Final

Final Project: Report to Management 1

Final Project: Report to Management

Peter Jaeger

Southern New Hampshire University

SPT – 600 – Management of Sport Organizations

Dr. Mauro Palmero

September 3, 2023

Final Project: Report to Management 2

Overview of the Issue and Sport Organization

In 2018, The US Supreme Court overturned the Professional and Amateur Sports

Protection Act which outlawed gambling on sporting events except in Nevada. Once this

happened, the National Football League embraced the rulings and signed deals with betting

partners like Caesars and DraftKings for sponsorship rights which opened a whole new revenue

stream for the league (Purdum, et.al 2023). Sports leagues need to be very strict about gambling

and its effects on the league and integrity as there have been past incidents throughout sports

history. Additionally, any hint of games being influenced by bettors compromises the games in a

huge way.

Effect on the Sport Organization

As a result of the legalization of sports betting in the US, the NFL needed to adopt

policies that regulate what players and team personnel can and cannot do. The NFL states that it

educates all players and NFL workers, but issues still remain at the intersection of players and

gambling. Recently, the NFL has suspended several players for violations of its gambling policy.

There have been concerns that the NFL has not provided enough instruction on the policies and

what is allowable and for whom. The NFL is wrestling with how to regulate an activity that is

legal for most people in the country, but could threaten the integrity of the game. More work

needs to be done to not only educate players, but to protect against any action that might try to

receive insider information or influence the outcome of a game.

Vision, Mission, and Goals

The mission statement of the NFL, according to their own website nfl.com, is “We are all

stewards of football. We unite people and inspire communities in the joy of the game by

Final Project: Report to Management 3

delivering the world's most exciting sports and entertainment experience” (National Football

League, 2019). The league has historically been very successful in creating and marketing

football to a broad audience. In the 1960s, the NFL made an intentional decision to broadcast

football games on regular television. This allowed everyone to access the NFL across America.

Through the high quality play and marketing that has been produced, the sport has grown so that

in 2021, half of all Americans had watched a football game and consider themselves fans

(Rolapp, 2022) By capturing so many people’s interest, the NFL has been extremely successful

in inspiring communities to support their teams and have created an exciting sports and

entertainment experience.

The NFL’s website lists 4 key values as integral to their business model. The four values

are Respect, Integrity, Responsibility to Team, and Resiliency (National Football League, 2019).

The NFL has set these four key values as signposts to help direct the organization forward while

maintaining its connection to foundational beliefs. Historically, the NFL has seemed to place a

higher priority on Responsibility to Team. The NFL certainly looks out for and supports its

member teams. The league values each team as its own and places the highest value on them.

The league also has modeled Resiliency in a successful manner. In its brief descriptor for

Resiliency, the league states that “We set high standards and continuously strive for excellence”

(National Football League, 2019). The NFL is never satisfied with the status quo in any aspect of

its organization. It constantly is looking for new opportunities to market and increase the

viewership of the game. The league is not afraid to try new things to increase the popularity and

fan experience connected to its business.

Final Project: Report to Management 4

Role and Power

The National Football League has a clearly defined governing body, though it is

somewhat hard to find information about them. Roger Goodell is the commissioner of the league

and acts as the CEO of the organization. To help run the league, he leads an Executive

Committee of 10 members. Each member of the committee oversees a specific piece of the

league and manages its operations. For instance, Troy Vincent is the Executive Vice President of

Football Operations and oversees a team of 15 members. Another member of the Executive

Committee is Brian Rolapp who is the Chief Media and Business Officer (National Football

League, 2023).

The NFL’s Executive Committee is centered in the league office in New York City and

helps advise Commissioner Goodell and manage all aspects of the league. They oversee and

guide the business and operations of the league. This includes media, financials, security,

officiating, information, and league events. Each of the executive vice presidents that oversee

their section lead their staff to implement the plans that are decided upon by the executive

committee. The executive committee and Commissioner Goodell ultimately have the final say on

all league matters that pertains to the business of the league (National Football League, 2023).

