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Ohio Football Topic
Topic: Annual Economic Impact of Ohio Athletics
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D.A.
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Posted: 1/9/2014 4:17 PM
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For those who haven't seen it yet, I know many here will see value in reviewing the assessment.

http://www.ohio.edu/ucm/upload/Economic-Impact_ch9.pdf
Last Edited: 1/9/2014 4:18:26 PM by D.A.
GoCats105
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Posted: 1/9/2014 9:19 PM
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Three things:

1 - What are the $300,000 in royalties from $6 million in merchandise sales. Is ICA only receiving $300,000 from that? That seems low. 

2 - Where do the 800 jobs come from? Is that talking about the university as a whole?

3 - They failed with the old Rufus picture on the last page!

 
C Money
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Posted: 1/9/2014 9:58 PM
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GoCats105 wrote:expand_more
2 - Where do the 800 jobs come from? Is that talking about the university as a whole?

 


About a year ago, I was talking with someone who is pretty heavily involved in local economic development about eligibility for certain economic development grants where the applicant has to commit to creating a certain number of jobs to be eligible. In order to claim a "job created," you didn't have to actually create a job; you just had to show a certain level of investment or revenue, which is then extrapolated out into "jobs created." IIRC, the amount per job is MUCH less than the actual cost of employing someone.....the number $5,400 jumps out in my mind but I really can't remember if it was that low.

Regardless, my guess is the "800 jobs" figure isn't actually jobs, but some kind of calculation based on revenue generated.
OhioStunter
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Posted: 1/9/2014 11:57 PM
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On the jobs piece, a few of us were posting about this several months ago on the economic impact of an Ohio home football game. These figures should factor into the jobs created -- or supported -- by athletics. Here's an excerpt:

...if you think about 18,000 attendees spending an extra $27 each because of the game, that's $500K. It seems like they might spend more. Food, lodging, parking, souvenirs, gas for a FB game weekend all add up. This number might be well over a million.*

So I think the power of a home game's effect on the local economy is more than $500,000. Which is exactly why I feel a home game during Halloween weekend really costs Athens a lot of much-needed money. 


*with 18,000 paid, let's break it into a travel party of 3, so we are working with a group of 6,000. If these 6,000 parties spend an average of $200 on food, hotel, bars, shopping, parking tickets, towing fees over the weekend in Athens -- when they wouldn't otherwise be there -- that's $1.2M. Yes, some are locals that may come in for the game and grab dinner before heading home that day, but others come in and stay in Athens. $200 seems like a fair, average number to spend for each group of 3.
OhioStunter
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Posted: 1/10/2014 12:05 AM
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GoCats105 wrote:expand_more
Three things:

1 - What are the $300,000 in royalties from $6 million in merchandise sales. Is ICA only receiving $300,000 from that? That seems low. 

2 - Where do the 800 jobs come from? Is that talking about the university as a whole?

3 - They failed with the old Rufus picture on the last page!

 


Good point about the royalty figure. And not only is it the wrong mascot on the last page, but I think the sidebar is missing some figures. Despite page 20, this is an overall nice piece.
Speaker of Truth
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Posted: 1/10/2014 9:52 AM
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5% of the cut seems about right.  You have to consider that this is something we outsource, so the liscensing company has to get their cut as well.  It's a nice chunk of change, but doesn't even touch the sponsorship and ticket revenue.
L.C.
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Posted: 1/10/2014 10:15 AM
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I thought it was a nice piece, but it won't satisfy critics because of the lack of hard numbers. Athletics is no doubt raising the profile of the University, but how do you quantify that? Some sort of annual Nationwide survey would be nice, but expensive, at least unless conducted by students.

The easiest number they could have included to support the claim of a strengthening brand image is actually an easy to obtain number that they already have. What is the growth rate of licensing revenue? If the brand is getting stronger, that number has to be growing faster than the average of other schools.

Related, but harder numbers, what is Ohio's rank in the MAC in licensing revenue? What is their rank in FBS, and how has that changed in recent years?

 
Speaker of Truth
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Posted: 1/10/2014 10:31 AM
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LC,  The licensing business it not an exact science.  Certain schools have a different % of revenue earned per dollar.  So you could sell more gear, but get the same amount of money depending on the length of the contract.  Some schools are also much more strict on who gets to produce their items.  

It would be a good start but it could also be misleading when comparing to other schools.

