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.

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.