One example that demonstrates the effectiveness of this approach for the league is the

division of labor that is present. For instance, when an issue arises through the course of the year,

there is a team set up to handle the issue and concerns. For instance, if there becomes an issue of

fair play due to a misapplication of the rules, the Rules Compliance team can deal with the issue.

If a new issue arises, like the need for a focus on Social Justice after tragedies like the murder of

George Floyd, then a new team may be made. For instance, there now is a team that focuses on

Final Project: Report to Management 5

the NFL’s social justice initiatives. This shows responsiveness and adaptation of the NFL

(National Football League, 2023).

Governing Body

The governing body of the organization has been effective in many ways. The current

model where specific people lead teams centered around certain topics allows a division of labor

that is efficient. Also, with Roger Goodell as the leader of the body, he takes on the criticism and

the adulation that arises from the decisions. During the leadership of this executive team, the

revenue of the National Football League has more than doubled. The NFL also has grown the

presence of football to more international markets (Seifert & Staff, 2016). As far as the business

side of the league, the governing body has been quite successful.

The NFL executive committee also has been ineffective in many ways as well. Because

of the structural focus on the business of the NFL, there has been a disconnect with the league's

stated values. The league has been seen as reluctant to make changes focused on player safety,

instead of opting for decisions that maximize revenue. While initially taking strong social justice

stances, the league pulled back when some markets pushed back against the issue (Seifert &

Staff, 2016). One of the stated values of the NFL is Responsibility to Team, and the league has

suffered in the public perception regarding this. Leaders of the NFL are often criticized that they

serve the owners of teams before any players or fans. The key decisions prioritize the financial

bottom lines over people who are not owners.

Addressed the Issue

Sports gambling became legal in much of the country after the Supreme Court struck

down a 1992 law prohibiting sports betting in 2018. This opened the door for states to legalize

sports betting across the US. The league and individual teams quickly began signing sponsorship

Final Project: Report to Management 6

deals with sportsbooks because they recognized the revenue stream that had previously been

untapped (Chen, 2022). Once that happened, the league recognized the need to have a

comprehensive policy to protect the integrity of the game and to support its players. The NFL

worked with the players union (NFLPA), to develop and implement this policy. As sports betting

has become more common, there have been adjustments that have been needed to address new

issues. Both the NFLPA and the league recognize the benefit to collaboration around any new

changes to the policy, but the league still maintains its right to immediately impose changes

through the management-rights clause (Florio, 2023). The idea is that the league must protect

against any perception of impropriety at any cost which could affect the integrity of the game.

Decision-Making Models

Now that sports betting is legal and that the gambling policy has been in place, the league

needs to move beyond the initial guidelines and penalties around its gambling policy and work

on supporting its players. In its initial drafting of the gambling policy, the league collaborated

with the NFLPA to develop the guidelines and penalties. Something the group should have done

was to vision further impacts of the legalization of sports betting and the effects it would have on

players. The league should more clearly define the problems and possible alternatives that could

impact players in order to make plans about how to address them. The group should engage in

the Economic Person Model to clearly define the problems and then to develop all possible

alternatives. The stakes are very high for the NFL when it comes to perceptions of impropriety

due to interference with gambling. The more the league can do ahead of time in anticipating

issues and putting safeguards in place, the better protected the league is. The most appropriate

decision style the league should have used would be the Consult Group style. Ultimately the

Final Project: Report to Management 7

Commissioner and his executive team need to enforce the policies, but getting input from the

NFLPA as well as league officials would help them craft the most effective policy.

Appropriate for Resolving the Issue

As mentioned previously, the decision-making model that would be most appropriate for

resolving the issue of gambling in the NFL is the Economic Person Model. This model states that

the decision makers seek to gain information on all possible alternatives before making any

choices. However, since it is impossible for people to know all information and to predict all

possible outcomes, they can only practice Bounded Rationality (Chelladurai, 2014, 165). This is

the best model because the issue is much more complex than just preventing players from

gambling on NFL games or gambling while in NFL facilities. There also are associations with

people who could try to influence the outcome of games, gray areas with regards to types of

betting or where and also issues with problem gambling behavior. The more proactive the league

can be with predicting what issues may arise and how to handle them, the less likely there is to

be a scandal or other situation that threatens the game.

