Money Matters
January 14, 2014
Every once in a while someone will take a potshot at the MHSAA by saying the organization is motivated by money.
My colleagues in leadership of high school associations in other states probably would get a chuckle out of reading that criticism because the reputation of the MHSAA and this executive director is the opposite. We’re seen as the conservative stick-in-the-muds who oppose national tournaments and promotions in spite of the money that could be made from them.
Here’s a good checklist to determine if “the almighty dollar” motivates a high school association:
- Does the association co-title its tournaments with the name of commercial sponsors?
- Do the association’s events, publications and websites look like a NASCAR production with corporate logos plastered everywhere?
- Does the association seed its basketball tournaments or gerrymander brackets to allow the teams with the better records (and usually larger crowds) to avoid playing each other for as long into the tournament as possible?
- Does the association charge admission prices that are more than a fraction of college and professional ticket prices, or just equal to the cost of a movie?
One or more “Yes” answers doesn’t mean an association has sold out; but if all answers are “No,” you can be sure that the association has other purposes for its decisions than making money.
And “No” is the correct answer to these questions in Michigan. In fact, the full answer to No. 4 is that the MHSAA has not raised ticket prices for either basketball or football at either the District or Regional tournament level for more than a decade.
Gut Check
October 18, 2016
After nearly eight years on the staff of the National Federation of State High school Associations, I accepted the challenge of leading an effort by a private business to consolidate the insurance needs of high school athletic associations and to control their coverages and costs through a self-insuring pool. My assigned goal was to assemble at least half of the 50 states in this fund. The need was so great at that time for comprehensive general liability and directors and officers insurance tailored to the unique needs of state high school athletic associations, that the group was quickly assembled and launched.
My time leading this effort was brief. In spite of the program's immediate success and continued growth, I became uncomfortable. The discomfort was born and grew in the fact that while I was out meeting with states, decisions were being made back at the home office that I was not involved with or aware of. I began to feel used ... my credibility was bringing in business, but changes were being made without my input; and I feared for my reputation. After a year of this, I resigned the position. That was 1981.
Nine years later, the companies' CEO was terminated when it was discovered that he used the construction of a company headquarters office to build himself a new house at the same time, burying his home construction costs into the books of the companies' capital expenses. Seven years after that, the companies' founder and namesake went to jail for operating from 1984 until at least 1993 what was determined to have been a Ponzi-like scheme.
I listened to my gut which, long before my head, knew something was not right. In fact, my gut seemed on alert well before things went wrong. This has happened at other crossroads and dozens of less dramatic moments in my professional and personal lives.
In this time of increasingly complex and difficult decisions, both personal and professional, the gut may be a good guide for us all.