Deinstitutionalization in major sports leagues : analyzing the NHL's path to competitive balance and financial stability including ideas for implementation

Abstract

Using the theory of deinstitutionalization, this paper illustrates the NHL’s evolution from an entity comprised of singular owner interests whereby players were exploited to a cooperative organization in which players have received significant employment gains. A historical analysis was done using the sports league as the unit of study. In comparing the NHL to the NFL, NBA and MLB, and using several studies in the sports literature, the paper found that increased cooperation among owners as well as a certain amount of liberality for players has enhanced the competitive balance and financial stability of some sports leagues. The findings were then applied to the NHL’s situation using change dynamic insights from deinstitutionalization theory to suggest a new business structure for the league.