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.
Membership Growth
September 19, 2014
My last posting addressed the need for the Michigan High School Athletic Association to act like a member-based organization even though MHSAA membership is free and member-based revenue does not contribute to the MHSAA’s fiscal well-being. I cited the need to apply membership recruitment and retention principles as we work to attract and hold registered contest officials.
I might also have cited our need to attract and hold junior high/middle school members. While the MHSAA’s membership includes most of Michigan’s public and nonpublic high schools, fewer than half the state’s junior high/middle schools are MHSAA members.
We know the reason that most of the non-member schools at this level do not join the MHSAA is that they want to do their own thing – make their own rules – and they do not see enough benefit in MHSAA membership to overcome the advantages of their local autonomy.
They want to schedule more contests and/or sponsor longer seasons than is permitted by MHSAA rules. They are not much concerned with consistent application of playing rules, eligibility rules and limits of competition, which MHSAA membership requires. They are not much concerned with providing MHSAA-registered officials for their contests or MHSAA-purchased catastrophic accident medical insurance for their student-athletes.
There is no revenue incentive for the MHSAA to try to change these attitudes; but actually, the reasons for the MHSAA to do so are more important than money. In fact, the future of high school athletics depends more on what is happening today at the junior high/middle school level than at the high school level.
The less connected that junior high/middle school level programs are to high school programs today, the more problems the high school programs will have tomorrow – including controversies over conduct, confusion over eligibility and problems related to disconnected policies, procedures, philosophies and perspectives.
The MHSAA will serve school sports in Michigan best if it makes recruitment and retention of junior high/middle schools one of its highest priorities, and serves those schools with what the students and parents at that level want – which is, in fact, more school-sponsored competition, some even resulting in MHSAA-sponsored regional tournaments. Of course, both membership and tournament entry would be free of charge.
Just like most member organizations which need to look constantly for new, younger members, the enterprise of high school sports needs to be recruiting new schools which serve younger grades. It may not just be a matter of growth; it may be a matter of survival.