News

Business of Football

November 09, 2008 - By Carlie Kollath Daily Journal

Football means more than quarterbacks and coaches to businesses in college towns. For them, the season brings in alumni, faithful fans and students who are willing to shell out money for a memorable game weekend.


Hotels, gas stations, restaurants, gift shops, liquor stores, florists, grocery stores, clothing stores and others feel the economic impact of the football season. Out-of-town visitors need places to sleep and eat. Gas tanks have to be filled. Tailgating supplies have to be bought. And game attendees need the right clothes to wear.


"Football is one of the biggest things we have as far as tourism and economic impact," said Jon Maynard, president and chief executive officer of the Greater Starkville Development Partnership. "It's something fairly consistent we can count on even when the times are tough."


Last year, Starkville and Oktibbeha County pulled in about $560,000 in tourism sales tax revenues from August to December, which is 42 percent of its annual tourism sales tax revenues.


In Oxford, the city took in $763,436 in tourism sales tax revenues during the football season. The figure is 43 percent of the annual sales tax collection from hotels, motels and sales of prepared food and beverages.

Game commission
On a per game basis, a football game brings an economic impact of $3 million to $5 million for the community, said Max Hipp, chief executive officer of the Oxford-Lafayette Chamber and Economic Development Foundation.


"It's nothing for a large family to drop $1,000 one weekend to keep them fed and doing what they want to do," Hipp said.


Linda Fleming, owner of Emileigh's Bakery and Catering Co. in Oxford, said she easily can see the financial impact. Her football catering business from September to December makes up at least 25 percent to 30 percent of her annual sales.


"Football season is huge," she said. "Football season is when you make your money. Those four months can either make or break you. If we have a bad season, I'm hurting."


She said the average sale during the season varies, but it isn't unusual for her to have a $500 catering order from a tailgater. The tailgating business is a boon right now, but she said it's not making up the ground that she's lost because of the tough economic times. Her sales are down and costs have gone up, meaning she has had to lay people off and is concerned about business in January and February when she doesn't have football to prop up sales.


Josh Christopher, general manager at Bulldog Deli in Starkville, said he's experiencing the opposite at his restaurant.


"We have a lot more catering this year than last year," he said. "You wouldn't think that with economic downturn."


He said it's not uncommon for game business on Friday, Saturday and Sunday business to be more than sales the rest of the week. The deli's most popular tailgating order is a $40 sandwich platter, but he said he's seen orders hit $200.


"Football season is a plus, but you never know," he said. "We're not counting on it because you can have a bad football season and no one comes."


At The Lodge in Starkville, owner John Hendricks said his business isn't feeling negative effects from the economy. Instead, his sales are influenced by the success of the Bulldogs.


"If the team does well and the attendance goes up, we benefit," he said.


And sales of MSU paraphernalia are typically stronger at the beginning of the season, he said, when people are stocking up go to games. If the team goes to a bowl game, as it did last year, he said his business will pick up at the end of the season.


He said he doesn't have an average ticket, saying it depends on each family.


But, Hendricks said people this year have been more than willing to buy the basics.


Popular items at The Lodge include cowbells, ranging from $15 to $26. Then, tailgaters need a hat ($12 to $20) and a T-shirt ($10 to $18) or a golf or polo shirt ($25 to $75). They also buy MSU-branded tailgating tents ($200), tablecloths, paper plates, plastic cups, coolers, folding chairs ($20 to $25), folding tables ($20 to $25) and stadium seats ($20 to $40).


As the weather cools, Hendricks said the list grows to include stadium blankets, sweatshirts, jackets and ponchos.

Souvenir totals
The purchases easily can total more than $300, and that's before buying any food.


Sales trends are similar at The Campus Book Mart in Oxford, said floor manager Laura Cox.


"We're doing good when the football team's winning," she said. "We've done really well this season."


She said the weekend Ole Miss beat Auburn was the store's best weekend so far, and she hasn't noticed any change in her customers' spending habits.


Along with the items Hendricks mentioned, Cox said Ole Miss fans also are buying acrylic chip and dip bowls and pottery pieces to add to their tailgating spread.


Hugh Stump, executive director of the Oxford Convention and Visitors Bureau, said the key is drawing visitors to Oxford and filling the stadium.


"When we don't fill that stadium up on those six or seven Saturdays in the fall - say it's only two-thirds full - it makes a big difference," he said.


Added Hipp, "The sporting events are really economic boons to a community. They help level out weeks and weekends that otherwise be drab. Successful sporting events are always good. There's nothing like having a winning season."

Contact Carlie Kollath at 678-1598 or carlie.kollath@djournal.com. 

- Return To News -