Guarding the Gate
February 24, 2012
More slowly than I would like, because it’s not a field in which I’ve had formal training or extensive practical experience, I’ve been learning about the world of startup companies and venture capitalists that discovered the sports world in the 1990s and have proliferated during the past decade.
Usually with their founder making the contact, many of these young companies have reached out to the MHSAA, hoping we will embrace and endorse or utilize their new product or service. Almost all owe their existence to the World Wide Web and to the passion of their founder, either for sports or for a concept they think solves some need of athletes, coaches or fans . . . or advertisers and sponsors.
And almost every one of these startups is looking for an exit; looking for a bigger fish to swallow them whole. And paying them handsomely for consuming the young guppy. A lucky few make what the industry calls the “Big Exit,” like a major network buying the startup for many millions of dollars.
We hear from many of these startups that the advertisers are clamoring for this or that they are promoting, but we usually see one of two things happen. Either the advertisers show so little interest that the startup fails, or what support the advertisers do provide goes to the venture capitalists and not to those providing the content.
As we screen the plethora of proposals to capitalize on high school sporting events in Michigan, we look for two kinds of assurances. First, that the suitor doesn’t have an exit strategy; and second, that the initiative will have direct benefit in terms of both money and message to those providing the content: i.e., schools.
Most of the initiatives we screen will assist schools with neither money nor message, and some of them would actually provide a message that is contrary to the mission of educational athletics.
So we’re guarding the gate, in both directions – controlling the entrance to the high school sports market in Michigan, as well as the escape of those who are in our market for a fast buck and quick exit, big or small.
More is Not Better
September 30, 2016
Michigan is generally considered the first state to conduct high school sports tournaments in different classifications based on the enrollment of participating schools, but the Michigan High School Athletic Association may be the last statewide high school organization you will ever hear say "More is better" when it comes to tournament classification. In fact, the MHSAA argues against the classification expansion virus that infects many other states.
While still far from the "Everyone gets a ribbon" philosophy of some youth sports programs, the number of classifications is increasing and the number of schools in each classification is decreasing in the state tournament structures of many states.
While media will opine that increasing classifications waters down the tournament, our arguments are more practical. For example, the more classifications a tournament has, the greater the distance teams must travel for early round games, which is expensive and time consuming for teams and fans alike.
While some people believe more classifications might enhance their favorite team's opportunity to taste success in tournament play, reducing the number of teams in each classification actually leads to more repeat champions, which reduces rather than increases tournament excitement and attendance.
The more classifications there are, the harder it is to find a single venue to host the finals of all the divisions and the less likely that all divisions will enjoy the same services and support. Media are spread thinner, leading to less coverage of tournaments. Audio and video networks find it impossible to cover multiple venues adequately.
The most efficient and economical tournament is a single-class format. Nevertheless, a format that serves a membership where some schools are 100 times larger than others requires separate classifications. But there is a point of very diminished benefits.