Posts Tagged ‘Economic Impact’

Finding funding: Sometimes it comes to you

July 28, 2015

So you have a great idea for a new event for your facility: It would bring in hundreds of athletes who would stay multiple days and bring in thousands of dollars to the local economy.

Or, you’d like to expand your facility, adding fields or courts, which would allow you to bring in bigger, better events. All sounds good, but the bottom line, as they say, is the bottom line: How to pay for all of this?

It’s a universal issue that all organizations, rights holders, facility operators, high school and college athletic departments or team managers face. You may have great ideas, but you don’t have the resources to fund them. Where does the money come from?

As a sports corporation or CVB, you might ask your sales staff to acquire more sponsorships or partnerships. (what your sales staff says after you leave the room, well, that’s out of our control)

We already know that more colleges and universities, especially those outside the “Power Five” conferences, are looking to beer sales at games to help fund the athletic department. A year ago, there were 21 on-campus football stadiums where any fan of legal age could grab a brew. That’s more than twice as many as five years ago.

Troy University Athletic Director John Hartwell estimated that beer would account for $200,000 in commissions for the season. According to its contract with concessionaire Sodexo, Troy receives 43 percent of gross beer sales at its 30,000-seat stadium, or better than $2 for every $5 beer.

But sometimes the money comes to you, through an endowment. A trend that started in the Ivy League and spread to other schools is now becoming the new way to save that school from paying a salary.

The most recent example? Richard Corbett, a Florida real-estate executive who served as the business manager of Robert F. Kennedy’s 1968 presidential campaign, gave $35 million to the University of Notre Dame, from which he graduated in 1960.

Of the total, $25 million will go for a new building to house the anthropology and psychology departments and a digital-media center. He also directed $10 million of the gift to endow the university’s head football coach position.

In another case, Xavier’s men’s basketball coach, Chris Mack, is now the Sedler Family Men’s Head Basketball Coach after Tom and Genny Sedler provided Xavier with the endowment to fund Coach Mack’s salary. The endowment basically allows the university to take the money that would go to salaries and use it somewhere else.

The academic side has been doing this for decades, as donors have funded the “so-and-so-chair for chemical engineering research” at universities around the country. So how can you get the endowment idea to work for you?

It might come in the form of a civic-minded philanthropist who wants to fund a new soccer or basketball complex, or a company that can use foundation dollars to help a community cause while getting its name out in public.

This is a time we all have to be creative to find sponsorship and partnership dollars. Doing a form of an endowment might be the way to get your project from the drawing board, into the community.

ball field

NCAA Baseball Remains Big Business

May 28, 2015

Omaha, Nebraska isn’t the only place that profits from the NCAA baseball tournament.

Omaha, of course, the long-time host of the College World Series, sees the tournament as a major economic driver as well as a showcase for the area. In 2012 it’s estimated the tournament generated more than $20 million worth of media coverage for the city. And a report by Goss & Associates Economic Solutions estimates that between 2008 and 2018 the CWS will add $514.8 million to the Omaha economy, or $385.6 million in 2008 dollars.

But other cities that are the hosts for the baseball regionals are seeing a positive economic impact as well. Tulsa’s first Big 12 championship baseball tournament’s five days of competition are expected to be exciting for more than just college sports fans.

According to the Tulsa Regional Chamber, the Big 12 Baseball Championship is expected to have a total economic impact of close to $5.6 million in revenue.

The Tulsa Sports Commission’s budget to put on the event was just less than $800,000, said Ray Hoyt, president of VisitTulsa and the Tulsa Sports Commission.

The Tulsa World reports that the $5.6 million in revenue includes $3.2 million, the amount spent by outside visitors; $221, the average each visitor who spends the night in Tulsa is expected to spend per day during the tournament; and $142, the average each visitor who doesn’t spend the night will spend per day.

