An Interview From Main Street

Prodigy Search Interview

For this Interview, I had the opportunity to interview Scott and Kevin Carmichael, whom I've known for over 20 years. Scott shared his career journey, beginning with his early experiences in the sports industry, which included working for the Lakers (NBA) and the Kings (NHL) while still in college. His extensive experience and network eventually led him to the NHL, where he created a new club consulting department. The decision to start his business was driven by a desire to monetize his relationships and help others, which became his guiding mantra. His motivation comes from the ongoing challenge of maintaining and growing the business with his son, Kevin, which he finds rewarding.

Enjoy the conversation!

John Lyons: Tell me your story and how you got started.

Scott Carmichael: I got into sports at a young age. 1977, as a freshman in college, I started working in the press box for the Lakers. This role helped me build valuable relationships in LA and at the Forum. By 1979, I led the speaker’s bureau for the Lakers and the Kings. In 1980, while still a junior at Loyola Marymount University, I landed a full-time job with the LA Kings. I worked hard, developed relationships, and gradually grew through the ranks over the years with the LA Kings and the LA Forum. In 1995, the NHL league office recruited me to start a new club consulting department, which led to moving my family to NY/NJ. By the lockout year of 2004-05, I felt it was time for a new challenge. I have developed a deep network over the years and decided to start a recruitment firm.

John Lyons: What propelled you to start this business? 

Scott Carmichael: The opportunity to monetize the hundreds of relationships I had developed over my career was a significant factor. At the NHL, I consulted, helping teams with various needs, including new hires. I’ve always enjoyed helping others, and it became my mantra. Starting this business allowed me to continue doing what I love while leveraging my extensive network.

John Lyons: What was the biggest challenge in starting the business early on?

Scott Carmichael: I was fortunate. The Arena Football League was a retained client, as was ANC. That made me comfortable. We also had local consulting clients and minor-league baseball sponsorship negotiations. So, I wasn't losing sleep at night. The challenge was building success without any recruiting experience. None of us studied to be recruiters. We had to figure it out—interviewing, understanding skills, and matching candidates. It wasn't easy, but we kept the pipeline full, attended industry conferences, and used social media, even back then.

John Lyons: You didn't have a lot of stress, but you leveraged your past experiences. That must have helped a lot.

 Scott Carmichael:  Exactly. I never considered myself entrepreneurial. I always worked for people and never planned to start a business. It just morphed into this.

John Lyons: How has the business evolved over the years? And tell me about the rebranding.

Scott Carmichael: I started Prodigy Sports in 2007, leveraging my network from my NHL days. It was just me initially, but my sons and other vital hires joined over time, and we grew. By 2019, we had nine people on staff and were thriving until COVID hit, forcing us to downsize. The pandemic was challenging, especially since our core business revolves around live events. We had to pivot to survive, taking on projects from Olympic organizations and nonprofits.  

Working with Non-profits and Olympic National Governing Bodies (NGB) led to the rebranding. When then-client Disabled Sports USA was down to their final two candidates, they held a board meeting in Maryland. One board member, who was involved in corporate risk management and part of the Spencer Educational Foundation, had a great experience with Prodigy Sports and recommended us. However, she suggested we call ourselves "Prodigy" in our communications because the board hesitated to work with a sports-focused firm. This led us to consider rebranding to Prodigy Search to better represent our diverse client base, including entities like Six Flags, Live Nation, and Top Golf, not just sports teams.

John Lyons: That’s amazing. I love how you continued to morph the business to grow! However, we were all impacted by COVID-19 differently, and I would love to know more about how it impacted your operations. And how have you transitioned the business from the rebrand?

Scott Carmichael: It was challenging. Live events stopped, which affected our core business. However, we managed to secure projects from sectors less affected by the pandemic. We also received federal Paycheck Protection Program loans, which helped. We continued working on searches, even though interviews and hires were conducted virtually, which was a new experience for everyone. The rebranding has been great for the overall brand and potential growth outside of sports, so it's been interesting. I've always been somewhat risk-averse and hesitant to expand aggressively. We haven't fully tapped into markets like college athletics, even though there's potential. We also haven't aggressively pursued non-sports corporate sectors. Many boutique firms have different health, science, and education divisions and add a sports vertical. While considering such expansions, it’s important not to stray too far from our core identity.

John Lyons: How did you differentiate yourself in the competitive recruiting market?

Scott Carmichael: We focused on cost. Larger firms charged 30-33%, but we started at 15%. Eventually, we moved to 20%, now at 30%. Our fee is based on 30% of the candidate's total first-year cash compensation. I also came with a wealth of relationships and industry knowledge. We did it for less initially to prove our ability.

John Lyons: Did larger firms and competitive dynamics influence your approach?

 Scott Carmichael:  Not really. We're niche, focusing on sports experience, selling sponsorships, or premium hospitality. Larger firms or platforms like Indeed and ZipRecruiter aren't direct competitors. We deal with specialized roles, so it's more about relationships than broad-based hiring.

John Lyons: Do you find larger companies more willing to pay for your services?

Scott Carmichael: Large companies with bigger budgets are likelier to see the value. Smaller companies often try to manage on their own. We're seen as a luxury because our service costs $50,000 to $100,000, but it's worth it for the expertise and timesaving.

John Lyons: How do you stay top of mind with potential clients?

Scott Carmichael: Staying active on social media, attending conferences, and sending email blasts. It's about being relevant. I remember that, early on, I made a placement announcement, and someone I worked with years ago called me because they saw my LinkedIn post.

John Lyons: What keeps you motivated despite these challenges?

Scott Carmichael: The challenge of maintaining and growing the business keeps me going. Even with the uncertainty, we’ve always been fortunate to have projects. We’ve never had a period without work, which I attribute to our reputation and client relationships. We’re constantly pushing for growth and aiming to hit our targets. This drive is essential, especially in our project-based industry.

John Lyons: Have you ever considered selling the company?

Scott Carmichael: Yes, we've had discussions about merging or selling. For example, we had a non-binding letter of intent with a company within the industry. We exchanged financials and negotiated terms, but ultimately, I decided against it. My son, Kevin, and I had a candid conversation, and while he supported the idea of selling, I realized I wasn’t ready to let go. It’s my baby, and I take great pride in what I’ve built. 

John Lyons: You're running one of the most successful recruiting firms in sports. Did you envision this success?

Scott Carmichael: Not really. It's like ShoreHaven—Larry did a great job, but it'll eventually die off if his son and the other partner don't keep it up. When I step away, Kevin and the other partner must maintain it. We don’t want to rely on key individuals but build a sustainable brand. Kevin must build his own base because as I go, so do my connections. We must nurture a younger base so they grow with us and our relationships continue to thrive.

John Lyons: Any final thoughts on what makes Prodigy Search successful?

Scott Carmichael: Integrity and relationships are key. We treat our clients well and deliver results, which has led to a high percentage of repeat business and referrals. I’m proud of what we’ve built, and even though we’ve faced challenges, our commitment to our clients and our reputation has sustained us. Seeing how far we’ve come is humbling, and I’m excited for the future.

John Lyons: Two Final Questions: have you ever considered writing a book or sharing your stories more widely? And who are some famous people you’ve met?

Scott Carmichael: I’ve considered it. My son pushes me to write a book. It’d be a way to chronicle my legacy for my kids. I have so many fun stories that it might be worth it. Maybe someday. Some notable people are Ronald Reagan and Wayne Gretzky.