Full Decade Price Freeze

September 15, 2011

The 2011-12 school year marks the 10th consecutive year of no increase in MHSAA Regional tournament tickets for football and boys and girls basketball; and it’s the ninth consecutive year without increase at the District level of those tournaments.  This is noteworthy on at least three levels.

First, it means parents, grandparents, neighbors and friends on fixed incomes or struggling through a fickle economy have experienced no new costs to support their local school teams over the past decade.

Second, it means that what were the MHSAA’s largest revenue sources – gate receipts from District and Regional tournaments of football, boys basketball and girls basketball – have not been used to support the MHSAA’s expanding services.

Finally, when the freeze on ticket prices is combined with the freefall of girls and boys basketball attendance since the change of girls basketball season to the winter (the four-year average total attendance is down 9.3 percent for the girls tournament and down 21.1 percent for the boys tournament), the overall effect on the MHSAA’s operational budget is dramatic.

To compensate, the MHSAA has cut expenses and created new revenue sources.  For years, MHSAA tournaments produced more than 90 percent of the MHSAA’s revenue.  In 2010-11, it was less than 80 percent.  The 2011-12 target is less than 75 percent.

Innovation Obstacles

April 12, 2013

It doesn’t take long to compile a dozen or more examples of products or businesses that have disappeared, or nearly so, because the world changed while the product or business did not.

Think eight-track tapes and players.  Consider what digital photography has done, from the Eastman Kodak Company to out-of-business local studios.  What the Internet has done to travel agents.  See what’s happened and still happening to print newspapers across the country, to magazines, and to both local and large chain bookstores.

It is not at all rare that businesses fail to reinvent themselves.  For many reasons, including admirable passion for what they are doing, business leaders often miss the trends or ignore the signs that suggest the need to change their products or their entire business model.

As Geoff Colvin wrote in FORTUNE magazine Feb. 25, 2013, “Business model innovation is a competency that doesn’t exist in most companies.”  He continued:  “The largest obstacles will be weak imaginations, threatened interests, and culture.”

I suspect that those are also the three major obstacles we must overcome as we think about the future of interscholastic athletics.

  • Does school-based sports, with a 100-year-old history, have a 50 or even 15 year future in schools and society?
  • If so, should the business model change?  And if so, how?

I suspect that some of what we think is change may be no better than rotating bald tires on our car; when what we really need is new tires, or no tires at all.