An example of this has been discussed by Mike Florio on NBCsports.com. In the article,

Florio questions what the league should do if a player enters the league with a gambling

addiction. A person could engage in sports betting legally and develop a problem that leads to

the need for intervention. Since the league is profiting mightily from the deals they make with

sports betting partners, and the player hasn’t done anything wrong since they engaged in betting

before they were in the league, then the stated suspension penalties do not make much sense to

help the player. Florio states that it makes one wonder if “the league cares about its policies or its

players” (Florio, 2023). If the league can discuss this as a potential issue ahead of time, it can

Final Project: Report to Management 8

have screening tools and support for players who may not want to violate the gambling policy

but have an addiction that compels them.

Appropriate Decision-Making Model

In order to develop its policy to help players understand the rules around sports betting

and to punish those who break the rules, the NFL used the Administrative Person Model.

Chelladurai describes this model as one that creates a list of alternative solutions that are

minimally acceptable and then the organization chooses the first one that meets all the criteria

(Chelladurai, 2014, 166). Since sports betting was so new, the league assumed they knew what

the main issues would be and developed their policy to be clear and straightforward around those

criteria. However, issues have arisen as mentioned previously. The league punishes all players

similarly where the reasons why a player violated the policy may be different. A player who

placed a bet on a football game is treated the same as someone who placed a legal bet on another

sport but was not at home yet. A player who places a bet absentmindedly is penalized the same

as someone who has developed a compulsive gambling habit. If the league and players

association value the person over the policy, then each situation should be handled

independently. The NFLPA and the league could meet to review each case and use the Facilitate

decision style to discuss the specifics. The commissioner can set the limits and parameters but

then allow the group to agree on a decision (Chelladurai, 2014, 172). This protects the players

and teams by meting out punishments that are more in line with the infraction (Florio, 2023).

Final Project: Report to Management 9

Appropriate Theories & Models and Devise Its Decision

For an initial set of policies to address a new issue like sports betting for NFL players and

staff, the league used an appropriate decision. As mentioned previously, the league instituted a

policy that used the Administrative Person Model where the league and the players union

negotiated what should and shouldn’t be allowed. The league then developed the penalties for

violaters as they have the authority to deliver punishments. As an initial policy, this seems

appropriate.

As the players and the league have had a chance to evaluate the policy and have learned

what players are and are not taking advantage of, the league needs to reconvene a collaborative

group to make changes to the gambling policy. If the league is not responsive and reflective

about how the policy is working, then they are not serving the players needs. Additionally,

players have stated they are unsure of some of the finer points of the policy, so while the rules

may be clear, players need additional education around gambling and the specific rules (Chen,

2022).

Labor Relations

There are several factors that the NFL should have considered regarding the impact of its

negotiations with the NFLPA and the decisions related to the negotiated gambling policy. One of

the first factors is that sports betting has become legal and quite common. Leading up to their

being part of the NFL, players have been exposed to and taken part in recreational betting

through most of their lives. Additionally, the message sent by the league that some of their major

partners are sportsbooks can seem contradictory or confusing (Pro Football Talk, 2023). Another

factor that needs to be considered is that most betting is done on apps on smartphones making it

very accessible. Since smartphones are everywhere and players spend so much time at their

Final Project: Report to Management 10

team’s facilities, making a bet by clicking a button is likely to be very easy (Edelstein, 2023). An

additional factor that should have been considered when creating the policy is a comprehensive

communication plan to players around the rules and what is allowed. Sharing information one

time and in a few ways is not enough to ensure that players are aware. In fact, informal

interviews by the media with players shows a gross lack of understanding of what is and isn’t

allowed (Breech, 2023). Developing an ongoing and comprehensive education plan and

gathering data and feedback during the season would help teams know the level of understanding

from their players.

