UT study: Vols, Lady Vols impact on state $151 million per year

Tennessee wide receiver Justin Hunter catches a touchdown pass from quarterback Tyler Bray in the second quarter against Georgia State at Neyland Stadium on Saturday.

Photo by Adam Brimer, Knoxville News Sentinel

Tennessee wide receiver Justin Hunter catches a touchdown pass from quarterback Tyler Bray in the second quarter against Georgia State at Neyland Stadium on Saturday.

A recent study conducted by the University of Tennessee Center for Business and Economic Research (CBER) estimated the annual impact of UT Athletics to the state of Tennessee at approximately $151 million for the 2011-12 fiscal year.

The study also cites the job creation benefits of UT Athletics, estimating that more than 2,900 jobs are created annually as a result of combined annual spending by the department and fans attending UT football, men’s basketball, and women’s basketball games.

The purpose of this study was to examine the economic impact of UT Athletics on the state through the perspective of total spending by the department and the income, employment opportunities, and tax revenues generated by this spending.

“Our report provides some useful context for the tremendous impact that the University of Tennessee Athletics Department has on the state of Tennessee,” said CBER Director William Fox.

“Most fans can appreciate the benefits of having top-tier athletics programs in a broad sense, but this analysis allows us to quantify the significant economic impact in terms that people can understand: earnings, jobs, and tax revenue.

“The fact is that the University’s athletics programs generate an impact that is equivalent to a very large amount of earnings, jobs, and tax collections. More importantly, that impact seems to have held up quite well despite well-known and significant challenges in the broader economy and on the playing field.”

Before the report just released, the most recent study on this issue was in 2004 and estimated the annual economic impact of UT Athletics at $103.8 million, indicating an increase of $48 million over the last eight years.

The CBER economic impact calculation was reached by combining the direct spending by UT Athletics on payroll and fringe benefits ($37.35 million) with the indirect impact created by payroll and non-payroll spending by the department ($68.52 million) and the indirect impact of fan spending on the economy ($45.03 million).

A significant increase to the tax revenues for state and local government is also created each year by UT Athletics. The CBER report estimates that UT Athletics generates more than $28 million annually in state and local revenues each year. This total includes slightly more than $20 million in state and local sales taxes and $6.3 million in other tax revenues, including payroll taxes, gasoline taxes, and business taxes paid by companies from revenues derived from UT Athletics. The amusement tax on ticket sales for UT Athletics events at Neyland Stadium and Thompson-Boling Arena also generated $1.55 million in local revenues for fiscal year 2011-12.

© 2013 govolsxtra.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • Discuss
  • Print

Comments » 10

VolzsFan writes:

So a UT commission with Lady Vol fans on this committee determines that a sport that losses money actually makes money for the community or state. Have they been on TV in the last month? Do they fill even 50% of the arena? Is anyone traveling to stay in hotels?

Remember, the BCS TV deal for all BCS games and the championship game, is $125 million per year. That is given to the conferences of participants. They estimate the new playoff format will be $250-$300 million. That is per year. The MEN'S NCAA tournament annual TV rights are $779 million. Again, $779 million. The TV ratings for the Final Four are double that of the BCS Championship game. The attendance and ticket prices are virtually the same for the Final Four Championship game and the BCS game.

But hey, them there Lady Vols generate $151 million for the state. Sorry, the numbers do not add up.

GerryOP writes:

in response to VolzsFan:

So a UT commission with Lady Vol fans on this committee determines that a sport that losses money actually makes money for the community or state. Have they been on TV in the last month? Do they fill even 50% of the arena? Is anyone traveling to stay in hotels?

Remember, the BCS TV deal for all BCS games and the championship game, is $125 million per year. That is given to the conferences of participants. They estimate the new playoff format will be $250-$300 million. That is per year. The MEN'S NCAA tournament annual TV rights are $779 million. Again, $779 million. The TV ratings for the Final Four are double that of the BCS Championship game. The attendance and ticket prices are virtually the same for the Final Four Championship game and the BCS game.

