Priming the Pump
November 28, 2014
Today and tomorrow bring an end to the MHSAA’s fall tournament season that, overall, experienced the worst weather I’ve witnessed in my 29 years of watching our fall events. We are grateful to those hearty fans who followed their favorites through wind, rain, ice and snow.
The MHSAA’s “bread and butter” is its season-ending tournaments. Try as we might to diversify our revenue, all our non-tournament revenue sources combined continue to account for less than 15¢ of every $1 the MHSAA generates. Sponsorships, broadcast rights fees and officials registration fees make a contribution to our enterprise; but the MHSAA operates without membership dues, fines and tournament entry fees.
That leaves gate receipts (ticket sales) as the largest (by far!) source of revenue; and it’s the football and basketball tournaments that pay the way for the many tournaments that the MHSAA operates at a financial loss (we call it an investment).
Because of this narrow flow of revenue, I asked a team of MHSAA staff to take a comprehensive look at the MHSAA’s marketing of its tournaments. Over a series of energetic meetings, these imaginative staff members have compiled a list of ideas to promote MHSAA tournaments by better using existing means and opening up new avenues to generate interest and increase spectator support.
The MHSAA Representative Council will soon vet and vote on a wide variety of ideas generated by our in-house task force. The objectives are a growing customer base enjoying an improved customer experience.
Membership Growth
September 19, 2014
My last posting addressed the need for the Michigan High School Athletic Association to act like a member-based organization even though MHSAA membership is free and member-based revenue does not contribute to the MHSAA’s fiscal well-being. I cited the need to apply membership recruitment and retention principles as we work to attract and hold registered contest officials.
I might also have cited our need to attract and hold junior high/middle school members. While the MHSAA’s membership includes most of Michigan’s public and nonpublic high schools, fewer than half the state’s junior high/middle schools are MHSAA members.
We know the reason that most of the non-member schools at this level do not join the MHSAA is that they want to do their own thing – make their own rules – and they do not see enough benefit in MHSAA membership to overcome the advantages of their local autonomy.
They want to schedule more contests and/or sponsor longer seasons than is permitted by MHSAA rules. They are not much concerned with consistent application of playing rules, eligibility rules and limits of competition, which MHSAA membership requires. They are not much concerned with providing MHSAA-registered officials for their contests or MHSAA-purchased catastrophic accident medical insurance for their student-athletes.
There is no revenue incentive for the MHSAA to try to change these attitudes; but actually, the reasons for the MHSAA to do so are more important than money. In fact, the future of high school athletics depends more on what is happening today at the junior high/middle school level than at the high school level.
The less connected that junior high/middle school level programs are to high school programs today, the more problems the high school programs will have tomorrow – including controversies over conduct, confusion over eligibility and problems related to disconnected policies, procedures, philosophies and perspectives.
The MHSAA will serve school sports in Michigan best if it makes recruitment and retention of junior high/middle schools one of its highest priorities, and serves those schools with what the students and parents at that level want – which is, in fact, more school-sponsored competition, some even resulting in MHSAA-sponsored regional tournaments. Of course, both membership and tournament entry would be free of charge.
Just like most member organizations which need to look constantly for new, younger members, the enterprise of high school sports needs to be recruiting new schools which serve younger grades. It may not just be a matter of growth; it may be a matter of survival.