Report Prepared By: Dr. Coyte Cooper, Hunter Barrett, Brett Botta, Jeff Caudill, Stephen Iannotta, Mark Ketterer, Jessica Rippey, Joe Smaldone

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1 Report Prepared By: Dr. Coyte Cooper, Hunter Barrett, Brett Botta, Jeff Caudill, Stephen Iannotta, Mark Ketterer, Jessica Rippey, Joe Smaldone

1 UNC Senior Administrative Staff University of North Carolina at Chapel Hill Ernie Williamson Athletics Center 450 Skipper Bowles Drive Chapel Hill, NC 27599 Dear Senior Athletic Administrative

2 1 UNC Senior Administrative Staff University of North Carolina at Chapel Hill Ernie Williamson Athletics Center 450 Skipper Bowles Drive Chapel Hill, NC Dear Senior Athletic Administrative Staff, The University of North Carolina Sport Administration Graduate Program is excited to present an Economic Impact Analysis for the Zero Dark Thursday home football game versus the University of Miami. We hope our data analysis and subsequent recommendations provide the knowledge UNC s Athletic Department needs to advance its financial, operational, and marketing goals moving forward. Our group conducted a survey measuring travel information, spending allocation, and demographics for the game on October 17, 2013 at Kenan Memorial Stadium. We assembled a team of seven graduate students, enlisted the help of eighteen volunteers, and collected 408 surveys representing about 1,350 people. The purpose of this economic impact study is to provide the Senior Athletic Administrative Staff with objective, quantitative data and relevant recommendations to offer accurate feedback relevant to the efficacy of Thursday night home football games. Our group was able to provide extended analysis to determine the economic impact of the Zero Dark Thursday football game on the town of Chapel Hill. The quantitative results are accompanied by recommendations for future Thursday night home football games and marketing strategies to increase attendance. We hope we have fulfilled your economic impact analysis needs and look forward to working with you in the future. Sincerely, Dr. Coyte Cooper Hunter Barrett Brett Botta Jeff Caudill Stephen Iannotta Mark Ketterer Jessica Rippey Joe Smaldone UNC Sport Administration Graduate Program

3 2 Table of Contents I. Executive Summary and Methodology... 3 II. Demographics... 4 a. Male/Female... 4 b. Age range... 4 c. Income... 5 d. Group Affiliation... 5 III. Market Research Analysis... 6 a. Residency status... 6 b. Reason for attendance... 6 c. Affiliation to UNC... 7 d. Ticket source... 7 IV. Economic Impact... 8 a. Total... 8 b. Stadium and Blue Zone... 9 c. Franklin Street... 9 V. Suggestions for Future Economic Impact Studies VI. Conclusions and Recommendations VII.Appendices a. Economic Impact Worksheets... 1Error! Bookmark not defined. i. Total... 1Error! Bookmark not defined. ii. Stadium and Blue Zone iii. Franklin Street b. Economic Impact Survey... 15

4 3 Executive Summary and Methodology This economic impact study was designed to serve two primary purposes. The first section of this report provides a summary of the economic impact to the Town of Chapel Hill as a result of hosting the University of Miami vs. University of North Carolina Zero Dark Thursday football game on October 17, The second purpose is to provide a market research analysis of game attendees, including collecting and examining demographic and spending data. The study was conducted on-site at Kenan Memorial Stadium, and off-site at Tar Heel Downtown on Franklin Street. We constructed a 14 question economic impact survey requesting demographic and spending information. During pregame gatherings, the survey was distributed by a group of 18 volunteers to collect data from a random sample of game attendees. We conducted a training session the week of the game in which we educated volunteers on basic interpersonal skills needed to distribute the survey and informed them about the purpose of our study. On game day, we had survey distribution and collection tables set up at Gate 2, 3, and 6. The volunteers were assigned to either a gate or to a block of sections to hand out and collect surveys from fans. We based our results on a total of 408 completed surveys, 105 coming from Franklin Street while the other 303 were completed inside Kenan Stadium. The results were extrapolated to the total attendance of 58,615. For the purpose of this study, out-of-town attendees are defined as any survey that was received that did not disclose Chapel Hill as their current residence. Spending by out-of-town visitors has a secondary ripple effect on the Chapel Hill and Orange County economy. Those who receive this spending in turn spend a portion of their revenues locally. This study will use a conservative sales multiplier of 1.3, meaning that for every dollar generated from game spending, an additional 30 cents is potentially generated indirectly in the local economy. Multiplier ranges from 1.1 to 2.5 are commonly used in economic models. The more conservative multiplier was used because Chapel Hill is a semi-rural community.

