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.
Bet On It
May 22, 2018
In 1991, Michigan became the first state in the nation to pass legislation to prohibit a state-sponsored lottery from including games based on the results of sporting events. A bill introduced by Representative Keith Muxlow of Brown City passed both the Michigan House and Senate without a dissenting vote and was signed by Governor Engler Dec. 18, 1991.
The effort was assisted by the Michigan Coalition to Ban Legalized Sports Betting, a broad-based group of athletic, educational, religious and civic organizations which then turned its attention to helping pass federal legislation needed to fully protect Michigan’s professional and amateur sporting events from the influences of gambling in other states.
The federal legislation that resulted, on the books for 25 years, was ruled unconstitutional by the U.S. Supreme Court on May 14, 2018.
There are currently eight bills pending in the Michigan Legislature that would expand gambling in the state of Michigan, including several that would legalize sports betting or fantasy sports wagering and allow the Michigan Lottery to handle those bets.
It is impossible to know all the consequences – positive and negative – of expanding legalized gambling in our society generally and on sports particularly. However, we can imagine that as every decision and action of players, coaches and officials influences statistics and determines winners and losers of both contests and wagers, fans will become increasingly cynical of individual and team performances where sports betting is allowed.
And, more than ever, school-based sports will stand apart from the charade or corruption of sports on all other levels by all other sponsors. You can bet on it.