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.
Money Matters
January 14, 2014
Every once in a while someone will take a potshot at the MHSAA by saying the organization is motivated by money.
My colleagues in leadership of high school associations in other states probably would get a chuckle out of reading that criticism because the reputation of the MHSAA and this executive director is the opposite. We’re seen as the conservative stick-in-the-muds who oppose national tournaments and promotions in spite of the money that could be made from them.
Here’s a good checklist to determine if “the almighty dollar” motivates a high school association:
- Does the association co-title its tournaments with the name of commercial sponsors?
- Do the association’s events, publications and websites look like a NASCAR production with corporate logos plastered everywhere?
- Does the association seed its basketball tournaments or gerrymander brackets to allow the teams with the better records (and usually larger crowds) to avoid playing each other for as long into the tournament as possible?
- Does the association charge admission prices that are more than a fraction of college and professional ticket prices, or just equal to the cost of a movie?
One or more “Yes” answers doesn’t mean an association has sold out; but if all answers are “No,” you can be sure that the association has other purposes for its decisions than making money.
And “No” is the correct answer to these questions in Michigan. In fact, the full answer to No. 4 is that the MHSAA has not raised ticket prices for either basketball or football at either the District or Regional tournament level for more than a decade.