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.

The Fourth Option

February 27, 2018

Throughout the years, schools of this and every other state have identified problems relating to school transfers. There is recruitment of athletes and undue influence. There is school shopping by families for athletic reasons. There is jumping by students from one school to another for athletic reasons because they couldn’t get along with a coach or saw a greater opportunity to play at another school or to win a championship there. There is the bumping of students off a team or out of a starting lineup by incoming transfers, which often outrages local residents. There is the concentration of talent on one team by athletic-motivated transfers. There is friction between schools as one becomes the traditional choice for students who specialize in a particular sport. There is imbalance in competition as a result. And there is always the concern that the athletic-motivated transfer simply puts athletics above academics, which is inappropriate in educational athletics.

All states have developed rules to address the problems related to school transfers. In some states, it is called a “transfer rule” and in other states a “residency rule,” because linking school attendance to residence is one of the most effective tools for controlling eligibility of transfers. None of the state high school association rules is identical, but all have the intention of helping to prevent recruiting, school shopping, student bumping, team friction, competitive imbalance and sports overemphasis. The goal of promoting fairness in athletic competition and the perspective that students must go to school first for an education and only secondarily to participate in interscholastic athletics is paramount.

The transfer/residency rule is a legally and historically tested but still imperfect tool to control athletic-motivated transfers and other abuses. It is a net which catches some students it should not, and misses some students that should not be eligible. This is why all state high school associations have procedures to review individual cases and grant exceptions; and why all state high school associations have procedures to investigate allegations and to penalize violations where they are confirmed.

Over the years, state high school associations have considered four options to handle transfers. The first two options are the easiest courses: either (1) let schools decide themselves about transfers, as Michigan once did, but this leads to inconsistent applications and few states now subscribe to such an approach; or (2) make no exceptions at all, rendering all transfer students ineligible for a period of time, but this becomes patently unfair for some students and no state high school association subscribes to that extreme, although it would be easy to administer.

The third option – the ideal approach, perhaps – would be to investigate the motivation of every transfer and allow quicker eligibility or subvarsity eligibility to those which are not motivated by athletics, but this is very time consuming if not impossible to administer. No state high school association has sufficient staff and money to consider every detail and devious motive of every transfer.

This is why a fourth option has been most popular with most state high school associations. This is a middle ground which stipulates a basic rule, some exceptions (we have 15 exceptions in Michigan), and procedures to consider and grant waivers – a primary role of the Michigan High School Athletic Association Executive Committee.