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Sport Industry Research Center TEMPLE UNIVERSITY EVENT & ATTENDEE ANALYSIS: 2015 NFL Draft

2015 NFL Draft Economic Impact Report 7-21-15

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Report from Choose Chicago on the economic impact of Chicago hosting the NFL draft

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Sport Industry Research CenterTEMPLE UNIVERSITYEVENT & ATTENDEE ANALYSIS:2015 NFL DraftEvent and Attendee Analysis: 2015 NFL DraftPrepared for Chicago Sports Commissionby Sport Industry Research Center(SIRC)Temple University For more information regarding this report contact:Jeremy Jordan, Ph.D.Director, Sport Industry Research CenterSchool of Tourism & Hospitality ManagementTemple University314 Speakman Hall1810 N. 13thSt.Philadelphia, PA 19122Phone: 1-215-204-3811Email: [email protected] Funk, Ph.D.Director of Research School of Tourism & Hospitality ManagementTemple University300 Speakman Hall1810 N. 13thSt.Philadelphia, PA 19122Phone: 1-215-204-1972Email: [email protected] information and content provided in this report are governed by a mutual confidentiality agreement between the Chicago Sports Commission and SIRC. June 23, 2015 SIRCCover photograph "Chicago sunrise 1" by Daniel Schwen. Licensed under CC BY-SA 4.0.This report was produced bythe Sport IndustryResearch Center (SIRC) at Temple Universitytoprovide the Chicago Sports Commission with information on the community benefits the NFLDraft bringsto Chicago. SIRCis acollaborativeresearchnetworkprovidinginnovativemarketingand management strategies to enhance the economic, social, and environmental sustainabilityof sportingevents.ReportDesignThe report begins with an executive summary, followed by community impact, attendeedemographics, travel behaviors, andevent operations.SampleCharacteristicsAtotal 256attendeesof the2015NFLDraft respondedtoasurveydistributedbytheNFL. Of the256 responses, 125 were from non-local attendees. This sample size and the responsedistribution ensures that the population mean of overall spending falls within 8.2%of theaveragecalculatedfrom theresearchsamplewith95% accuracy. Thisisconfirmedbycrosschecking the expenditure patterns within the sample with data from general overnightleisuretravelerstoChicago, providedbyChooseChicago. Overall, reportedspendingpatternsareconsistent between 2015 NFL Draftattendees and general travelers, which allows us togeneralizethesubsequent findingstotheentireevent population.IntroductionReport ContentsExecutiveSummary p.04CommunityImpact p.05DemographicInfo p.07Travel Behaviors p.08Event Operations p.09Appendices p.10Sport Industry Research CenterTEMPLE UNIVERSITYExecutive SummaryCommunity ImpactThe total economic impact for the NFL Draft in Chicago was $81,582,815. The event alsoincreased the household incomes of local residents by $32,956,635 and created 846.2 newtemporaryjobs inthearea. As aresult of hostingthe2015NFLDraft inChicago, $6.5millioninnewtaxrevenuewill begeneratedat thestateandlocal level.AttendeeCharacteristicsResults indicated that 60%of attendees were male and 60%had children. Additionally, 49%identified themselves as White. A majority of attendees (59%) consider themselves hardcorefanaticsof their favoriteteam, while47%consider themselveshardcorefanaticsof theNFL.Travel BehaviorsHalf (50%) arrivedbymotor vehicle, while11%flewbycommercial airline. Theevent generated30,995hotel nightsinthelocal areafromnon-local visitorsandanadditional 5,581hotel nightsfromNFLstaff, sponsors, andnetworkmedia. Nearlyhalf (44%) of non-local attendeesstayedina hotel. Most (83%) are willingto recommend Chicago as a travel destination, with about two-thirds(65%) intendingtoreturntoChicagofor avacationwithin12months.What were the main findings from the 2015 report?p.04What does the NFL Draft bring to Chicago?Community Impactp.05ECONOMIC IMPACT$81.6MDirect SpendingDirect spending that would not occur without the 2015 NFL Draft was measured.The average amount spent in various sectors (food & beverage, lodging, retail shopping, local transportation, tourist attractions, other entertainment, and misc. expenses) was calculated for event attendees who reside outside of the local area (non-local attendees).The total direct economic impact of the 2015 NFL Draft was $43,971,443.Indirect SpendingIndirect spendingmeasures the additional expenditures that occur becauseof the initial injectionof newmoneyintotheeconomy, inother words, apart of eachdollar injectedintothelocal economywill bere-spent locally. The indirect economic impact measures the effects that result fromthese inter-industrytransactions(i.e., whenabusinessre-spendspart of theinitial direct expenditurewithother businessesorsuppliers). The summation of each subsequent round of inter-industry spending in the local economyconstitutestheindirect impact. Thetotal indirect economicimpact of the2015NFLDraft was$19,507,132.Induced SpendingInducedspendingmeasurestheeffectsthat result