I think it is easy to take a lot of these things out of context, and try to inappropriately apply a one rule fits all approach to every role being recruited.
Merit-based, competitive and thorough recruitment processes are indeed the ideal process and starting point. Clearly important for CEO and the Senior Coach
But very often, key hires want to have their team around them. A star researcher might bring his lab assistants, an Exec might bring his own EA.
Ass Coach gigs are often short term, not secure arrangements. It's fair enough for J Lo to want some people working for him that he knows, trusts and communicates well with and that he thinks have the qualities required. As long as they are expected to perform and demonstrate that they can do the job and they're not signed up for life to then phone it in and take home a cheque I think this is not an unexpected part of bringing in a new coach and not necessarily unethical