Impact of The University of Texas Athletics Department

Transcription

1 Impact of The University of Texas Athletics Department September 8, Bee Cave Road, Suite 100 Austin, TX 78746

2 Table of Contents Introduction & Methodology.. 3 Executive Summary Impact of Capital Investment.. 17 Impact of Texas Football Impact of Men s & Women s Basketball Impact of Texas Relays/Track & Field Impact of the Frank Erwin Center Impact of All Other UT Sports Additional Impacts Appendix About AngelouEconomics Texas Athletics Economic Impact 2

3 Introduction & Methodology INTRODUCTION This report quantifies the economic impact of The University of Texas at Austin Athletics Department (Texas Athletics) for the most recent completed year, the academic year, marking the first time that a comprehensive economic analysis has been completed for all of Texas Athletics. Texas Athletics is a major economic contributor to Austin and to the state of Texas. Texas Athletics manages 20 intercollegiate sport teams, approximately 200 home events per year, and more than 500 student-athletes. Outside of Men s & Women s Basketball, the Frank Erwin Center hosts an average of 190 events per year. The department employs approximately 350 people with a median salary of $53,864. AngelouEconomics has been retained by Texas Athletics to evaluate the full economic impact of the department on the Austin region as well as the state of Texas for the following venues: 1. Football Including the 2013 AT&T Red River Showdown and Valero Alamo Bowl 2. Basketball Both Men s and Women s Basketball 3. Texas Relays/Track & Field Including Texas Relays and the UIL State Track & Field Meet 4. Frank Erwin Jr Special Events Center Concerts and events 5. All Other UT Sports Softball, baseball, golf, rowing, soccer, swimming, tennis, and volleyball The economic impact analysis put forth in this report will measure Texas Athletics impact in terms of jobs, labor income, tax benefit, and total economic output. For this study, economic output is defined as the total value of all goods and services produced within the local economy, both for the Austin region and for the state of Texas. Texas Athletics Economic Impact 3

4 Introduction & Methodology CAPITAL INVESTMENT, TEXAS ATHLETICS OPERATIONS, & VISITOR SPENDING In order to gain a full evaluation of the impact of Texas Athletics, an analysis of capital investments made by Texas Athletics, on-going Texas Athletics operations, and visitor spending was conducted. The total economic impact of Texas Athletics is defined by the sum of these three expenditure categories. Capital Investment Texas Athletics Operations Visitor Spending TOTAL ECONOMIC OUTPUT Capital Investment: Over the past 20 years, Texas Athletics has invested more than $465 million in the Austin economy through the building and renovation of athletics facilities. The construction and expansion of athletics facilities will generate additional economic impacts to the region. One such impact would be the increase in employment that would be necessary to cover the maintenance of those new and updated facilities. Texas Athletics Operations: Operational expenses for the academic year were provided to AngelouEconomics by Texas Athletics and their partners. Only spending captured within the region of analysis, Austin and Texas, is included in the model. Texas Athletics Program Revenues Operating Budgets Football $112,508,162 Men s & Women s Basketball $16,618,227 Texas Relays/Track & Field $345,000 / $884,388 Frank Erwin Center $18,556,268 All Other Sports $10,732,450 Total $159,644,495 Source: Texas Athletics Texas Athletics Economic Impact 4

5 Introduction & Methodology Visitor Spending: Visitor spending includes the spending of out-of-town fans as they attended events. Such spending includes hotel costs, restaurants, automobile expenses, shopping, and entertainment. These figures were modeled by multiplying the number of out-of-town visitors by the average spending per person. In 2013, F1 weekend was the same weekend that Texas Athletics hosted Oklahoma State at Darrell K Royal Stadium. Hotel prices for F1 weekend are 2.5 times higher than on a normal weekend. The average expenditures for the Oklahoma State game were adjusted to reflect the increased hotel prices. Total Out-of-Town Visitors by Venue Annual Attendance Football 484,617 Men s Basketball 41,928 Women s Basketball 7,289 Texas Relays/UIL Track 52,586 Frank Erwin Center 219,292 All Other Sports 62,434 Total 868,146 Average Per Person Expenditures Spending Hotel (F1 Weekend) $51.80 ($122.16) Retail $31.20 Restaurants $31.90 Transportation $33.30 Total (F1 Weekend) $ ($218.59) Total Visitor Spending by Venue Football Basketball Texas Relays/ UIL Track Frank Erwin Center All Other Sports Total Hotel $30,829,901 $2,876,133 $7,071,083 $9,041,141 $3,753,985 $53,572,243 Retail $15,182,730 $1,623,566 $2,890,583 $5,829,690 $2,252,337 $27,778,906 Restaurants $15,501,605 $1,803,470 $4,205,885 $13,231,095 $2,252,105 $36,994,160 Transportation $16,189,957 $1,818,370 $3,233,346 $10,242,185 $2,481,361 $33,965,219 Total $77,704,193 $8,121,539 $17,400,897 $38,344,111 $10,739,787 $152,310,527 Economic Impact Results: Sources: Smith Travel Research, D. K. Shifflet & Associates, AngelouEconomics, Texas Athletics All results presented for the economic impact analysis are adjusted for inflation and represent 2015 dollars. Texas Athletics Economic Impact 5

