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The Economic Impact

and Community Benefits


OF WEST VIRGINIA UNIVERSITY ATHLETICS

Academic Year 2017-18

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TABLE OF CONTENTS

TABLE OF CONTENTS 1

KEY FINDINGS 2

EXECUTIVE SUMMARY 4

Introduction 4
Objectives 5
Key Findings 6
Methodology 8

APPENDIX A. WEST VIRGINIA UNIVERSITY FOOTBALL 10


The Economic Impact Generated from WVU Football 11
The Employment Impact Generated from WVU Football 11
The Tax Revenue Impact Generated from WVU Football 12
WVU Football Fan Profile 12

APPENDIX B. WEST VIRGINIA UNIVERSITY MEN’S BASKETBALL 14


The Economic Impact Generated from WVU Men’s Basketball 15
The Employment Impact Generated from WVU Men’s Basketball 15
The Tax Revenue Impact Generated from WVU Men’s Basketball 16
WVU Men’s Basketball Fan Profile 16

APPENDIX C. WEST VIRGINIA UNIVERSITY OTHER OLYMPIC SPORTS 18


The Economic Impact Generated from WVU Other Sports 19
The Employment Impact Generated from WVU Other Sports 19
The Tax Revenue Impact Generated from WVU Other Sports 19

APPENDIX D: INTERVIEWS WITH KEY STAKEHOLDERS 20

APPENDIX E. DEFINITION OF TERMS 21

APPENDIX F. EXPANDED METHODOLOGY 22

APPENDIX G. FAQS OF ECONOMIC IMPACT ASSESSMENTS 23

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KEY FINDINGS

ECONOMIC IMPACT
ON THE STATE OF WEST VIRGINIA
Economic Impact Visitor and Fan WVU Athletics
on the State Spending Operations

$302.7M $246.1M $56.6M

EMPLOYMENT IMPACT
ON THE STATE OF WEST VIRGINIA
Total Jobs Jobs from Operations Jobs from Visitors

2,109 291 1,818

TAX IMPACT
ON THE STATE OF WEST VIRGINIA
State and Local
Tax Impacts

$18.6M
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ECONOMIC IMPACT
ON THE COUNTY OF MONONGALIA
Economic Impact Visitor and Fan WVU Athletics
on the County Spending Operations

$78.8M $63.3M $15.5M

EMPLOYMENT IMPACT
ON THE COUNTY OF MONONGALIA
Total Jobs Jobs from Operations Jobs from Visitors

709 119 590

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EXECUTIVE SUMMARY

INTRODUCTION
In the fall of 2017, West Virginia University Athletics In achieving this mission, the defining
(WVU Athletics) requested the services of Tripp Umbach, principles are reflected in Mountaineer
recognized as a national leader in economic impact P.R.I.D.E.
research, to measure and illustrate the economic impact
P People – They will recognize that the
and community benefits of WVU Athletics on the state of
foundation of WVU Athletics is the people –
West Virginia and Monongalia County. This report serves
student-athletes, coaches, staff and the greater
as a deliverable for all stakeholders to better understand
Mountaineer community.
and identify the significant value of WVU Athletics to the
state of West Virginia and its local economy. As shown R Respect – They will represent and embrace the
in this report, West Virginia University and its athletics importance of diversity, inclusion, sportsmanship,
program are an integral part of the state’s economic and and fairness.
social fabric of Morgantown, Monongalia County, and
I Integrity – They will operate with commitment
the state of West Virginia.
to fiscal integrity, personal accountability, and
compliance within the rules, policies, and
The Department of Intercollegiate Athletics at West
procedures of respective governing bodies.
Virginia University sponsors 18 varsity sports with more
than 500 student-athletes competing in baseball, men’s D Dedication – They will dedicate resources to
and women’s basketball, women’s cross country, football, promote growth and development of the academic,
men’s golf, women’s gymnastics, women’s indoor and physical, emotional, and social well-being of
outdoor track, rifle, men’s and women’s soccer, men’s and student-athletes and professional development
women’s swimming and diving, women’s tennis, women’s of coaches and staff.
volleyball, women’s rowing, and wrestling. E Excellence – They will commit to comprehensive
excellence by positioning sport programs to
The mission of the West Virginia University Department compete with distinction at the highest levels
of Intercollegiate Athletics is to provide the means to academically and athletically.
empower student-athletes to develop as leaders and
achieve their full potential academically, athletically, and
personally. As an integral part of WVU, the Department
of Intercollegiate Athletics is committed to supporting the
broader mission of the University through the integration
of athletics in the academic community.

