The Operational Excellence Tools Series | #27: Business Operations in Sports
Why This Role Has Become a Strategic Pillar?
Welcome to the unique weekend article for the Loyal Fan subscribers-only edition.
This is the #27 article of The Operational Excellence Tools Series.
Outlines and Key Takeaways
Part 1 – Official Announcement
Part 2 – Background and Meaning
Part 3 – Analysis Through the Lens of Operational Excellence
Part 4 – Lessons for Businesses
Part 5 – Conclusion
Part 1: Official Announcement
On November 14, 2025, North American sports media simultaneously reported that the Kansas City Royals – one of the 30 teams in Major League Baseball (MLB) – officially appointed Cullen Maxey as their President of Business Operations.
The news was confirmed by MLB.com, in an article introducing the team’s new senior business leader.
What seemed like an internal personnel update quickly drew wide attention because it reflects a broader trend in the sports industry: the role of business operations is increasingly recognized as a strategic pillar, rather than a back-office function as it was in the past.
1. Why is a personnel decision in MLB viewed as an important operational signal?
MLB is a long-standing professional baseball league and a business ecosystem worth tens of billions of dollars annually. In the structure of American sports organizations, the President of Business Operations typically oversees:
• Revenue strategy.
• Financial operations.
• Ticketing & marketing.
• Stadium and event operations.
• Fan experience.
• Optimization of commercial revenue streams.
According to MLB.com, Cullen Maxey has prior leadership experience in the entertainment–sports sector, and the Royals expect him to contribute to the restructuring of their business division.
The notable point is this: the wave of appointments for senior business operations leaders is no longer isolated.
Teams across the NBA, NFL, and MLS have also redefined business operations as a growth strategy, not merely a support function.
2. The trend of “professionalizing business operations” in the sports industry
In modern sports, the revenue model of professional teams is becoming increasingly complex. From ticketing, broadcasting rights, sponsorships, to e-commerce, stadium experience, and fan data monetization — all combine into a large business operations system that requires disciplined management capability.
This context means that many teams can no longer rely on the traditional model where business operations functioned simply as support. Instead, it has become:
• A profit center.
• A large-scale enterprise operating system.
• A strategic data engine.
• A long-term competitive capability.
The Royals’ decision to appoint a new President of Business Operations shows that the organization is investing not only in on-field performance but also in its business system, which directly affects brand strength and organizational value.
3. Why is this viewed as an industry-wide signal, not just a team-level event?
There are three reasons why this announcement attracted attention beyond MLB:
First: the sports industry is restructuring its operating model.
For many years, sports organizations relied heavily on traditional revenue models. But as:
• Ticket prices rise.
• Consumer behavior shifts.
• Technology reshapes fan experience.
• Fan engagement moves to digital platforms.
sports organizations must enhance their business operations capabilities to maintain sustainable growth.
Second: operations is being elevated into a “strategic role.”
Traditionally, strategic decisions were made by owners or the CEO.
But in a landscape defined by intense revenue and experience competition, the President of Business Operations becomes:
• The architect of new profit models.
• The leader of long-term operational efficiency.
• The integrator of data – finance – customer – events.
• The accountable owner of the entire business operating system.
Third: the impact extends beyond sports.
Although this news originates from sports, its operational logic mirrors:
• The entertainment industry.
• Retail.
• Logistics.
• E-commerce.
• Customer service.
This indicates a clear trend: Business Operations is becoming a central organizational capability across multiple industries, not just sports.
4. Why is business operations becoming increasingly important in sports?
Sports today is not just competition; it is a complex operating ecosystem:
• Stadium operations resemble managing a large shopping complex.
• Event operations function like a mini supply chain (flow control – crowd movement – service delivery).
• Fan data management operates like a technology company.
• Revenue optimization works like a commercial enterprise.
As this model expands and becomes more exposed to market volatility, the role of the President of Business Operations is no longer simply departmental management, but the leader who:
• Optimizes performance.
• Drives revenue.
• Ensures experience quality.
• Keeps the system stable during disruption (e.g., audience fluctuations, event interruptions, regulatory changes).
Therefore, the appointment of a new leader in this role is not just a staffing update — it represents a rethinking of the entire business operating model.
5. A significant signal for the broader business operations community
From a wider perspective, the Royals’ appointment of a new President of Business Operations sends an important message:
Business operations is no longer a backstage function — it is a capability that determines the survival and growth of organizations.
Sports is just one example. Similar shifts are happening in:
• Omnichannel retail.
• Logistics companies.
• E-commerce.
• Technology services.
• Consumer goods manufacturing.
Wherever there is a complex system, the role of Business Operations is gradually becoming the strategic backbone of the organization.