5 4 Demographic Information Survey Respondents- Male v. Female 26.23% 31.62% 42.16% Male Female Unlisted Age The figure below shows the seven age ranges of the survey respondents. If the question was left blank the respondent was included under Unlisted Unlisted 25 2

6 5 Income The figure below shows the income levels of the survey respondents. Income levels were broken down into 7 different ranges. If the question was left blank the respondent was included under Unlisted Group Affiliation The figure below shows the group affiliation of survey respondents. Group affiliation was broken down into 4 different categories. If the question was left blank the respondent was included under Unlisted. Group Affiliation Family - Adults only Family - with kids under Friends Other Unlisted

7 6 Market Research Analysis The following chart shows the breakdown of survey respondents between resident versus non-resident status. Respondents from cities outside of Chapel Hill were considered non-residents. The table to the left further breaks down the survey respondents by state. State Frequency North Carolina 356 South Carolina 14 Virginia 13 Florida 9 Georgia 3 Tennessee 3 Colorado 2 Ohio 2 Alabama 1 Minnesota 1 Massachusetts 1 New Jersey 1 California 1 Southeast Asia 1 Chapel Hill Residents vs. Non- Residents 79% 21% Resident Non-Resident Reason for Attendance The figure below shows the reason for attendance by respondents. Respondents were able to choose all reasons that apply, which accounts for the higher graph values Time/Date Opponent Theme UNC Fan Other

8 7 Affiliation Status The figure below shows affiliation status of survey respondents. Respondents were able to choose all that apply, which accounts for the higher graph values Ticket Source The figure below shows the breakdown of the survey respondent s ticket source. Ticket source options were broken down into four categories Ticket Source goheels.com StubHub Season Tickets Other Unlisted

9 8 Economic Impact Daily Spending (Non-Residents) The following three graphs show the amount of money spent per non-resident per day ($60.48), as well as the amount of money spent per non-resident group per day ($198.99). The total amount spent was broken down into six different categories: Lodging, Food/Beverage, Retail, Entertainment, Transportation, and Other. In order to find total spent by non-resident group, we multiplied the amount spent per non-resident by the average non-resident group size (3.29). Figure #1 includes all survey respondents, Figure #2 includes Blue Zone and stadium survey respondents, and Figure #3 includes Franklin Street respondents. Figure 1 Average Amount Spent per Non-Resident vs. Average Amount Spent per Non-Resident Group $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 $13.57 $44.65 $21.19 $69.71 $12.20 $40.13 $10.43 $3.17 $6.65 $21.87 $12.20 $3.71 Avg. Spending per Non-Resident Avg. Spending per Non-Resident Group

9 Figure 3 Average Amount Spent per Non-Resident vs. Average Amount Spent per Non-Resident Group $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 $14.74 $48.49 $21.49 $70.70 $11.50 $37.

10 9 Figure 3 Average Amount Spent per Non-Resident vs. Average Amount Spent per Non-Resident Group $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 $14.74 $48.49 $21.49 $70.70 $11.50 $37.85 $11.01 $3.35 $7.24 $23.81 $12.71 $3.86 Avg. Spending per Non-Resident Avg. Spending per Non-Resident Group Figure 2 Average Amount Spent per Non-Resident vs. Average Amount Spent per Non-Resident Group $70.00 $65.28 $60.00 $50.00 $50.00 $40.00 $30.00 $20.00 $10.00 $8.78 $28.62 $20.02 $15.38 $13.97 $8.14 $10.17 $2.50 $4.29 $3.12 $0.00 Avg. Spending per Non-Resident Avg. Spending per Non-Resident Group

