Good New, Bad News
July 30, 2012
There’s some “good” news on a bad topic: participation fees.
In addition to news stories about several school districts which have had fees but are now dropping them, and donors who are stepping up to reduce fees in other districts, the overview provided by the MHSAA’s annual survey of participation fees shows that predictions that fees would explode in frequency and size this year have not come true.
Surely, it is not good news that half of 514 reporting schools charged fees in 2011-12; but that percentage is unchanged from 2010-11. Nine years ago, when the first survey was conducted, half that percentage charged fees.
Nor is it good news that the median fee charged was $75 in 2011-12; but that number has increased only $5 since 2009-10. Nine years ago, however, the median fee was less than one-third of what it was this past school year.
The fact that the MHSAA has conducted this survey for nine years and provides resources to help schools fairly and efficiently administer participation fees does not mean we think they are a good thing, or a good way for schools to respond to their financial woes and realities.
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We don’t think participation fees are the best business decision in an era of competition between school districts to enroll students and capture the accompanying state aid.
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We don’t think participation fees are good for coaches who face different expectations from parents when they have paid for their child to be on the team.
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We don’t think participation fees are good for students, especially winter and spring sport athletes and second, third and fourth children in families who sometimes get the short end of things when family budgets are tight.
Participation fees are an impediment to participation, which is an obstacle to student engagement in schools at a time when schools desperately need such investment. And such fees remove one of the defining differences between school-sponsored sports and community-run youth sports programs.
(Go to Schools – Administrators – Pay-to-Play Resources for more information.)
Guarding the Gate
February 24, 2012
More slowly than I would like, because it’s not a field in which I’ve had formal training or extensive practical experience, I’ve been learning about the world of startup companies and venture capitalists that discovered the sports world in the 1990s and have proliferated during the past decade.
Usually with their founder making the contact, many of these young companies have reached out to the MHSAA, hoping we will embrace and endorse or utilize their new product or service. Almost all owe their existence to the World Wide Web and to the passion of their founder, either for sports or for a concept they think solves some need of athletes, coaches or fans . . . or advertisers and sponsors.
And almost every one of these startups is looking for an exit; looking for a bigger fish to swallow them whole. And paying them handsomely for consuming the young guppy. A lucky few make what the industry calls the “Big Exit,” like a major network buying the startup for many millions of dollars.
We hear from many of these startups that the advertisers are clamoring for this or that they are promoting, but we usually see one of two things happen. Either the advertisers show so little interest that the startup fails, or what support the advertisers do provide goes to the venture capitalists and not to those providing the content.
As we screen the plethora of proposals to capitalize on high school sporting events in Michigan, we look for two kinds of assurances. First, that the suitor doesn’t have an exit strategy; and second, that the initiative will have direct benefit in terms of both money and message to those providing the content: i.e., schools.
Most of the initiatives we screen will assist schools with neither money nor message, and some of them would actually provide a message that is contrary to the mission of educational athletics.
So we’re guarding the gate, in both directions – controlling the entrance to the high school sports market in Michigan, as well as the escape of those who are in our market for a fast buck and quick exit, big or small.