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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.

Our Tools

March 11, 2014

MHSAA staff does very many things, including these two tasks: (1) we use the tools we have; and (2) we strive to develop more effective tools.
The tools we have are limited. We don’t have a huge staff to conduct investigations. We don’t have subpoena power to coerce disclosure of testimony and documents. We don’t have rules to cover every situation.
Thus, it feels like some people get away with things; and sometimes they do. We don’t have the tools to catch them or convict them. That is the inescapable condition of every voluntary statewide athletic association in the US.
But the other thing we do is keep working on better tools. Rules with broader reach and/or fewer holes. Penalties that are a greater deterrent to some people, and more punitive to others when deterrence doesn’t work.
Developing new rules is a tough process. Sometimes it takes months or years to get membership buy-in. Sometimes the “no-brainers,” so-called “easy solutions,” get shot down by lawyers who demand the most narrow remedy to each and every excruciatingly detailed problem.
We work today with the tools we’ve been given through the democratic processes of our voluntary association. And we keep working on ways to sharpen and strengthen those tools in ways that are reasonable in breadth and depth, rationally related to the basic tenets of a voluntary association, one of which is local control. Obviously, these are two of the more difficult things we do.