Abstract
This Essay argues the power that stakeholders have in the operations and decision-making process in sports, the difference between stakeholder theory above shareholder primacy theory, the pros and cons of both theories in the sport corporation’s decision-making process; making the argument as to why more sport organizations should lean toward wider utilization of the stakeholder theory. Part I discusses what a stakeholder is, explains the differences between stakeholders and shareholders, identifies the categories of stakeholders and explains each group’s stake, and notes how decision-making in sports affects that stake. Part II expands on the shareholder primacy theory and the stakeholder theory. This Part recommends stakeholder theory over shareholder primacy theory as the most efficient theory to utilize when operating a team or league. Part III analyzes real-world instances where Major League Baseball (MLB), the National Football League (NFL), and the National Hockey League (NHL) activated the shareholder primacy theory and what the result would have been if stakeholder theory had instead been used.
Recommended Citation
Brumbeloe, Stewart
(2022)
"Who Really Runs Sports?: The Power of Stakeholders and Benefits of Stakeholder Theory in Sports,"
Florida Entertainment and Sports Law Review: Vol. 1:
Iss.
1, Article 4.
Available at:
https://scholarship.law.ufl.edu/feslr/vol1/iss1/4