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OBJECTIVES
West Virginia University competes in the Big 12 Conference Tripp Umbach began the project by interviewing internal
in all sports except men’s soccer (Mid-American Conference) personnel as well as local business and community leaders
and rifle (Great American Rifle Conference) and strives in its to gain insights on the various positive impacts and
athletics program for national excellence and prominence. benefits of WVU Athletics. This initial step provided Tripp
Accordingly, the recruitment of student-athletes and Umbach context and confirmation of the various forms of
emphasis on and support of athletics are national in scope. qualitative (intangible/social) and quantitative (tangible/
WVU’s student-athletes consistently rank above the national economic) benefits produced by WVU Athletics.
and Big 12 average in Academic Progress Rate (APR) and
graduation rate. This economic impact analysis utilizes primary data
sets such as financial expenditures and employment
Athletic success is also prominent at West Virginia. The numbers of WVU Athletics to assist in generating the
football and men’s basketball programs, in their respective multiple economic impacts associated with WVU Athletics
sports, are the number 14 and number 22 in victories in (including tax revenue enhancement for government).
the nation. Rifle has won more national championships Tripp Umbach collected detailed financial data broken
(19) than any program in the country, and women’s down by specific geographies (where possible) to
soccer played for the national championship in 2016. The determine the economic impacts by area.
athletics department continues to have national success
in a Power Five conference, ranking among the country’s
top programs in the all-sport Directors’ Cup listings. In
2017, West Virginia was ranked as the fifth-best of the
Big 12 school’s athletic program in the country based on
athletic success for that year. West Virginia has won Big 12 WVU ATHLETICS
Conference championships 11 times since joining the league ECONOMIC IMPACT
for the 2012-13 academic year and WVU has averaged 92 STUDY OVERVIEW
percent capacity in attendance at home football games at
Mountaineer Field at Milan Puskar Stadium in the last five STUDY PERIOD
years. During an era in which all sports, including college Financials from Fiscal Year 2017 and
football, are challenged with declining attendance, West Game Attendance from Spring/Fall 2016
Virginia in 2018 averaged 58,157 fans for six home games in and Winter 2017 Seasons
its 60,000-seat stadium, an increase of nearly 4 percent over
2017. For the 14th time in 15 seasons, home attendance THIS STUDY INCLUDES
exceeded 54,800. Additionally, the men’s basketball WVU Athletics with breakout analysis
program, in 2017-18, played before an average of 12,303 for Football and Men’s Basketball
fans, an 8.1 percent increase over attendance the previous
season and a ranking of No. 27 among the 353 NCAA STUDY GEOGRAPHY
Division I programs, at the 14,000-seat WVU Coliseum.
State of West Virginia and
Monongalia County
This economic impact and community benefits report aims
to capture a series of economic and societal contributions
METHODOLOGY
from WVU Athletics to the state (West Virginia) and local
IMPLAN
(Monongalia County) levels.

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EXECUTIVE SUMMARY

KEY FINDINGS
A second tier of data, even more significant in terms Operations and visitor spending by WVU Athletics and
of economic impact, was visitor and fan spending its fans, directly or indirectly, affect residents throughout
information. Tripp Umbach placed careful consideration Monongalia County and the state of West Virginia.
and attention in collecting firsthand data points directly WVU Athletics generates $302.7 million annually in
from individuals present and attending home games in overall economic impact for the state and $78.8 million
Morgantown (football, men’s basketball, and women’s annually in overall economic impact for Monongalia
basketball). These collections, through the means of County.
intercept surveys, specifically identified an individual’s
place of origination (residence) and, therefore, aided the WVU Athletics affects business volume
project team in determining the value of new money in three main ways:
(fresh dollars) entering into the state and local economy
1 Direct expenditures for goods and services by WVU,
as a result of WVU Athletics events. This process was
staff, and visitors. This spending supports state and
completed through 613 intercept surveys, in which
local businesses, which in turn employ individuals to sell
both local and visiting patrons were randomly surveyed
the goods and provide the services;
in person at six WVU home games (two football, two
men’s basketball, and two women’s basketball). This data 2 Indirect spending within Monongalia County and the
is extrapolated over game attendance figures to help state of West Virginia. The businesses that receive direct
calculate overall economic impacts. payments re-spend this money within the state and
local economies, thus creating the need for even more
jobs; and
Primary goals and objectives of the 3 Induced spending by households either directly
analysis include: employed by WVU Athletics or the local and state
1 Measure the most current (2017) economic businesses selling the goods or providing the services.
and employment impacts at the state and
county levels for WVU Athletics.

2 Quantify the impact of tourism and visitor


spending at WVU Athletics events supported WVU ATHLETICS GENERATES
by direct intercept survey research. IMPACT IN WEST VIRGINIA
3 Determine the government tax revenue
Overall economic impact of
impact of WVU Athletics at the local and
WVU Athletics across the county:
state levels.
$78.81M
Overall economic impact of
WVU Athletics across the state:

$302.67M
Source: Tripp Umbach using IMPLAN results from WVU Athletics data.

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The $302.7 million total annual economic impact is noteworthy and significant
because that total represents “new money” entering the state’s economy that
would not occur without the presence of WVU Athletics.1

State and local government tax revenues attributable


to the presence of WVU Athletics totals $18.6 million
annually. Through its local spending as well as direct and
indirect support of jobs, the presence of WVU Athletics
strengthens and increases the local and statewide tax
base. WVU Athletics is an integral part of Monongalia
County and West Virginia’s economy – generating tax
revenue, jobs, and consumer and business spending.

