Shipping Company? YOURE FIRED! And You Probably Deserved It SMALL TECH Apps & Software to Save & Make Money $2.95 904THEMAGAZINE.COM NORTHEAST FLORIDAS BUSINESS & EXECUTIVE LIFE AUTHORITY JUNE 2014 Advisor GOOD $PORTS GOOD $PORTS CITY BOOSTERS ARE CONVINCED JAX CAN WIN IN THE SPORTS BIZ ARENA 34 : 904theMagazine.com : June 2014 GOOD SPORTS words by VIRGINIA CHAMLEE & TRAVIS GIBSON Rendering of EverBank Field upgrades currently under construction. CITY BOOSTERS ARE CONVINCED JAX CAN WIN IN THE SPORTS BIZ ARENA ince the early 1980s, THE PLAYERS Championship golf tournament has drawn thousands to TPC Sawgrass and the famed Stadium Course in Ponte Vedra Beach. Prior to this years event, the JAX Chamber esti- mated that the 2014 tournament would re- sult in an economic impact upwards of $151 million to Northeast Florida. While the exact numbers are difficult to determine (and often inflated by overly optimistic boosters determined to lure more events to the city), one thing is for certainTHE PLAYERS, and other major sporting events like it, shine a spotlight on the cities that host them and certainly generate revenue at the admission gates. The American sports industry is a multi-billion dollar one, and one that contin- ues to grow. With a new focus on bringing premier athletic competitions to the city, hopes are high that Jacksonville can snag a larger piece of that pie. In March, Mayor Brown announced the formation of a public-private partnership be- tween the City, Gator Bowl Sports and the JAX Chamber that will work to showcase the region as a sports destination for profes- sional, amateur and youth leagues. The Jacksonville Sports Council will con- sist of business and community leaders cobbled together from throughout North- east Florida and will be privately funded, with Gator Bowl Sports providing supple- mentary administrative and operational funding. From new collegiate track and eld complexes to the worlds largest video scoreboards, the city is betting big on sports. the Jaguars, Florida/Georgia Game and PLAYERS Championship are big pieces of the puzzle, but the real money comes from a yearlong schedule of small sporting eventscompetitions that likely wont make ESPN prime- time but that do put heads in beds and butts in seats. June 2014 : 904theMagazine.com : 35 Baseball Grounds of Jacksonville UNFs Hodges Stadium 36 : 904theMagazine.com : June 2014 or years, we ran sport- ing events out of our public entity, says Alan Verlander, execu- tive director of the Jacksonville Sports Council (who previously acted as sports and entertain- ment director for the City of Jacksonville and is a past ath- letic director at Jacksonville Uni- versity). There are challenges with that, due to contracts and procurement. Sports moves fast and sometimes government does not. During a March press confer- ence, Brown said he hoped that the new new public-private part- nership would help the city build more momentum to attract major events. These major events arent limited to strictly professional sports. [Prior to the formation of the council], we were one of the only communities this size without a sports commission, says Visit Jacksonville president and CEO Paul Astleford. Com- missions really build out the pro- fessional and collegiate events for the community, but they also go after the very lucrative youth sporting events. In May, Brown and the Jack- sonville Sports Council an- nounced that the 2016 SEC Womens Basketball Tournament will be played at Veterans Me- morial Arena, the citys premier 15,000-seat multi-purpose venue. Landing the womens tourney is a notable catch, but its not the first time college sports have been attracted to Jax. The NCAA has called on the area for events before, including early round play of the Mens Basketball Tournament, first in 2006 and again in 2010. UNFs Hodges Stadium, which underwent a $3 million re-vamp in 2008 to make it an Olympic quality track, has also benefitted from the push for athletic events. The three-day NCAA Track & Field East Preliminary Round, which took place at UNFs Hodges Stadium May 29- 31, produced more than 8,000 hotel room nights throughout the city, according to Visit Jack- sonville. When you look at the num- ber of people who compete, and their coaches and their family members who come for the competition, these types of events have a major impact on our local economy, says Astle- ford. The 9,400-seat complex at which the event was held opened in 2004 and also played host to the 2012 NCAA Outdoor Track & Field East Preliminary. In 2015 and 2016, it will host the NCAA Divi- sion I Outdoor Track & Field East Preliminaries, as well as the USA Track and Field Junior Olympic Championships in 2015. Verlander says the council is also concentrating on smaller- scale events, like cycling and triathlons. When