But hey, them there Lady Vols generate $151 million for the state. Sorry, the numbers do not add up.

Really pal, it's pretty clear that reading and reading comprehension are not your strengths. Or maybe you're only in the 4th grade?

But yup ... you were first! Way ... to ... go!

thevoice writes:

Maybe this will force the University to get along better with the Athletic Department.

voloffaith writes:

in response to VolzsFan:

So a UT commission with Lady Vol fans on this committee determines that a sport that losses money actually makes money for the community or state. Have they been on TV in the last month? Do they fill even 50% of the arena? Is anyone traveling to stay in hotels?

Remember, the BCS TV deal for all BCS games and the championship game, is $125 million per year. That is given to the conferences of participants. They estimate the new playoff format will be $250-$300 million. That is per year. The MEN'S NCAA tournament annual TV rights are $779 million. Again, $779 million. The TV ratings for the Final Four are double that of the BCS Championship game. The attendance and ticket prices are virtually the same for the Final Four Championship game and the BCS game.

But hey, them there Lady Vols generate $151 million for the state. Sorry, the numbers do not add up.

Reading the article is usually a prerequsite to commenting....Article said UT Athletics contributes about 151 million....but then I wouldn't necessarily expect a chomper fan to understand....

Bourbon-please writes:

Wonder what Tiger High's impact is? $100.00 ???

tonyvick#213307 writes:

And you can't pay the athletes?

golfman1975 writes:

in response to Bourbon-please:

Wonder what Tiger High's impact is? $100.00 ???

I've told you 1 million times not to exaggerate!

They have a net loss of about 1 trillion dollars.

golfman1975 writes:

in response to VolzsFan:

So a UT commission with Lady Vol fans on this committee determines that a sport that losses money actually makes money for the community or state. Have they been on TV in the last month? Do they fill even 50% of the arena? Is anyone traveling to stay in hotels?

Remember, the BCS TV deal for all BCS games and the championship game, is $125 million per year. That is given to the conferences of participants. They estimate the new playoff format will be $250-$300 million. That is per year. The MEN'S NCAA tournament annual TV rights are $779 million. Again, $779 million. The TV ratings for the Final Four are double that of the BCS Championship game. The attendance and ticket prices are virtually the same for the Final Four Championship game and the BCS game.

But hey, them there Lady Vols generate $151 million for the state. Sorry, the numbers do not add up.

Their average attendance is greater than the average mens basketball team in this country.
This arena seats about 20,000 people which is
more than the average city in this state.

GrandCanyonVol writes:

That's a lot of money!

AllforTenn writes:

in response to VolzsFan:

So a UT commission with Lady Vol fans on this committee determines that a sport that losses money actually makes money for the community or state. Have they been on TV in the last month? Do they fill even 50% of the arena? Is anyone traveling to stay in hotels?

Remember, the BCS TV deal for all BCS games and the championship game, is $125 million per year. That is given to the conferences of participants. They estimate the new playoff format will be $250-$300 million. That is per year. The MEN'S NCAA tournament annual TV rights are $779 million. Again, $779 million. The TV ratings for the Final Four are double that of the BCS Championship game. The attendance and ticket prices are virtually the same for the Final Four Championship game and the BCS game.

But hey, them there Lady Vols generate $151 million for the state. Sorry, the numbers do not add up.

Obviously you have something against the Lady Vols.
Well, I have watched 5 of their games on TV this month (January, 2013) already and will watch them on ESPN2 nest Monday. The way I count that will make 6 televised games this month. And they have an many or more fans in the stands than the men do.

Share your thoughts

Comments are the sole responsibility of the person posting them. You agree not to post comments that are off topic, defamatory, obscene, abusive, threatening or an invasion of privacy. Violators may be banned. Click here for our full user agreement.

Comments can be shared on Facebook and Yahoo!. Add both options by connecting your profiles.

Features