The WVU Athletics Department generates 2,109 jobs


in the state of West Virginia and 709 jobs in
Monongalia County.

These jobs (both full-time and part-time) include not only


direct employment by WVU Athletics, but also indirect
and induced jobs created by supply and equipment
vendors, contractors, and laborers for the construction
and renovation of WVU facilities and jobs created in the
community at hotels, restaurants, and retail stores in
support of WVU Athletics’ workforce and its visitors.

WVU Athletics supports thousands of jobs statewide in WVU ATHLETICS GENERATES


virtually every sector of the West Virginia economy in IMPACT IN WEST VIRGINIA
areas such as construction, business and professional
services, restaurants and hotels, information technology,
WVU Athletics directly or indirectly
security, and temporary employment companies.
supported throughout the county:

709 JOBS
WVU Athletics directly or indirectly
supported throughout the state:

2,109 JOBS
1 The results presented in this economic impact report are generated on an annual
basis. The economic impact in future years can either be higher or lower based
on spending and number of athletics programs, games, and visitors. Source: Tripp Umbach using IMPLAN results from WVU Athletics data.

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EXECUTIVE SUMMARY

METHODOLOGY 2

The approach taken in this analysis was decidedly Total economic impact measures the dollars that are
conservative.3 Economic impact begins when an generated within the state of West Virginia due to the
organization spends money. Studies measuring economic presence of WVU Athletics. This measure includes not
impact capture the direct economic impact of an only the direct spending by WVU Athletics and visitors
organization’s spending, plus additional indirect and on goods and services with a variety of businesses within
induced spending in the economy because of that direct the state, but also the downstream effects (indirect
spending. Visitors also create economic impact when and induced effects) on business volume generated
they attend WVU Athletics’ home sporting events. The by other secondary businesses as a result of that initial
models were constructed to show the fresh dollars that direct spending. Furthermore, this measure includes
enter the state of West Virginia’s economy due to home WVU Athletics’ direct spending on payroll as well as
games from out-of-state fans, visiting teams, bands, spirit the downstream effects that employment has on the
squads, and media. Residents outside of Monongalia economy as individuals spend their household earnings.
County, but from the state of West Virginia, who attend This analysis takes into account that certain dollars spent
games are captured in the Monongalia County models; by WVU Athletics do not remain in the state as such
however, their contribution is not counted in the state of dollars “leak” out of the state in the form of purchases
West Virginia models given an appropriate consideration from out-of-state vendors. These out of-state purchases
that such a cohort has an opportunity to spend that are correctly not included in WVU Athletics’ economic
money on other activities in the state. impact on the state. The multipliers utilized in this study
are derived from the IMPLAN software.
The methodology employed in the calculation of
these impacts is IMPLAN4. Primary data to conduct the
analysis was collected from WVU Athletics including
(when available):

• Annualized capital and operating expenditures

• Employment, payroll, and benefits numbers

• Certain tax information

2 See Appendix E, Appendix F, and Appendix G for more information on the methodology of this study.

3 Conservative models were strictly used when calculating economic impact in IMPLAN. Additionally, the analysis did not include fan and visitor spending for individuals who
did not intend to attend the home game but such discretionary spending (e.g. food, beverages, etc.) at peripheral locations was substantially affiliated with the home game
(i.e. viewing of game at personal residences, bars, restaurants, etc.). Furthermore, the analysis did not attempt to quantify visitor spending for participation and attendance
at sports camps conducted throughout the year. Tripp Umbach used internal estimations where data did not exist or was provided.

4 Minnesota IMPLAN Group Inc. (MIG) is the corporation that is responsible for the production of IMPLAN (IMpact analysis for PLANning) data and software. IMPLAN is a
micro-computer-based, input-output modeling system. With IMPLAN, one can estimate Input-Output models of up to 528 sectors for any region consisting of one or more
counties. IMPLAN includes procedures for generating multipliers and estimating impacts by applying final demand changes to the model.

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As illustrated below, three types of economic impact are
calculated in the analysis: direct, indirect, and induced
impacts.

Tripp Umbach surveyed six home sporting events from


the 2017 football and 2017-18 basketball seasons and
collected 613 intercept surveys. The surveyed events
were as follows:

• WVU football - October 14, 2017, vs. Texas Tech and


November 15, 2017, vs. Texas

• WVU men’s basketball - January 15, 2018, vs. Kansas


and January 27, 2018, vs. Kentucky

• WVU women’s basketball - February 5, 2018,


vs. Texas and February 14, 2018, vs. Kansas

DIRECT VS. INDIRECT VS. INDIRECT IMPACT

DIRECT INDIRECT INDUCED


Investment in Purchases for IMPACT
construction and area suppliers Household spending
expenditures for from earning of
operations direct and indirect
expenditures

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APPENDIX A. WEST VIRGINIA UNIVERSITY FOOTBALL

The West Virginia University Mountaineers football team, originally

classified as a College Division school in the 1937 season, joined

the University Division in 1939 and has been a source of pride for

Mountaineer fans across the country ever since. The football program

has captured 82 winning seasons in its successful history, including

one undefeated season in 1922 and nine seasons with at least 10

wins (1922, 1969, 1988, 1993, 2005, 2006, 2007, 2011, and 2016).

