GIVING BACK: Bill Gates, Andrew Carnegie, and... Basketball

Yoshito Hori found an unusual way to revitalize his hometown.

Nineteenth-century steel magnate Andrew Carnegie’s first act of charity was to build a swimming pool in Dumfermline, his Scottish birthplace. He was 43 years old.

Bill Gates was 45 when he established the Bill and Melinda Gates Foundation. While addressing big global challenges, Gates’ foundation also maintains a geographic focus on the US Pacific Northwest. Why? Because that’s where his family comes from.

These examples teach us two things.

Firstly, giving back is something most people only get around to in middle age. Secondly, even philanthropists who operate on a grand scale keep a place in their hearts for their hometowns.

I’ve no intention of comparing myself to these philanthropic legends, but not long ago I did begin exploring ways to give something back to my hometown.

My hometown is Mito, a city of several hundred thousand people 70 miles northeast of Tokyo.

It all started in August 2015 when I went back for a high-school swimming team reunion. It was my first time to attend in 35 years.

Unfortunately, the pleasure I got from seeing my swimming buddies was offset by my shock at the state of the city. Mito's once bustling town center of department stores, clothes shops and restaurants was a miserable parade of shuttered shops, derelict buildings and vacant lots.

What was behind this transformation? Not rustbelt-style deindustrialization à la Detroit, but basic changes in lifestyle. As car ownership rose, more people moved to the suburbs, and suburbanites tend to shop and eat at places with easy parking. The result? A hollowed-out city center.

Mito’s decline made me angry. I also felt somehow responsible. Since leaving decades earlier to live in Kyoto, Boston and then Tokyo, I’d seldom gone back to the city, and contributed nothing to it.

Mito is the capital of Ibaraki prefecture. If Mito looks shabby and rundown, it reflects badly on the prefecture as a whole. I went to see the city mayor and, after some discussion, we—together with around 50 other people—initiated the Downtown Mito Revival Project.

At one of the gatherings of this group, I bumped into the owner of the local basketball team, the Ibaraki Robots.

This team was, if you’ll excuse the pun, a complete basket case. Rescued from bankruptcy in 2014, the Robots finished bottom of the league the following season, playing to an average crowd of just eight hundred! (They’re now making a new start in the second division of Japan’s newly reorganized league.)

So what did I do?

Reader, I bought the team—or rather a 50% share in it. A successful sports franchise can contribute in a big way to urban renewal, both psychologically and economically, by boosting civic pride and attracting crowds to the downtown area.

For all the Robots’ disastrous track record, there were grounds for hope. Basketball has the second-biggest player population of any sport in Japan after baseball. At the local level, Ibaraki prefecture, as home to Japan’s high school and university champion teams, has a rich talent base, while Mito is currently constructing a new 5,000-seat sports arena.

The only way is up!


Or so I naively thought until I went to watch the Robots play. Every game I attended, my team was thrashed!

Of course, winning victories on the court is the coach’s responsibility, not mine. As team owner, I’m involved with the business side of things.

Sometimes, though, there is overlap. Example: Our players’ salaries were by far the league’s lowest. As a result, existing players had low motivation levels, while promising players had zero incentive to join our team.

To improve motivation, I committed to raising all the players’ salaries by 50% annually for the foreseeable future. The plan is to increase revenues from ticket sales, merchandising and sponsorship to cover the rising wage bill. I hope to set up a positive revenue/motivation feedback loop!

This year has seen “no-hoper” teams from smaller cities like Leicester City (soccer) and the Cleveland Cavaliers (basketball) crowned champions.

But in Japanese basketball the last championship was fought between Japan’s No. 1 city, Tokyo, and its No. 2 city, Yokohama.

Mito is of a similar size to Cleveland and Leicester…

So I’m hoping that the Robots will pull off a similar upset, win the championship, and become an inspiration for Mito as it embarks on the road to economic renewal!

Supporting a sports franchise is a fun way to give something back! The season starts on October 1. The mayor will be there for tip off at the first game. I have a courtside season ticket. I hope the people of Ibaraki and Mito will all turn out to support their local side.

What about you? What are you doing to give back to your hometown?

Profile

Mr. Yoshito Hori established GLOBIS Management School in 1992 and GLOBIS Capital Partners in 1996. In 2003, GLOBIS started its original MBA program which, in 2006, received accreditation from the Japanese Ministry of Education and gained “university” status. GLOBIS started a part-time MBA program in English in 2009 and a full-time MBA program in English in 2012.

A Harvard MBA graduate and former Sumitomo Corporation employee, Mr. Hori founded the Entrepreneurs’ Organization (EO) Japan Chapter in 1995 and became the first board member from Asia in charge of Asia Pacific region in 1996. He also served on the World Economic Forum (WEF)’s New Asian Leaders Executive Committee and Global Agenda Council on New Models of Leadership, as well as the Harvard Business School Alumni Board from 2005 to 2008. Currently, Mr. Hori is a board member of the Keizai Doyukai (Japan Association of Corporate Executives), and serves as co-chair of WEF’s Global Growth Companies.

In 2008, he launched the G1 Summit – a Japanese version of the WEF’s annual Davos forum. This led to the foundation of G1 Summit Institute in 2013, which Mr. Hori serves as Representative Director.

Just days after a huge earthquake struck northeast Japan in March 2011, Mr. Hori launched Project KIBOW to support the rebuilding of the disaster-affected areas. The following year Project KIBOW was incorporated as the KIBOW Foundation, which Mr. Hori serves as Representative Director.

An avid enthusiast of the Japanese game Go since age 40, Mr. Hori has been Director of the Nihon Ki-in (Japan Go Association) since June 2013.

Since October 2013, Mr. Hori has hosted a weekly TV program in Japan called Nippon Mirai Kaigi (Japan Future Conference). He has authored several books including Visionary Leaders who Create and Innovate Societies, Six Dimensions of Life, and My Personal Mission Statement.

Mr. Hori received his BS in Engineering from Kyoto University and his MBA from Harvard Business School.

He is an avid swimmer and enjoys spending time with his family, especially his five sons.

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