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Economic Indicators
July 19, 2016
We don’t need the Federal Reserve Bank chairwoman to tell us about economic indicators; we have our own way of knowing at the Michigan High School Athletic Association office when the state’s economy is bad or good.
In bad economic times, we experience an increase in those registering to become MHSAA officials. When jobs are lost or hours are cut, a little extra income from officiating can make a big difference to people.
In good economic times, we see a decline in the number of registrations. We lose the officials who are in it for the money and retain the 10,000 hard core, committed officials whom school sports depends on in Michigan.
Another economic indicator is litigation. In bad economic times, fewer people resort to courts to solve disputes; while in good economic times, more people have more money to spend on lawyers to settle their squabbles.
So, what do those indicators tell us about today’s economic news?
Officials registrations in 2015-16 were the lowest in 29 years. And 2015-16 was the busiest year of litigation since 2010.
So, the good news is that the economy is improving. That’s also the bad news.
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Money, Money Everywhere, But ...
June 23, 2016
Weather-watchers will often complain that there is too little rain where it’s needed, and too much rain where it is not.
I feel the same way about money and sports – too little money where it’s needed, and too much money where it is not.
While physical education is being eliminated in elementary schools and interscholastic athletics are being gutted in junior high/middle schools and high schools, college sports are awash in extravagant new revenue from broadcasting and merchandising rights. For example ...
The athletic departments of UCLA, Ohio State, California, Notre Dame and Wisconsin will receive more than $1 billion combined from Under Armour over the next 15 years. The University of Michigan has announced a 15-year, $169 million deal with Nike. Michigan State University has a multimedia rights deal pending with Fox Sports worth $150 million over 15 years. Both Michigan and MSU will benefit richly from what is likely to be a new $440 million per year package with the Big Ten Network.
Meanwhile, for lack of funds, schools reduce or eliminate physical activity from the school and after-school curricula. Inactivity rates soar, as do childhood obesity rates, as do medical expenses to treat obesity-related illnesses in adults.
In sports as in most other aspects of American society, ours is a free-market system that allows the rich to get richer, with little regard for the consequences. It’s a system that invites misplaced priorities. Of celebrity more than substance. Of immediate gratification over investing in the long-term health of a nation and its people.