11 10 Suggestions for Future Economic Impact Studies Although the figures represented above are the most accurate given the compiled data, there a few limitations to this study in need of discussion. Better training and clarification for volunteer survey distributors could have been provided to ensure that survey participants understood the objective of the economic impact study. For the most part, the majority of surveys completed were filled out clearly and indicated that participants understood the survey questions. However, one area of the survey that could have been written more clearly was where participants purchased or received their tickets. Students completing the survey chose to select Other for where they received their tickets, and most wrote in Student Tickets in the space provided. Therefore, Student Tickets should have been a selection option. In addition, participants who received their tickets from season ticket holders were unsure of what option to choose, therefore, Guest of a Season Ticket Holder should have been a selection choice. Another limitation worth noting is the limited amount of surveys returned to student volunteer distributors. Overall, the sample size of 408 surveys may seem small in comparison to the total attendance at the event which exceeded 58,000 people. However, the 408 surveys that were returned represent about 1,350 because participants were instructed to fill out the survey with their total party number in mind. Surveys were distributed in the stadium, Blue Zone, and on Franklin Street, but tailgating areas and parking decks could be areas that are included in the future. If these areas are included, extra volunteer survey distributors would be necessary.

12 11 Conclusions and Recommendations Average Individual Non-Resident Spending $60.49 Total Event Spending $3,896, Conservative Sales Multiplier 1.3% TOTAL ECONOMIC IMPACT $5,066, The UNC vs. Miami football game economic impact equaled approximately $5,0666,000 for the local Chapel Hill economy. Important findings are listed below: 79.1% of attendees were out of town visitors (non-residents of Chapel Hill). 87.3% of attendees came from North Carolina. The next highest states represented were South Carolina (3.4%) and Virginia (3.2%). 42.6% of attendees listed UNC Fan as their primary reason for attendance. 19.6% listed the Zero Dark Thursday theme, and 15.9% listed the time and date of the game as their main reason for attendance. 31.1% of attendees listed UNC Football Fan, 19.0% listed Alumni, and 18% listed Rams Club as their affiliation to the university. In comparison to a previous economic impact study on the home Thursday night football game vs. Florida State University on October 22, 2009, the total economic impact was lower. Potential factors that may have contributed to the lower economic impact include the team s record (1-5 at the time of the game), the game occurring during Fall Break for students, and cold and rainy weather conditions at kick-off. However, we believe that Thursday night football games present positive opportunities for the town of Chapel Hill because it is a unique environment that creates greater interest for potential attendees. Additionally, themed games should continue to be implemented because almost 20% of attendees cited the Zero Dark Thursday theme as their main reason for attendance. Furthermore, the addition of Tar Heel Town being held on Franklin Street provides additional excitement for fans to have a unique game day experience. It also provides additional exposure for local businesses and restaurants on Franklin Street which contributed to the total economic impact of the game. We recommend that the Athletic Department continues the relocation of Tar Heel Town periodically because attendance on Franklin Street will become a staple of fan s game day experience.

13 12 Appendix I- Economic Impact Worksheets Economic Impact Worksheet Total Surveys 1. Total event attendance/participants 62,615_ 2. Percent visitors/nonresident participants 79% 3. Number of visitor/nonresident participants (multiply 1 by 2) 49, Average size of each visitor/nonresident participant group Number of visitor/nonresident participant group (divide 3 by 4) 15, Average number of days visitor/nonresident group stayed in the impact region Average spending by visitor/nonresident participant groups in Lodging $ Food and Beverage $ Miscellaneous retails $ Entertainment $ Local transportation (e.g., gas and taxi, etc.) $ Other miscellaneous expenses $ Total spending by visitors/nonresident participants in Lodging (multiply 5 by 7.1) $ 673, Food and Beverage (multiply 5 by 7.2) $ 1,051, Miscellaneous retails (multiply 5 by 7.3) $ 605, Entertainment (multiply 5 by 7.4) $ 157, Local transportation (multiply 5 by 7.5) $ 329, Other miscellaneous expenses (multiply 5 by 7.6) $ 183, Total daily spending by visitors/nonresident participants $3,001, Total spending during the tournament (multiple 6 by 8) $3,896, Total spending with multiplier (multiply 9 by 1.3) $5,066,016.98