6 Introduction & Methodology Total hotel room stays are computed applying the average of 2.5 per room to the total out-of-town attendance. Hotel Night Stays by Venue Total Annual Football 193,846 Basketball 19,687 Texas Relays/UIL 22,385 Frank Erwin Center 87,717 All Other Sports 27,921 Total 351,556 Sources: AngelouEconomics, Texas Athletics Visitor spending totaled $152.3 million, which serves as the input for the visitor spending model. The total economic benefit of visitor spending will be much higher as the direct spending creates additional impacts to the local economy. AUSTIN AND TEXAS MODEL This report presents two models for the economic impact of Texas Athletics: the Austin model and the Texas model. The Austin model analyzes the impact of operation expenses and visitor expenditures in the Austin region. The Austin region is defined by the 5 county area, including Bastrop, Caldwell, Hays, Travis, and Williamson Counties. The second model measures the impact that Texas Athletics has on Texas. The Texas impacts include all impacts that occur outside of the Austin region but within the state. This accounts for all away games, including the 2013 Valero Alamo Bowl in San Antonio as well as the AT&T Red River Showdown in Dallas. Texas Athletics Economic Impact 6

7 Introduction & Methodology WHAT IS AN ECONOMIC IMPACT The total economic impact of Texas Athletics is derived through direct spending by the department as well as expenditures by visitors. Money spent by either party on goods or services becomes revenue for local businesses. These businesses spend their new revenue to acquire employees and goods necessary to fulfill orders, thus placing the money back into the local economy. This snowball spending effect is referred to by economists as the Multiplier Effect. The multiplier effect is made up of the direct, indirect, and induced impacts. AngelouEconomics utilized the IMPLAN Input-Output Model to calculate the effect that direct spending had on the Austin and Texas economies. Direct Limited to the effects in the local economy that occur as a direct result from Texas Athletics. Indirect Includes increases to sales, incomes, and jobs in business sectors that support or supply Texas Athletics. Induced The household spending patterns of employees through all business sectors that experience increased earnings as a result of Texas Athletics. Source: Implan Texas Athletics Economic Impact 7

8 Executive Summary TEXAS ATHLETICS DEPARTMENT In 2014, AngelouEconomics was engaged by Texas Athletics to conduct an economic impact analysis for the most recently completed academic year. The economic impacts will be concentrated on the following venues: 1. Longhorns Football 2. Men s & Women s Basketball 3. Texas Relays/Track & Field 4. Frank Erwin Center 5. All Other UT Sports Texas Athletics' economic impact on the Austin and Texas economy is generated through the following input factors: Average Annual Capital Investment & Expansion Projects Texas Athletics Yearly Operational Budget Expenditures Visitor Spending of Out-of-Town Event Attendees Tailgating The 2013 AT&T Red River Showdown in Dallas (impact on state) The 2013 Valero Alamo Bowl in San Antonio (impact on state) In addition, there are many other benefits of Texas Athletics that go beyond the economic contributions. Texas Athletics benefits the entire university system through the Longhorns brand, which garners alumni support through monetary donations. Texas Athletics creates significant impact in the Austin and Texas economies. Its operations are a boon to local small businesses and provide economic stability to the region. Texas Athletics Economic Impact 8

9 Executive Summary REPORT HIGHLIGHTS Key Highlights: Texas Athletics accounts for 5.2% of the $6.3 billion travel industry in Austin Average spending per person per day while in Austin: $ Total hotel stays: 351,556 7,333 Jobs created Texas Athletics supports 4.8% of all hospitality jobs within the Austin region Through construction, locally sourced vendors, restaurants, and retailers, small businesses are the beneficiaries of Texas Athletics' presence in Austin Average number of visitors in Austin for a home football game: 80,800 Average economic impact of a Longhorns Football home game: $63 million Direct Annual Impacts: Average annual capital investment: $23 million Texas Athletics operational expenditures: $159.6 million Visitor spending: $152.3 million Total Annual Impacts: Texas Athletics events attract approximately 868,100 visitors to Austin The total state economic output from Texas Athletics was $728 million Total Capital Investment over 20 years: $923 million and 5,300 jobs Average annual capital investment: $46.2 million and 265 jobs Operation Impact: $325.5 million Visitor Spending Impact: $356.4 million The total tax impact from Texas Athletics was $72.4 million State and local tax revenue: $28.0 million Federal tax revenue: $44.4 million 316 business sectors impacted throughout the state of Texas Sectors impacted by more than $1 million: 49 Tailgating at UT home games generated a total of $54.9 million State Economic Impact of the 2013 AT&T Red River Showdown: $28.7 million State Economic Impact of the 2013 Valero Alamo Bowl: $32.3 million Source: The Office of the Governor, Economic Development & Tourism Division Texas Athletics Economic Impact 9

10 Austin Texas Total Executive Summary TOTAL TEXAS ATHLETICS ECONOMIC IMPACT (Annual) In 2013, Texas Athletics led the way amongst all NCAA Division I schools, in total revenue and in total expenses. Texas Athletics is financially self sufficient and does not receive subsidies from public or university funds, including student fees. The magnitude of the economic impact of Texas Athletics should therefore be of no surprise. Total: Texas Athletics has a combined economic impact of $728.0 million. Capital investments for athletics facilities average $46.2 million in output each year. Texas Athletics operations account for $325.5 million of the total impact. The total visitor impact of Texas Athletics sports and events was $356.4 million. Tailgating at UT home games generated more than $54.9 million Austin: Texas: The total economic impact for Austin was $610.0 million. Texas Athletics operations generate $298.9 million to the local economy. $272.2 million in visitor spending occurs in Austin due to Texas Athletics events. 84% of total economic output will be realized locally, within the Austin region. The 2013 AT&T Red River Showdown and Valero Alamo Bowl made up 52% of the total impact in the rest of Texas, with a combined impact of $61 million. In the rest of Texas, the total economic impact was $118 million. Capital expenditures create an average annual impact of $7.4 million for Texas. Capital Investments (Average Annual) Texas Athletics Operations Visitor Impact Total Austin Impact $38,784,347 $298,890,619 $272,170,473 $609,845,439 Texas Impact $7,392,106 $26,569,287 $84,212,645 $118,174,038 Total Impact $46,176,453 $325,459,906 $356,383,118 $728,019,477 Sources: AngelouEconomics, Implan, Texas Athletics Texas Athletics Economic Impact 10

