In closed business communities run on cronyism/nepotistic policies(hollywood, sports, theater etc), you absolutely get and keep jobs because you're well liked or respected within that community.
The entire league endlessly recycles inept coaches and GMs, every GM search and coach search is the same 5 - 10 guys over and over again. Even people who flame out to the point that no franchise could ever possibly justify their hiring due to how bad they've been, they'll still get a job with a background executive title or punted over to the TV commentary space until the memory of their ineptitude has faded enough that they can be hired again.
Merit is for 20 year old hockey players, not for 50 year old former players who paid their dues and now get cushy executive retirement jobs.