youre talking sports, everyones mind goes to the big gamesFlorida/Georgia, NCAA basketball, the Jaguars. But cycling, triathlons, big vol- leyball events... if you do several per year, they add up to big dol- lars. Large cycling events bring a couple thousand cyclers to a town for a few nights. Visit Jacksonville has also en- tered into a marketing partner- ship with the Jacksonville Axemen rugby team to provide marketing and promotional sup- port for the 2014 USA Rugby League Championship Game, which will take place August 23 at UNF. Astleford says he hopes the move helps introduce the city to a new legion of visitors and have an economic impact on the city at largespecifically, the hotel industry. While Beaches hotels stay busy throughout the summer months, the First Coasts other hotels usually experience a seasonal slowdown through September. Playing host to more big-ticket sporting events throughout the year could change that. Holding a championship like this in August will directly bene- fit many of our select service hotels, which are typically the fa- vored lodging choice for atten- dees of these types of events, says Astleford. To be consid- ered a main draw for an event, a city must be considered a value destination. It shouldnt just have luxury hotels, because the people attending these events are looking for destinations that have the huge array of hotel of- feringsanywhere from limited service to deluxe. This is partic- ularly the case when it comes to youth amateur athletics. Of course, outside of hotel rooms occupied, true economic impact can be difficult to deter- mine and many would argue that sporting events provide lit- tle, if any, lasting commercial impact. A Coates & Humphreys (2002) study of post-season play in American professional sports found that hosting the Super Bowl had no statistically significant effect on per capita income in the host city. Astleford says that isnt the case for the melange of sporting events held throughout the year in Jacksonville. We have a part- nership with the UNF research department and together we conduct very extensive exit sur- veys to determine who was here, what they spent on food and beverage and where they stayed. We also perform very ex- tensive visitor industry research through Oxford Economics, which specializes in the tourism industry. Were not just picking numbers out of the air, its very professional analysis. Verlander concurs, noting that several seemingly large- scale events actually cost the city relatively little money. Take an NCAA basketball tournament, for example, he says. Lets say it costs $25,000, due to bid fees, decorations such as street pole banners, etc. You build those costs into the event, so that it doesnt come out of tax- payer money. An event like that would bring in anywhere from 5,000-8,000 hotel nights. Thats clearly measurable. The city and state get to keep the taxes. Spending in restaurants, spend- ing in retailtheres a major economic impact in that. Also, for every ticket sold, theres a facility user fee of $1. If you sell 40,000 tickets, thats $40,000 right back to the city. Add con- cessions and parking and were talking upwards of $100,000.
Bolles School crew team on the St. Johns
Hodges Stadium Jacksonville Sharks Jacksonville Suns image courtesy Jaguars/Rick Wilson 38 : 904theMagazine.com : June 2014 nlike cities that host Super Bowls or Olympic Games (which may spend millions on upgrading hotels, stadiums and infrastructure that wont see much use outside of the big game), Jacksonville is hoping to make sporting events a more permanent part of life on the First Coast. Rather than bet the farm on one big game, theyre seeking out smaller- scale events (college, profes- sional and amateur) to be held frequently, throughout the year. Theres an array of dedicated sports-related conventions and trade shows that are attended by literally thousands of sports promoters. Jacksonville has booths set up, we have appoint- ments with promoters and we speak with them about how our destination is set apart from others, says Astleford. So how, exactly, is Jack- sonville different from, say, At- lanta? Our involvement with the council, with our sales and serv- ice team and our relationship with the local hotels usually leads to a much better-mea- sured sale, Astleford continues. The fact that were in Florida gives us a huge advantage, too. Having the 22-mile stretch of beaches doesnt hurt, either. Another thing that doesnt hurt is top-notch facilities. We can sell Jacksonvilles beaches all we want, says Verlander. But well never get the NCAA basketball team here if we dont have the arena. Fortunately, at least a portion of the money being used to market sporting events and upgrade Jacksonville facilities (including EverBank Field) is money the city already has on its