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.
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.
-
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.
-
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.
-
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.)