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.
Going to the Mat
October 4, 2016
Somewhere I heard a speaker say: “The most exciting thing in life is to be shot at ... and missed.”
In a real sense, I wouldn’t know; but metaphorically, that’s somewhat how we’ve felt after a federal district court judge tried unsuccessfully to cripple the Michigan High School Athletic Association in the aftermath of a lawsuit over the placement of sports seasons in Michigan.
Plaintiffs wanted the high school sports seasons for boys and girls to coincide and to mirror the seasons the National Collegiate Athletic Association established after our high school seasons were adopted. With the urging of its member schools, the MHSAA battled for nine years to attempt to retain a sports seasons schedule that allowed schools to use their resources (facilities, coaches and officials) in ways that they could demonstrate promoted higher participation rates by both genders.
Plaintiffs did not get all that they sought in the case, and neither did schools; but the judge ordered the MHSAA to pay $7.9 million, much more than the organization’s assets at that time.
But rather than being the death knell for the MHSAA, these events breathed exciting new life into the organization, the positive effects of which continue today.
The judgment – reduced significantly through negotiations, early payment incentives and insurance and paid off in 18 months – set in motion a review of internal operations that reduced expenditures by $600,000 over 12 months, while sponsorship and broadcast revenue grew by a combined $600,000 during those 12 months.
Eight years later, many of the operational savings continue, and non-tournament revenue is now more than double what it was in the first year following the judgment.
While complaints still come to us from students and citizens in local communities regarding the court-ordered changes for sports seasons, and participation has declined significantly in several of the affected sports – especially girls basketball, girls volleyball and boys tennis – the MHSAA office still continues to enjoy many efficiencies, as well as some euphoria, from the shot-at-but-missed experience.
This comes from the knowledge that we went to the mat for what our schools wanted, fought long and hard, paid a high cost, and came out of it with schools’ respect. In the aftermath, the MHSAA staff and Representative Council came together, and came through it stronger.