14 13 Economic Impact Worksheet Blue Zone & Stadium 1. Total event attendance/participants 58,615_ 2. Percent visitors/nonresident participants 87% 3. Number of visitor/nonresident participants (multiply 1 by 2) 51, Average size of each visitor/nonresident participant group Number of visitor/nonresident participant group (divide 3 by 4) 15, Average number of days visitor/nonresident group stayed in the impact region Average spending by visitor/nonresident participant groups in Lodging $ Food and Beverage $ Miscellaneous retails $ Entertainment $ Local transportation (e.g., gas and taxi, etc.) $ Other miscellaneous expenses $ Total spending by visitors/nonresident participants in Lodging (multiply 5 by 7.1) $ 755, Food and Beverage (multiply 5 by 7.2) $ 1,101, Miscellaneous retails (multiply 5 by 7.3) $ 589, Entertainment (multiply 5 by 7.4) $ 171, Local transportation (multiply 5 by 7.5) $ 370, Other miscellaneous expenses (multiply 5 by 7.6) $ 197, Total daily spending by visitors/nonresident participants $3,186, Total spending during the tournament (multiple 6 by 8) $4,027, Total spending with multiplier (multiply 9 by 1.3) $5,235,924.81

15 14 Economic Impact Worksheet- Franklin Street 1. Total event attendance/participants 4, Percent visitors/nonresident participants 55% 3. Number of visitor/nonresident participants (multiply 1 by 2) 2, Average size of each visitor/nonresident participant group Number of visitor/nonresident participant group (divide 3 by 4) Average number of days visitor/nonresident group stayed in the impact region Average spending by visitor/nonresident participant groups in Lodging $ Food and Beverage $ Miscellaneous retails $ Entertainment $ Local transportation (e.g., gas and taxi, etc.) $ Other miscellaneous expenses $ Total spending by visitors/nonresident participants in Lodging (multiply 5 by 7.1) $ 19, Food and Beverage (multiply 5 by 7.2) $ 44, Miscellaneous retails (multiply 5 by 7.3) $ 33, Entertainment (multiply 5 by 7.4) $ 5, Local transportation (multiply 5 by 7.5) $ 9, Other miscellaneous expenses (multiply 5 by 7.6) $ 6, Total daily spending by visitors/nonresident participants $118, Total spending during the tournament (multiple 6 by 8) $173, Total spending with multiplier (multiply 9 by 1.3) $225,646.14

16 15 Appendix II Zero Dark Thursday Economic Impact Survey The UNC Sport Administration program is conducting a survey in conjunction with the Athletic Department and the Chapel Hill Downtown Partnership to determine the economic impact of the Zero Dark Thursday football game on the surrounding community. By completing this survey, you are entered to win a black football helmet signed by Coach Fedora and four tickets in the Blue Zone for the Carolina Football game vs. Duke on November 30. We thank you for your time in answering these questions. 1. Where do you currently reside? (City, State) 2. When did you arrive in Chapel Hill for tonight s game? (Time/Date) 3. When do you plan on leaving Chapel Hill after the game? (Time/Date) 4. What is the total number of people in your travel party including yourself? 5. While staying in Chapel Hill, how much on average did your travel party spend per day in each of the following categories? a. Lodging $ (Hotel, etc.) b. Food & Beverage $ c. Retail Purchases $ d. Entertainment $ (Golf, movies, etc.) e. Local Transportation $ (Gas, rental car, taxi, etc.) f. Other Expenses $ 6. (required) Please return survey to a volunteer in a Zero Dark Thursday shirt. There are tables on the concourse level at Gates 2, 3, and 6. Demographic Information for you and your party (optional) **Note: to be entered to win the four tickets in the Blue Zone, you must complete this section** 1. Gender (please circle) Male Female 2. Age (please circle)

17 Primary reason for attendance (circle all that apply) a. Time and Date of Game b. Opponent c. Zero Dark Thursday Theme d. Carolina football fan e. Other (Please specify) 4. Which of the following best describes the group you re traveling with a. Family (adults only) b. Family with kids under 18 c. Friends d. Other (please specify) 5. Affiliation to UNC (please circle all that apply) a. Season ticket holder b. Rams Club member c. Alumni d. Fan e. Faculty/Staff f. Corporate Partner g. Student h. No Affiliation 6. Household income a. < $50,000 b. $50,000 $99,000 c. $100,000 - $149,000 d. $150,000 - $199,000 e. $200,000 - $249,000 f. $250,000 - $299,000 g. $300, Where did you get your tickets? a. Goheels.com b. StubHub c. Season ticket holder d. Other (please specify) 8. How many games have you attended/plan to attend this year? Additional Comments: Thank you for completing this survey. We appreciate your support. Enjoy the game!

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