Risk Taking
February 14, 2012
The June 22, 2009 cover story of Business Week which I just reread was titled “The Risk Takers.” It featured businesses which during difficult times, instead of playing it safe, placed bets on some gutsy new strategies.
To make a point, the author used an illustration that we can relate to here in Michigan. I paraphrase:
Imagine a driver on a snowy night. If the car starts to slip, the driver’s natural instinct is to slam on the brakes and jerk the steering wheel in the opposite direction. But the laws of physics advise the opposite: laying off the brakes and steering into the turn.
The author reports that from 1985 to 2000, the average merger in an economic downturn created an 8.5 percent rise in shareholder value after two years; while the average deal in good times resulted in a 6.2 percent drop in the buyer’s share value. In other words, mergers – one of the biggest, boldest moves in business – do better in bad times than good. Much better, in fact.
It wasn’t recklessness this article was celebrating; it was risk taking – daring to be aggressive, rather than just defensive, amid a weak economy. Steering into the turn, so to speak.
Just like the winter driving analogy in the article, we who are involved in school sports in Michigan can relate to the big idea of the article because we too made some of our biggest moves at our bleakest times. The MHSAA retrenched in some ways, but the greater theme as we climbed out of our bad times of 2008 was that we made unprecedented investments in new technology.
Today MHSAA.com is the website of highest traffic and MHSAA.tv is the website with the most productions of any comparable organization in the U.S. And all of these investments in technology during those bad times have allowed us to undertake the ArbiterGame project now that will provide all member high schools the electronic tools necessary to make their tough tasks of school administration more streamlined than ever before.
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.