books. Much of it comes via the bed tax. To capitalize on tourists vis- iting the First Coast, the city levies a six percent tax on hotel rooms. This money is redistrib- uted to pay for operational and advertising expenses of festi- vals, sporting events and confer- ences. Two percent of the bed tax is deposited into the Sports Complex Capital Maintenance Enterprise Fund, two percent goes to paying down the debt on bonds issued to build Ever- Bank Field and two percent goes towards tourism promo- tion. The Duval County Tourist Development Council gives most of its two percent to Visit Jacksonville. The two percent of the bed tax that goes to the Sports Com- plex Capital Maintenance Enter- prise Fund will bankroll $43 million of the $60 million in Jaguars stadium upgrades, which includes two enormous scoreboards and a pair of pools. The Jaguars and owner Shad Khan chipped in the remaining $20 million. The push for Jacksonville to become a national sporting des- tination is being cultivated in large part by two individuals: Mayor Alvin Brown and Khan. Since purchasing the NFL fran- chise in 2011, Khan has arguably become one of the most recog- nizable owners in the league both here and overseas. In addition to the Jaguars, Khan owns Fulham Football Club, an English Premier League soccer team set to play a friendly match against Major League Soccers D.C. United July 26. The game will be the first time fans get a look at the massive new scoreboards that will span 362 feet wide and tower above EverBank Field. After the game, music fans will be treated to a special bonus when country music superstar Carrie Under- wood performs a 75-minute set. The event is a continuation of Khans and team president Mark Lampings vision to expand the Jaguars brand all the way across the Atlantic. In 2012, the NFL announced that the team would play one home game in London for four consecutive seasons beginning in 2013. "I passionately believe the big growth now is going to come from overseas," said Khan, dur- ing a press conference an- nouncing the London games. "We've got to go where we can leverage and take advantage of some of those things. You've got to fish in ponds where you've got fish in there. We're going to a pond where there are no fish- ermen." The teams early pres- ence across the pond has certainly been successful. In fact, 15 percent of the Jaguars total ticket revenue in 2013 came from the teams home game in London, and the Jaguars Union Jax fan club in the UK has upwards of 22,800 members. ust down the street from EverBank sits the home of the Jack- sonville Suns, an AA minor league partner of MLBs Miami Marlins. The Suns are an established team that pulls a respectable crowd for its 70 home games each season. In 2013, 295,000 fans made their way to one of the 11,000 seats at Bragan Field. The Suns are con- sistently one of the top selling teams in the Southern League. Suns owner Peter Bragan Jr. won the Visit Jacksonville Hall of Fame award in 2011 for his con- tributions and impact on the de- velopment and growth of Jacksonvilles hospitality and tourism industry. Professional soccer is in the early stages of making its mark on the First Coast, as well. The Jacksonville Armada are sched- uled to join the North American Soccer League for the 2015 sea- son and the team is partnering with Real Madrid (one of the worlds premier soccer clubs) to bring player development clinics to Northeast Florida over the summer. On June 7, the U.S. mens national team took to EverBank Field to play a send- off match against Nigeria before Jacksonville Suns heading to Brazil for the World Cup. At press time, more than 50,000 tickets had been sold. But it wasnt just the out-of- town visitors who got a glimpse of Jacksonville in the lead-up to the World Cup. Advertisements running on a digital billboard at the US. Mens soccer match against Azerbaijan (held in San Francisco) and Turkey (held in New Jersey) aired the #ilovejax hashtag once during each half. The ad was funded by a grant from the citys Tourist Develop- ment Council and read, Use #ilovejax and you could win a trip to FL! The JAX Chamber launched the #ilovejax campaign in 2012, as a way of promoting events around Northeast Florida. As for the most successful sporting events in Jacksonville at least in terms of fan atten- dancethere are the usual suspects. When each big event brings fans from out of town, they need a place to sleep. Thousands of sports lovers fill up hotel rooms around the city for each of Jack- sonvilles annual events. Gator Bowl organizers estimate that 20,000 to 24,000 room nights are booked during the week of the an- nual college football game in Jan- uary (some of those are in St. Johns County, as one of the teams usually lodges in a Ponte Vedra hotel). Visit Jacksonville es- timates $11.5 million in