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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.

Continuous Work

July 6, 2015

Since we posted the blog below on May 16, 2014, we have observed that major portions of the NCAA’s sanctions of Penn State have been overturned for being beyond the authority that member institutions have given the NCAA. This reminds us of the need to have our own organization continuously working on rules and penalties, and the authority to make and enforce such rules and penalties, that may become necessary in the future for the ever-growing range of issues we confront in school sport.
We take no comfort when leaders of sports on other levels get embroiled in controversy; but we do try to learn from those situations.
For example, we watched very closely in 2012 how the National Collegiate Athletic Association responded fast and with force to the horrific sex abuse scandal at Penn State. The NCAA may have ignored its prescribed due process and exceeded its penalty authority, winning mostly praise from the public; but now the NCAA is mired in litigation over the legality of its swift and severe actions.
We are currently observing what could be a similar scenario for the National Basketball Association. Its commissioner moved quickly to impose a lifetime ban and other sanctions after racist public statements by an NBA team owner. While most people have praised the speed and severity of the commissioner’s actions, some people note that the recent racist remarks were not something new for this owner and the unprecedented penalties may be the subject of a lifetime of litigation.
The lesson of these situations for leaders in other places and on other levels is to be especially cautious about using power in popular ways. No matter how horrible the transgression, no matter how angry it makes you personally, follow the established rules of procedure and keep within the limits of your explicit authority.
I confess that this can be frustrating and that I have sometimes felt paralysis more than power when performing the role as MHSAA investigator and penalizer. But some of that frustration may be my own fault. If such frustrations are too common, we should be reworking the organization’s Constitution and rules, with the members’ agreement, to streamline process and strengthen penalties.
Significant steps in this direction have been occurring. For example, in May of 2013, the Representative Council adopted the athletic-related transfer rule; and on May 4, 2014, the Council increased the maximum penalty for undue influence from one year to four years for both students and adults.