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.

Penalty Points

August 26, 2016

The five years that followed the adoption of a tougher transfer rule in the early 1980s were the busiest ever for Michigan High School Athletic Association lawyers. The tough rule made sense to parents until it applied to their own children, and was defended by coaches until applied to their own players.

The most recent five years have provided the most significant toughening of MHSAA rules in the 30 years since the contentious early ‘80s, most notably (1) adopting the athletic-related transfer rule (“links law”) that doubles the length of ineligibility for some transfer students who do not make a full and complete residential change, and (2) lengthening the maximum penalty for undue influence from up to one year to up to four years for students and adults involved.

Predictably, the recently enhanced rules have led to increases in challenges to the enforcement of those rules. What were good rules in theory sometimes have been challenged when put into actual practice. Ironically, the MHSAA has received criticism from some insiders that penalties have been too severe, and from a few outsiders that penalties have been too light. Which means we are reading these situations just about right.

It is MHSAA policy not to issue statements at the time penalties are assessed unless the penalties have a direct and immediate effect on MHSAA postseason tournament eligibility or progression. This is fitting for a voluntary association of schools which have the legal responsibility of enforcing rules as to their own students, coaches and others. The MHSAA does not want to embarrass member schools; and in those rare instances when it is necessary to issue a public statement of an action taken or to clarify an MHSAA policy or procedure, the MHSAA avoids identifying minor students and most adults who are the subjects of penalties.

While these procedures have served school-sponsored sports well in Michigan since the founding of the MHSAA, it is possible that the increase of 24/7/365 electronic communications produced by decreasingly professional/experienced/ethical personnel requires change. Taking full-body slams by media who have less than half the facts is not just a nuisance to the MHSAA, it’s disparaging to the goodness of the school sports brand.