Peddling Influence
February 28, 2012
The Sports Business Journal published in December its annual list of the 50 most influential persons in sports business. No person from the ranks of high school sports is included, causing some to criticize the oversight. I don’t.
If ever a person from the high school level were to make this listing, it likely would be for behaving like those at the college, professional and international levels. No one will make the list for doing the job he or she is supposed to do, which is to assure that the business excesses of those other levels do not visit school sports, and to actively oppose those initiatives that would undermine educational athletics.
I understand fully that there are important business aspects to the administration of interscholastic athletics. But I also understand that these business tasks must be managed within the cozy confines of the educational mission of the sponsoring institutions – schools.
We know how to make a lot more money for school sports from networks, sponsors and promoters. But we also know why that wouldn’t be right for educational athletics. Contests on any day at any hour for broadcast purposes, at any location no matter how far. Highlighting big schools, highly ranked teams and highly rated/recruited players, to improve broadcast ratings and advertiser demands. Brilliant minds and bullying personalities couldn’t avoid this happening in college athletics. Once started, we could not fare better in controlling things on the high school level.
We have the potential to aggregate school sports content very attractively for producers, distributors and sponsors. But it’s best that we don’t. And just fine that we continue to be overlooked by business trade journals.
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.