KNOXVILLE – The University of Tennessee athletic department on Tuesday released the results of a study of its economic impact on local and statewide levels.
Conducted by consulting firm Tripp Umbach, the study used the financial figures from the 2014-15 fiscal year and attendances from the spring and fall seasons in 2015 and this past winter season to determine that Tennessee athletics generated nearly $464 million in overall economic impact for the state and more than $618 million for Knoxville.
Tennessee last conducted a similar study in 2012 that measured the athletic department’s economic impact on the state at $151 million.
Brett Huebner, the athletic department’s chief financial officer, attributed the increase to more accurate information received via surveys for fans attending football and basketball games.
“Unlike some previous studies,” Huebner said Tuesday, “we took a holistic look at the spending for our whole department. It includes all of our sports (and) all the attendance for all of our sports. It takes into consideration that our budget has grown. It takes into consideration that our attendance is up.
“What we found,” he added, “is that our visitor and fan spending on a daily average is much higher than the previous assumptions we’ve made. That’s by and large a factor in the increase you see in today’s report.”
Tennessee football’s economic impact, according to the study, was $347 million for the state and $355.7 million locally.
The study, which cost the university $72,000 to conduct, found that visitor spending for home football games contributes more than $292 million – an average of $42 million per home game – to the state’s economy, with Tennessee residents spending $140 per day and out-of-state visitors forking out $308 per day to attend home games.
According to survey results conducted during the 2015 football season, 25 percent of fans attending home games live outside of Tennessee and about 70 percent live outside of Knoxville.
In terms of the local economic impact, visitor spending for home football games includes $40.4 million on hotels, $28 million on retail food and beverage and $30.7 million for restaurants, according to the study.
The report states nearly 22 percent of fans who go to Tennessee football games stay at a hotel in Knoxville.
“The findings from this report further quantify and evidence the significant value of Tennessee athletics to our state and local economies and communities,” athletic director Dave Hart said in a released statement.
“The report reflects the profound impact of Tennessee athletics and its supporters, and the figures are truly a testament to the passion of the Volunteer fan base.”
The study includes the athletic department’s operational budget of $145 million.
According to the study, Tennessee’s football program “through operational and visitor spending” generates $18.6 million annually in state and local tax revenues. That revenue excludes both the $1.8 million the athletic department remits to the city as part of an amusement tax on the sales of tickets for football and basketball games and the $3.5 million Tennessee remits for other ticket sales.
Knox County in August 2014 repealed its 0.5 percent share of the 5 percent amusement tax on tickets sold only for football and men’s and women’s basketball games, but the city of Knoxville continues to take a 4.5 percent share.
The tax has been a source of frustration for the athletic department and played some part in the decisions to play more neutral-site football games, like the one in Nashville to open last season, September’s contest at Bristol Motor Speedway and future games in Atlanta and Charlotte.
“The report validates an important assumption,” Hart said. “Tennessee athletics provides collective benefit and tremendous contribution to businesses, governments and individuals. Through shared commitment and sustained success, beneficiaries and stakeholders will continue to recognize these positive impacts into the foreseeable future.”
Contact Patrick Brown at pbrown@timesfreepress.com.