Athletic Department had $114.3 million impact on Lincoln-area economy

Like clockwork every fall for more than 40 years, Cornhusker football fans have poured through the gates of the University of Nebraska-Lincoln's Memorial Stadium to cheer on their favorite team.

The Huskers' NCAA record of 268 consecutive sellouts since 1962 is the envy of every other collegiate football program and a source of great pride among Nebraskans. But Nebraska football in particular and Cornhusker athletics in general offer more than just high-level athletic entertainment and a shared experience for those at the games -- they have a significant impact on the Nebraska economy, especially in the Lincoln metropolitan area.

A study completed this summer by UNL's Bureau of Business Research on behalf of the UNL Athletic Department showed that the overall economic impact of Cornhusker athletics on Lincoln's economy in the 2004-05 fiscal year was $114.3 million, including $41.2 million in worker income, 2,840 jobs (one-third of which are Athletic Department event or concession jobs) and $595,000 in direct sales tax revenue for the city of Lincoln. The football program alone had a total impact of $87.1 million, including $31.2 million in labor income, 2,130 jobs and $498,000 in direct sales tax revenue.

The study, headed by UNL economist Eric Thompson, director of the Bureau of Business Research, examined the economic impact of Husker athletics in two broad categories of expenditures -- annual expenditures of the overall Nebraska athletic program and expenditures of fans attending Husker home games in football, baseball, volleyball and men's basketball.

In his report on the study, Thompson noted that more than one million fans attend Nebraska home athletic contests every year, including more than one-half million who attend home football games, and said fan spending connected with these contests generates substantial expenditure at restaurants, hotels, retail stores and gasoline stations.

The study also examined the impact of the Athletic Department on the statewide economy under both conservative and optimistic assumptions. Under the conservative assumption (where spending by Nebraska residents that is directly tied to Cornhusker athletics does not contribute to economic impact), the annual statewide impact was $48 million in 2004-05. Under the optimistic assumption (where such spending does contribute to economic impact), the figure for 2004-05 was $155.1 million. "Reality lies somewhere between the conservative and optimistic assumptions," Thompson said. "The statewide impact is felt in Lincoln, but also in Omaha and other Nebraska communities."

The report noted that the study's $114.3 million figure for the Athletic Department's economic impact actually would be higher if it was conducted in a year in which Nebraska had more than six home football games (in future years, Nebraska will host seven and sometimes eight home games); if it included ticket purchases, donations and concessions purchased by Lincoln-area fans (the conservative view assumes that money would have been spent in Lincoln anyway); if it included game-day spending in Lincoln by fans not attending the games; if it included the construction of the Tom and Nancy Osborne Athletic Complex (the study estimated a two-year impact of the project to be $64.8 million); if it included the impact of NCAA Regional and Super Regional baseball tournaments (estimated at $1.1 million).

The report concluded by predicting rapid growth in the overall impact of the Cornhusker football program over the next few years. The prediction was based on the expected increase in the number of home games and an increase of 6,500 in Memorial Stadium's seating capacity beginning with the 2006 season (73,918 in 2005). For fiscal year 2006-07, the report predicts that fan spending will increase to $44.1 million, up 25 percent from the $35.4 million measured in 2004-05.

The study used Athletic Department records to determine the department's expenditures in 2004-05. To estimate fan spending at home football games, it averaged data from recent studies at four other schools, Louisiana State, Ohio State, Penn State and Tennessee. For basketball, baseball and volleyball, the study used results of a survey conducted at the NCAA regional baseball tournament at Haymarket Park in June and men's basketball and other sport spending data from the Ohio State study.

The bureau looked at both the direct and indirect impacts of Athletic Department and fan spending on the economy, utilizing the IMPLAN Pro software that economists throughout the nation use to determine multiplier effects. The multiplier effect occurs as new money brought into the area (the direct effect) by the Athletic Department supports additional business and employment.

CONTACTS: Eric Thompson, Director, Bureau of Business Research, (402) 472-3318
Keith Mann, Director, Athletic Department Media Relations, (402) 472-2263
Tom Simons, University Communications, (402) 472-8514