The Mountaineers have won or shared 15 conference championships,

including eight Southern Conference titles and seven Big East

Conference titles. WVU ranks 14th in victories among all NCAA FBS

programs and claims the most victories among programs that have

never claimed or won a national championship. West Virginia has

played in football bowl games in 22 of the last 26 seasons, including

the Sugar Bowl two times, the Fiesta Bowl and the Orange Bowl. The

Mountaineers have finished with final Associated Press top 25 rankings

in 10 of those seasons, including four inside the top 10.

Neal Brown is WVU’s head coach, the 35th in school history. West

Virginia plays its home games on Mountaineer Field at Milan Puskar

Stadium on the campus in Morgantown and has competed in the Big 12

Conference since the start of the 2012-13 academic year.

OPERATIONS

VISITORS

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THE ECONOMIC IMPACT THE EMPLOYMENT IMPACT
GENERATED FROM WVU GENERATED FROM WVU
FOOTBALL FOOTBALL
The overall economic impact of WVU football – The overall employment impact of WVU football –
combining direct and indirect spending by visitors and combining direct and indirect jobs by visitors and WVU
football operations – was 1,329 in 2017.
WVU football operations – was $223.4 million in 2017.

The overall employment impact of WVU football


The overall economic impact of WVU football
operations in the Monongalia County Area is
operations on the Monongalia County Area was $4.8
63 jobs for an impact on West Virginia of 134 jobs
million for an impact on the state of West Virginia of
due to operations.
$29.5 million in operational spending.

The overall employment impact of WVU football visitors


The overall economic impact of WVU football visitors
in the Monongalia County Area is 382 jobs for an impact
on the Monongalia County Area was $44.3 million for an
on the state of West Virginia of 1,195 jobs due to visitors.
impact on the state of West Virginia of $193.9 million in
visitor spending.

Figure 1: Direct and Indirect Spending for WVU Figure 2: Direct and Indirect Jobs Created
Football Operations and Visitors (In Millions) by WVU Football Operations and Visitors

$29.5 134

$193.9M 1195

$4.8M 63
$44.3M 382

COUNTY STATE COUNTY STATE


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APPENDIX A. WEST VIRGINIA UNIVERSITY FOOTBALL

THE TAX REVENUE IMPACT The objective of the survey was to understand and
GENERATED FROM measure the spending habits of WVU football and
WVU FOOTBALL visiting team fans.

The overall tax revenue impact of WVU football in the Survey respondents were required to be 18 years or
state of West Virginia is $9.8 million. older, permitted to be a fan of either WVU football or
the visiting team, and asked to answer for only their
household5 – one response per family or individual.
WVU FOOTBALL FAN PROFILE
In the fall of 2017, Tripp Umbach surveyed fans attending
two WVU football games at Mountaineer Field at Milan
Puskar Stadium: October 14, 2017, vs. Texas Tech and
November 15, 2017, vs. Texas.

These games were selected due to their variance in


position on the schedule, and survey participants were
5 Annual household income represents two (2) combined incomes using the
chosen randomly at gates around the stadium. surveyed average.

WVU FOOTBALL
FAN PROFILE
WVU FOOTBALL SUMMARY OF
• Lives in Monongalia County
SURVEY FINDINGS AVERAGE
DAILY VISITOR SPENDING
• Attends the game with multiple
family members or friends
$281
• Earns an annual household income
of $80,000 to $120,000

• Works in labor/skilled labor, oil and gas,


education, and healthcare
$86
• Typically attends most or all $51
WVU football games
Average daily Average daily Average daily
spend of spend of West spend of visitors
• Typically drives to the game Monongalia Virginia visitors from outside of
County visitors (non-Monongalia West Virginia
County)
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APPENDIX B. WEST VIRGINIA UNIVERSITY MEN’S BASKETBALL

The West Virginia Mountaineers men’s basketball team competes in

NCAA Division I and has been a member of the Big 12 Conference

since 2012. The WVU men have won 13 conference tournament

championships and made 29 appearances in the NCAA Tournament,

and the Mountaineers have reached two Final Fours (1959 and 2010),

three Elite Eights, and 11 Sweet Sixteens. The Mountaineers have also

appeared in 16 National Invitation Tournaments, winning in 1942 and

2007. Most recently, West Virginia, through the 2017-18 season, had

winning records in 14 of 15 seasons and won at least 25 games in each

of the last four seasons. 

Bob Huggins, who played for WVU in 1975-77, is in his 12th season

as the head coach and ranks No. 8 all-time with 819 Division I victories

through the 2016-17 season. Since 1970, WVU has played home games

at the WVU Coliseum in Morgantown.

