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.
It’s About the Base
May 8, 2018
Former Southeast Conference Commissioner Roy Kramer, whom Michiganders like to claim as our own for his East Lansing High School and Central Michigan University coaching roots, seized the opportunity of an acceptance speech for an award he received recently from the Tennessee Chapter of the National Football Foundation, College Football Hall of Fame and Knoxville Quarterback Club to deliver a sobering message regarding the game he loves so much – football.
His concerns were for the survival of football on college campuses “where their games will never be on television and will be played in front of less than 10,000 fans.” Which is the situation for 90 percent of the nation’s college football programs.
He also said, “I’m even more concerned about games on Friday night.” Mr. Kramer has been a long-time opponent of Friday night telecasts of college football games because they do poorly both at the gate and in television ratings, and they conflict with the tradition of approximately 6,000 high school football games played locally on Friday nights.
We Michiganders are sometimes criticized for our “conservative” views about the boundaries of a sensible scope for educational athletics. We come by this naturally, on the shoulders of people like Roy Kramer who, even after years in the glitz and glamour of elite college football, maintains his concern for more modest college programs as well as high school football.
It is this base of the game, not the few at the pinnacle, that is the future of a game under siege in dozens of courthouses and state houses across the U.S. – and worse, a game being questioned in many thousands of homes where football was once the game of choice.