11 Total Texas Austin Executive Summary ECONOMIC IMPACT ON JOBS (Annual) Total: Texas Athletics is responsible for a total of 7,333 jobs in Austin and Texas. Visitor spending created 2,458 jobs throughout the state. Texas Athletics operations support 4,610 jobs. Capital investments for athletics facilities average 265 jobs each year. Austin: 6,941 new jobs were created in Austin. Capital investments create an annual average of 237 jobs in Austin. 4,504 jobs were created through Texas Athletics operations. 2,200 jobs were created through visitor spending. 95% of all new jobs were created in the local Austin economy. Texas: Total new jobs created in the rest of Texas equaled 393. Capital investments sustain an annual average of 28 jobs in the Texas economy. 106 jobs were created through Texas Athletics operations. 259 jobs were created through visitor spending. Capital Investments (Average Annual) Texas Athletics Operations Visitor Impact Total Austin Impact 237 4,504 2,200 6,941 Texas Impact Total Impact 265 4,610 2,458 7,333 Sources: AngelouEconomics, Implan, Texas Athletics Texas Athletics Economic Impact 11

12 Austin Texas Total Executive Summary ECONOMIC IMPACT ON LABOR INCOME (Annual) Total: Texas Athletics is responsible for $248 million in labor income. Visitor spending generated $102 million in total labor income. Capital investments for athletics facilities average $18 million in labor income per year. Austin: Total labor income for Austin equaled $227 million, 91% of all labor income generated. $16 million in labor income was generated through capital investments. $121 in labor income was generated through Texas Athletics operations. $90 in labor income was generated through visitor spending. Texas: Total labor income for the rest of Texas was $21 million. $1.9 million in labor income was generated through capital investments. $6.6 million in labor income was generated through Texas Athletics operations. $13.0 million in labor income was generated through visitor spending. Capital Investments (Average Annual) Texas Athletics Operations Visitor Impact Total Austin Impact $16,150,386 $120,829,146 $89,642,198 $226,621,730 Texas Impact $1,874,557 $6,574,790 $12,975,891 $21,425,238 Total Impact $18,024,943 $127,403,936 $102,618,089 $248,046,968 Sources: AngelouEconomics, Implan, Texas Athletics Texas Athletics Economic Impact 12

13 Executive Summary TOTAL TAX IMPACT (Annual) The total tax impact as a result of Texas Athletics was $72.4 million. Texas Athletics helped create $28.0 million dollars in new taxes for the state of Texas. An additional $44.4 million in Federal taxes were generated due to Texas Athletics. 37% of the total tax impact occurs within the local economy. The breakdown of tax impacts include: Sales: $12.2 million Texas Tax Revenues (in millions) $15 $12 $9 $6 $3 $0 $12.2 Distribution of Taxes 63% $ % $4.4 Sales Tax Property Tax Other $28.0 M Property: $11.5 million Other: $4.4 million $44.4 M State and Local Tax Impact Federal Tax Impact by Total Sources: AngelouEconomics, Implan, Texas Athletics Texas Athletics Economic Impact 13

14 Executive Summary Top Impacted Business Sectors in Texas Due to Texas Athletics Total Output Promoters of performing arts and sports $84,949,739 Retail Stores $58,258,483 Food services and drinking places $53,479,994 Hotels and motels $52,484,790 Travel arrangement and reservation services $52,008,230 Advertising $40,924,624 Transit and ground passenger transportation $37,503,813 Insurance agencies $11,473,855 Telecommunications $10,506,694 Wholesale trade businesses $7,332,382 Sources: AngelouEconomics, Implan, Texas Athletics TOP 10 IMPACTED INDUSTRIES Texas Athletics impacts a total of 316 business sectors throughout the state of Texas. 49 business sectors have reported impacts over $1 million. The top business sectors impacted in Texas by Texas Athletics operations: Performing Arts, sports, & events: $84.9 million Advertising: $40.9 million Insurance: $11.5 million The top business sectors impacted in Texas by visitors of Texas Athletics events include: Retail Stores: $58.3 million Food Services: $53.58 million Hotels: $52.5 million The primary impact of Texas Athletics sports and events will be on small businesses, either through local vendors or from visitor spending in local restaurants and retail. Texas Athletics Economic Impact 14

15 Executive Summary Austin Events by Total Annual Economic Impact Total Output Visitors Circuit of the Americas, 2014 $897 Million 1,100,000 Texas Athletics, $728 Million 868,100 SXSW, 2014 $316 Million 376,600 ACL, 2014 $194 Million 150,000 Rodeo Austin, 2014 $77 Million 300,000 Fun Fun Fun Fest, 2012 $27 Million 55,000 Sources: AngelouEconomics, Texas Athletics, Austin-American Statesman, Austin Business Journal RELATIVE ECONOMIC IMPACT Each year there are dozens of festivals and events hosted in Austin. They each contribute to the local economy, but Texas Athletics generates, far and away, one of the most significant economic contributions to the Austin economy. Texas Athletics contributes the second largest economic impact to the Austin economy. The total output from Texas Athletics is more than twice that of SXSW, the third largest festival in Austin. Texas Athletics brings in 868,100 people to Austin each year. This is nearly 500,000 more people than SXSW over the course of an academic year. Texas Athletics Economic Impact 15

