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Economic Impact of a Future College
Football ProgramSemoon Chang and Shelia Canode
By: Cody Martinez
Overview
• Study measured the potential economic impact of Division 1 program at the University of South Alabama
• Measured direct expenditures: Expenditures by visitors to home games, expenditures by the athletic department on operating the football program, employment/tax impact, and expenditures by increased enrollment
• Football revenues indicated of the 236 schools with football programs 90 generated profit, 7 broke even, and 131 lost money
Review of Literature
• University of Oklahoma football had an economic impact on the Norman-Oklahoma city area (440,000) of $23.9 million in 1987
• At Southern Mississippi (1999) economic impact of athletics assumed 1,500 students would attend another school if football was not part of the program
• 63% of attendees at home football games were from out of town
• Total economic impact was $31 million
Direct Expenditures Impact per Year
Annual Tax Impact
Conclusion
• Continue to support club football and revisit a big time football program 2 years later due to slow economy
• Requirement of $10 million up front to start the program is difficult
• Playing 60% of games against D-1 opponents is difficult to meet during early years of a football program at any institution
Reference
• Semoon, C., & Canode, S. (2002). Economic Impact of a Future College Football Program. Journal Of Sport Management, 16(3), 239
Questions?