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?