A particular goal for this week is to run the event in a way and produce turnout that will strengthen the city’s relationship with the Big 12 as well as the NCAA. Tulsa has an application in to be the host for the 2018 Big 12 Baseball Championship as well as conference events as soon as next year.

Amenities added include a free “Fan Fest” area where about 6,000 were expected during the weekend, pop-up bars and other activities between games. To help fund the extras, a number of area businesses stepped up with donations and sponsorships.

As Ray Hoyt, president of VisitTulsa and the Tulsa Sports Commission told the Tulsa World, “Sports is a business. They (the businesses) understand the return on investment to Tulsa.”

Whether it’s the NCAA world series, a regional site or a conference tournament, CVBs and sports commissions are seeing the value in being the host for thousands of passionate fans, ready to party and ready to spend.

Looking for Competition? Go Fish!

February 17, 2015

Events tend to be most successful when they 1) have a strong local following and 2) use the area’s resources effectively. If you’re fishing in Florida and have an affinity for tarpon, then the place to be is the gulf area of Boca Grande, where they stage the not-so-humbly titled “World’s Richest Tarpon Tournament.”

First, a little information about the tarpon: Tarpons might be the big-game prey of the fishing world. They are big, growing between four and eight feet, and when they’re hooked, they jump like a seven-foot forward in the NBA finals, which makes the fishing even more exciting. The Boca Grande/Punta Gorda/Fort Myers area of Florida’s Gulf Coast is the home to some of the best tarpon fishing around, hence the tarpon tournament, which will be held this year on June 4-6.

Organized now by the Boca Grande Chamber of Commerce, the “World’s Richest” Tarpon Tournament was originally called the Boca Grande Club Invitational when it was started in 1983 and was sponsored and run by the private Boca Grande Club located on the north end of Gasparilla Island.

In 1991, the Boca Grande Area Chamber of Commerce took it over renaming it the “World’s Richest” Tarpon Tournament and opening entries to the general public. Its mission is conservation and it’s a catch-and-release tournament.

At its height, the total purse of the “World’s Richest” exceeded $175,000 and anglers from all over the world traveled to Boca Grande to enter for a chance to win it. The “World’s Richest” perpetual trophy is on display at the Boca Grande Area Chamber of Commerce office and features the names of the winning team leaders for each year the tournament has been in existence.

The Boca Grande Fishing Guides Association took over the tournament and renamed it the Boca Grande Fishing Guides Association Tarpon Tournament which ran until 2011 until the Chamber took it over again.

And, of course, like most events, it’s grown to include music, kids’ events and more. In fact, it’s a central park of the big fishing business in southwest Florida, a business that it’s estimated to bring in more than $100 million annually from amateur anglers.

For an area that depends on the transient nature of tourism for its livelihood, the “World’s Richest Tarpon Tournament” is a way for the greater Boca Grande area to show off its resources while engaging the community in an event whose resources uniquely fit southwest Florida.

tarpon(photo courtesy www.lowetidecharters.com)

Website Launched for 23rd Annual NASC Symposium

September 10, 2014

The NASC is pleased to announce the launch of the new website for 23rd annual NASC Symposium, scheduled for April 27-30, 2015 in Milwaukee, WI., hosted by VISIT Milwaukee. The NASC Sports Event Symposium is the annual meeting for the only not-for-profit association for the sports tourism industry. For more than 20 years, the Symposium has been designed for sports tourism professionals by sports tourism professionals. Through a combination of industry-leading educational and business development opportunities, more than 800 Symposium attendees learn how to produce measurable ROI for their organization and advance their careers in the industry.

“The NASC board of directors, staff, and Symposium Committee are all very excited about the way the 2015 NASC Symposium is coming together,” said Beth Hecquet, CMP, CMM, Director of Meetings and Events.  “We are taking the feedback provided by our members and previous attendees and letting it guide us every step of the way.  You won’t want to miss it!”

On the website, you can download registration forms, view the preliminary schedule, find hotel & travel information, learn about sponsorship opportunities, and more.  Online registration will open for NASC members at the end of September.