Issues Arose

There are several issues specific to labor management that the NFL faces with regards to

the implementation of the gambling policy. One of the key issues that has been raised is how the

NFL views violations and the suspensions associated with those violations. For instance, if a

player bets on an NFL game, they are generally suspended for a year. This is understandable

since it threatens the integrity of the game. However, if a player makes a legal bet, but just in the

wrong location like leaving the team facility, they are suspended for six games. This seems

unusually harsh, and difficult for teams to account for the drastic loss of a player (Edelstein,

2023). A second issue that has arisen is the confusion around the gambling rules and how the

rules apply differently to different people. Some of the guidelines of the gambling policy are

more strict for players as opposed to league employees (Breech, 2023). NFL players are actually

allowed to place bets on sports other than the NFL, where league employees cannot. Players

cannot bet while at any league facility.

Final Project: Report to Management 11

Representing Employees

The union and the bargaining representatives for players in the National Football League

effectively represented their clients when working with the league to develop the gambling

policy for the NFL. Gambling can have a very deleterious impact on sports by tempting players

to alter outcomes of games and harm the integrity of the sport. In the policy, it states that

gambling can have impacts on team cohesion and damage the integrity of the game (National

Football League, 2018). The league and the players have a strong interest to maintain the

reputation of games being fair and legal to continue the investment by companies and fans. In

2018, sports betting became legal and the NFL quickly signed sponsorship deals with

sportsbooks. A comprehensive policy was needed to try to set a clear line between fans engaging

in sports betting and the integrity of the players.

There were several additional items that were effective in helping set the policy and

expectations. First of all, the language regarding the gambling policy was included in the players

manual that they receive each year. Second, a directive was given that the league would need to

review the policy annually with players. The league also gave guidance that teams should also

reinforce the message around the policy and what is permissible (Pro Football Talk, 2023).

Needs Met

Not all of the key stakeholders’ needs were met with regards to the policies and

procedures around gambling. The main need that was not effectively met was the need for

education around the policy and what is and not permitted. Pro Football Talk has pointed out that

questions have arisen about the quality of the NFL’s efforts to fully educate its players and

employees about the gambling rules (Pro Football Talk, 2023). Additionally, if players violated

Final Project: Report to Management 12

the policy before clear education and training was presented, then there are questions about how

those players and staff should be disciplined.

A second point that does not seem to be clear pertains to the part of the policy that

players are not to have a relationship with people who are professional gamblers, problem

gamblers, or sports gamblers. What isn’t clear about this policy is direction on how to tell who

these people are and how players should deal with them. More direction about how the players

and staff should keep distance and maintain integrity with regards to these people needs to be

shared especially if they are not being truthful (Deeks, 2023).

Theories and Behavior Models

The main motivational theory that was employed to address the issue of gambling for

NFL players was The Need Hierarchy Theory. Maslow’s Need Hierarchy Theory states that there

is a hierarchy of lower and higher order needs that motivates people in their actions (Chelladurai,

2014, 251). These are ranked in order of importance to the individual, from physiological, safety

and security up to esteem and self-actualization. The penalties associated with violating the terms

of the gambling policy focus on the motivation to satisfy these lower order needs.

For instance, the first or lowest order need is that for physiological needs. An athlete's

salary and the ability to provide for self and family would be located in this section. Quintez

Cephus, who was employed by the Detroit Lions, was suspended indefinitely by the league in

April of 2023 for allegedly betting on the NFL. Since he was suspended by the league, the Lions

then cut him and voided his contract (Edelstein, 2023). So, the deterrent to players gambling on

NFL games would be a suspension and loss of employment with their team leading to a loss of

salary and benefits.

Final Project: Report to Management 13

Appropriate Theories and Models

The easiest and most straight-forward theory of motivation for organizations to employ is

one like The Need Hierarchy Theory because it relies on penalties that affect the basic needs of

the employee. However, people may be motivated in a stronger fashion with a different model. A

more efficient model of motivation could be Adams’ Theory of Inequity. This theory states that

motivation and satisfaction comes when the sense of what is right and fair is aligned with the

effort and actions of people (Chelladurai, 2014, 263).

An example of how this might affect players and their motivation is by the league sharing

how the effects of actions of players who engage in illegal gambling can impact their livelihood.

