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.
Good New, Bad News
July 30, 2012
There’s some “good” news on a bad topic: participation fees.
In addition to news stories about several school districts which have had fees but are now dropping them, and donors who are stepping up to reduce fees in other districts, the overview provided by the MHSAA’s annual survey of participation fees shows that predictions that fees would explode in frequency and size this year have not come true.
Surely, it is not good news that half of 514 reporting schools charged fees in 2011-12; but that percentage is unchanged from 2010-11. Nine years ago, when the first survey was conducted, half that percentage charged fees.
Nor is it good news that the median fee charged was $75 in 2011-12; but that number has increased only $5 since 2009-10. Nine years ago, however, the median fee was less than one-third of what it was this past school year.
The fact that the MHSAA has conducted this survey for nine years and provides resources to help schools fairly and efficiently administer participation fees does not mean we think they are a good thing, or a good way for schools to respond to their financial woes and realities.
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We don’t think participation fees are the best business decision in an era of competition between school districts to enroll students and capture the accompanying state aid.
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We don’t think participation fees are good for coaches who face different expectations from parents when they have paid for their child to be on the team.
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We don’t think participation fees are good for students, especially winter and spring sport athletes and second, third and fourth children in families who sometimes get the short end of things when family budgets are tight.
Participation fees are an impediment to participation, which is an obstacle to student engagement in schools at a time when schools desperately need such investment. And such fees remove one of the defining differences between school-sponsored sports and community-run youth sports programs.
(Go to Schools – Administrators – Pay-to-Play Resources for more information.)