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.
Friday Night Football
September 23, 2016
There continues to be among high school athletic administrators a great gnashing of teeth over encroachment of televised college football on the Friday night turf that long tradition reserves for high school football games. Little by little and year by year, college games drift to all times of the day and all days of the week, and Friday night is no longer hallowed ground for the high school game alone.
The Friday night intercollegiate fare remains mostly irrelevant games by second tier teams, but televised nonetheless because of the overabundance of production entities and networks seeking live sports events. But high school leadership is right to be on guard.
Known to very few people is a million dollar offer in the 1970s by then NCAA Executive Director Walter Byers to the National Federation of State High School Associations if it would not oppose televised college football games on Friday nights. Clifford Fagan, then executive director of the National Federation, declined the offer from his good friend; and the mutual respect these two men enjoyed brought an end to the negotiation.
Then, as now, the National Football League was prohibited by law (part of its anti-trust exception) from televising games on Friday nights and Saturdays from mid-September through mid-December where the broadcast would conflict with a live high school or college game. Under Byers, and until the NCAA lost control of intercollegiate football broadcasting as a result of a legal challenge by what was then called the College Football Association, college football leadership voluntarily gave high school football the same deference on Friday nights that the NFL did under federal law.
Today, major college football is such a ravenous revenue beast that it will schedule play at any time on any day in any location, televising every game – on college conference-controlled networks if the matchup is not attractive enough for national or even regional broadcasts. The Friday night high school football tradition can expect to be trampled as college football swarms and grunts around the feed trough like hungry hogs.