OPERATIONS

VISITORS

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THE ECONOMIC IMPACT THE EMPLOYMENT IMPACT
GENERATED FROM WVU GENERATED FROM WVU
MEN’S BASKETBALL MEN’S BASKETBALL
The overall economic impact of WVU men’s basketball The overall employment impact of WVU men’s basketball
– combining direct and indirect spending by visitors and – combining direct and indirect jobs by visitors and WVU
men’s basketball operations – was 505 in 2017.
WVU men’s basketball operations – was $35.5 million
for 2017.
The overall employment impact of WVU men’s basketball
operations in the Monongalia County Area is 9 jobs for
The overall economic impact of WVU men’s basketball
a total statewide impact of 52 jobs due to operations.
operations on the Monongalia County Area was $3.9
million for a total impact on the state of West Virginia of
The overall employment impact of WVU men’s basketball
$7.2 million in operational spending.
visitors in the county is 165 jobs for a total statewide
impact of 453 jobs due to visitors.
The overall economic impact of WVU men’s basketball
visitors on the Monongalia County Area was $11.1
million for a total impact of $28.3 million on the state
of West Virginia in visitor spending.

Figure 3: Direct and Indirect Spending for Figure 4: Direct and Indirect Jobs Created by
WVU Men’s Basketball Operations and Visitors WVU Men’s Basketball Operations and Visitors
(In Millions)

$7.2M 52
453
$28.3M

$3.9M 9
$11.1M 165

COUNTY STATE COUNTY STATE


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APPENDIX B. WEST VIRGINIA UNIVERSITY MEN’S BASKETBALL

THE TAX REVENUE IMPACT chosen randomly at gates around the arena. The
GENERATED FROM WVU objective of the survey was to understand and measure
MEN’S BASKETBALL the spending habits of WVU men’s basketball and
visiting team fans.
The overall tax revenue impact of WVU basketball in
the state of West Virginia is $4.6 million. Survey respondents were required to be 18 years or older,
permitted to be a fan of either WVU men’s basketball
or the visiting team, and asked to answer for only their
WVU MEN’S BASKETBALL household6 – one response per family or individual.
FAN PROFILE
In the winter of 2017, Tripp Umbach surveyed fans
attending two WVU men’s basketball games at
WVU Coliseum: January 15, 2018, vs. Kansas and
January 27, 2018, vs. Kentucky.

These games were selected due to their variance in


6 Annual household income represents two (2) combined incomes using the
position on the schedule, and survey participants were surveyed average.

WVU MEN’S
BASKETBALL
FAN PROFILE WVU MEN’S BASKETBALL
SUMMARY OF SURVEY
• Lives in Monongalia County FINDINGS AVERAGE DAILY
VISITOR SPENDING
• Attends the game with multiple
family members or friends $137

• Earns an annual household income


of $80,000 to $90,000

• Works in education, oil and gas, $63


business, or healthcare
$22
• Typically drives to the game or walks Average daily Average daily Average daily
spend of spend of West spend of visitors
Monongalia Virginia visitors from outside of
County visitors (non-Monongalia West Virginia
County)
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APPENDIX C. WEST VIRGINIA UNIVERSITY OTHER OLYMPIC SPORTS

BESIDES FOOTBALL AND MEN’S BASKETBALL, WEST VIRGINIA UNIVERSITY


SPONSORS A WIDE RANGE OF OTHER OLYMPIC ATHLETICS TEAMS:
MEN’S WOMEN’S CO-ED
• Baseball • Basketball • Rifle
• Golf • Cross Country
• Soccer • Gymnastics
• Swimming & Diving • Rowing
• Wrestling • Soccer
• Swimming & Diving
• Tennis
• Track & Field
• Volleyball

WOMEN’S SPOTLIGHT TEAM CO-ED SPOTLIGHT TEAM


The West Virginia women’s basketball team put together West Virginia University proudly boasts the most
12 straight winning seasons through 2017-18 (this season successful rifle team and individual programs in NCAA
is No. 13) and made 10 NCAA Tournament appearances history. The Mountaineers have collected 19 team titles
in the last 13 years. Created in 1996, the WVU and 28 individual titles (the figures are nine and 10,
Mountaineers women’s soccer team has been as member respectively, more than the second closest program)
of the Big 12 Conference since 2012. The program has since 1983. West Virginia also hosted the 2019 NCAA
qualified for the NCAA Tournament in each of the last 16 Rifle Championships in March 2019. The meet was the
seasons, making the quarterfinal round twice (2007 and last collegiate competition for graduating senior Ginny
2015) and finishing as the national runner-up in 2016. Thrasher, who brought acclaim to WVU when she earned
WVU women’s soccer plays its home games at Dick Dlesk a gold medal in the 10-meter air rifle competition at the
Soccer Stadium in Morgantown and has been coached by 2016 Rio de Janeiro Olympics.
Nikki Izzo-Brown since the program began.

