Risk Taking
February 14, 2012
The June 22, 2009 cover story of Business Week which I just reread was titled “The Risk Takers.” It featured businesses which during difficult times, instead of playing it safe, placed bets on some gutsy new strategies.
To make a point, the author used an illustration that we can relate to here in Michigan. I paraphrase:
Imagine a driver on a snowy night. If the car starts to slip, the driver’s natural instinct is to slam on the brakes and jerk the steering wheel in the opposite direction. But the laws of physics advise the opposite: laying off the brakes and steering into the turn.
The author reports that from 1985 to 2000, the average merger in an economic downturn created an 8.5 percent rise in shareholder value after two years; while the average deal in good times resulted in a 6.2 percent drop in the buyer’s share value. In other words, mergers – one of the biggest, boldest moves in business – do better in bad times than good. Much better, in fact.
It wasn’t recklessness this article was celebrating; it was risk taking – daring to be aggressive, rather than just defensive, amid a weak economy. Steering into the turn, so to speak.
Just like the winter driving analogy in the article, we who are involved in school sports in Michigan can relate to the big idea of the article because we too made some of our biggest moves at our bleakest times. The MHSAA retrenched in some ways, but the greater theme as we climbed out of our bad times of 2008 was that we made unprecedented investments in new technology.
Today MHSAA.com is the website of highest traffic and MHSAA.tv is the website with the most productions of any comparable organization in the U.S. And all of these investments in technology during those bad times have allowed us to undertake the ArbiterGame project now that will provide all member high schools the electronic tools necessary to make their tough tasks of school administration more streamlined than ever before.
Sold Out
December 13, 2016
We are sometimes criticized for limiting the scope of school sports – for restricting long-distance travel and prohibiting national tournaments; but there is no question that we are doing the correct thing by protecting school sports from the excesses and abuses that characterize major college sports.
Across the spectrum of intercollegiate athletics, but especially in Division I football and basketball, there exists an insatiable “keep-up-with-the-Joneses” appetite.
Universities are building increasingly extravagant facilities. They are sending their “students” into increasingly expansive scheduling. But it’s never enough.
There is always another university somewhere building a bigger stadium, a fancier press box or more palatial dressing rooms, practice facilities and coaches quarters.
So-called “students” are sent across the US and beyond to play on any day at any time in order to generate revenue to keep feeding the beast.
The Big Ten knows it’s wrong, admits it, but schedules football games on Friday nights to attract larger rights fees from television.
Feeling used or abused, some of the athletes of Northwestern and then at the University of Wisconsin, talk of creating a union to protect themselves from the obvious, rampant exploitation.
And then occasionally, some college coaches dare to suggest that high schools are wrong to have regulations that reject the road that colleges have traveled, a road that has distanced athletics very far from academics in intercollegiate sports.
The intercollegiate model is not and must not be the interscholastic model. We who are sold out for educational athletics have nothing good to learn from those who have sold out for broadcast revenue.