March 28, 2024

Florida TaxWatch Economic Commentary

Football wins equal big bucks for Florida

College football programs increase revenue for schools and the state as a whole.

| 8/28/2014

Alumni Donations

A 2012 analysis published by the National Bureau of Economic Research5 indicates that winning rates of college football teams increases alumni donations (especially athletics-related donations), as well as student applications, which is one of the factors considered for national academic reputation rankings. Other benefits include increased in-state enrollment and higher SAT scores for incoming students.

The FSU Foundation reported $39.1 million in gifts and pledges for FY2013-14 through March 21, 2014, compared to $34.9 million during the same period last year. While this increase may be attributed to other factors such as academic and research excellence, it is in part likely due to the national title, as a similar situation happened in 1993 and 1999, the other two Seminole national championship years6.

College Football Playoff

Long-overdue for many fans, college football enters the College Football Playoff era in 2014. Instead of a complicated computer-and-human ranking system choosing the national champion, a 13-member committee will be responsible for choosing the top four teams to compete in a single-elimination tournament that will determine the National Champion.

Semi-finals will be held each year on New Year’s Eve and New Year’s Day, followed a championship game that will be hosted by different cities each year. The first championship game will be held on January 12, 2015 in Arlington, Texas; followed by Glendale, Arizona in 2016, and then a trip to Florida as The College Football National Championship Game will be hosted in Tampa in Raymond James Stadium in 2017.

The Dallas Fort Worth area has estimated the economic impact of their game at $300 million. One Florida county official has estimated the economic activity to be between $250 and $350 million4. The stadium will be expanded by approximately 6,000 seats.

Conclusion

College sports are an important part of the college experience for students, as well as an important social activity for Floridians, especially alumni of Florida universities. Major college sports such as football provide entertainment for fans and students; increase revenues for schools to use for other sports, academic and athletic scholarships; and increase local economic activity and related tax revenues for cities, counties, and the state of Florida.

5   Michael L. Anderson. “The Benefits of College Athletic Success: An Application of the Propensity Score Design with Instrumental Variables.” NBER Working Paper No. 18196. June 2012.
6  Warchant.com “BCS Title affects FSU University as a whole.”
April 16, 2014
7   Tampa Bay Times. “Tampa to host 2017 college football championship.” December 16, 2013.

Merchanidse Sales by University
University 2013-14 Ramk 2012-13 Rank
University of Florida #6 #7
Florida State University #8 #21
University of Miami Not in top 75 #37
University of Central Florida #57 #61
University of South Florida #67 #63
Source: U.S. Department of Education, 2012 data (most recent available)


»
NEXT PAGE: About Florida TaxWatch

Tags: Florida TaxWatch

Florida Business News

Florida News Releases

Florida Trend Video Pick

Structural technology keeps Skyway Bridge safe from mass destruction
Structural technology keeps Skyway Bridge safe from mass destruction

USF marine scientist Mark Luther, says dozens of concrete barriers protecting the bridge from collision is just the beginning of an ongoing effort to keep it safe.

 

Video Picks | Viewpoints@FloridaTrend

Ballot Box

Should Congress ban the popular social media app TikTok in the U.S.?

  • Yes
  • No
  • Need more details
  • What is TikTok?
  • Other (Comment below)

See Results

Florida Trend Media Company
490 1st Ave S
St Petersburg, FL 33701
727.821.5800

© Copyright 2024 Trend Magazines Inc. All rights reserved.