Priming the Pump
November 28, 2014
Today and tomorrow bring an end to the MHSAA’s fall tournament season that, overall, experienced the worst weather I’ve witnessed in my 29 years of watching our fall events. We are grateful to those hearty fans who followed their favorites through wind, rain, ice and snow.
The MHSAA’s “bread and butter” is its season-ending tournaments. Try as we might to diversify our revenue, all our non-tournament revenue sources combined continue to account for less than 15¢ of every $1 the MHSAA generates. Sponsorships, broadcast rights fees and officials registration fees make a contribution to our enterprise; but the MHSAA operates without membership dues, fines and tournament entry fees.
That leaves gate receipts (ticket sales) as the largest (by far!) source of revenue; and it’s the football and basketball tournaments that pay the way for the many tournaments that the MHSAA operates at a financial loss (we call it an investment).
Because of this narrow flow of revenue, I asked a team of MHSAA staff to take a comprehensive look at the MHSAA’s marketing of its tournaments. Over a series of energetic meetings, these imaginative staff members have compiled a list of ideas to promote MHSAA tournaments by better using existing means and opening up new avenues to generate interest and increase spectator support.
The MHSAA Representative Council will soon vet and vote on a wide variety of ideas generated by our in-house task force. The objectives are a growing customer base enjoying an improved customer experience.
Bottom Lines
May 19, 2017
The cost of everything in everyday life seems to rise every year. Everything, that is, except the bread and butter revenue source of the Michigan High School Athletic Association.
Next school year – 2017-18 – is the 14th straight year that ticket prices for the District level of MHSAA basketball and football tournaments have remained unchanged; and it’s the 15th consecutive year without increase at the Regional level of those tournaments. Five bucks.
Meanwhile, the cost of venues hosting some MHSAA championships is rising rapidly. Even if calendar conflicts were not evicting the MHSAA from Michigan State University’s Breslin Center, steeply increased expenses could have the same effect.
There was a time when universities across the U.S. wanted state high school association tournaments using their on-campus facilities. This was a public service as well as a marketing tool for those institutions.
Today these universities derive much more revenue from higher international student tuition than is paid by the in-state students who first come to the campus to play in or watch state high school championships. Even more important than tuition dollars are research grants, royalties and donations to what is now the big business of higher education.
Where campus athletic facilities are operated outside the athletic department it is even more evident that money trumps the mission of public service, at least as it relates to facility usage and secondary school athletic programs which, to be sure, are less important than the search for world peace and cancer cures by our universities.
People might believe it’s more appropriate for MHSAA events to be on college campuses than in commercial arenas; but frankly, it’s getting hard for us to see a difference. The bottom line drives them both.