MEN’S SPOTLIGHT TEAM


The Mountaineers baseball team has been a member
of the Big 12 Conference since the 2013 season. The
team currently plays at Monongalia County Ballpark in
the adjacent city of Granville, W.Va., and is coached by
Randy Mazey. The program has captured five conference
tournament championships and 15 regular-season
conference and division titles and has appeared in
OPERATIONS
12 NCAA Tournaments.

VISITORS

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THE ECONOMIC IMPACT THE EMPLOYMENT IMPACT
GENERATED FROM WVU GENERATED FROM WVU
OTHER SPORTS OTHER SPORTS
The overall economic impact of WVU’s other sports – The overall employment impact of WVU other sports –
combining direct and indirect spending by visitors and combining direct and indirect jobs by visitors and WVU
other sports’ operations – was 275 in 2017.
WVU other sports’ – was $25.8 million for 2017.
The overall employment impact of WVU other sports
The overall economic impact of WVU other sports
operations in the state of West Virginia is 92 jobs
operations on the Monongalia County Area was
and the impact on Monongalia County is 47 jobs.
$6.9 million and generated a statewide impact of
$13.7 million for operations. The overall employment impact of WVU other sports
visitors in the state of West Virginia is 183 jobs and
The overall economic impact of WVU other sports
the impact on Monongalia County is 43 jobs.
visitors on the Monongalia County Area was $4.8
million and the statewide impact of $12.1 million for
visitors spending.
THE TAX REVENUE IMPACT
GENERATED FROM WVU
OTHER SPORTS
The overall tax revenue impact of WVU other sports in
the state of West Virginia is $4.3 million.

Figure 5: Direct and Indirect Spending for Figure 6: Direct and Indirect Jobs Created by
WVU Other Sports Operations and Visitors WVU Other Sports Operations and Visitors
(In Millions)

$13.7M

92

$12.1M
$6.9M 183
47

$4.8M 43

COUNTY STATE COUNTY STATE


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APPENDIX D: INTERVIEWS WITH KEY STAKEHOLDERS

As part of the WVU Athletics economic impact study, Tripp Umbach interviewed internal and external

stakeholders to understand the perceptions and opinions regarding WVU Athletics and its teams. Below are

three key themes that were consistently mentioned during the interviews, as summarized by Tripp Umbach.

1. WVU ATHLETICS IS VITAL 2. MOVING TO THE


TO THE LOCAL ECONOMY BIG 12 CONFERENCE
AND CULTURE OF THE REGION WAS THE RIGHT DECISION
It was well understood by both internal and external Many respondents were keen to the ramifications,
interviewees that WVU and its athletics programs were including both the benefits and challenges, of WVU’s
extremely valuable to the local, regional, and statewide decision to move from the Big East Conference to the
economy. Respondents were quick to recognize the Big 12 Conference for most of its teams. When noting
fervor and excitement that surround Saturday afternoons the benefits, interviewees pointed to the increased level
in Morgantown when the Mountaineers take the field for of competition, excitement, security, and geographic
football. External respondents noted the buzz the teams presence of the Big 12. Several interviewees were
of West Virginia University create, particularly when they disappointed in the loss of regional rivalries such as Pitt,
are winning, and how that translates into spending in the Penn State, and Virginia Tech but applauded the efforts
local economy. by WVU Athletics to reignite these rivalries individually in
conjunction with the move to the Big 12 Conference.
It was often mentioned by respondents that West Virginia
possesses zero professional sports teams, and that helps
manufacture a level of support and enthusiasm for WVU 3. WVU ATHLETICS IS
that is among college’s best. The passion goes beyond IN A HEALTHY PLACE
football, however. Many interviewees were quick to point AND IS TRENDING IN
to the success of the men’s and women’s basketball A POSITIVE DIRECTION
programs, as well as WVU baseball, women’s soccer, and
Perhaps the most consistent theme that arose during
by far the most successful program in terms of winning
the interviews was the sense of optimism surrounding
– the co-ed rifle team. It was clear that fans of WVU
the direction and future of WVU Athletics. There was a
Athletics view their teams as lifelong investments that
clear sense of satisfaction with the state of most of the
translate to passionate fandom and dollars in the local
programs – including the marquee teams such as men’s
and state economies.
basketball and football. Respondents felt the football
team was doing a great job reinventing its image and
making game days more comfortable for families. Many
individuals were aware of the investments the university
was making into its athletics teams and felt that the
program as a whole was being led by smart, committed,
and talented people.

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APPENDIX E. DEFINITION OF TERMS

STUDY YEAR MULTIPLIER EFFECT


Fiscal Year 2017. The multiplier effect is the additional economic impact created
as a result of the organization’s direct economic impact. Local
companies that provide goods and services to an organization
TOTAL ECONOMIC IMPACT increase their purchasing by creating a multiplier.