Complete details are available at www.SportsCommissions.org/Symposium.

 

About the NASC

As the only trade association for the sports tourism industry, the National Association of Sports Commissions (NASC) is the most trusted resource for sports commissions, convention and visitors bureaus (CVBs), and sports event owners.

Since its establishment in 1992, the NASC has been committed to increasing the effectiveness of nearly 700 member organizations and more than 2,000 sports tourism professionals.

Our promise is to deliver quality education, ample networking opportunities, and exceptional event management and marketing know-how to our members and to protect the integrity of the industry.FINAL INFOGRAPHIC_091014

 

 

Prospecting in the NASC Sports Marketplace

August 18, 2014

Let’s talk for a few minutes about Sports Marketplaces. The NASC developed the first Sports Marketplace in the late nineties and since then it’s become an intricate part of the annual NASC Sports Event Symposium. And looking at the recent responses from our meeting in Oklahoma City, we can tell that your interest in the sports marketplace is as high as or higher than ever, and it turns out to be the number one reason why many of you attend the symposium and we understand that. One of the questions I would ask you though is to determine for yourself whether you’re prepared for the sports marketplace before you begin. And now we’re talking from the cities point of view, because one of the concerns, I personally have is, that many of you are relatively inexperienced in the industry are expecting to go to the Sports Event Marketplace and pick up business in 10 to 12 minutes, when you’re not even sure whether your destination can host the events you’re talking about. How do you fix that?

First, don’t go to a Sports Marketplace until you know the kinds of events you can host, and which age groups, and why. And if you don’t know that, you’re going to have to find somebody to help you determine what you can do before you talk to anybody. Because what happens is, a very simple prophecy is fulfilled if you don’t know whether you can handle the event or not, and you show the event owner in a sports marketplace appointment that that’s the case, what you’re doing is losing the business, rather than gaining the business.

What’s a proper approach to a sports marketplace appointment? Be prepared, be absolutely ready with what you can do and don’t take appointments with people who have events that you can’t handle. How do you find out where these events are? You go to the Rights Holder section of our database and you can find hundreds of event owners, and you can determine by sport which ones you ought to be talking to. And it makes common sense, to go ahead and do your homework before you go to the marketplace, at all.

Now, there has been some thought about restricting appointments at the marketplace to people who have been members and have attended the symposium for at least two years, and not have marketplace appointments with new people. That, of course, is not what we are going to do. Instead, I think you’re going to find the NASC to rely itself increasingly on Rapid RFP Review sessions; where an event rights holder meets with 10 or 12, or 15 of you at one time, “Here’s what we’ve got, this is what we’re looking for, go off do your homework. When you know you have it, get in touch with us, let’s talk then.” That’s a great way to do this. What is not a great way is to say to yourself before you arrive on-site for a sports marketplace series of appointments, is all I have to do to be successful in this business is to have a bunch of appointments, talk to a bunch of people, I’ll make friends and they’ll want to do business with me.” That’s not the way this business works, never has, never will, and it will be a waste of your time and a waste of the other event owners time, also.

I wish you well in all of your marketplace appointments, but I also, would wish preparation and the understanding that in 10 to 12 minutes you can lose a relationship faster than you can gain one. It is a terrific way to go back and say hi to old friends and acquaintances, and remind them that you are still interested in doing business with them. It is a terrible way to show people that you’re too new to know what’s going on.

Video blog: Don Schumacher, CSEE, Executive Director
National Association of Sports Commissions
513.281.3888     –     http://www.sportscommissions.org 
Published  August 18, 2014

Is the Super Bowl a Super Win for the Hosts?

January 30, 2014

The Super Bowl has long been seen as the big ‘get’ for any host city. With international exposure, out of town visitors and spending all week, it looks to be a no-brainer event.

