Lessons from Sports for the C-Suite

Written by Kenneth L. Shropshire

Would the CEO equivalent of New Orleans Saints head football coach Sean Payton or University of Central Florida head football coach George O’Leary be hired by corporate America following their respective ethical short falls? Payton was implicated in his team’s bounty program and O’Leary lost the opportunity to coach at Notre Dame when inaccuracies in his resume were assailed. Similarly, would the accusations of past physical and mental abuse against student athletes by Rutgers Athletic Director Julie Hermann be overlooked?

All three sports leaders received second chances following alleged ethical violations: Payton staying where he was, following his punishment and O’Leary and Hermann landing at other institutions. There are many talented people in sports, from players to coaches and executives, who have gotten in trouble, and are seeking and sometimes given another opportunity. What role should the talent of the violator play in our hiring decisions? And when does talent cause us to look beyond ethical violations? It has been said in various forms that the best predictor for future performance by talent is past performance. However, we often seem to forget that past performance includes the negative past as well as the positive.

In my classes at Wharton whether focused on law, ethics or leadership, I always talk about the business lessons to be learned from sports. There are many traditional lessons. First, teamwork: …there is no “I” in team. Michael Jordan of course took that a step further, “There is no “I” in team but there is in win.” Next, leadership. Most of us are aware of the obvious leadership lessons like Vince “Lombardiisms, such as“…winning isn’t everything it is the only thing…” or John Wooden’s “success” pyramid often that grace the walls of CEOs.

Often much less public than sports figures are the short comings of CEOs. Whether it is a reputation that goes beyond abrasive or acts of bad judgment the recycling of those CEOs occurs for many of the same reasons that we see at the highest levels in sport: the experience talent pool is shallow and a record of success with some flaw is often viewed by decision makers as better than having little or no leadership record at all.

The ethical issues in sports go beyond paying a kid under the table to come to a school, or Heisman Trophy winner Johnny Manziel allegedly getting paid for signing autographs. Those are the stories that make the cover of Time and Sports Illustrated. The stories that do not sustain our attention are those mentioned initially or the transition of stellar coaches like Pete Carroll from the University of Southern California to the Seattle Seahawks and Chip Kelly form the University of Oregon to the Philadelphia Eagles. Both left NCAA institutions that were confronted with NCAA violations that allegedly occurred under their watch. There was little hesitation, at least publicly, by their future employers, to go out and hire their men.

Sure, leadership books like Good to Great, talk about having the “right” people on the bus. But ethically, how much leeway do we have in following that goal? What role do past ethical infractions play in making someone the wrong person? For example, if a coach is fired due to one scandal or another should another institution look to hire them? Or if a key player breaks a team rule how important is it that he or she play in that “big game” the next day or for another team next season?

Certainly not all in sports make the immediate comeback after such foibles. Tom Williams, the former head football coach at Yale resigned from his job after claiming he was in the race for a Rhodes scholarship, when he apparently had not even applied. But had he been an even more successful coach, would a suspension be in the offing? The use of the N-word, for example, did not get Philadelphia Eagles wide receiver fired as is the not uncommon outcome in corporate America. But that wide receiver’s comment did not impact his ability to catch passes.

To some extent the question is when should punishment continue on so long that someone cannot make a living at their chosen profession (especially if they have been otherwise successful)? It is one thing if there is a criminal wrong committed and incarceration occurs, but what about the ethical violations of lying on a resume, abusive but not illegal behavior with a player, or any form of rule but not law breaking?

The mantra of the Oakland Raiders during the life of then owner Al Davis was “just win baby.” Their logo, a pirate cross boned black and white character matched the attitude for years known as the franchise, like the pirate ship of old, took on the troubled cast off athletes… if they could get the task done. In sports success does tend to open the door for a second chance. Redemption is allowable in the sports business, but the opportunity for redemption goes hand in hand with winning.

So what should you do? What is the correct waiting period before declaring that redemption has taken place? Like many ethical questions that butt up against the law discretion exists. In law, there are formal limits, a statute of limitations that tell us when it’s too late or when we can move forward. When we set limits should we give slack to violators that are more successful than others? Sport, with few exceptions, closely ties that second redemptive opportunity with talent. It is talent that motivates many of us to take a look at the successful violator.

Expert Biography

Kenneth L. Shropshire is an attorney with Duane Morris LLP and also the David W. Hauck Professor at the Wharton School specializing in legal, ethical and business issues related to the sports industry.