16 Executive Summary ADDITIONAL IMPACTS (Annual) The impact of Texas Athletics reaches beyond the economic benefits to jobs, labor income, increased tax revenues, and total economic activity. A few of the additional impacts include: Texas Athletics acts as an informal marketing arm for the university. The success and prominence of the Longhorns brand contributes significant benefit to the university. Texas Athletics manages trademark and licensing programs for all nine schools in the University of Texas system. IMG College owns the multi-media rights to UT sports and the rights to the Longhorn Network. Funds gained from IMG s partnership with ESPN have helped the university create seven new endowed chairs. Media value for Texas Athletics events is conservatively estimated at $111 million. UT alumni, including Texas Exes, support the university through UT sports. During a typical football game day, between 10,000 15,000 alumni will visit the alumni center. There are 140 alumni chapters across the U.S. where alumni meet and socialize, typically over televised sporting events. Accounting for more than one-third of the Texas Athletics budget, alumni donations help maintain the high quality of Texas Athletics. Student jobs provide university students with an opportunity to take the skills they learn in the classroom and apply them to real world scenarios. Texas Athletics employed 489 student workers in , providing practical application and experience for skills learned in the classroom. Sodexo Services conducts all concessions at Texas Athletics events. Sodexo employs as many as 225 workers, both full-time and part-time. During the academic year, Sodexo helped raise more than $500,000 for non-profit organizations. Texas Athletics hosts regional events from time to time, including the NCAA Men s Swimming & Diving Championships, the American Short Course Championships, and the Big 12 Championships. Texas Athletics Economic Impact 16

17 Impact of Capital Investment CAPITAL INVESTMENT Texas Athletics has invested more than $465 million in the Austin economy over the past 20 years. The capital investments have gone into the updating of existing facilities as well as the construction of new ones. Throughout Texas, the capital investments have generated more than $923 million in economic activity and created more than 5,300 jobs. The average annual impact of the capital expenditure investments are: Total economic output: $46.2 million Total labor income: $18.0 million Total jobs created: Year Average Impact of Capital Investments (Adjusted for Inflation, 2%) Jobs Labor Income Total Output $12,279,179 $31,456, $12,529,774 $32,098, $12,785,484 $32,753, $13,046,412 $33,422, $13,312,666 $34,104, $13,584,353 $34,800, $13,861,584 $35,510, $14,144,474 $36,235, $14,433,137 $36,974, $14,727,690 $37,729, $15,028,256 $38,499, $15,334,955 $39,285, $15,647,913 $40,086, $15,967,258 $40,905, $16,293,120 $41,739, $16,625,633 $42,591, $16,964,932 $43,460, $17,311,155 $44,347, $17,664,444 $45,252, $18,024,943 $46,176,453 Total to Date 5,303 $360,498,852 $923,529,068 Sources: AngelouEconomics, Texas Athletics Texas Athletics Economic Impact 17

18 Impact of Texas Football 2013 Football Average Profile Average Per Game Total (6 Home Games) Stadium Capacity 100,119 Stadium Attendance 98, ,857 Out-of-Town Game Day Visitors 80, ,616 Hotel Stays 32, ,846 Hotel Spending $5,138,317 $30,829,901 Retail $2,530,455 $15,182,730 Restaurants $2,583,601 $15,501,605 Transportation $2,698,326 $16,189,957 Sources: AngelouEconomics, Texas Athletics Texas Athletics Economic Impact 18

19 Total Texas Austin Impact of Texas Football Total: The total annual impact of Texas Football is $467 million (including away and bowl games). There are 4,781 jobs and more than $157.8 million in labor income generated from the Texas Athletics' football program. Austin: Texas: Texas Athletics Operations Visitor Impact Texas Football made up 61% of the total Texas Athletics economic impact in Austin. The impact was equal to $376.8 million. 62% of jobs created from Texas Football in Austin are due to the direct spending of football s operating budget. In total, Texas Football helped create 4,627 jobs in the Austin region, with a total labor income of $148.4 million. 60% of fans attending UT home football games were from outside the Austin region. The average economic impact of Texas Football per home game is $63 million. The annual economic impact of Texas Football to the rest of Texas was $90.5 million. The 2013 AT&T Red River Showdown contributed $28.7 million to the Texas economy. The 2013 Valero Alamo Bowl contributed $32.3 million to the Texas economy. 9% of fans attending UT home football games were from out of Texas. Total Jobs 2,846 1,781 4,627 Labor Income 76,404,158 72,038, ,442,441 Economic Impact 211,142, ,645, ,787,831 Jobs Labor Income 4,097,726 5,238,861 9,336,587 Economic Impact 20,879,495 69,648,429 90,527,924 Jobs 2,912 1,869 4,781 Labor Income 80,501,884 77,277, ,779,028 Economic Impact 232,022, ,293, ,315,755 Sources: AngelouEconomics, Implan, Texas Athletics Football created 154 jobs with a labor income of $9.3 million in the rest of Texas. Texas Athletics Economic Impact 19

20 Impact of Texas Football IMPACT OF TAILGATING Tailgating is also a contributor to the Austin economy. Tailgating is a social activity where fans consume food and drinks before an athletics event. During the 2014 football season, The University of Texas provided 13,132 lot spaces for tailgating. 8,000 spots were occupied per game, bringing in over $1 million in tailgaterelated parking revenue. Nationwide, it is estimated that $35 billion is spent on food and beverages for tailgating annually. The social appeal of tailgating helps build spectator loyalty and attracts out-of-town visitors who spend money in local hotels, restaurants, and bars. Indeed, 35% of these tourists never step foot inside the stadium. Tailgaters purchase food, drinks, high-tech grills, TVs, tables, chairs, and more from local stores. 42% of tailgaters spend at least $500 on food and supplies. Spending on food and supplies for tailgating at UT home games totaled approximately $33.2 million. The total economic impact of tailgating was $54.9 million. Texas Athletics Economic Impact 20

