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.

Tipping Point

April 11, 2014

During the 2010-11 school year we began working on new rules that might address the likelihood that (1) international students would begin to prefer the F-1 visa route to enrollment in our schools over the J-1 route, and (2) that our schools would with increasing efforts turn to foreign countries to recruit students to replace the declining population in Michigan and to replenish the funding that would allow those schools to operate at funding levels sufficient to maintain facilities, faculties and programs.

We got hung up and slowed down during these deliberations because of uncertainty about the future roles of the Council on Standards for International Educational Travel, the US Department of State and the US Department of Homeland Security, and hesitancy over the potential legal problems we might be creating by implementing practical solutions to real athletic-related problems that the influx of unvetted F-1 visa students had created and would continue to create with greater frequency as their numbers increased.

In 2012, there were more J-1 visa students enrolled through CSIET-approved programs in Michigan secondary schools than in any other state; and the total number of J-1 and F-1 students combined was also greatest in Michigan. And, having such a hospitable environment for J-1 students, we have predicted that a slowly growing percentage of the rapidly growing number of F-1 students in the US (80,000 in 2013) would begin enrolling in Michigan secondary schools.

The 2013-14 school year has brought things to a head, with certain high profile situations creating enough attention that hesitations were overcome and the adoption of new rules for 2014-15 became a foregone conclusion. You can find those changes here in Appendix B of the March Representative Council Minutes.

Very briefly, here are the key components of the new rules:

  • Only those international students (J-1 or F-1) who qualify for one of the residency exceptions to the Transfer Regulation or are placed through an MHSAA Approved International Student Program can have varsity eligibility.

  • J-1 and F-1 visa students have identical opportunities. If they are enrolled through an MHSAA Approved International Student Program, they are immediately eligible for one academic year, followed by one year of ineligibility before they could be eligible again. This is the “Play One, Wait One” rule that has previously applied only to J-1 foreign exchange students.

  • Local schools may, if they wish, provide other international students subvarsity eligibility regardless of grade level, without MHSAA Executive Committee approval.