For the upcoming Super Bowl XLVIII, it’s estimated the game and ancillary events will mean a half billion dollars to the greater New York metropolitan area, according to the Sport Management Research Institute. The New York/New Jersey Super Bowl Host Committee says the economic impact is estimated to be between $500 million and $600 million for the region, including hotels, restaurants, bars, taxis, car services and small businesses.

Now, most sources think those estimates are pie in the sky, at best. A more historical look at the spending comes from PricewaterhouseCoopers. Over the last 12 years the actual direct spending for Super Bowls has been between $113 million and $202 million for each game.

“The true economic impact comes from visitors only, with no spending by locals included except staging costs for the game and ancillary events. These expenses are incurred solely to meet the needs of the event, so it is spending above what would otherwise take place. The displacement theory (crowding out) is a bigger factor in a warm weather site, where visits for non-game purposes could come close to or even match those for the game,” said Don Schumacher, CSEE, Executive Director of NASC.

For Indianapolis and its Super Bowl XLVI, a report by Rockport Analytics shows that more than 116,000 non-residents came to Indiana’s capital for the game and other events. Indianapolis non-residents brought in more than 472,000 visitor days in the metro area (how many visitors would otherwise come to Indy in the middle of winter?). Hotel occupancy averaged 93% for the area, 99% for downtown.

Visitors to Indy spent more than $264 million on the local economy, averaging nearly $571 per person, per day. All totaled, gross spending total economic impacts of Super Bowl XLVI was an estimated $324 million, broken down to $176 million in direct impact, $67 million in indirect impact and $81 million in income. With Indianapolis keeping $324 million of the $384 million in Super Bowl-initiated spending, about 84 cents of every dollar spent, stayed in Indianapolis. No wonder Indy is bidding again for the 2018 game.

Another factor to include is that economic impact studies on an event as big as a Super Bowl focuses on economic activity created by the game, and not economic activity prevented by the game. Victor Matheson, a sports economist at the College of Holy Cross puts it this way: “They don’t do a very good job measuring how many people are crowded away from the metropolitan area during that weekend because, you know, no one in their right mind goes to the Super Bowl city during Super Bowl weekend unless they’re there for the game,” he said. “Which means any regular business that normally would have happened gets crowded out.”

This Super Bowl also is unique is that it crosses state lines. It’s expected that New York City will get the big spenders who’ll stay in Manhattan, the New Jersey hotels and the service industry will benefit, including local restaurants and limo services.

Will it be a half billion dollar infusion into the area economy? Whatever the dollar figure, it’s invaluable in the halo effect (and media attention) the area has, now that it can call itself a “Super Bowl host.”

Jackie Reau

Game Day Communications

700 West Pete Rose Way

Cincinnati, Ohio 45203

(513) 929-4263, office

(513) 708-5822, mobile

(513) 929-0245, fax

jreau@gamedaypr.com

http://www.gamedaypr.com

LinkedIn: JackieReau

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Twitter:@JackieReau

Bowling for Dollars: Economic Impact Considerations for College Football Bowl Games

January 3, 2014

The outgoing president of Ball State University, Dr. Jo Ann Gora, once said that the only ones who make money from a bowl game is the host city. An economic impact study from last January’s Orange Bowl and BCS Championship games shows, that’s not too far from the truth, at least for the on-their-way-out BCS bowls.

According to a study by the Conventions Sports & Leisure International group shows that the 2012-2013 Orange Bowl Festival, which included the annual Orange Bowl game as well as the BCS Championship game, helped generate a $298.1 million economic impact for South Florida.

Perhaps more significant is that number is nearly 50 percent more than the economic impact generated the last time South Florida was the host for both the Orange Bowl and the BCS National Championship games, in 2008-09. It’s also close to the $333 million economic impact of the 2010 Super Bowl played at Sun Life Stadium, according to the South Florida Super Bowl Committee.

The study cited an improved economy as one reason for the jump in spending; another was the increased interest in the two teams involved in the BCS title game in 2013, Alabama and Notre Dame.

