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.
Growth Industry
December 26, 2014
We have wondered why Michigan’s high schools would enroll more J-1 visa students than in any other state, as well as more J-1 and F-1 visa students combined than the schools of any other state. It certainly can’t be our weather!
Like schools in many states, Michigan schools are looking to foreign countries to fill classrooms where enrollments have been falling, and they are looking to the tuition dollars of international students to help fill the hole of declining state funding.
And schools across the US are finding a hungry market, especially in Asia where families are willing to pay almost any amount to give their children the kind of educational opportunities their own countries don’t, including a leg up in gaining admission to a US college or university.
One unique contributing factor to our state’s leading totals is the late date when public school classes start in the fall. International students who miss the start of school in states which begin classes two, three or four weeks before Michigan can still try for a placement in Michigan where public high schools cannot begin classes until after Labor Day.
These late, scrambling and sometimes inadequately vetted enrollments are one of the many problems attendant to the increasing numbers of J-1 and F-1 visa students enrolling in Michigan each year. More serious are the “pipelines” that, for example, direct basketball players to some schools and ice hockey players to other schools.
It makes some people feel warm and fuzzy, but a lot more people get hot under the collar, to observe a foreign exchange student become a suddenly successful basketball team’s high scorer and rebounder, and then later be given a Division I university basketball scholarship. Or be the leading scorer on an ice hockey team that posts its best record and deepest MHSAA tournament run in the school’s history.
My wife and I have hosted an international college level student in our home for almost two years. I know the benefits to both parties. And I also know that there is a growing number of problems related to sports and profit that need to be stopped, or at least sent to some other state.