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Florida TaxWatch Economic Commentary
Football wins equal big bucks for Florida
College football programs increase revenue for schools and the state as a whole.
Tallahassee has taken the Seminole’s National Championship win as an opportunity to promote the city’s business-friendly environment to the nation through the Economic Development Council of Tallahassee/Leon County. Local apparel stores, particularly Garnet & Gold, have reported record sales thanks to the national championship, and an expected 25 to 30 percent estimated increase in sales this school year.1 Visit Tallahassee has reported that FSU home games can bring in from $1.5 – $10 million to the economy, depending on the rival. This year, the Seminoles have a highly anticipated group of rivals coming to Tallahassee, including Clemson, Notre Dame, and UF, all of which should provide more economic activity to the local economy.
"College Football: An Economic Driver for Florida's Local Economies"
The academic literature shows mixed results regarding the economic impact of college football on local economies. A 2007 study analyzing college football teams in Florida found that college football had a statistically significant impact on taxable sales2 , but a separate study by the same authors showed no significant impact on local employment and personal income3 . The impact of an increase in sales tax collections alone is an important benefit for the state of Florida and its cities and counties.
Sports Programs Give to their Universities
The U.S. Department of Education tracks the team revenues and team expenses, by sport, for college athletics using a survey of each university. The most recent results show that all but two Florida universities had positive returns from their NCAA Division I football teams in 2012, with the University of Florida showing the highest gains received from football (table below).
According to Forbes, only one university in the nation, Notre Dame, contributes more athletic money to academic programs than University of Florida4. In 2012, the Gators football program gave $7.2 million back to UF for academic programs, including $1.5 million for non-athletic scholarships.
Merchandise Sales
Merchandise sales help universities by supporting student scholarships and various campus and community initiatives. The Florida Gators remain the top-selling Florida university, improving to number six overall, helped substantially by an SEC-record regular basketball season where the Gators were 18-0 in conference games. Florida State University showed a substantial rise in the sales rankings, going from 21st to 8th in the country (see table, next page).
1 Warchant.com. “BCS Title Boosts Tallahassee Businesses.” May 6 2014.
2 Baade et. al. College of the Holy Cross, Department of Economics. “Down, Set, Hike: The Economic Impact of College Football Games on Local Economies.” February 2007
3 Baade et. al. College of the Holy Cross, Department of Economics. “Big Men on Campus: Estimating the Economic Impact of College Sports on Local Economies.” August 2007.
4 Forbes. “College Football’s Most Valuable Teams 2013.” December 2013.
| 2012 Football Teams’ Revenues vs. Expenses | |||
| University | Team Revenues | Team Expenses | Difference |
| University of Florida | $74,820,287 | $25,704,553 | $49,115,734 |
| Florida State University | $43,085,121 | $23,427,950 | $19,657,171 |
| University of Miami | $29,986,463 | $24,672,810 | $5,313,653 |
| University of South Florida | $16,295,130 | $12,027,850 | $4,267,280 |
| Florida Atlantic University | $7,287,694 | $6,726,618 | $561,076 |
| Florida International University | $8,168,228 | $8,168,228 | $0 |
| University of Central Florida | $14,712,259 | $15,076,308 | ($364,049) |
| Source: U.S. Department of Education, 2012 data (most recent available) | |||
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