The sports industry is rapidly evolving. Changes in the macro-economic environment mean organisations can’t rely as easily on debt as before. Investment from Private Equity, Players’ Funds and Sovereign Wealth Funds have changed the landscape, and continue to do so. This has meant that the demand for a diverse set of skills within a sporting organisation has never been more apparent.
As organisations start to realise that an over-reliance on debt, or wealthy owners, isn’t sustainable, the need to stay competitive but do so from a position of strength and profitability is of paramount importance. The industry is growing up. It’s moving away from the cottage industry it once was to being a fully-fledged multi-billion dollar business. The need to love the sport you work in, or understand it fully before you start in it, is becoming less and less important. Bringing world-class business knowledge is becoming much more important.
But sport is a passion business, isn’t it? That’s where it’s been for countless years, and to an extent that is still true, but this also makes it less ruthless. Happy with the status quo, and asking dear owner for another cheque at the end of the season. This isn’t good enough going forward, as those that think this is the way to go will find themselves slowly moved aside. Even very advanced sports organisations don’t come close to the Amazon’s, Apple’s or Spotify’s of the world when it comes to truly understanding, and commercialising, their consumers. Personalisation is key to those businesses. We say it is in sport, but how many of us can say we truly know our fans, and have a multitude of data points to reference?
This all requires a reset in the skills evident in the sports industry, and a recognition that to be successful, experience and skills built in other industries are incredibly valuable.
This trend underscores the importance of skill extrapolation; transferring and applying existing professional skills to the sports business. While to some the concept can seem straightforward, the process involves understanding specific needs and opportunities within the sports sector. It also needs an understanding from the sports organisation that experience gained outside the industry is an asset, not a liability.
This article delves into the significance of bridging the skills gap in the sports industry, and importantly how one can add real value by understanding how to fully extrapolate their skills to roles within it. It draws on recent research to highlight how professionals from other fields can effectively transition their expertise to the industry to ensure success for both the individual and the organisation
Understanding the Skills Gap in Sports
Most major businesses will undergo a Skills Gap Analysis on a semi-regular basis to understand what’s missing in their teams and organisations. It enables leaders to understand where they need to upskill existing staff, or bring new ones in. This has never been more evident with the rise of AI and increasing technological advances.
However, bar a few notable exceptions, this is not something prevalent in the sports industry. Our industry is facing a significant skills gap, particularly in areas that intersect with business and technology. There are organisations that are there to help with all of this (Albachiara, PTI Digital, 21st Group to name a few), but are they getting the cut through across the industry? I’d suggest not yet.
Most organisations have gotten better with elements such as marketing, but how many look to bring in real expertise from outside sport that can really move the dial, in something so critically important? Data analytics, strategic corporate finance, fundamental good business understanding, are skills that should be in high demand but are ultimately in short supply.
This isn’t to say one shouldn’t be a true enthusiast of the sport, or become one having moved into it. That’s inevitable, at least in part, because you become more emotionally invested in the sport you work in. But the critical part is that this isn’t the reason you’re working in it. Adding real value through wider experience should be the why. The fan part should come much further down. Arguably by remaining a casual fan, you keep thinking like a new customer, and challenging the status quo.
The skills gap impacts everything from how teams engage with fans to how they optimise performance and revenue. The importance of filling these gaps cannot be overstated; doing so not only drives profitability but also fosters innovation and growth within the industry. The sports industry needs to get comfortable with the uncomfortable. Looking outside the box to find the right people to take the organisation forward.
Challenges in Skill Transfer
However, transferring skills to the sports industry is not without challenges. There are clear cultural differences between traditional business sectors and sports, and this can create some friction. To add to this, sports can be more dynamic and is more widely public facing, therefore does require adaptability and understanding of the sector to meet these demands.
That said, cultural differences are ever decreasing between sports and business, and those who have experience of other business cultures can help bring potentially needed change to a sports organisation. Equally, whilst the sports industry can be more dynamic and public facing, if anything the need for a wider skill set and experience base is even more critical to help deal with these demands.
There are also simple ways to meet these and other perceived challenges in skill transfer. Continuous learning is an easy way to understand ongoing changes and bring new skills into the organisation. The ‘sports nuance’ is an easy thing to learn, and therefore a lack of specific sports experience shouldn’t necessarily be a negative, as long as the individual has the aptitude to learn. If anything, those skilled in areas needed in sport, such as technology, corporate finance and business management, will be able to adapt quickly and efficiently to any market, including sport.
But if you’re someone looking to get into sport from another industry, the key question is how do you communicate how your skills, highly-valued in other industries, can be valuable, and needed, in the sports industry?
Practical Steps for Skill Extrapolation
The first, and potentially most obvious, is identifying the skills you have. This is easier the more experienced you are, but everyone, at all levels, can add value. It’s identifying where that value can be added that can be trickier. Assess which skills from your current and past roles are relevant to a role you may be looking at, or more generally how you can add real value through the skills you’ve amassed throughout your career, however short. Have the confidence that regardless of how junior you may be, or how senior but in a different field, you will have skills required in the ever changing industry of sport.
Secondly, seek people out. Build a network. As much as we’re trying to change the way the industry works, a lot of it is still about networks. Most people in the sports industry will make time for you if they have it, and if you give them a reason to. Don’t just ask for a ‘catch-up’ or to ‘go for a coffee’. Be specific. What are you looking for, why, and how much time would it take? Especially for more senior leaders in the industry, be appreciative of their time and don’t take the piss. And definitely, under no circumstances, forget to join or cancel last minute unless you have a very good reason.
Another step is to educate yourself, but look at it from outside the box. How can non-sports specific training help you build skills that can be extrapolated into the industry? What best in class courses are available that could set you apart from the competition when looking for new roles. And then as per the first point, make sure you know how you can identify the skills you’re building and how they’re relevant.
Finally, and to bring the above together, is learn how to tell a story. Build a narrative around who you are, what you’ve done and why you think your skills are needed in the industry. Sports is ultimately an entertainment product. It’s about story-telling. And it’s the same when interviewing for a job, it’s just the main character is you. How are you telling your story, and making sure your skills are being communicated in the best way possible – that’s the key.
Conclusion
The skills gap in the sports industry presents both a challenge and an opportunity. For professionals from other sectors, it offers a chance to apply and adapt their skills to the vibrant and evolving industry that is sport. For the sports industry itself, embracing these external skills can lead to greater innovation and efficiency.
By understanding the "what," recognising the "so what," and acting on the "now what," of their skills, and then developing this into a narrative that can be easily understood, those outside the sports industry can make great strides in entering into it. Organisations that are open to hearing these stories, and to understanding the real need for new people in the industry, can achieve significant results, driving forward the business of sports in new and exciting ways.
References:
(Braunstein-Minkove, DeLuca, & Baucum, 2023).
(Liu, Srivastava, & Woo, 1998).