The study breaks down the economic impact with Orange Bowl events generating $127 million in new direct spending, $224 million in total new economic output, $4.9 million in new taxes and creating approximately 2,400 new full and part-time jobs that generated $81.4 million in personal earnings. The total economic impact figure includes $74.1 million in media exposure value for South Florida.

That’s what one of the BCS bowls can mean to a community, but what about some of the lower tiered post-season college games? They can impact a city’s bottom line, as well. For example, the Las Vegas Bowl, played just before Christmas at UNLV’s stadium, brings in around 37,000 fans who generate some $18 million in non-gaming economic impact during one of the quietest tourist weeks of the year on The Strip.

And look at the finances surrounding the Heart of Dallas bowl January 1 at the Cotton Bowl pitting UNLV against North Texas. UNLV expects to receive $600,000 from its conference for participating in the game but is responsible for selling $400,000 in tickets (5,333 tickets at $75 apiece). That leaves $200,000 for the expense of sending the team and university officials to Dallas for the game. But it’s been 13 years since UNLV has been in a bowl game, and despite the financial challenges, UNLV Athletic Director Tina Kunzer-Murphy said she never considered turning down the bid.

“It’s a national network and we’re going to be the first game out,” Kunzer-Murphy said. “It’s going to be a three-hour advertisement for the university, and that’s priceless.”

For the Dallas area, the bowl game has its own payday. This bowl game, run as a not-for-profit, brings in just under $20 million in economic impact, according to the Dallas Convention and Visitors Bureau. The traditional Cotton Bowl Classic, before it moved to Arlington, Texas, was $29.8 million.

Add in the national exposure that the host cities receive during a bowl game, and it’s easy to see how games from the Belk Bowl to Music City Bowl to the Pinstripe Bowl continue to pop up and thrive: Schools love the exposure, and the host cities love the visitors during traditionally slow tourism times. And that’s a big win for both sides.

Source: http://www.bizjournals.com/southflorida/news/2013/11/01/orange-bowl-bcs-championship-scored.html?page=all

Jackie Reau

Game Day Communications
700 West Pete Rose Way
Cincinnati, Ohio 45203

NASC Playbook – December 2013 Edition Available Now

December 30, 2013
The latest edition of the NASC Playbook is available now.Image
Inside this issue:
  • 2013 Year in Review
  • CSEE/Market Segment Meeting Recap
  • 2014 Board Nominations
  • 2014 Member Awards
  • 22nd annual NASC Sports Event Symposium Preview
The NASC Playbook was created to feature members’ success stories and share industry best practices among the membership.  If your organization has a story to share and would like to be interviewed for a future article, contact Elizabeth Young, Director of Membership and Marketing.
Read the Playbook now.

NASC unveils new capabilities for Economic Impact Calculator to measure $8.3 billion industry

July 12, 2013

The National Association of Sports Commissions (NASC) today announced that it is launching an improved Economic Impact Calculator to guide its membership in measuring the $8.3 billion U.S. sports events industry.Image

The Economic Impact Calculator model and Event Spending data are based upon studies completed by Sportsimpacts at over 50 events within the last decade spanning various market sizes and event types, and a 2011-2012 Consumer Spending study conducted by the University of Arizona Sports Management program that analyzed daily visitor spending trends at 30 events spanning various market sizes and event types.

Dr. Pat Rishe, Executive Director of Sportsimpacts, a national sports consulting firm, originally developed the calculator in 2007, which offers a consistent approach to calculate and report economic impact results. When used properly, the calculator allows NASC members to approximate the total direct spending stemming from all non-local sources, and report upon such findings in an accurate manner.

“Our goal with the Economic Impact Calculator is to simplify the process of estimating the economic value of an event and its return on investment,” said Don Schumacher, Executive Director of NASC. “The improvements made to the calculator are based on extensive research to offer accurate results and ease of use. It is a valuable tool that is available for free to all NASC members.”