 
L.C.
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Posted: 1/10/2014 11:09 AM
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OK, thanks. Even if you can't compare to other schools, I would think year to year numbers for the last decade would show clear evidence of the Ohio brand getting stronger.
GoCats105
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Posted: 1/10/2014 11:25 AM
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I would think one number that I'd like to see is "unique impressions" created. There's a part that shows how we had articles in USA Today and Sports Illustrated. How many people looked at that? Give me the ratings of our basketball games vs Michigan, South Florida and UNC. Give me the ratings for our football bowl games and weeknight MACtion. I think those kind of numbers would be beneficial.
Alan Swank
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Posted: 1/10/2014 11:55 AM
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Interesting information:

http://www.clc.com/News/Archived-Rankings.aspx
Last Edited: 1/10/2014 11:55:32 AM by Alan Swank
L.C.
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Posted: 1/10/2014 12:03 PM
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Alan, interesting, but that seems to include just customers of that one licensing company. Is Ohio a customer of theirs? I note that Ohio State is not in the top 75, for example.
Alan Swank
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Posted: 1/10/2014 12:15 PM
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L.C. wrote:expand_more
Alan, interesting, but that seems to include just customers of that one licensing company. Is Ohio a customer of theirs? I note that Ohio State is not in the top 75, for example.


Doesn't look like it.  I just threw that out there for information purposes and so that someone might be able to find a ratings chart with us on it.  I couldn't find one.
Speaker of Truth
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Posted: 1/11/2014 1:13 AM
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I think we use LRG. CLC is the largest and I believe OSU does there's in house.
L.C.
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Posted: 1/11/2014 10:57 AM
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In another sign of the growing Ohio brand, I smiled when I found a "Go Bobcats!" buried in the middle of a Clarence Page editorial on poverty today. Ohio alums do notice the change.
Athens
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Posted: 1/11/2014 4:48 PM
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OhioStunter wrote:expand_more
On the jobs piece, a few of us were posting about this several months ago on the economic impact of an Ohio home football game. These figures should factor into the jobs created -- or supported -- by athletics. Here's an excerpt:

...if you think about 18,000 attendees spending an extra $27 each because of the game, that's $500K. It seems like they might spend more. Food, lodging, parking, souvenirs, gas for a FB game weekend all add up. This number might be well over a million.*

So I think the power of a home game's effect on the local economy is more than $500,000. Which is exactly why I feel a home game during Halloween weekend really costs Athens a lot of much-needed money. 


*with 18,000 paid, let's break it into a travel party of 3, so we are working with a group of 6,000. If these 6,000 parties spend an average of $200 on food, hotel, bars, shopping, parking tickets, towing fees over the weekend in Athens -- when they wouldn't otherwise be there -- that's $1.2M. Yes, some are locals that may come in for the game and grab dinner before heading home that day, but others come in and stay in Athens. $200 seems like a fair, average number to spend for each group of 3.

Games have a larger impact in the economy when those who are attending stay over night. When you're looking at the attendance figures for Ohio FB or BB they don't look very impressive. A high percentage of people are driving in 50,100, 200 miles for the game for Ohio Athletics so the economic impact is like what you would find at a much larger program. Its also why Ohio is now scheduling 6-7 home games in football and 18-20 in basketball to maximize those numbers. Due to this I'm not expecting to see neutral site games in the future for either sport. I wouldn't be surprised if Ohio moved away from the money football game to get more games 1 for 1 at home and ease up on the schedule more. Ohio can push up numbers another few thousand in football and basketball its not a high ceiling. It makes sense then to drive interest for some of its other sport offerings to fill restaurants and hotels on different days of the year.  A municipal ice arena that sat 4,000 would be capable of hosting a D1 Hockey team and then double for other events like a Rodeo or conferences. Lacrosse, women's skiing, water polo why not be one of those schools that offers every sport. Give more options beyond football and men's basketball. They're marketing Volleyball as an alternative fall sport to Football. The possibility exists to do the same with Basketball/Wrestling in the winter and Baseball/Lacrosse in the spring. Bring back all the track and field sports. I don't care if it does cost the athletic department more money if it increases local economic impact. 
 
OrlandoCat
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Posted: 1/11/2014 7:54 PM
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GoCats105 wrote:expand_more
Three things:

1 - What are the $300,000 in royalties from $6 million in merchandise sales. Is ICA only receiving $300,000 from that? That seems low. 

2 - Where do the 800 jobs come from? Is that talking about the university as a whole?

3 - They failed with the old Rufus picture on the last page!

 

The picture of the two cheerleaders on page 4 is 8 years old as well.

 
Beat Michigan
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Posted: 1/11/2014 11:18 PM
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When I come to a game I'm coming from an hour away and usually eat one meal in Athens and buy a few items at the stadium like a drink.  

North texas at at at ruby Tuesday
Marshall went to McDonalds
did not attend Austin  Pea
Central was McDonalds
Miami was Leghorns
Kent was Taco Bell afterwards but consumed a bunch of hot chocolate in Peden
Didnt attend UMASS
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