Total impact of an organization is a compilation of the direct


impact, the indirect impact, and the induced impact generated
DIRECT TAX PAYMENTS
in the economy as a result of the organization.
Direct tax payments made by an organization to a unit
of government.
DIRECT ECONOMIC IMPACT
Direct impact includes all direct effects the organization has
INDIRECT TAX PAYMENTS
on the regional area due to the organizational operations.
These items include direct employees, organizational spending, Government revenue that is collected by governmental units
employee spending, as well as spending by visitors to in addition to those paid directly by an organization, including
the organization. taxes paid directly by employees of the organization, visitors to
the organization, and vendors who sell products to
the organization.
INDIRECT ECONOMIC IMPACT
Indirect impact includes the impact of local industries buying
DIRECT EMPLOYMENT
goods and services from other local industries. The cycle of
spending works its way backward through imports or by Total number of employees at the organization based on
payment to value added. The impacts are calculated by total jobs.
applying direct effects to the Type 1 Multipliers.

INDIRECT EMPLOYMENT
INDUCED ECONOMIC IMPACT Indirect employment is the additional jobs created because
The response by an economy to an initial change (direct of the organization’s economic impact. Local companies that
effect) that occurs through re-spending of income received provide goods and services to an organization increase their
by a component of value added. IMPLAN’s default multiplier number of employees as purchasing increases, thus creating an
recognizes that labor income (employee compensation and employment multiplier.
proprietor income components of value added) is not leakage
to the regional economy. This money is recirculated through
the household spending patterns causing further local
economic activity.

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APPENDIX F. EXPANDED METHODOLOGY

IMPACT ON STATE BUSINESS IMPLAN’s Regional Economic Accounts and the Social
VOLUME AND GOVERNMENT Accounting Matrices were used to construct state-level

TAX REVENUE multipliers, which describe the response of the state economy
to a change in demand or production as a result of the activities
West Virginia University Athletics is a large employer in and expenditures of WVU Athletics. Each industry that produces
Monongalia County, and as such, is a major generator of goods or services generates demand for other goods and
personal income for county residents. Businesses operating services, and this demand is multiplied through a particular
within West Virginia in the wholesale, retail, service, and economy until it dissipates through “leakage” to economies
manufacturing sectors benefit from the direct expenditures outside the specified area. IMPLAN models discern and calculate
of the department and its staff and event visitors on goods leakage from local, regional, and state economic areas based
and services. on workforce configuration, the inputs required by specific
types of businesses, and the availability of both inputs in the
Additionally, many of these “direct” expenditures are economic area. Consequently, economic impacts that accrue to
re-circulated in the economy as recipients of the first round of other regions or states because of a change in demand are not
income re-spend a portion of this income with other businesses counted as impacts within the economic area.
and individuals within West Virginia.
The model accounts for substitution and displacement effects
by deflating industry-specific multipliers to levels well below
METHODOLOGY AND DATA those recommended by the U.S. Bureau of Economic Analysis.
UTILIZED FOR THE ESTIMATION In addition, multipliers are applied only to personal disposable
OF THE ECONOMIC IMPACT OF income to obtain a more realistic estimate of the multiplier
WVU ATHLETICS effects from increased demand. Importantly, IMPLAN’s Regional
Economic Accounts exclude imports to an economic area, so the
The economic impact of WVU Athletics was estimated using
calculation of economic impacts identifies only those impacts
IMPLAN (IMpact Analysis for PLANing), an econometric
specific to the economic impact area; in this case, the state of
modeling system developed by applied economists at the
West Virginia or Monongalia County. IMPLAN calculates this
University of Minnesota and the U.S. Forest Service. The
distinction by applying Regional Purchase Coefficients (RPC)
IMPLAN modeling system has been in use since 1979 and
to predict regional purchases based on an economic area’s
is currently used by more than 500 private consulting firms,
particular characteristics. The RPC represents the proportion
university research centers, and government agencies. The
of goods and services that will be purchased regionally
IMPLAN modeling system combines the U.S. Bureau of
under normal circumstances, based on the area’s economic
Economic Analysis’ Input- Output Benchmarks with other data
characteristics described in terms of actual trade flows within
to construct quantitative models of trade flow relationships
the area.
between businesses and between businesses and final
consumers. From this data, one can examine the effects of a
change in one or several economic activities to predict its effect
MODEL INPUTS
on a specific state, regional, or local economy (impact analysis).
AND DATA SOURCES
The IMPLAN input-output accounts capture all monetary
market transactions for consumption in a given time period. Model inputs included the audited, actual Fiscal Year
The IMPLAN input-output accounts are based on industry 2017 expenditures as provided by WVU Athletics.
survey data collected periodically by the U.S. BEA and follow a
balanced account format recommended by the United Nations.