21 Impact of Men s & Women s Basketball Men s Basketball Average Profile Average Per Game Total (18 Home Games) Stadium Capacity 16,540 Attendance 9, ,625 Out-of-Town Visitors 2,329 41,928 Hotel Stays ,771 Hotel Spending $130,454 $2,348,167 Retail $75,553 $1,359,952 Restaurants $81,233 $1,462,202 Transportation $83,014 $1,494, Women s Basketball Average Profile Average Per Game Total (17 Home Games) Stadium Capacity 16,540 Attendance 4,753 80,798 Out-of-Town Visitors 429 7,289 Hotel Stays 172 2,916 Hotel Spending $31,057 $527,966 Retail $15,507 $263,615 Restaurants $20,075 $341,268 Transportation $19,066 $324,121 Sources: AngelouEconomics, Texas Athletics Texas Athletics Economic Impact 21

22 Impact of Men s & Women s Basketball Austin Texas Total Texas Athletics Operations Visitor Impact Total Jobs Labor Income $11,811,899 $4,735,357 $16,547,256 Economic Impact $32,403,893 $11,363,234 $43,767,127 Jobs Labor Income $640,100 $892,661 $1,532,761 Economic Impact $1,968,434 $2,576,547 $4,544,981 Jobs Labor Income $12,451,999 $5,628,018 $18,080,017 Economic Impact $34,372,327 $13,939,781 $48,312,108 Total: Sources: AngelouEconomics, Implan, Texas Athletics Austin: Texas: The total annual impact of Men s & Women s Texas Basketball is $48.3 million. There are 578 jobs and more than $18 in labor income associated with Texas Athletics' basketball programs. The average economic impact of Texas Basketball is $1.3 million per game. Men s & Women s Texas Basketball helped create 549 jobs in Austin with total labor income of $16.5 million. The total annual economic impact of $43.8 million generated in the Austin region by Texas Basketball accounted for 7% of the total economic impact of UT Sports. 23% of visitors to Men s Basketball home games and 9% of visitors of Women s Basketball home games were from out of Austin. Of the sports analyzed, basketball had the highest percentage of local Austin attendees. The $4.5 million Men s & Women s Basketball generated for the rest of the state of Texas accounted for 4% of the total economic impact. In Texas, 29 jobs were created with total labor income of $1.5 million. Texas Athletics Economic Impact 22

23 Impact of Texas Relays/Track & Field The 87 th Texas Relays attracted 6,552 athletes from 894 teams, with representatives from 32 states and 9 countries Texas Relays and UIL Track Totals Out-of-Town Visitors 52,586 Hotel Stays 22,385 Hotel Spending $7,071,083 Retail $2,890,583 Restaurants $4,205,885 Transportation $3,233,346 Sources: AngelouEconomics, Texas Athletics Texas Athletics Economic Impact 23

24 Impact of Texas Relays/Track & Field Austin Texas Total Texas Athletics Operations Visitor Impact Total Jobs Labor Income $911,977 $10,075,184 $10,987,161 Economic Impact $2,483,480 $25,052,817 $27,536,297 Jobs Labor Income $49,926 $744,958 $794,884 Economic Impact $152,793 $2,671,499 $2,824,292 Jobs Total: The total annual impact of Track & Field, including Texas Relays, is $30.4 million. There are 297 jobs and more than $11.8 million in labor income associated with Texas Athletics' Track & Field program. Austin: Texas: Labor Income $961,903 $10,820,142 $11,782,045 Economic Impact $2,636,273 $27,724,316 $30,360,589 Texas Relays/Track & Field generated 284 jobs and $11 million in labor income in Austin. Total annual economic impact of Texas Relays/Track & Field totaled $27.5 million and contributed to roughly 5% of the total economic impact in Austin. The UIL State Track & Field meet hosted more than 4,000 athletes, approximately 50,000 spectators, and generated $7.4 million in economic impacts for the Austin region. Sources: AngelouEconomics, Implan, Texas Athletics For the rest of Texas, the total annual economic impact equaling $2.8 million. 12 jobs were created with a labor income of $795 thousand. Texas Athletics Economic Impact 24

25 Impact of Texas Relays/Track & Field ANNUAL IMPACT OF TEXAS RELAYS The Clyde Littlefield Texas Relays, named after and started by the legendary University of Texas Track & Field coach, is a yearly event held by the University of Texas. The event is one of the largest outdoor track meets in the country, attracting more than 6,500 athletes to the Austin area. Texas Relays attracts nearly 40,000 spectators annually. Approximately 250 volunteer officials travel from outside of the region. Average length of stay was 3 days and 2 nights. In recent years, Texas Relays has evolved and taken on a broader scope as more of a cultural event. A number of outside groups have begun hosting network and development events during the Texas Relays weekend. This includes a parade organized by the NAACP. Several years ago, the Texas Relays attracted the Urban Music Festival, a Saturday concert at Auditorium Shores, as an extra attraction for attendees. While events such as these have a large monetary impact, they also provide a clear benefit for the Austin community by fostering diversity education. Texas Athletics Economic Impact 25

26 Frank Erwin Center Impact Concert Picture Erwin Center Profile Total (Avg 190 Events/Year) Arena Capacity 6,000 16,500 Attendance 705,280 Out-of-Town Visitors 219,292 Hotel Stays 87,717 Hotel Spending $9,041,141 Retail $5,829,690 Restaurants $13,231,095 Transportation $10,242,185 Sources: AngelouEconomics, Texas Athletics Frank Erwin Center Events: High School Commencements College Commencements Concerts Corporate Events Family-Centered Events Youth Camps iheartradio Country Music Festival Texas Athletics Economic Impact 26

27 Frank Erwin Center Impact Austin Texas Total Texas Athletics Operations Visitor Impact Total Jobs ,039 Labor Income 10,987,643 23,965,429 34,953,072 Economic Impact 32,490,672 55,228,617 87,719,289 Jobs Labor Income 695,087 1,641,858 2,336,945 Economic Impact 2,290,638 6,086,476 8,377,114 Jobs ,076 Labor Income 11,682,730 25,607,287 37,290,017 Economic Impact 34,781,310 61,315,093 96,096,403 Sources: AngelouEconomics, Implan, Texas Athletics Total: The total annual impact of the Frank Erwin Center is $96.1 million. There are 1,076 jobs and more than $37.3 million in labor income associated with the Frank Erwin Center. Austin: Events hosted at the Frank Erwin Center have helped generate 1,039 jobs for the Austin region, with a total labor income of $35 million. The Austin region saw an economic impact of $87.7 million due to events at the Frank Erwin Center. The iheart Radio Country Music Festival is a major event held every year at the Frank Erwin Center. In 2014, the event sold more than 15,000 tickets, brought in more than 7,500 visitors to Austin, and contributed $2.8 million in total economic impacts to the Austin region. Due to forces outside the control of Texas Athletics, was the last year for the UIL Boy s & Girl s Basketball Tournament. With attendance at more than 105,000, the loss of this tournament represents a major loss to the local economy. Texas: The rest of the state saw a total annual economic impact of $8.4 million. This impact helped in the creation of 37 new jobs in the rest of Texas, with a total labor income of $8.4 million. *Economic impacts to the Frank Erwin Center exclude Men s & Women s Basketball Games. Texas Athletics Economic Impact 27

28 All Other UT Sports Impacts All Other Sports Average Profile Total Attendance 224,736 Out-of-Town Visitors 62,434 Hotel Stays 27,921 Hotel Spending $3,753,985 Retail $2,252,337 Restaurants $2,252,105 Transportation $2,481,361 Sources: AngelouEconomics, Texas Athletics Texas Athletics Economic Impact 28

29 All Other UT Sports Impacts Austin Texas Total Texas Athletics Operations Visitor Impact Total Jobs Labor Income $8,262,207 $6,229,719 $14,491,926 Economic Impact $20,369,951 $14,880,597 $35,250,548 Jobs Labor Income $406,969 $1,112,267 $1,519,236 Economic Impact $1,277,927 $3,229,694 $4,507,621 Jobs Total: The total annual impact of all other sports is $39.8 million. There are 454 jobs and more than $16 million in labor income associated with all other sports managed by Texas Athletics. Austin: Texas: Labor Income $8,669,176 $7,341,986 $16,011,162 Economic Impact $21,647,878 $18,110,291 $39,758,169 Sources: AngelouEconomics, Implan, Texas Athletics The combined annual economic impact of all other sports summed to $35.3 million for the Austin region, making up 6% of the total impact. A labor income of $14.5 million was generated through the creation of 425 new jobs in the Austin region by all other sports programs at UT. The total impact of the NCAA Men s Swimming & Diving Championships was $1.5 million. The total impact of the Big 12 Swimming and Diving Championships was $532,178. The total impact of the American Short Course Championships was $181,480. The annual impact for the rest of Texas from all other sports made up 4% of the total impact and generated an economic impact of $4.5 million. 29 jobs were created in the rest of Texas with labor income of $1.5 million. Texas Athletics Economic Impact 29

30 All Other UT Sports Impacts BIG 12 & OTHER ATHLETIC EVENTS NCAA MEN S SWIMMING & DIVING CHAMPIONSHIPS In 2014, the Men s Swimming & Diving NCAA Championships were held in Austin. Key stats include: 235 competitive swimmers 35 competitive divers 58 universities represented 4,702 total hotel nights 1,800 fans per session over 6 sessions (all sessions sold out) BIG 12 SWIMMING & DIVING CHAMPIONSHIPS The Big 12 Swimming & Diving Championships are hosted in Austin every year. Key stats include: 6 traveling teams 1,725 total hotel nights fans per session over 7 sessions AMERICAN SHORT COURSE CHAMPIONSHIPS The American Short Course is also hosted in Austin each year. Key stats include: 315 competitive swimmers 25 teams 925 total hotel nights 200 fans per session over 6 sessions Texas Athletics Economic Impact 30

31 Additional Impacts IMPACT OF TEXAS SPORTS ON THE UNIVERSITY The University of Texas Athletics Department is an extension of the university s brand. Through sports, the department strives to expand the university s presence by embodying its principles in excellence. Resources committed to athletics help the university assist student-athletes in achieving their goals. Their accomplishments, in turn, help define the university s image, unify the student body, and introduce future students to The University of Texas. Texas Athletics Economic Impact 31

32 Additional Impacts IMPACT OF THE LONGHORN NETWORK The Longhorn Network launched on Aug. 26, 2011, as a partnership between ESPN, The University of Texas, and IMG College. IMG College owns the multi-media rights to UT sports and for the Longhorn Network. Under the agreement between the three parties, ESPN will pay The University of Texas an annual rights fee totaling $300 million over 20 years, 83% of which will go to the University of Texas. LHN annually broadcasts more than 200 live University of Texas events. The network currently employs 60 full-time positions in Austin. Since 50% of LHN revenues have been allocated to academics, funds gained from the partnership have helped the university create seven new endowed chairs. $1.5 million was used to create The Simons Chair in Mathematics and Electrical and Computer Engineering which has been appointed to renowned mathematician and engineer Francois Baccelli. In the academic year, the network reached 10 million homes nationwide. The network s presence on cable TV helps expand the reach of The University of Texas brand. It serves not only as an athletics recruitment tool but also as an academic one, giving potential students an early glimpse of the university. A primary goal of the network has been to increase viewership of sports programs not usually featured on cable programming. Currently, the network broadcasts over 20 different sporting events, giving student athletes outside of basketball and football a chance to shine. Texas Athletics Economic Impact 32

