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.
Money, Money Everywhere, But ...
June 23, 2016
Weather-watchers will often complain that there is too little rain where it’s needed, and too much rain where it is not.
I feel the same way about money and sports – too little money where it’s needed, and too much money where it is not.
While physical education is being eliminated in elementary schools and interscholastic athletics are being gutted in junior high/middle schools and high schools, college sports are awash in extravagant new revenue from broadcasting and merchandising rights. For example ...
The athletic departments of UCLA, Ohio State, California, Notre Dame and Wisconsin will receive more than $1 billion combined from Under Armour over the next 15 years. The University of Michigan has announced a 15-year, $169 million deal with Nike. Michigan State University has a multimedia rights deal pending with Fox Sports worth $150 million over 15 years. Both Michigan and MSU will benefit richly from what is likely to be a new $440 million per year package with the Big Ten Network.
Meanwhile, for lack of funds, schools reduce or eliminate physical activity from the school and after-school curricula. Inactivity rates soar, as do childhood obesity rates, as do medical expenses to treat obesity-related illnesses in adults.
In sports as in most other aspects of American society, ours is a free-market system that allows the rich to get richer, with little regard for the consequences. It’s a system that invites misplaced priorities. Of celebrity more than substance. Of immediate gratification over investing in the long-term health of a nation and its people.