One new feature of the calculator is a Spectator Survey that allows members to gather data required for inputs. This survey will give insight to visitor spending behavior, which will enable members to itemize and localize spending estimates for greater authenticity.

The updated calculator also offers two options for approaches to determine a final impact number. The itemized approach ensures greater accuracy for spending estimates based on research gathered through the Spectator Survey. The aggregate approach provides a more general overview of the flow of visitor spending.

In addition, three sets of calculations are put forward permitting members to choose any or all of them depending on the data desired: Spending by Event Spectators, Spending by Event Participants, and Spending Stemming from Other Non-Local Sources.

Access to the calculator is offered to all NASC members as a benefit of membership and will be available starting Monday, July 15.

Room Block in Louisville

November 1, 2012

Every year at the NASC Symposium we have various sessions on how to track hotel pickup.  We all dream of the event where every team stays within their hotel room block and tracking is a breeze. The same can be said of our association’s annual gathering.  We have the opportunity to support NASC by staying at the host hotel (Louisville Marriott Downtown) or the overflow hotel (Hyatt Regency Louisville).  And both hotels are steps from the Kentucky International Convention Center!  Check out the Hotels page on the NASC Symposium website to book your room. See you in Louisville…..

Heath Aucoin, CSEE

Event Manager/Sports Sales Manager

SMG/Jackson Convention Complex

What NASC Membership Means to Me

September 25, 2012

If you are like most of us, when you acquired your position you also acquired a “membership” in NASC because your CVB or Sports Commission was already a member of NASC.  And, quite possibly, you probably knew little about the NASC or what an impact it could have on your job and your career.

You are part of a rapidly growing industry-the sports tourism travel industry-and the rules we operate by are changing almost daily.  How do you stay ahead of your competition? How do you identify and act on trends when they occur?  How do you go about your “business as usual” when the “usual” keeps changing?

It’s a tough job and sometimes it’s easy to get the feeling that you’re overwhelmed with change and are having to go it alone in your job.

Well, if you haven’t thoroughly studied the NASC website, if you haven’t attended the Market Segment meetings, haven’t yet attended a Symposium, or become involved in the CSEE program, then you couldn’t know that many of the answers to your problems lie as close as your NASC  membership.

The longer you are involved in NASC the more you’ll come to realize that you’re not alone.  The problems you encounter are the same problems others in our industry face and oftentimes, the best way to resolve the problems is to communicate with our peers.  The NASC certainly provides this opportunity through all of its programming services.

I have often said, I have learned more about this industry and learned more about my job through my association with the NASC than with just about anything else I have done throughout my career.  The NASC has provided me the opportunity to establish relationships with rights holders, with event owners, NGB’s, and with my fellow peers within the industry-and we all know it’s all about our relationships.

I would certainly encourage you, whether you are a newcomer to the industry, or a seasoned veteran, to let your NASC help you become a significant contributor to this industry.  And I would also encourage you to get involved with the NASC.  Serving on committees, contributing at market segment meetings, participating in our webinars, and attending and being a part of the Symposium will help you build those relationships that are so crucial to success.

We all have growing pains as we go through life, the NASC can help ease those pains and make us successful.

Jim Dietz, Director of Sports
Columbus Indiana Visitors Center

jdietz@columbus.in.us

Jim served on the Board of Directors of the Columbus Indiana Visitors Center (CIVC) for seven years and as an officer for three of those years. Jim currently serves as Director of Sports Tourism for the CIVC and oversees over 50 annual athletic events in Columbus. Jim has been involved in the hospitality industry for over 30 years having owned and operated his own restaurants in Indiana and Illinois. A former high school teacher and coach, he has also held management positions in a Fortune 500 company and has served on numerous boards including the Western Illinois University Foundation Board and the Western Illinois University Athletic Board.  Jim is currently serving on the NASC Board of Directors and enrolled in the Certified Sports Event Executive (CSEE) Program.  He is the co-chair of the NASC Mentoring Committee.