Very interesting post from the Legacy Showcase tournament director on the economic impact of ASA Nationals and the Legacy Showcase. I thought I would share it here since a lot of people on her play both.
GeorgiaCoachesCorner.com • View topic - Economic Impact
"I did commission an Economic Impact study in '09 to aid in selling the event to Vendors, Sponsors & County Commissioners. For TD's running one day tourney's, there is very little economic impact on the community. Quick turn events are not profitable to counties. Not only do the local Hotels, Rest & Shops not get exponential purchasing days, but the facilities take a beating (future CapEX problems). As such, you will pay market rates for everything from field rentals, staffing and concessions.
As a TD, you must put "Heads in Beds" to go to the next level. Long term events (Legacy, Colorado, NJ, Nationals, etc.) are dealt better bargaining chips by the community because of that one simple element. At the risk of giving away the "Secret Sauce", here is one piece of information that you can hang your hat on in quantifying the impact of an event on a community.
Formula: $256.25 per day (current industry factor) x #of rooms booked x 4 (family of four).
So, lets take an example:
Suppose you have a three day event that requires a two night stay.
Suppose you have 72 teams coming and 45 of those teams require hotels.
Suppose you average 10 rooms per team. 10 x 45 = 450 rooms
Here is the formula at work:
$256.25 per day x 450 rooms x 4 = $461,500 x 2 nights = $922,500.
You don't count the other 27 teams because you assume they gas up at home and pack a lunch. Further, the depreciation on the fields and roads negate the ones that actually stop and get a biscuit or lunch at McDonalds next to the fields. These teams are budget neutral.
When people ask why ASA host Nationals at hole-in-the wall locales. The answer is simple. The smaller communities rely heavily on the economic impact of the event and pay ASA handsomely to host it. Yes, I said pay ASA. The bids can go as high as $25,000.00. If your following this thread, then you know why towns like Normal, IL ask ASA to expand the number of teams coming to Nationals every year. It brings a lot of money into the local community. Communities with a solid CVB work closely with local business to help put the bids together.
As a side bar to this post, here are the four largest Amatuer events in Georgia and their Economic Impact to the Communities that host them (per the Georgia Sports Council).
Cheer Nation (Cheerleading) - $88,750,000 (900+ teams)
Big South (Volleyball) - $61,300,000 (750 teams)
Perfect Game (Baseball) - $46,000,000 (300 teams)
Atlanta Legacy (Softball) - $28,100,000 (240 teams)
As a comparison, MLB World Series had an economic impact of $80,000,000"
GeorgiaCoachesCorner.com • View topic - Economic Impact
"I did commission an Economic Impact study in '09 to aid in selling the event to Vendors, Sponsors & County Commissioners. For TD's running one day tourney's, there is very little economic impact on the community. Quick turn events are not profitable to counties. Not only do the local Hotels, Rest & Shops not get exponential purchasing days, but the facilities take a beating (future CapEX problems). As such, you will pay market rates for everything from field rentals, staffing and concessions.
As a TD, you must put "Heads in Beds" to go to the next level. Long term events (Legacy, Colorado, NJ, Nationals, etc.) are dealt better bargaining chips by the community because of that one simple element. At the risk of giving away the "Secret Sauce", here is one piece of information that you can hang your hat on in quantifying the impact of an event on a community.
Formula: $256.25 per day (current industry factor) x #of rooms booked x 4 (family of four).
So, lets take an example:
Suppose you have a three day event that requires a two night stay.
Suppose you have 72 teams coming and 45 of those teams require hotels.
Suppose you average 10 rooms per team. 10 x 45 = 450 rooms
Here is the formula at work:
$256.25 per day x 450 rooms x 4 = $461,500 x 2 nights = $922,500.
You don't count the other 27 teams because you assume they gas up at home and pack a lunch. Further, the depreciation on the fields and roads negate the ones that actually stop and get a biscuit or lunch at McDonalds next to the fields. These teams are budget neutral.
When people ask why ASA host Nationals at hole-in-the wall locales. The answer is simple. The smaller communities rely heavily on the economic impact of the event and pay ASA handsomely to host it. Yes, I said pay ASA. The bids can go as high as $25,000.00. If your following this thread, then you know why towns like Normal, IL ask ASA to expand the number of teams coming to Nationals every year. It brings a lot of money into the local community. Communities with a solid CVB work closely with local business to help put the bids together.
As a side bar to this post, here are the four largest Amatuer events in Georgia and their Economic Impact to the Communities that host them (per the Georgia Sports Council).
Cheer Nation (Cheerleading) - $88,750,000 (900+ teams)
Big South (Volleyball) - $61,300,000 (750 teams)
Perfect Game (Baseball) - $46,000,000 (300 teams)
Atlanta Legacy (Softball) - $28,100,000 (240 teams)
As a comparison, MLB World Series had an economic impact of $80,000,000"