33 Additional Impacts MEDIA REACH In the academic year, media for Texas Athletics events generated more than $110 million in value. Media value serves as marketing and national exposure for Texas Athletics, the greater University of Texas system, and the city of Austin. Football generated $106 million in media value. The average cost per 30 second spot was $136,072. The media spots ranged from $33,800 for the TCU game on FS1 to $286,500 for the Kansas State game on ABC. Each game has approximately 80 media spots. Basketball generated $4.6 million in media value. The average cost per 30 second spot was $5,404. The media spots ranged from $960 for the DePaul game on ESPNU to $23,190 for the Kansas game on ESPN. Each game has approximately 48 media spots. Media Value by Network Network Football Basketball Football Basketball Total Media Games Games Media Value Media Value Value LHN 3 11 $8,112,000 $506,880 $8,618,880 ESPNU $802,080 $802,080 ESPN2 1 5 $5,160,000 $1,329,120 $6,489,120 FOX 3 -- $35,168, $35,168,000 ABC 2 -- $41,760, $41,760,000 FS $6,284, $6,284,000 CBS $768,960 $768,960 ESPN -- 1 $9,600,000 $1,113,120 $10,713,120 ESPNEWS $90,720 $90,720 Total $106,084,000 $4,610,880 $110,694,880 Source: Texas Athletics With only two sports included, these figures represent a conservative estimate for the total media value of Texas Athletics. In addition: 35 baseball games were televised 5 days of coverage on ESPN for the Men s Baseball College World Series Texas Athletics Economic Impact 33

34 Additional Impacts IMPACT OF TEXAS SPORTS ON ALUMNI RETENTION Texas Athletics, particularly football, plays an important and positive role in alumni giving. Select suites and other premium seats at Darrell K Royal-Texas Memorial Stadium, which account for more than a third of available seats, require donations to the university beyond the cost of admission. For each football game, 10,000 15,000 alumni will visit the alumni center. That number can reach 20,000 for high profile games. There are 140 alumni chapters across the U.S. where alumni meet and socialize, usually over televised sporting events. 66 of those chapters are in Texas, which has an impact of its own. There are roughly 480,000 alumni. About 380,000 of those alumni live in Texas. 103,000 are members of Texas Exes. Academic studies published in the National Bureau of Economic Research have found that football success increases a college's alumni donations and improves the reputation of the university and the quality of its applicants. Alumni donations, in turn, help maintain the high quality of Texas Athletics, with donations comprising more than one-third of Texas Athletics' budget. Texas Athletics Economic Impact 34

35 Additional Impacts IMPACT OF TEXAS SPORTS ON STUDENT JOBS Student jobs provide university students with an opportunity to take the skills they learn in the classroom and apply them to real world scenarios. Texas Athletics employed 489 students in for jobs ranging from sports medicine to marketing and video editing. Texas Football employed 41 students. Texas Basketball employed 26 students, 14 for Men s Basketball and 14 for Women s Basketball. 3 students are employed by the UT Track & Field program. All other Texas Athletics sports employed 42 people, with soccer being the largest employer. 377 students were employed in general sports operations. Of those positions, student services employed 203 students. SODEXO Sodexo Services Sports & Leisure division conducts all concessions at Texas Athletics events. Before contracting with Sodexo, the university was barely making a profit with concessions. Now concessions are booming; during the most recently completed academic year, Sodexo brought in $2.9 million commissions to the university. Other benefits that Sodexo bring to the university: full- and part-time employees More than $500,000 raised for non-profits and the community Use of locally sourced vendors Texas Athletics Economic Impact 35

36 Appendix I. Definitions II. Total Impacts by Direct, Indirect, and Induced III. Share of Impacts by Venue Texas Athletics Economic Impact 36

37 Appendix I. Definitions Multipliers - are unique to the region being studied and used to calculate the specific effects brought about by a change to a regional economy. For instance, a positive economic activity will have a multiplier greater than 1, which means that the economic impacts are greater than just the direct expenditures from the analyzed activity. Simply, a multiplier is the ratio that defines the total economic output created for each dollar invested. Jobs - are created through induced effects and are full-time equivalents. Tax Impacts - include federal, state, and local impacts and are included in the total economic output. Labor Income - includes all forms of employment income. This includes both wages and benefits. Texas Athletics Economic Impact 37

38 Appendix II. Total Impacts by Direct, Indirect, and Induced Total Impact of Texas Athletics ( ): Total Impact Impact Type Employment Labor Income Output Direct Effect 5,306 $143,592,246 $415,661,369 Indirect Effect 1,174 $60,812,988 $177,825,878 Induced Effect 854 $43,641,736 $134,532,230 Total Effect 7,333 $248,046,968 $728,019,477 Total Impact in Austin Impact Type Employment Labor Income Output Direct Effect 5,178 $138,939,030 $370,436,158 Indirect Effect 1,025 $50,617,707 $134,821,574 Induced Effect 738 $37,064,989 $104,587,705 Total Effect 6,941 $226,621,730 $609,845,439 Total Impact in the Rest of Texas Impact Type Employment Labor Income Output Direct Effect 181 $7,068,002 $52,464,087 Indirect Effect 116 $8,509,823 $37,880,474 Induced Effect 97 $5,847,415 $27,829,476 Total Effect 393 $21,425,238 $118,174,038 Sources: AngelouEconomics, Texas Athletics, Implan Texas Athletics Economic Impact 38

39 Appendix Total Impact of Texas Football ( ): Total Football Impact Impact Type Employment Labor Income Output Direct Effect 3,452 $90,312,641 $266,882,605 Indirect Effect 781 $39,695,200 $114,142,755 Induced Effect 548 $27,771,187 $86,290,396 Total Effect 4,781 $157,779,028 $467,315,755 Football Impact in Austin Impact Type Employment Labor Income Output Direct Effect 3,439 $89,836,582 $226,299,769 Indirect Effect 702 $34,299,730 $85,925,590 Induced Effect 485 $24,306,127 $64,562,472 Total Effect 4,627 $148,442,441 $376,787,831 Football Impact in the Rest of Texas Impact Type Employment Labor Income Output Direct Effect 13 $476,059 $40,582,836 Indirect Effect 78 $5,395,470 $28,217,165 Induced Effect 63 $3,465,060 $21,727,924 Total Effect 154 $9,336,587 $90,527,924 Sources: AngelouEconomics, Texas Athletics, Implan Texas Athletics Economic Impact 39

