Doesn't sound real good, not too bad either.
I have seen this before. Dept. head has a good idea, gets the "go ahead" from his boss, and so on. Owner of the company still has to be sold on the idea, but dept. head starts bringing in people to interview to see if he get's any home runs. If he hits on a good one, he may be able to sell the idea to the owner and get it approved.
I would continue to look if I were in your shoes....that said, if you are smart, you will never stop looking/getting your name out for a new, better job.
In this case it is a professional sports league. Not sure if that changes anything but we are talking huge budgets and the smallest department within the entire league. When interviewing they mentioned expanding the department soon so I'm hoping it gets approved as this is the job I have been building/gearing my skill set and resume towards for a couple years. I was told from the very beginning that getting hired here takes a 'long, long' time.