7/9/04
- Preferred Seating Plan- Part 4

Part 4 of 4, The Leaders and Best?

Part 1/4- Evaluation of Benefits  Part 2/4- How Did We Get Here?

Part 3 of 4- The Harsh Truth

The Preferred Seating Plan is here to stay.  In part 1, I addressed the 'benefits' of the new program.  In part 2, I addressed the circumstances that have contributed to the current budget crisis.  In part 3, I addressed the harsh practical truth of PSP.  In part 4, I'll address why I think the plan is disappointing.

Where's the Vision?

So I've read the PSP program brochure and sat through the public question and answer session.  And after careful consideration here's what I have to say about it... 

Is that all you've got?

No long term plan for creating endowments to subsidize scholarship costs?  No revenue generating facility upgrades? 

In fact, at the first public meeting about the PSP one of the athletic department representatives said that there was no plans for what to do with the extra revenue after 2006 season.  Now either this is a lie or it's the truth.  Either way the answer is scary.

Isn't that how we got here?

The larger question is whether or not anything has really changed at the athletic department.  They keep throwing around phrases like 'we need to make a business decision' or 'it's not good business to do X or Y.' 

Well, I have a question that I'd like someone in the Athletic Department to answer for me-

WHAT THE HELL HAVE YOU PEOPLE BEEN DOING FOR THE LAST 15 YEARS? 

Any 'business' that planned this poorly would be OUT OF BUSINESS.  Fortunately for them, the current athletic administration has the luxury of inheriting a near monopoly created by over a hundred years of tradition. 

How can people who "choose" to participate in the PSP program have any confidence that the athletic department is being run any better than in the recent past?  Will the revenue generated by the PSP be invested or just frittered away?

Business-Like But Not a Business

Well, repeat after me- the athletic department is
not a business.  They can run like a business and it wouldn't hurt them to treat their customers like a business but the athletic department, is in fact, not a business. 

This distinction is important.  A real  business is only truly accountable to its owners or shareholders.  A real business is free to set its prices at whatever the market will bear.  Indeed, a real business should extract the greatest price possible for its product. 

The athletic department is a non-profit organization which has the following mission: 

The mission of the Athletic Department is to support and supplement the mission of the University of Michigan by providing intercollegiate and recreational sports programs. The development of successful teams and quality recreational sports programs, with a focus on the welfare of our student-athletes, is inherent to our mission. The Athletic Department is dedicated to the principle that the pursuit of excellence in intercollegiate athletics must be accomplished within the framework of an academic community committed to providing equitable opportunities for all student-athletes, students, and faculty.

http://mgoblue.com/document_display.cfm?document_id=13337

As an extension of the University, the athletic department is ultimately responsible to the citizens of the State of Michigan.  The Athletic Department is also responsible to other constituencies. The alumni are a strong worldwide marketing presence which helps maintain the University's reputation.  Season ticket holders generate a large percentage of revenue and many of whom have been supporting the program for decades.

Why does this distinction matter?  Because the athletic department refuses to acknowledge the mistakes of the past.  If the athletic department were a private company that would be fine.  But as a public institution, it is responsible to each every citizen of the State of Michigan who pays taxes, every Alumnus of the University who donates money, and every season ticketholder.
 

The REAL Michigan Tradition

Fielding Yost and Fritz Crisler not only were successful coaches but were administrators of great vision.  Don Canham revolutionized the marketing of collegiate athletics. 

Where is the innovation now? 
Why is the current administration content to follow in the steps of other institutions when the the REAL tradition of Michigan is to lead?

Wolverines on the Field but Sheep in Administration

We're hearing a lot about Michigan catching up to other schools.  It was Fielding Yost who said of an opponent, "
Who are they that they should beat a Michigan team?"  I ask the athletic department, "Who is Michigan to be catching up to other programs?" 

Get your act together.  The on-the-field success of Wolverine sports teams is being put in jeopardy by the mismanagement and poor planning of the past athletic directors.  Ohio State and Michigan State are beginning to get ahead in team facilities and revenue generation capability.  If these trends continue Michigan will be hard pressed to maintain its elite athletic status.

So What Do We Do now?

Well, if you're a season ticket holder whose seats now are taxed by the PSP program you have a decision to make.  Do you pay or give up your seats?  Most will find a way to pay and keep their seats.  Some won't.  Either way it stinks.  No matter what decision people make it's clear that the average fan needs to take a serious interest in how the athletic department manages the revenue generated by the PSP.  One lesson of the last 15 years is that we can't depend on the local media to hold the athletic department accountable for fiscal issues.  If you truly care about the future of Michigan Athletics here's what you need to do:

  • Pay the PSP but watch how money is spent and hold the athletic department accountable.

  • Donate money to Michigan Athletics BUT earmark your donation towards the endowment of scholarships in your favorite sports  (NOTE: Unfortunately if you do this your donation WILL NOT count towards the PSP program.)

  • Evaluate the regents, many of whom are complicit in the past mismanagement of the athletic department.

Conclusion?

The next couple of years will be interesting for the future of Michigan athletics.  The athletic department will need to develop a vision of where it wants to be 25 years from now.  Hopefully it will be a vision that fans can rally around support rather around.  Hopefully 10 years from now the athletic department won't come back to its fans and have to admit that financial mismanagement of the late 1990's never really ended...

Go Blue!

Phil Callihan
UMGoBlue.COM
, Editor-in-Chief
phil@umgoblue.com
 


 



Phil Callihan is the Editor-in- Chief of UMGoBlue.COM.  Phil graduated from the University of Michigan in 1993 and has been a football season ticket holder since 1994.

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