sports has created seriously flawed business models. Beware of these scams under the guise of “nonprofit” operations, which earn executives millions.

Here they are:

Big-time college sports: A few years ago, ESPN paid $7.3 billion over 12 years to broadcast seven college football games per year. Meanwhile, Ohio State’s football players were penalized for trading their practice jerseys for tattoos. (Oh –  but as part of their “punishment,” they were permitted to play in the national championship game; otherwise, sponsors would have been livid. Good thinking, NCAA.) The typical big college sport program collects more than $100 million per year in revenue, and “student” athletes don’t get any of it.  Wealthy back-slapping types (suckers, really) donate millions of dollars so they can brag, “My team is better than your team.” Meanwhile, NCAA executives, coaches, university sports administrators, and media executives enjoy fat salaries. The contradictions are comical. This is a scam that needs disruption.

National sports organizations: Twice each year, I and 300,000 other people pay the United States Tennis Association (USTA) $40 to play in our local tennis leagues. Why do we need a national organization to help administer a hometown men’s tennis league? We don’t. We already have plenty of tennis competition at our local clubs. The USTA maintains it administers “ratings” on all its member players so players can compare themselves to others and compete with players of their own skill-level. Really? Why doesn’t each club just maintain a tennis “ladder” instead? Meanwhile, USTA executives earn millions. There are plenty of other sports organizations like the USTA such as in golf and soccer. This is a scam that needs disruption.

Over-the-top youth sports: Where do I even begin? Why do millions of parents strive to set up their kids for a chance at landing a college scholarship or going pro? Ninety-nine percent of them won’t succeed. Of course, a few kids are phenomenal and love their sport enough to really go for it – and I have no problem with those kids’ pursuit. But most youth and their parents are just playing along – cogs in the money-making machine. Youth soccer is the best (or worst) example of this. In an effort to build the next World Cup-winning team, the United States Soccer Federation herds youth players through all sorts of programs (challenge leagues, classic leagues, “academy” leagues). You wouldn’t believe how much the “executives” managing these sports leagues earn. They essentially use these kids like “deal flow” and lead generation machines to find the next superstars for their own financial benefit. This is a scam that needs disruption.

My point is that perhaps we should stop falling for these sports “nonprofit” scams. Instead, go build a legit business model by starting organizations that disrupt the sports industry.