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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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Cover Story Stats
September 12, 2017
Eight excerpts from the cover story of TIME Magazine, Aug. 24, 2017, “How Kids’ Sports Became a $15 Billion Industry” ...
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The United States Specialty Sports Association, or USSSA, is a nonprofit with 501(c)(4) status, a designation for organizations that promote social welfare. According to its most recent available IRS filings, it generated $13.7 million in revenue in 2015, and the CEO received $831,200 in compensation. The group holds tournaments across the nation, and it ranks youth teams in basketball, baseball and softball. The softball rankings begin with teams age 6 and under. Baseball starts at age 4.
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With the cost of higher education skyrocketing – and athletic department budgets swelling – NCAA schools now hand out $3 billion in scholarships a year. “That’s a lot of chum to throw into youth sports,” says Tom Farrey, executive director of the Aspen Institute’s Sports & Society program. “It makes the fish a little bit crazy.”
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The odds are not in anyone’s favor. Only 2% of high school athletes go on to play at the top level of college sports, the NCAA’s Division I. For most, a savings account makes more sense than private coaching. “I’ve seen parents spend a couple of hundred thousand dollars pursuing a college scholarship,” says Travis Dorsch, founding director of the Families in Sport Lab at Utah State University. “They could have set it aside for the damn college.”
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The Internet has emerged as a key middleman, equal parts sorting mechanism and hype machine. For virtually every sport, there is a site offering scouting reports and rankings. Want to know the top 15-and-under girls volleyball teams? PrepVolleyball.com has you covered (for a subscription starting at $37.95 per year). The basketball site middleschoolelite.com evaluates kids as young as 7 with no regard for hyperbole: a second-grader from Georgia is “a man among boys with his mind-set and skill set”; a third-grader from Ohio is “pro-bound.”
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Children sense that the stakes are rising. In a 2016 study published in the journal Family Relations, Dorsch and his colleagues found that the more money families pour into youth sports, the more pressure their kids feel – and the less they enjoy and feel committed to their sport.
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There are few better places to take the measure of the youth sports industrial complex than the Star, the gleaming, 91-acre, $1.5 billion new headquarters and practice facility of the Dallas Cowboys. Turn left upon entering the building and you’ll find the offices of Blue Star Sports, a firm that has raised more than $200 million since April 2016 to acquire 18 companies that do things like process payments for club teams, offer performance analytics for seventh-grade hoops games and provide digital social platforms for young athletes.
Blue Star’s investors include Bain Capital; 32 Equity, the investment arm of the NFL; and Cowboys owner Jerry Jones, who leases Blue Star space in his headquarters. The company’s goal is to dominate all aspects of the youth sports market, and it uses an affiliation with the pros to help. -
Across the US, the rise in travel teams has led to the kind of facilities arms race once reserved for big colleges and the pros. Cities and towns are using tax money to build or incentivize play-and-stay mega-complexes, betting that the influx of visitors will lift the local economy.
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There are mounting concerns, however, over the consequences of such intensity, particularly at young ages. The average number of sports played by children ages 6 to 17 has dipped for three straight years, according to the Sports &Fitness Industry Association. In a study published in the May issue of American Journal of Sports Medicine, University of Wisconsin researchers found that young athletes who participated in their primary sport for more than eight months in a year were more likely to report overuse injuries.
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Intense specialization can also tax minds. According to the American Academy of Pediatrics, “burnout, anxiety, depression and attrition are increased in early specializers.” The group says delaying specialization in most cases until late adolescence increases the likelihood of athletic success.
Devotion to a single sport may also be counterproductive to reaching that Holy Grail: the college scholarship. In a survey of 296 NCAA Division I male and female athletes, UCLA researchers discovered that 88% played an average of two to three sports as children.
Other consequences are more immediate. As expensive travel teams replace community leagues, more kids are getting shut out of organized sports. Some 41% of children from households earning $100,000 or more have participated in team sports, according to the Sports & Fitness Industry Association. In households with income of $25,000 or less, participation is 19%.