If the league gets a reputation for being influenced by professional gamblers or that outcomes are

not entirely decided on the field, that can impact the popularity of the game and the money that

fans or organizations are willing to spend on it. To keep the influence of gambling out of the

game, players may police themselves more and as a whole take the issue more seriously. Teams

and the league can tailor their education and instruction on the gambling policy around the view

that each individual who engages in illegal gambling is threatening the league and livelihood of

everyone (Chelladurai, 2014, 265).

Organizational Model

Like any effective and efficient company, the National Football League has a high level

of organization to prioritize the work that needs to be done. The type of organizational model

that the league uses is best described as a bureaucracy. Chelladurai describes a bureaucracy as an

organization that is structured to include specific fundamental characteristics or tenets. The 5

Final Project: Report to Management 14

tenets listed in his description include division of labor, hierarchical authority structure, a system

of abstract rules, impersonality, and technical competence (Chelladurai, 2014, 188).

The league benefits greatly from the bureaucratic structure by having people with

technical knowledge and skill in place to help resolve issues and move the organization forward

to accomplish its goals and purposes. According to Chelladurai, the stability that a bureaucracy

provides is critical at times of rapid or dramatic change. As people leave and are hired into

positions, the structure and stability provided by this model allows for collaboration and time for

people to learn and adjust to change (Chelladurai, 2014, 192).

Management

Management has been somewhat successful in meeting the goals of the organization.

Some of the stated goals include inspiring people and communities and to deliver the world’s

most exciting sports and entertainment experience (National Football League, 2019). The NFL

certainly has been successful in delivering a high quality, exciting and entertaining sports

experience. Since Roger Goodell has taken over the leadership of the NFL, the revenues have

more than doubled to over 18 billion dollars in the league year of 2022. By cultivating an

exciting product and the interest in more football coverage, the league started a dedicated

programming platform, the NFL Network in 2003. The league also has expanded the exposure of

the NFL by hosting league games in other countries like England, Mexico, and Germany

(Seifert, 2016).

While the league has been quite successful in providing a high quality sports experience,

some criticisms have been levied against the NFL as being inaccessible and out of touch with its

fans. The rising cost of attending games and purchasing access to streaming platforms has

Final Project: Report to Management 15

prevented some people from attending and watching games. This has left some communities

behind. This also occurs when teams push for public funding or even unfortunately end up

moving. An additional example can be seen in the hesitancy of the league to strongly support

social justice issues. While initially supporting issues important to players and their

communities, the league, owners, and teams sometimes pull that support back when public

opinion starts to shift against the issue. This can be seen by the league’s lack of support for Colin

Kapernick and the hesitancy to continue to support Black Lives Matter.

Changes

As a result of the league’s decision around policy and the associated punishments, players

who are gambling either at league facilities or betting on football are being caught and

suspended. The league has entered into agreements with companies that monitor betting called

integrity analysts. They are able to monitor betting that takes place and also track the location of

where the bets are placed. In this manner, they are able to catch players and staff who are

violating the league policy which seems like the system is working. In doing so, players are

changing their choices and decisions that reflect the guidance from the policy. The policy is in

place, is clearly spelled out and the betting industry has oversight from integrity analyst

companies that are watching what is taking place. There still needs to be support and counseling

put into place to help players who are habitual or problem gamblers (Wetzel, 2023).

Approaches

As mentioned earlier in the analysis, the NFL hasn’t been completely successful in

providing a solution to the gambling issue that has arisen in the league. Once gambling was

Final Project: Report to Management 16

legalized in the United States, the league needed to take steps to limit the influence of betting on

the business of the National Football League. In collaboration with the players union, the league

created guidelines and rules to limit what players could engage in. While this has set a baseline

for activities, it is neither productive nor has there been a time to reevaluate the policy in order to

make adjustments. The league needs to evaluate the policy and make adjustments to it to help

support players rather than just punish them.

