Developing a championship strategic plan: A business administration and sports management case study

Sports administrators in professional hockey often try to build a championship team by acquiring expensive free agents. But this philosophy causes a great range of problems: skyrocketing player salaries, dramatic ticket price increases, dwindling attendance, financial failure or relocation, labor disagreements between players and owners, and widening industry disparity between large- and small-market teams. The opposite philosophy tries to build a championship team exclusively through talent scouting, drafting, and skill development. But excessive reliance on drafting creates other problems because skill development is difficult to assess and predict in a player's early years when he is cheapest to acquire; free agents, however, are proven performers. These two opposing philosophies create either a team with aging, expensive players, or one that is chronically rebuilding; neither method succeeds consistently. This study balanced the two philosophies, asking, "What are the most cost-effective methods of obtaining the elite players needed to win a championship in professional hockey?" Business administration techniques were used to create three qualitative and instrumental case studies. To create a championship sports team, managers must understand how talent is developed in the CHA (ages 5--18) as this author does in Case l. Managers must also understand industry revenue and expenditures, and the many stakeholders influenced in Case 2. Finally, Case 3 applies the findings from the first two cases to one professional hockey team in order to suggest improvements. These three cases comprise an integrated approach to professional hockey development and training and therefore serve as a foundation for a new and unique strategic framework for the sport. By using collective bargaining rules carefully, administrators can add free agents at opportune times to improve the team. Proper scouting and player development, balanced with financial cooperation from industry, can help build a team that contends for championships, yet remains financially viable. In conclusion, building a successful team involves blueprinting a championship window where team-grown talent is at its peak, and free agents are added to complement the existing players. Maximizing employee talent and proper financial planning are hallmarks of any successful strategic plan, and thus can be applied to any organization.