40 Appendix Total Impact of Men & Women s Basketball ( ): Total Basketball Impact Impact Type Employment Labor Income Output Direct Effect 405 $9,492,742 $25,867,760 Indirect Effect 110 $5,388,984 $13,763,006 Induced Effect 63 $3,198,291 $8,681,340 Total Effect 578 $18,080,017 $48,312,108 Basketball Impact in Austin Impact Type Employment Labor Income Output Direct Effect 395 $9,131,324 $25,037,948 Indirect Effect 99 $4,692,023 $11,493,783 Induced Effect 54 $2,723,908 $7,235,397 Total Effect 549 $16,547,256 $43,767,127 Basketball Impact in the Rest of Texas Impact Type Employment Labor Income Output Direct Effect 10 $361,418 $829,812 Indirect Effect 10 $696,961 $2,269,223 Induced Effect 9 $474,383 $1,445,943 Total Effect 29 $1,532,761 $4,544,981 Sources: AngelouEconomics, Texas Athletics, Implan Texas Athletics Economic Impact 40

41 Appendix Total Impact of Men & Women s Track & Field ( ): Total Texas Relays/Track & Field Impact Impact Type Employment Labor Income Output Direct Effect 211 $7,206,401 $17,733,879 Indirect Effect 45 $2,514,555 $7,023,613 Induced Effect 41 $2,061,089 $5,603,097 Total Effect 297 $11,782,045 $30,360,589 Texas Relays/Track & Field Impact in Austin Impact Type Employment Labor Income Output Direct Effect 211 $7,206,401 $17,733,879 Indirect Effect 38 $2,002,927 $5,078,223 Induced Effect 36 $1,777,831 $4,724,194 Total Effect 284 $10,987,161 $27,536,297 Texas Relays/Track & Field Impact in the Rest of Texas Impact Type Employment Labor Income Output Direct Effect 211 $7,206,401 $17,733,879 Indirect Effect 38 $2,002,927 $5,078,223 Induced Effect 36 $1,777,831 $4,724,194 Total Effect 284 $10,987,161 $27,536,297 Sources: AngelouEconomics, Texas Athletics, Implan Texas Athletics Economic Impact 41

42 Appendix Total Impact of the Frank Erwin Center ( ): Total Impact of the Frank Erwin Center Impact Type Employment Labor Income Output Direct Effect 807 $23,086,471 $56,701,718 Indirect Effect 140 $7,653,495 $21,600,023 Induced Effect 129 $6,550,051 $17,794,662 Total Effect 1,076 $37,290,017 $96,096,403 Impact of the Frank Erwin Center in Austin Impact Type Employment Labor Income Output Direct Effect 807 $23,086,471 $56,701,718 Indirect Effect 119 $6,173,851 $15,893,306 Induced Effect 114 $5,692,750 $15,124,264 Total Effect 1,039 $34,953,072 $87,719,289 Impact of the Frank Erwin Center in the Rest of Texas Impact Type Employment Labor Income Output Direct Effect 0 $0 $0 Indirect Effect 21 $1,479,644 $5,706,717 Induced Effect 16 $857,301 $2,670,398 Total Effect 37 $2,336,945 $8,377,114 Sources: AngelouEconomics, Texas Athletics, Implan Texas Athletics Economic Impact 42

43 Appendix Total Impact of All Other UT Sports ( ): Total Impact of All Other UT Sports Impact Type Employment Labor Income Output Direct Effect 325 $9,381,142 $22,111,047 Indirect Effect 74 $3,818,915 $10,017,431 Induced Effect 56 $2,811,107 $7,629,692 Total Effect 454 $16,011,162 $39,758,169 Total Impact of All Other UT Sports in Austin Impact Type Employment Labor Income Output Direct Effect 313 $8,942,624 $21,104,212 Indirect Effect 64 $3,181,175 $7,856,423 Induced Effect 47 $2,368,128 $6,289,913 Total Effect 425 $14,491,926 $35,250,548 Total Impact of All Other UT Sports in the Rest of Texas Impact Type Employment Labor Income Output Direct Effect 12 $438,518 $1,006,835 Indirect Effect 10 $637,740 $2,161,008 Induced Effect 8 $442,979 $1,339,779 Total Effect 29 $1,519,236 $4,507,621 Sources: AngelouEconomics, Texas Athletics, Implan Texas Athletics Economic Impact 43

44 Appendix III. Share of Impacts by Venue ( ) Share of Impact to Economy* Austin Texas Total Football 61% 82% 64% Basketball 7% 4% 7% Texas Relays/Track & Field 4% 3% 4% Frank Erwin Center 14% 8% 13% All Other Sports 6% 4% 5% Sources: AngelouEconomics, Implan, Texas Athletics *Capital expenditures were not assigned to specific sports and therefore, do not count towards the totals for sports and events. For this reason, columns will not sum to 100%. Texas Athletics Economic Impact 44

45 AngelouEconomics AngelouEconomics AngelouEconomics partners with client communities and regions across the United States and abroad to candidly assess current economic development realities and identify opportunities. Our goal is to leverage the unique strengths of each region to provide new, strategic direction for economic development As a result, AngelouEconomics clients are able to diversify their economies, expand job opportunities and investment, foster entrepreneurial growth, better prepare their workforce, and attract new economy companies. Project Team Angelos Angelou Principal Executive Officer William Mellor Director of Project Operations William Bean Research Analyst Jake Saltzman Economic Development Intern To learn more, visit Texas Athletics Economic Impact 45