The Texas A&M home football games have a significant economic impact on the local Brazos Valley economy. In 2011, the games generated $120 million in direct visitor spending. This spending supported over 2,400 jobs and had a total economic impact of $177 million in business sales. If the home games were moved outside the Brazos Valley, it would result in an estimated single season loss of $86 million in business sales, $21 million in household income, and 955 jobs. Businesses and community leaders stressed that losing the home games would be devastating to the local economy.

1. The Economic Impact
of Texas A&M Home
Football Games
Adam Sacks
President
Tourism Economics
An Oxford Economics Company
September 2012

2. About Oxford Economics

3. Oxford Economics
■ Oxford Economics is one of the world’s
foremost independent providers of global
economic research and consulting
■ Founded in 1981 as a joint venture with
Templeton College in Oxford University
■ Team of 75 in-house economists
■ Forecasts for 190 countries, 100
industries and 2,600 locations globally
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4. Our clients represent a global who’s who
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5. What do Texas A&M Football games mean to
the local economy?

6. Majority see significant impact on business
 One-year impact: Impact of games outside Brazos County
66% state impact Share of responses
would be 35%
significant or One year
catastrophic to 30% Two years
their businesses
25%
 Two-year impact: 20%
74% significant or
catastrophic 15%
10%
5%
0%
No impact Modest impact Significant Significant Catastrophic
impact; profits impact; would impact; would
would suffer post a loss but go out of
but would still would survive business
be positive
66

7. Stakeholder comments: general impacts
 “The loss of sales during football season would be a ‘Double Whammy’. Visitors
wouldn’t come and residents would leave.”
 Approximately 300 people attempt to start a new business each year in Bryan-College
Station. Without home games, business loans will be more difficult to get.
 “Football season is our holiday season.”
 “The impact on our community would be devastating.”
 “80% of our profits are in the last 3-4 months of the year.”
 “Moving A&M home games would be a ‘self-induced recession’”
 “This would be our Hurricane Katrina and Oil Spill all in one.”
 Even after football returns, the impact will continue because some businesses will fail.
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8. Stakeholder comments: impact on students
 Many kids are working their way through college and depend on the
jobs/gratuities generated by home games. The effect on student
employment would place an additional burden on University financial
aid.
 Moving games to Houston would pose a safety risk to students who
would be driving on highways in large numbers.
 Home games are one of the best opportunities to recruit new
students and players.
 One major grocery store sees a 30% increase in business on home
game weekends. This store hires 140-160 students each year.
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9. Majority see significant impact on business
 The Oxford Economics Increase in Student Employment During
survey of businesses in Football Season
Brazos County found
70%
that part time student
employment increased 60%
60% while full time 50%
student employment
increased 10% during 40%
last football season. 30%
20%
10%
0%
Part time Full time
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10. Stakeholder comments: finance and real estate
 The Exposition Complex could face default issues as its debt service is financed
through 20% of the HOT tax.
 “Bank deposits are up significantly the Monday after home games.”
 “Most of our banking activity right now is related to game day real estate.”
 One condominium project is being developed with a $300,000 price point. Without
home games, the units are not expected to sell.
 One business is planning a warehouse project that will be tabled if home games are
moved.
 Independent School District (ISD) property taxes would suffer as assessments are
based on income.
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11. Quantifying the impact of Texas A&M home
football games

12. Data intensive analysis
 Texas A&M Athletics Department - ticket and other revenue
 The Twelfth Man Foundation - ticket sales including
geographic detail
 Survey of visitors to Brazos Valley conducted by DK Shifflet
and Associates on behalf of the Office of the Governor,
Economic Development and Tourism.
 Smith Travel Research data and bed tax collections
 Sales tax data
 Survey of local business
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13. 2011 Season: $120 million in spending
Spectator Spending by Origin
$ millions
100
90
Texas A&M Home Football Game 80
Expenditure Sources, Brazos County 70
$ Thousand, 2011 Season
60
Total Per Game
Spectators 106,553 15,222 50
Media 1,169 167 40
Team travel and catering 386 55
30
Hospitality events 5,000 714
Sponsorship 6,000 857 20
Real Estate 571 82 10
Total 119,680 17,097
0
Local Out-of-town
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14. ..benefits to a broad range of industries
Texas A&M Home Game Direct Spending
$ millions
Tickets
Food & Beverage
Seat licenses / donations
Retail
Transportation
Other
Sponsorship
Accommodations
(Dark blue = spectator
Hospitality events
spending)
Media
Entertainment
Real estate
Team travel & catering
- 5 10 15 20 25 30
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15. Hotel occupancy and rates spike
Brazos County Hotel ADR & Occupancy, Fall 2011
ADR, $ Occupancy, %
200 ADR Game Weekend Occupancy
100
180 90
80
160
70
140 60
120 50
100 40
30
80
20
60 10
40 0
Sep Oct Nov
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16. How spending generates impact
• Visitors create direct economic value within a discreet group of sectors (e.g. recreation,
transportation). This supports a relative proportion of jobs, wages, taxes, and GDP within
each sector.
• Each directly affected sector also purchases goods and services as inputs (e.g. food
wholesalers, utilities) into production. These impacts are called indirect impacts.
 Lastly, the induced impact is
generated when employees
whose incomes are
generated either directly or
indirectly by travel, spend
those incomes in the state
economy.
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17. $177 million in business sales impacts
A&M Home Game Sales Impacts
$ thousand
40,000
Induced
35,000
Indirect
30,000
Direct
25,000
20,000
15,000
10,000
5,000
0
FIRE
Recreation
F&B
Lodging
Comm.
Education
Gas
Retail Trade
Transportation
Gov.
Personal Serv.
Bus. Services
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18. Employment impact: 2,400 jobs
2011 A&M Home Game Employment Impacts
 Direct: 1,874
800
700
 Indirect and 600
Induced
Indirect
Induced: 557 500
Direct
400
300
200
100
0
FIRE
Recreation
Lodging
Comm.
F&B
Education
Retail Trade
Gas
Transportation
Gov.
Personal Serv.
Bus. Services
18
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19. Tax impact: $5.7 million in local taxes
Brazos County &
Municipalities Tax Impact
$ Thousands, 2011
Sales & Use Tax 1,077
Hotel Tax 518
Property Taxes 4,029
Other Taxes and Fees 137
Total 5,761
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20. Upside potential in the SEC
Impact of SEC Membership
% above 2011
25%
20%
15%
10%
5%
0%
Spectators Spending
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21. What if home games were played outside the
Brazos Valley?

22. Summary of losses: single season
Summary of Losses if Home Games Leave Brazos County
Single Season
Direct Indirect Induced Total
Business sales ($ thousand) 63,209 10,837 12,337 86,384
Personal income ($ thousand) 14,383 3,235 3,755 21,373
Employment (annual) 744 95 116 955
Brazos County &  $86 million in
Municipalities Potential Tax business sales
Loss Impact
$ Thousands, 7 Game Season  $21 million in
Sales & Use Tax 478
Hotel Tax 456
household income
Property Taxes 1,786
Other Taxes and Fees 59
Total 2,778  955 jobs
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23. Conclusion

24. “Texas A&M should never consider taking away its main
attraction for the B/CS area—A&M football. It is the greatest
tradition of any university in the country. 90,000 fans, hotel
rooms, dinners, lunches, clothes, night life, cars, and yes
even mobile homes and RVs. The total commerce is
unbelievable. Don't give it to another city for any amount of
time.”
- Survey respondent, August 2012
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25. Q&A