direct sales. Though THE PLAYERS is held in St. Johns County, Duval still reaps some of the economic ben- efits. A 2010 study reported around 14,500 room nights were used in Northeast Florida during the golf event, which resulted in direct sales of $7 million. Yearly soccer matches have also be- come commonplace in the River City. Visit Jacksonville says there were approximately 2,000 room nights used by fans when the U.S. Mens soccer team played Scot- land in May 2012. The game was played over Memorial Day Week- end at the same time as Jazz Fest, NCAA Track & Field events and the Jehovah Witness Confer- ence, making the numbers diffi- cult to track. The city, Visit Jacksonville and the Sports Council say that those numbers will rise in the future. In fact, they are working hard to see that they do. If we have sports promoters come to Jacksonville for a site visit, we close that deal 64% of the time, says Astleford. Im not aware of any other city with that kind of record. Thats because they come, they see, they experi- ence. The more exposure and in- terest the city can gain from an image-distinction standpoint, the more business we get. That sounds like a win-win propo- sition if ever there was one. June 2014 : 904theMagazine.com : 39 The MaliVai Washington Youth Foundation recently awarded 15 scholarships worth a total of $35,000 to high school students try- ing to further their education. Former ATP Tour pro Mal Washing- ton and his foundation have handed out more than $750,000 in scholarship money since 1996. The MWYF uses tennis to promote academic achievement through after-school programs like Tennis- n-Tutoring. Sports Radio 930 AM is the home of the new The Ar- mada Soccer Show, a weekly soccer show that will focus on the latest team to establish roots in town, Jacksonville Armada FC. The show will be hosted by Cole Pepper, former British soccer pro Bob Veal and Armada reporter Krissty Andaur. 930 AM will also broad- cast every game during the 2015 and 2016 North American Soccer League seasons. The show will air Fridays, 3-4 PM, starting June 6. Jacksonville University recently named Dr. Donnie Horner its newest Chief Athletics Officer. Horner replaces Brad Edwards who took a job as athletic director at George Mason University. Horner has a military background, playing quarterback at the U.S. Military Academy at West Point and teaching at the U.S. Naval Academy. He will oversee the nearly 500 Division I student athletes who at- tend the university. The mission of the World Golf Hall of Fame is to preserve and honor the history of the game of golf and the legacies of those who have made it great. Its also become a sig- nificant attraction in Northeast Florida, complete with an enormous museum, resort hotel, two golf courses and retail and restaurant space. Operated as a nonprofit institution, it is allied with 25 na- tional and international golf organizations including the PGA of America, PGA TOUR, The Masters and USGA. Speaking of golf: There are more than 1,200 holes of golf in the Jacksonville area, spread across 70-plus public, private and resort courses. Each course requires a sizable staff to maintain the grass and grounds, service equipment like golf carts, and provide food and drinks to golfers. Adding the companies that sell seed, fertilizer, pesticides, clubs, balls, hats and more, the local golf industry employs thou- sands. Though its footprint is smaller than it used to be, the ATP TOUR still operates an office out of Ponte Vedra Beach. The mens professional tennis tour stages events across the globe. Its ATP Properties arm develops commercial opportunities for the tour and its player members, of which there are more than 800 active and retired. Arguably one of the greatest college football players of all time, Tim Tebows NFL career hasnt played out so well. That didnt deter the Florida Gator from founding the Tim Tebow Foun- dation in 2010. The faith-based organization has a small perma- nent staff at its Ponte Vedra home base but its reach extends all the way to the Philippines, where it is building Tebow Cure Hospi- tal to serve children in the Southeast Asian country. Tebow himself still works as a pitchman for companies such as Nike. Perhaps no locally based organization casts a global net like that of the PGA TOUR. Based out of handful of 1970s-era buildings a short golf cart ride from the TPC Sawgrass clubhouse, the TOUR oversees opera- tions of golfing events around the world, as well as a network of first-class golf course properties. The member-owned nonprofit business generates billions for current and former touring pros. OUTSIDE THE LINES THE IMPACT OF SPORTS IN JACKSONVILLE ISNT LIMITED TO WHAT HAPPENS ON THE FIELD OF PLAY. ON THE CONTRARY, THE REACH OF LOCAL ATHLETICS AND ATHLETES EXTENDS FAR AND WIDE. FOR EXAMPLE: