Impact of the University of Texas Athletics Department

Impact of The University of Texas Athletics Department

September 8, 2015

8121 Bee Cave Road, Suite 100 Austin, TX 78746 Table of Contents

Introduction & Methodology……………..…………………………………………… 3

Executive Summary…………………………………………...……………………...... 8

Impact of Capital Investment………………………………………………………….. 17

Impact of Texas Football ………………………….………….….…………………..… 18

Impact of Men’s & Women’s Basketball……….…………..……………….…… 21

Impact of Texas Relays/Track & Field……………….….………………………..… 23

Impact of the Frank Erwin Center…..…………………..………………………..… 26

Impact of All Other UT Sports….………………………..………………………..… 28

Additional Impacts……………………………………………..………………………..… 31

Appendix………………………………………………………………………………………... 36

About AngelouEconomics…………………………………..………………………..… 45

Texas Athletics Economic Impact |2 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 2013 – 2014 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 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.

TOTAL Capital Texas Athletics Visitor Investment Operations Spending 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 2013 – 2014 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 2013 – 2014 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 Introduction & Methodology Visitor Spending: Visitor spending includes the spending of out-of-town fans as they attended 2013 – 2014 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 Average Per Person Expenditures Annual Attendance Spending Football 484,617 Hotel (F1 Weekend) $51.80 ($122.16) Men’s Basketball 41,928 Women’s Basketball 7,289 Retail $31.20 Texas Relays/UIL Track 52,586 Restaurants $31.90 Frank Erwin Center 219,292 Transportation $33.30 All Other Sports 62,434 Total 868,146 Total (F1 Weekend) $148.20 ($218.59)

Total Visitor Spending by Venue

Texas Relays/ Frank Erwin All Other Football Basketball Total UIL Track Center Sports

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

Sources: Smith Travel Research, D. K. Shifflet & Associates, AngelouEconomics, Texas Athletics Economic Impact Results: All results presented for the economic impact analysis are adjusted for inflation and represent 2015 dollars.

Texas Athletics Economic Impact |5 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 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 Indirect Induced Limited to the effects in the Includes increases to sales, The household spending local economy that occur incomes, and jobs in patterns of employees as a direct result from business sectors that through all business Texas Athletics. support or supply Texas sectors that experience Athletics. increased earnings as a result of Texas Athletics.

Source: Implan

Texas Athletics Economic Impact |7 Executive Summary

TEXAS ATHLETICS DEPARTMENT In 2014, AngelouEconomics was engaged by Texas Athletics to conduct an economic impact analysis for the most recently completed 2013 – 2014 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 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: $148.20 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 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: 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. Texas: 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 Texas Athletics Visitor Impact Total (Average Annual) Operations

Austin Impact $38,784,347 $298,890,619 $272,170,473 $609,845,439 Austin

Texas Impact $7,392,106 $26,569,287 $84,212,645 $118,174,038 Texas

Total Impact $46,176,453 $325,459,906 $356,383,118 $728,019,477 Total

Sources: AngelouEconomics, Implan, Texas Athletics

Texas Athletics Economic Impact |10 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 Texas Athletics Visitor Total (Average Annual) Operations Impact

Austin Impact 237 4,504 2,200 6,941 Austin

Texas Impact 28 106 259 393 Texas

Total Impact 265 4,610 2,458 7,333 Total

Sources: AngelouEconomics, Implan, Texas Athletics

Texas Athletics Economic Impact |11 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 Texas Athletics Visitor Impact Total (Average Annual) Operations

Austin Impact $16,150,386 $120,829,146 $89,642,198 $226,621,730 Austin

Texas Impact $1,874,557 $6,574,790 $12,975,891 $21,425,238 Texas

Total Impact $18,024,943 $127,403,936 $102,618,089 $248,046,968 Total

Sources: AngelouEconomics, Implan, Texas Athletics

Texas Athletics Economic Impact |12 Executive Summary

TOTAL TAX IMPACT (Annual) Texas Tax Revenues The total tax impact as a (in millions) result of Texas Athletics was $15 $72.4 million. $12.2 $11.5 Texas Athletics helped create $12

$28.0 million dollars in new Millions $9 taxes for the state of Texas. $6 An additional $44.4 million $4.4 in Federal taxes were $3 generated due to Texas Athletics. $0 Sales Tax Property Tax Other 37% of the total tax impact occurs within the local Distribution of Taxes economy. The breakdown of tax $28.0 M impacts include: 37% Sales: $12.2 million 63%

Property: $11.5 million $44.4 M Other: $4.4 million State and Local Tax Impact Federal Tax Impact by Total

Sources: AngelouEconomics, Implan, Texas Athletics

Texas Athletics Economic Impact |13 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 The top business sectors impacted 316 business sectors throughout in Texas by visitors of Texas the state of Texas. Athletics events include: 49 business sectors have reported Retail Stores: $58.3 million impacts over $1 million. Food Services: $53.58 million The top business sectors impacted Hotels: $52.5 million in Texas by Texas Athletics The primary impact of Texas operations: Athletics sports and events will be Performing Arts, sports, & on small businesses, either through events: $84.9 million local vendors or from visitor Advertising: $40.9 million spending in local restaurants and Insurance: $11.5 million retail.

Texas Athletics Economic Impact |14 Executive Summary

Austin Events by Total Annual Economic Impact Total Output Visitors Circuit of the Americas, 2014 $897 Million 1,100,000

Texas Athletics, 2013 - 2014 $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 Texas Athletics brings in 868,100 second largest economic impact to people to Austin each year. This is the Austin economy. nearly 500,000 more people than The total output from Texas SXSW over the course of an Athletics is more than twice that of academic year. SXSW, the third largest festival in Austin.

Texas Athletics Economic Impact |15 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 Accounting for more than one-third marketing arm for the university. of the Texas Athletics’ budget, The success and prominence of the alumni donations help maintain the Longhorns brand contributes high quality of Texas Athletics. significant benefit to the university. Student jobs provide university Texas Athletics manages trademark students with an opportunity to take and licensing programs for all nine the skills they learn in the classroom schools in the University of Texas and apply them to real world system. scenarios. Texas Athletics employed 489 student workers in 2013 – 2014, IMG College owns the multi-media providing practical application and rights to UT sports and the rights to experience for skills learned in the the Longhorn Network. Funds classroom. gained from IMG’s partnership with ESPN have helped the university Sodexo Services conducts all create seven new endowed chairs. concessions at Texas Athletics events. Sodexo employs as many as Media value for Texas Athletics 225 workers, both full-time and events is conservatively estimated at part-time. During the 2013-2014 $111 million. academic year, Sodexo helped raise UT alumni, including Texas Exes, more than $500,000 for non-profit support the university through UT organizations. sports. During a typical football Texas Athletics hosts regional events game day, between 10,000 – 15,000 from time to time, including the alumni will visit the alumni center. NCAA Men’s Swimming & Diving There are 140 alumni chapters Championships, the American Short across the U.S. where alumni meet Course Championships, and the Big and socialize, typically over televised 12 Championships. sporting events. Texas Athletics Economic Impact |16 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: 265 20-Year Average Impact of Capital Investments (Adjusted for Inflation, 2%) Jobs Labor Income Total Output 1995 181 $12,279,179 $31,456,907 1996 184 $12,529,774 $32,098,884 1997 188 $12,785,484 $32,753,963 1998 192 $13,046,412 $33,422,412 1999 196 $13,312,666 $34,104,502 2000 200 $13,584,353 $34,800,512 2001 204 $13,861,584 $35,510,727 2002 208 $14,144,474 $36,235,435 2003 212 $14,433,137 $36,974,934 2004 217 $14,727,690 $37,729,524 2005 221 $15,028,256 $38,499,515 2006 226 $15,334,955 $39,285,219 2007 230 $15,647,913 $40,086,958 2008 235 $15,967,258 $40,905,059 2009 240 $16,293,120 $41,739,857 2010 245 $16,625,633 $42,591,690 2011 250 $16,964,932 $43,460,909 2012 255 $17,311,155 $44,347,866 2013 260 $17,664,444 $45,252,924 2014 265 $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 Impact of Texas Football

2013 Football Average Profile Average Per Total Game (6 Home Games) Stadium Capacity 100,119 Stadium Attendance 98,976 593,857 Out-of-Town Game Day Visitors 80,769 484,616 Hotel Stays 32,307 193,846 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 Impact of Texas Football Texas Athletics Visitor Impact Total Operations Jobs 2,846 1,781 4,627 Labor Income 76,404,158 72,038,283 148,442,441

Austin Economic Impact 211,142,623 165,645,208 376,787,831 Jobs 66 88 154 Labor Income 4,097,726 5,238,861 9,336,587 Texas Economic Impact 20,879,495 69,648,429 90,527,924 Jobs 2,912 1,869 4,781

Labor Income 80,501,884 77,277,144 157,779,028 Total Economic Impact 232,022,118 235,293,637 467,315,755 Sources: AngelouEconomics, Implan, Texas Athletics 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 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. Texas: 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. Football created 154 jobs with a labor income of $9.3 million in the rest of Texas.

