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.
Anticipating Collateral Damage
March 23, 2018
When major college sports sneezes, high school sports usually catches a cold.
Throughout history, the National Collegiate Athletic Association has made changes in response to problems in college sports that have resulted in harm to high school sports.
Who can argue that relieving college coaches from the burden of being members of the instructional faculty did anything but weaken the connection between intercollegiate athletics and the educational mission of the sponsoring institutions? That major college football and men’s basketball coaches are the highest paid employees at many universities demonstrates the disconnection.
Who can argue that the creation of athletic grants in aid – scholarships – did anything but raise the pressures on college programs to win and to recruit hard at the high school level? Who can argue that this process got any more upright and above board when NCAA rules were changed to push most of the recruiting process to non-school venues and corporate concerns?
Who is surprised now that the corruption has moved beyond the NCAA’s ability to control and has resulted in investigations by the Federal Bureau of Investigations and indictments followed by player ineligibilities and coach firings?
The worry now is that the NCAA and the National Basketball Association will strike again. Aiming to solve their problems, they likely will add to ours.