On February 17th, the Denver Post reported “Women’s sporting events to be economic blockbuster for Denver.”
In the article, which was posted in the business section, Rich Grant of Visit Denver stated, “Women’s sports are becoming a huge economic engine, and Denver is poised to be known as a major center for this.” In particular, Grant was referencing the Colorado Crossroads volleyball tournament and the NCAA Women’s Final Four.
The Colorado Crossroads tournament is one of 9 national events where teams can qualify for the USA Junior Nationals. The Post reported that it will draw 11,000 players and 33,000 spectators over a two week period in late February and early March. The projected impact is about $22 million, with most of the benefit accruing to rooms, food, taxis, rental cars, trinkets, and other souvenirs.
The tournament reportedly hosted about 100 teams ten years ago, but is expected to attract 1,100 teams from 34 states this year. This speaks to the growth in the popularity of volleyball, the increased impact of USA Volleyball, and greater interest in women’s sports.
The NCAA Women’s Final Four will be in Denver April 1-3. In addition to the three games, the playoffs are billed as a three-day party, including events at the Colorado Convention Center prior to the tournament and a concert by Jewel. The direct economic impact is expected to be about $20 million. As with the volleyball tournament, the businesses that will feel the impact are hotels, restaurants, transportation, and retailers.
There is still hotel space in Denver during the Final Four and tickets were still available at the time the article was published. The Post cited enthusiasts who projected that hotel and tickets would pickup in the weeks ahead.
The two events attract very different crowds, which speaks to the diversity of the appeal of the region. The volleyball tournament will attract families to the area, who will likely spend less per person because of budget and time constraints. The Final Four is a special activity, which will have more corporate appeal. It will attract a crowd that is more likely to have time to explore the city and spend more in the local economy on a per capita basis.
The first event portrays Colorado as a place to be for participant sports, while the latter positions Denver as a location for the country’s top sporting events. The Final Four is expected to be covered in 177 countries.
As well as discussing the impact of the Colorado Crossroads and Final Four, the Post listed the economic impact of other previous sporting events:
2012 Women’s Final Four – $20 million – projected (direct benefits only)
2012 Colorado Crossroads -$21.9 million – projected (direct benefits only)
2008 NCAA Frozen Four Men’s Hockey – $15 million (direct benefits only)
2007 Rockies World Series (Games 3 and 4) – $10 million (may include direct benefits)
2006 AFC Championships $21 million (may include indirect benefits)
2005 NBA All-Star Game – $30 million (may include indirect benefits)
2004 Mountain West Conference Men’s Basketball – $4 million (
2002 Grand Prix Denver – $30 million (may include indirect benefits)
Comparisons of these events should be made with caution. Most likely these impact studies were calculated using different models. While the major source of impact for all events is food, room, transportation, and the purchase of goods and services, different methodologies may produce results that may not be comparable.
As mentioned above, some of the studies include direct impacts only while others include a much broader contribution to the economy (direct and indirect impact). This is like comparing apples and apple pie – they are different.
While it is important to understand the challenges in producing valid and reliable economic impact studies, the real point is that one-time special activities, such as sporting events, conventions, or film production can have a short-term positive impact on local economic activity. (This does not guarantee they have a positive fiscal impact on the economy.)
Of equal or greater importance are the intangible benefits of an event. Quite often they far exceed the economic activity. The above events have portrayed Denver in a positive light and helped mold the perception that it is a great place to live, work, and play.
