Dreaming of fields

The potential of sports is being explored in American business schools
Now is not the best time to be an entrepreneur. But although no sector can completely escape the downturn, some are suffering less than others. Leading sports are standing up to the recession quite well (see article).
At American business schools, there are signs of faith in the sports business. One believer is Professor H. Irving Grousbeck, the director of the Centre for Entrepreneurial Studies at Stanford Graduate School of Business. He juggles his academic duties with a role as managing partner of the Boston Celtics, a National Basketball Association (NBA) team.
Professor Grousbeck is part of Boston Basketball Partners LLC, a partnership that bought the Celtics in 2003. In the previous five decades, the Celtics had amassed 16 NBA championships, but a bad run in the 1990s and into the 21st century had tested the patience of their loyal following. Professor Grousbeck says he and his partners wanted to restore the team's camaraderie and pride.
Not that sentiment caused them to forget the goal of profitability. Initially, the group considered buying a baseball team, but feared losing money. The Celtics' asking price of $360m, says Professor Grousbeck, “felt fair”—although he stresses that, as a professor of entrepreneurship, he was aware the venture had its risks.
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Some were apparent from the start: the Celtics were performing poorly, ill-managed and badly marketed. “We had a lot of work to do.” But he preferred to trust his intuition, by making a calculated gamble, and by hiring good people and giving them authority. “If you do this, you can succeed.”
The Celtics’ performances did not turn around overnight, but eventually the faith of Professor Grousbeck and his partners paid off. Last June, the Celtics beat the Los Angeles Lakers to win their first NBA championship since 1986. Ticket sales rose after the victory (although they have since slowed—sports are not entirely immune from the downturn), and Professor Grousbeck says the partners were “casually floated” an offer of $600m for the team soon after the victory, but refused. “We are in for the long haul.”