Texas Athletics Economic Impact |19 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 tailgate- related 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 Impact of Men’s & Women’s Basketball

2013 – 2014 Men’s Basketball Average Profile Total Average Per Game (18 Home Games) Stadium Capacity 16,540 Attendance 9,979 179,625 Out-of-Town Visitors 2,329 41,928 Hotel Stays 932 16,771 Hotel Spending $130,454 $2,348,167 Retail $75,553 $1,359,952 Restaurants $81,233 $1,462,202 Transportation $83,014 $1,494,249 2013 – 2014 Women’s Basketball Average Profile Total Average Per Game (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 Impact of Men’s & Women’s Basketball

Texas Athletics Visitor Impact Total Operations Jobs 433 116 549 Labor Income $11,811,899 $4,735,357 $16,547,256

Austin Economic Impact $32,403,893 $11,363,234 $43,767,127 Jobs 10 19 29 Labor Income $640,100 $892,661 $1,532,761 Texas Economic Impact $1,968,434 $2,576,547 $4,544,981 Jobs 443 134 578

Labor Income $12,451,999 $5,628,018 $18,080,017 Total Economic Impact $34,372,327 $13,939,781 $48,312,108

Sources: AngelouEconomics, Implan, Texas Athletics Total: 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. Austin: 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. Texas: 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 Impact of Texas Relays/Track & Field

The 87th Texas Relays attracted 6,552 athletes from 894 teams, with representatives from 32 states and 9 countries. 2014 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 Impact of Texas Relays/Track & Field

Texas Athletics Visitor Impact Total Operations Jobs 33 251 284 Labor Income $911,977 $10,075,184 $10,987,161

Austin Economic Impact $2,483,480 $25,052,817 $27,536,297 Jobs 1 12 12 Labor Income $49,926 $744,958 $794,884 Texas Economic Impact $152,793 $2,671,499 $2,824,292 Jobs 34 263 297

Labor Income $961,903 $10,820,142 $11,782,045 Total Economic Impact $2,636,273 $27,724,316 $30,360,589 Sources: AngelouEconomics, Implan, Texas Athletics 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 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 2013 – 2014 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. Texas: 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 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 Frank Erwin Center Impact

Concert Picture

2013 – 2014 Erwin Center Profile Frank Erwin Center Events: Total High School Commencements (Avg 190 Events/Year) Arena Capacity 6,000 – 16,500 College Commencements Attendance 705,280 Concerts Out-of-Town Visitors 219,292 Hotel Stays 87,717 Corporate Events Hotel Spending $9,041,141 Family-Centered Events Retail $5,829,690 Restaurants $13,231,095 Youth Camps Transportation $10,242,185 iHeartRadio Country Music Festival Sources: AngelouEconomics, Texas Athletics

Texas Athletics Economic Impact |26 Frank Erwin Center Impact

Texas Athletics Visitor Impact Total Operations Jobs 449 590 1,039 Labor Income 10,987,643 23,965,429 34,953,072

Austin Economic Impact 32,490,672 55,228,617 87,719,289 Jobs 11 26 37

Labor Income 695,087 1,641,858 2,336,945 Texas Economic Impact 2,290,638 6,086,476 8,377,114 Jobs 460 616 1,076

Labor Income 11,682,730 25,607,287 37,290,017 Total 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, 2013 – 2014 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 All Other UT Sports Impacts

2013 – 2014 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 All Other UT Sports Impacts Texas Athletics Visitor Impact Total Operations Jobs 273 151 425 Labor Income $8,262,207 $6,229,719 $14,491,926

Austin Economic Impact $20,369,951 $14,880,597 $35,250,548 Jobs 6 23 29 Labor Income $406,969 $1,112,267 $1,519,236 Texas Economic Impact $1,277,927 $3,229,694 $4,507,621 Jobs 280 174 454

Labor Income $8,669,176 $7,341,986 $16,011,162 Total Economic Impact $21,647,878 $18,110,291 $39,758,169 Sources: AngelouEconomics, Implan, Texas Athletics 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: 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. Texas: 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 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 500-600 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 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 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 2013 – 2014 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 Additional Impacts MEDIA REACH In the 2013 – 2014 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 Football Basketball Football Basketball Total Media Network Games Games Media Value Media Value Value LHN 3 11 $8,112,000 $506,880 $8,618,880 ESPNU -- 7 -- $802,080 $802,080 ESPN2 1 5 $5,160,000 $1,329,120 $6,489,120 FOX 3 -- $35,168,000 -- $35,168,000 ABC 2 -- $41,760,000 -- $41,760,000 FS1 2 -- $6,284,000 -- $6,284,000 CBS -- 1 -- $768,960 $768,960 ESPN -- 1 $9,600,000 $1,113,120 $10,713,120 ESPNEWS -- 1 -- $90,720 $90,720 Total 12 26 $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 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 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 2013 – 2014 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:

200-225 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 Appendix

I. Definitions

II. Total Impacts by Direct, Indirect, and Induced

III. Share of Impacts by Venue

Texas Athletics Economic Impact |36 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 Appendix

II. Total Impacts by Direct, Indirect, and Induced

Total Impact of Texas Athletics (2013 – 2014):

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