Investments
July 9, 2014
Bristling from criticism that our associations are money-grabbing exploiters of children, my counterpart from Colorado said, “If we were running our programs just to make money, we would do very many things very differently.” I knew exactly what he meant.
Because we care about the health and welfare of students, because we mean what we say that the athletic program needs to maximize the ways it enhances the school experience while minimizing academic conflicts, and because we try to model our claim that no sport is a minor sport when it comes to its potential to teach young people life lessons, we operate our programs in ways that make promoters, marketers and business entrepreneurs laugh, cry or cringe.
If money were the only object, we would seed teams and select sites to assure the teams that attracted the most spectators had the best chance to advance in our tournaments, regardless of the travel for any team or its fan base. If money were the only object, we would never schedule two tournaments to overlap and compete for public attention, much less tolerate three or four overlapping events. If money were the only object, we would allow signage like NASCAR events and promotions like minor league baseball games.
Those approaches to event sponsorship are not wrong; they’re just not right for us. And we will live with the consequences of our belief system.
During the 2012-13 school year, 438 of the MHSAA’s 2,097 District, Regional and Final tournaments lost money. Not a single site in golf, skiing or tennis made a single penny. Over 17 percent of all other sites brought in less revenue than the direct expenses incurred at the site. In no sport did every District, Regional and Final site have revenue in excess of direct expenses.
In fact, in only three sports – boys and girls basketball and football – is revenue so much greater than direct expenses overall that it helps to pay for all the other tournaments in which the MHSAA invests.
That’s right: invests. When we present our budget to our board, we talk about the MHSAA’s investment in providing tournament opportunities in all those sports and all those places that cannot sustain the cost of those events on their own.
Going to the Mat
October 4, 2016
Somewhere I heard a speaker say: “The most exciting thing in life is to be shot at ... and missed.”
In a real sense, I wouldn’t know; but metaphorically, that’s somewhat how we’ve felt after a federal district court judge tried unsuccessfully to cripple the Michigan High School Athletic Association in the aftermath of a lawsuit over the placement of sports seasons in Michigan.
Plaintiffs wanted the high school sports seasons for boys and girls to coincide and to mirror the seasons the National Collegiate Athletic Association established after our high school seasons were adopted. With the urging of its member schools, the MHSAA battled for nine years to attempt to retain a sports seasons schedule that allowed schools to use their resources (facilities, coaches and officials) in ways that they could demonstrate promoted higher participation rates by both genders.
Plaintiffs did not get all that they sought in the case, and neither did schools; but the judge ordered the MHSAA to pay $7.9 million, much more than the organization’s assets at that time.
But rather than being the death knell for the MHSAA, these events breathed exciting new life into the organization, the positive effects of which continue today.
The judgment – reduced significantly through negotiations, early payment incentives and insurance and paid off in 18 months – set in motion a review of internal operations that reduced expenditures by $600,000 over 12 months, while sponsorship and broadcast revenue grew by a combined $600,000 during those 12 months.
Eight years later, many of the operational savings continue, and non-tournament revenue is now more than double what it was in the first year following the judgment.
While complaints still come to us from students and citizens in local communities regarding the court-ordered changes for sports seasons, and participation has declined significantly in several of the affected sports – especially girls basketball, girls volleyball and boys tennis – the MHSAA office still continues to enjoy many efficiencies, as well as some euphoria, from the shot-at-but-missed experience.
This comes from the knowledge that we went to the mat for what our schools wanted, fought long and hard, paid a high cost, and came out of it with schools’ respect. In the aftermath, the MHSAA staff and Representative Council came together, and came through it stronger.