Several family-owned sports franchises offer a unique insight into what can make or break running a multigenerational business. The contrast often comes down to a few critical factors that any family-owned business can learn from.
The Malcontent McNair Brothers
The McNair brothers’ relationship, shaped by their mother Janice McNair’s control of the Houston Texans, illustrates how succession disputes can poison even successful billion-dollar enterprises. The public battle between Cal McNair, who runs the team, and his siblings over control and financial matters has created instability that permeates the entire organization.
Brother Cary is again attempting to sue Cal for control of the team, shelving any future attempts to present a unified front. In this case, decision-making has become paralyzed, and the business has suffered from bad PR and inconsistent leadership. Cary wants Cal ousted from his leadership role with the Texans and, through his attorneys, requested that NFL Commissioner Roger Goodell take action. When he didn’t get the response he was looking for, Cary, in turn, sued the NFL for $60 million in damages in the New York Supreme Court.
The core issue? A lack of clear succession planning and defined roles within the company became apparent when Janice passed ownership to Cal last year. Once again, with a lack of established governance structures, the personal grievance between the brothers has become a massive problem for the family and the Houston Texans.
The Blueprint for Generational Success – The Kroenkes
In stark contrast, Stan Kroenke’s sports empire, which encompasses the Los Angeles Rams, Arsenal FC, the Denver Nuggets, and more, demonstrates what a well-run family business operation looks like. The Kroenke Organization has successfully integrated the next generation, with Josh Kroenke taking prominent roles, while maintaining clear decision-making hierarchies and a shared vision.
What sets them apart from troublesome family ownership groups, such as the McNairs, is their professional management structure. The Kroenkes have made it their mission to fully separate family relationships from business operations, employ experienced (non-family) executives, and establish clear authority lines. They’ve also diversified their portfolio intelligently, reducing their overall risk while creating synergies across their sports properties.
Sports or No Sports, These are the Lessons Learned for Any Family Business
Cure the beef. Before making the bigger decisions to pass the company on to a specific person or a group of family members, ensure you’ve alleviated any lingering tension. Family strife cannot only kill a deal and a business, but also cost you millions in courtroom battles. Simply, don’t let family strife muddy the path to succession. Air out the grievances and develop palatable solutions BEFORE the transition, something the McNairs obviously didn’t do.
Define your roles early. Successful family sports empires, like the Kroenkes, established clear roles and responsibilities before any conflicts arose. Responsibilities based on competency, not birthright, prevented resentment.
Create clear governance structures. Formal boards, regular meetings, and documented policies remove emotion from business decisions.
Plan succession transparently. The best transitions occur when everyone is aware of the plan years in advance, with next-generation leaders earning their positions through demonstrated capability. The McNair battle occurred because a scorned brother felt abandoned by his Mother’s decisions after his father died in 2018.
Consider outside expertise. Professional management and succession consultants can buffer family dynamics from daily operations, allowing the business to function regardless of personal relationships.
The difference between thriving family sports businesses and dysfunctional ones isn’t just about winning games; it’s about treating family legacy as seriously as any pursuit of a championship, with strategy, discipline, and long-term vision.