Corporate to Sports Consulting: What's Fueling The Mass Migration?
There’s a trend taking place that is impacting the sports industry…
And it’s the historic rise of consultants.
This is interesting for a handful of reasons:
less talent at the corporate level
more help for startups/leagues
fragmented employment
Let’s dive into where this all began 👇
A New Standard In Employment
When 2020 sent everyone to remote environments, the emergence of consultants exploded.
Management consulting is a massive business…
Global revenues are estimated at $900 billion — with data showing the industry will cross the trillion-dollar mark before 2026.
And the current economic climate is only increasing it…
Uncertainty gives rise to more demand for external advice — this makes independent consultants attractive as they are more budget-friendly and flexible.
A few other interesting stats worth noting:
75% of those who left an employer to work independently say they make the same or more income than they did in their traditional job.
58% of non-independent workers who began working remotely during the pandemic are now considering working independently moving forward.
57% of independent consultants set their own prices.
48% of U.S. adults are either currently working or have worked as an independent professional at one time.
In the UK, small consultant firms have grown at a rate of 18%.
So what’s driving this?
Fractionalization + Niches
Startups are more likely to work in unique market niches — making them more likely to require more specific consulting support.
For example…
A startup might not need a standard marketing consultancy, but rather a more tailored offering such as an “influencer marketing” consultant.
And there is an increasing number of individuals and small consultancy firms that are aligning with such demands.
Hiring new staff with specific expertise is expensive…
So it can often make sense to work with consultants who can provide advice and assistance at a much lower overall cost.
While those are the macro trends — there are forces at play in sports accelerating the consulting space even further.
Archaic Industry, Outdated Models
Sports federations can make being an employee and creating a diversified portfolio tough.
For example, let’s say you work for the International Olympic Committee (IOC).
They won’t let you invest, advise, consult, or engage w/ any other sports-related companies.
Why?
Sports governing bodies want you to have absolutely zero potential conflicts of interest (in part, this is why sports is such an archaic organization).
Look at:
golf
tennis
combat sports
college football
All of them have outdated models that need to be revamped.
This has created a vacuum of opportunity — and the Saudis have been the first to take advantage.
But "necessity is the mother of invention" which has promoted others into quick action. Proven consultants are helping to ignite the next revolution.
Hypothesis Behind Sports Consulting
The rise of consultants has further fragmented the sports industry.
But that’s potentially a good thing…
As it’s enabled emerging companies and leagues further insights into how to build faster and more efficiently. The blueprint lives in the hands of these consultants.
For example, many independent consultants are helping the next great leagues take off (compared to being an executive at a major power player like the NFL or NBA).
On top of this…
Look at all the new fast-growing verticals within sports:
NIL
sports betting
emerging leagues
international growth
A fragmented global industry, remote work, an increase in worldwide monetization, and more talented people running their own businesses have created a massive inflow of sports consultants.
Today’s podcast guest is the perfect example.
Podcast 🎙
Jordan Rogers, Founder of Perseus Creative.
From convict to sports executive - the story of Jordan Rogers is worth listening to as he is now building his own company after leaving Nike.
You’ll enjoy this episode as we discuss:
From Nike to sports consulting
Interesting trends to watch in sports
Marketing tips for companies & athletes
Check out the podcast episode here.
Weekly Roundup
💵 Business of Athletes
Aaron Rodgers invested in the shoe brand, Lumberjack.
APEX Capital announced the launch of their planned $50M athlete fund alongside several notable F1 drivers.
🏟 Sports Business
Live interaction sports app Takes raised $1.6M seed.
Betr officially launched real-money sportsbook in Virginia.
Sports Tourism Index™ was acquired by Tempest.
Mets owner Steve Cohen bought the New York TGL-Golf team.
Mojo’s fantasy offering debuted in 20 new states & territories.
Rickley Sports Cards acquired Perfect 10 card company.
Thanks for reading today!
Have an awesome weekend.
Peace,
AP
Sources:
https://www.statista.com/statistics/1234739/management-consulting-market-size-usa/
https://www.upwork.com/research/freelance-forward-2021
https://www.mbopartners.com/state-of-independence/
https://www.consultancy.uk/news/21867/uk-management-consulting-industry-grows-7-to-106-billion
You are always on point.
In the vibrant ecosystem of startups and innovation, there’s a pulsating energy. Entrepreneurs, with their groundbreaking ideas, are akin to fervent composers, creating unique symphonies in the world of business. These maestros move to their own rhythm, crafting melodies of disruption and change.
And yet, as with any masterpiece, there’s a point when the raw passion needs fine-tuning. Enter the seasoned consultants. These are the experienced instrumentalists adding depth, refining harmony, and ensuring the symphony reaches its peak potential. They may not initiate the rhythm, but they elevate it to a crescendo.
The notion often circulates that the pioneers, the first movers, seldom have consultants in their backdrop. At a glance, it seems counterintuitive. After all, why wouldn’t these visionaries seek expert guidance from the get-go? But this idea stems from a profound understanding of innovation.
In the incipient stages, start-ups are fragile. Their ideas, while revolutionary, are akin to fledgling dreams—vulnerable and malleable. Bringing in a consultant too early might inadvertently cage this dream, molding it to the conventions of the market before its true potential is realized. Start-ups must first allow their dream to unfurl its wings, to understand its essence, before giving it the structure it needs to soar.
Yet, as a startup grows, the landscape becomes intricate. The initial jigsaw pieces of ideas, passion, and innovation need further alignment. Here, the consultants stride in, not as puppeteers but as partners. They’re the counterbalance, ensuring the start-up doesn't tip over in its meteoric rise. With their vast expertise, they introduce frameworks, strategies, and analytical rigor. They transform a fledgling idea into a structured enterprise capable of sustained flight in the competitive skies.
In this dance, neither the start-up nor the consultant can lead all the way. It's a harmonious balance where the raw passion of innovation finds its footing in the experienced wisdom of consultancy. It’s about letting the dream shape organically then sculpting it for endurance and impact.
To the outside world, this partnership may seem like a paradox. But, in reality, it’s a powerful alliance—one where visions are realized, dreams are anchored, and the melodies of innovation resonate long after the curtains fall.
Happy Friday!