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.
U.S. Soccer Gets a Red Card
March 9, 2012
My previous posting paid compliments to a non-school lacrosse organization which appears to share some of the same perspectives we have for young athletes. Today I express an opposite opinion about U.S. Soccer which has created a “Development Academy” that has announced it is moving to a 10-month season beginning in the fall of 2012.
U.S. Soccer has declared that participants in the Development Academy are prohibited from playing on their local high school teams. This has prompted criticism from high school coaches who in many parts of the country, including Michigan, will lose some of the more accomplished players to the Development Academy.
The academy’s design follows that of powerhouse soccer nations where, however, high school sports do not exist like they do in the United States, where high school students play on high school soccer teams during defined seasons of the year.
The design of the Development Academy and the exclusive participation that U.S. Soccer is promulgating violates the Amateur Sports Act of 1978, which requires national sport governing bodies to minimize conflicts with school and college programs. I was involved in the preparation and passage of that law by the United States Congress; I know what it says and what it stands for. U.S. Soccer is violating the spirit and specific language of the law.
The desire and drive of U.S. Soccer to have U.S. teams excel in international competition is admirable; but its violation of U.S. statutes in the process is deplorable.