Effective at Resolving the Issue

The league has not been effective in resolving the issue. In fact, the issue seems to be

growing as the number of players being suspended for violating the gambling policy has

increased the past couple of years (Purdum, et.al. 2023). The league needs to be proactive in

anticipating where the issues may arise in the coming years and prepare and plan for how to

handle those issues. The NFL’s mission statement includes the Core Values of Respect, Integrity,

and Responsibility to Team (National Football League, 2019). The league has kept these values

as center in their response to the impact that gambling could have on the game of football. The

league and the players union want players to do the right thing and to make choices that allow

them to be available for their teams. However, with something like gambling, there is more

behind the choices an individual might make that is more than just choosing between right and

wrong. Putting together a committee to discuss and plan around further impacts that legalized

sports betting could have on players would be a proactive step to benefit everyone.

Final Project: Report to Management 17

References

Breech, J. (2023, June 9). Breaking down the NFL gambling policy: Here are three rules every

player in the league must follow. CBS Sports. Retrieved August 4, 2023, from

https://www.cbssports.com/nfl/news/nfl-gambling-policy-here-are-three-rules-every-play

er-in-the-league-must-follow-to-avoid-a-suspension/

Chelladurai, P. (2014). Managing Organizations for Sport and Physical Activity: A Systems

Perspective. Holcomb Hathaway, Publishers.

Chen, D. W. (2022, February 13). How The NFL Did An About-Face on Sports Gambling. The

New York Times.

https://www.nytimes.com/2022/02/10/sports/nfl-bets-gambling.html?auth=login-google1t

ap&login=google1tap

Deeks, M. (2023, June 13). . . – YouTube. Retrieved August 5, 2023, from

https://www.forbes.com/sites/markdeeks/2023/06/30/the-surge-in-nfl-gambling-suspensio

ns–sports-betting-liberalisation/?sh=72cab6885318

Edelstein, J. (2023, April 21). NFL Gambling Policy Is Both Too Lenient And Too Strict.

SportsHandle. Retrieved August 4, 2023, from

Florio, M. (2023, July 1). NFL moves to Phase Two of gambling policy. NBC Sports. Retrieved

August 18, 2023, from

https://www.nbcsports.com/nfl/profootballtalk/rumor-mill/news/nfl-moves-to-phase-two-

of-gambling-policy

National Football League. (2018). NFL's gambling policy. NFL Communications. Retrieved

August 6, 2023, from

Final Project: Report to Management 18

https://nflcommunications.com/Documents/2018%20Policies/2018%20Gambling%20Pol

icy%20-%20FINAL.pdf

National Football League. (2019, May 30). MISSION AND VALUES. NFL.com. Retrieved July

20, 2023, from https://www.nfl.com/news/mission-and-values

National Football League. (2023). The NFL Ops Team. NFL Football Operations. Retrieved July

21, 2023, from

https://operations.nfl.com/inside-football-ops/nfl-operations/the-nfl-ops-team/#

Pro Football Talk. (2023, June 12). NFL points out its efforts to educate players and coaches on

gambling. NBC Sports. Retrieved August 4, 2023, from

https://www.nbcsports.com/nfl/profootballtalk/rumor-mill/news/nfl-points-out-its-efforts-

to-educate-players-and-coaches-on-gambling

Purdum, D., Staff, E., & Woodyard, E. (2023, June 5). Inside the NFL's gambling policy and

uptick in violations. ESPN. Retrieved July 6, 2023, from

https://www.espn.com/nfl/story/_/id/37419884/inside-nfl-gambling-policy-uptick-violatio

ns

Rolapp, B. (2022, July 18). The NFL’s mission is to reach as many fans as possible. Sports

Illustrated. Retrieved July 20, 2023, from

https://www.si.com/nfl/2022/07/18/nfl-executive-outlines-mission-for-the-league

Seifert, K. (2016, August 8). Ten ways the NFL has changed under Roger Goodell. ESPN.

Retrieved July 22, 2023, from

https://www.espn.com/blog/nflnation/post/_/id/208754/ten-ways-the-nfl-has-changed-und

er-roger-goodell

Final Project: Report to Management 19

Wetzel, D. (2023, June 8). Why are so many athletes getting caught betting? Because the system

is working. Yahoo Sports. Retrieved August 19, 2023, from

https://sports.yahoo.com/why-are-so-many-athletes-getting-caught-betting-because-the-s

ystem-is-working-202110153.html