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APPENDIX G. FAQS OF ECONOMIC IMPACT ASSESSMENTS

WHAT IS ECONOMIC IMPACT? The Multiplier Model is derived mathematically using the
input-output model and Social Accounting formats. The Social
Economic impact begins when an organization spends money. Accounting System provides the framework for the predictive
Economic impact studies measure the direct economic impact Multiplier Model used in economic impact studies. Purchases for
of an organization’s spending, plus additional indirect spending final use drive the model.
in the economy as a result of direct spending. Economic impact
has nothing to do with dollars collected by institutions, their Industries that produce goods and services for consumer
profitability, or even their sustainability, since all operating consumption must purchase products, raw materials, and
organizations have a positive economic impact when they spend services from other companies to create their product. These
money and attract spending from outside sources. vendors must also procure goods and services. This cycle
continues until all the money is leaked from the region’s
Direct economic impact measures the dollars that are generated economy. Three types of effects are measured with a multiplier:
within Monongalia County and the state of West Virginia the direct, the indirect, and the induced. The direct effect is
due to the presence of WVU Athletics. This includes not only the known or predicted change in the local economy that is
spending on goods and services with a variety of vendors within to be studied. The indirect effect is the business-to-business
the county and state, and the spending of its employees and transactions required to satisfy the direct effect. Finally,
visitors, but also the business volume generated by businesses the induced effect is derived from local spending on goods
within West Virginia that benefit from spending by WVU and services by people working to satisfy the direct and
Athletics. It is important to remember that not all dollars spent indirect effects.
by WVU Athletics stay in West Virginia. Dollars that “leak” out
of the state in the form of purchases from out-of-state vendors • Direct effects take place only in the industry
are not included in the economic impact that WVU Athletics has immediately being studied.
on the state of West Virginia.
• Indirect effects concern inter-industry transactions:
Because WVU Athletics is in business, it has a demand
The total economic impact includes the “multiplier” of spending
for locally produced materials needed to operate.
from companies that do business with WVU Athletics. Support
businesses may include lodging establishments, restaurants, • Induced effects measure the effects of the changes
construction firms, vendors, temporary agencies, etc. Spending in household income: Employees of WVU Athletics
multipliers attempt to estimate the ripple effect in the state and suppliers purchase from local retailers and
economy where the spending occurs. For example: Spending restaurants.
by WVU Athletics with local vendors provides these vendors
with additional dollars that they re-spend in the local economy,
• Total economic impacts are the total changes to the
causing a “multiplier effect.” original economy as the result of the operations of
WVU Athletics. Direct effects + Indirect effects +
Induced effects = Total economic impacts.
WHAT IS THE MULTIPLIER EFFECT?
Multipliers are a numeric way of describing the secondary
impacts stemming from the operations of an organization.
For example, an employment multiplier of 1.8 would suggest
that for every 10 employees hired in the given industry, eight
additional jobs would be created in other industries, such that
18 total jobs would be added to the given economic region. The
multipliers used in this study range from 1.8 to 2.0.

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APPENDIX G. FAQS OF ECONOMIC IMPACT ASSESSMENTS

WHAT METHODOLOGY WAS USED IS THIS A ONE-TIME IMPACT


IN THIS STUDY? OR DOES THE IMPACT REPEAT
IMPLAN (IMpact analysis for PLANning) data and software.
EACH YEAR?
Using classic input-output analysis in combination with regional The results presented in the WVU Athletics economic impact
specific Social Accounting Matrices and Multiplier Models, study are generated on an annual basis. The economic impact
IMPLAN provides a highly accurate and adaptable model for its in future years can either be higher or lower based on spending
users. The IMPLAN database contains county, state, ZIP code, and number of athletics programs, games, and visitors.
and federal economic statistics that are specialized by region,
not estimated from national averages, and can be used to
measure the effect on a regional or local economy of a given WHAT ARE TRIPP UMBACH’S
change or event in the economy’s activity. QUALIFICATIONS TO PERFORM
AN ECONOMIC IMPACT
ANALYSIS FOR WEST VIRGINIA
WHAT IS EMPLOYMENT IMPACT? UNIVERSITY ATHLETICS?
Employment impact measures the direct employment Tripp Umbach has completed more than 200 economic impact
(employees, staff, administration, etc.) plus additional studies over the past 25 years for major research universities
employment created in the economy because of the across the country. Tripp Umbach is the national leader in
operations of WVU Athletics. providing economic impact analysis to leading healthcare
organizations, universities, and academic medical centers.
Indirect and induced employment impact refers to other Additionally, since our founding in 1990 Tripp Umbach has
employees throughout the region whose jobs exist because completed hundreds of economic impact studies in the tourism
of WVU Athletics’ economic impact. In other words, jobs and sports industry. Our clients include the national parks
related to the population – city services (police, fire, EMS, etc.), services, PGA golf events, Susan G. Komen Race for the
employees at local hotels and restaurants, clerks at local retail Cure, Pittsburgh Regatta, NFL teams, college athletics and
establishments, and residents employed by vendors used by conventions centers.
WVU Athletics.

WHAT IS THE DIFFERENCE


BETWEEN DIRECT AND
INDIRECT TAXES?
Direct tax dollars include taxes paid directly by the organization
to the state and/or county, while indirect taxes include taxes
paid to the state by vendors that do business with WVU
Athletics and individuals.

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PO Box 877, Morgantown, West Virginia 26507
(304) 293-2101 | www.WVUsports.com

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