Long-Term Investment
January 25, 2012
Many homes have just removed the decorations from their holiday trees and removed the bare, brittle tree from their house. This has caused me to reflect on a drive last fall through many miles of tree farms, observing some trees ready for harvest but many more trees that were many years away from cutting.
During that drive I thought about the character of those who had planted the trees. This is not like many crops which are planted in spring and provide a return on the investment by fall. One who plants trees knows the harvest is many years of growth and pruning away. That return on investment could be a decade or two of toil down the road.
As I questioned how these farmers could wait so long, I began to marvel at the optimistic, patient spirit they must have. Their hope and persistence. Their assurance that the time and money invested now will be rewarded later.
This humbling internal dialogue caused me to think of dedicated teachers, coaches and administrators who, metaphorically, are planting some trees and pruning others each and every school year, knowing they may never personally see the results. But having confidence that, in time, there will be a return on the investment they and their communities have made in our young people.
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.