fromchangesinhouseholdincomeattributabletodirectexpenditures. The induced economic impact refers to the household-level expenditures that result fromthe initial directexpenditures and subsequentre-spending ofthese dollars in the economy. Thesummationof eachsubsequent roundof householdspendinginthelocal economyconstitutestheinducedeconomicimpact. Thetotal inducedeconomicimpact of the2015NFLDraft was$18,104,240.The average individual expenditure for non-local attendees was $641.03Economic Impact OverviewThe 2015 NFL Draft resulted in $81,582,815in increased economic activity inCookCounty. Theevent alsoincreasedthehouseholdincomesof local residentsby $32,956,635and created 846.2newjobs in the area, primarily in the foodservices, retail, hospitality, andevent promotionsindustries.Direct EffectIndirect EffectInduced EffectTOTAL EFFECT598.5121.0126.6EMPLOYMENT(JOBS CREATED)846.2$43,971,443$19,507,132$18,104,240OUTPUT(TOTAL INCREASE IN ECONOMIC ACTIVITY)$81,582,815$18,564,679$7,603,115$6,788,841LABOR INCOME (INCREASE IN HOUSEHOLD INCOME)$32,956,635State and Local TaxesState and Local TaxesWe can also estimate effects on state and local taxrevenue expected fromthe 2015 NFL Draft.$6.5millioninnewtaxrevenuewill begeneratedat thestateandlocal level asaresult of hostingthe 2015NFL Draft in Chicago. The largest sources of taxation revenue are sales taxes, propertytaxes, andpersonal incometaxes.Employee Compensation: Includes employee and employer contributions towards state-levelsocial insurancetaxes.Production: Includes sales tax and property taxes on production and imported goods. Otherbusinesstaxesandfees, suchaslicensingandmotor vehiclefeesalsoaccruetothiscategory.Households: Includespersonal taxes paidbyindividuals andhouseholds, includes stateandlocalincometaxes, personal propertytaxes, andindividual taxesandfees.Corporations:Includescorporateprofitstaxesandtaxesondividends.Tax Impact $58,570Employee Compensation$5,334,304Production$903,575Households$191,405Corporations$6,487,854Totalp.06AGES 24AGES 25-34AGES 35-44AGES 45-54AGES 55AttendeesbyAgeGroupSex & Family Structure: 59.7% were male and 59.6% had children.Race/Ethnicity: 48.6% identified themselves as White, while 29.7% were African American, 12.3% Hispanic, and 2.3% Asian.Residence/LocationApproximately half of respondents(49%) werefromoutsideChicago.EducationResults showed that 53%of attendeeshave at least an undergraduate collegedegree, and20%haveagraduatedegreeor professional qualification.Income&EmploymentThemajority(60%)reportedanannual householdincomeover$60,00031%reportedanannual householdincomeover$100,00077%wereemployed35hoursperweekRelationshiptofavoriteteamandleagueAttendeeswereaskedabout their relationshipwiththeir favoriteteamandtheNFL. Resultsindicatedthat onasevenpoint scalefromcasualobserver to hardcore fanatic, 59% selected hardcore fanatictoward their favorite team, while 47% selected hardcore fanatictowardtheNFL.Providing a snapshot of NFL Draft attendeesDemographic Info10%29%26%26%8%p.07What are non-local attendees doing, where are they staying, and will they come back in the future?Travel BehaviorsTransportation/AirlinesAttendees were asked what mode of transportation they used for their trip to Chicago.Resultsareindicatedbelow.MotorVehicle:50%Airline:11%Top 5 Airlines Used1. Southwest Airlines: 29%2. American Airlines: 21%3. Delta Air Lines: 21%4. United Airlines: 14%5. Frontier Airlines: 7%Hotel InformationThe event generated 30,995 hotel nights in the local area from non-local visitors and anadditional 5,581hotel nightsfromNFLstaff, sponsors, andnetworkmedia. Just under half (44%)of non-local attendees stayed at ahotel duringtheir trip to Chicago, while another 3%stayed inrental properties, including Airbnb. The most popular property was the Hyatt Regency Chicago(13%).65%83%Future Tourism IntentionsAttendees were asked to indicate their future intentions related to Chicagotourism. Resultsareindicatedbelow.RETURN TO CHICAGO FOR A VACATION (NEXT 12 MONTHS)RECOMMEND CHICAGO AS A TRAVEL DESTINATIONp.08Attendee experiences and the best attributes of the eventEvent OperationsAttendees were asked to identify the best aspects of the NFL Draft and NFL Draft Town. Thefollowingwordcloudincorporatestheir responses, withsizeindicatinghowfrequentlyeachwordappearsinattendeeresponses.WordstoDescribetheEventTop 5 Words1. Draft2. Experience3. Team/Teams4. Player/Players5. Activitiesp.09AttendeeDemographicInformationThe table below gives a more comprehensive look at the individuals whoattendedthe2015NFLDraft.Appendix I%GenderMale 60Female 40Family StructureSingle 45Married or living with partner (with children) 45Married or living with partner (without children) 10EthnicityCaucasian 49AfricanAmerican 30Hispanic 12Asian 3Other 6EducationHigh School/Somecollege 34Twoor four year college degree 46Masters degree 15Doctoral or Professional Degree 5Income$0- $40,000 23$40,001- $100,000 45$101,000- $140,000 17$140,001+ 14EmploymentFull-Time paidemployment/self-employed >35hours/week 77Part-Time paidemployment/self-employed