New Study Shows Bank of America Championship's Economic Impact Is More Than $27 Million Annually
May 8, 2006
CONCORD, Mass - The PGA TOUR Champions Tour's Bank of America Championship contributes a total estimated average of more than $27 million dollars annually to local, state and national economies, according to a new economic impact study. The independent study was conducted by the Sport Management program at Daniel Webster College, Nashua, N.H., under the direction of Eric C. Schwarz, Ph.D., and announced today by tournament officials.
A concurrent new study performed by the Department of Economics at Bentley College, Waltham, produced similar results.
The Daniel Webster study found the tournament on average contributed annually about $3 million to the local economy, $14 million to the state economy and $10 million nationally. The local economy was defined as Concord and the surrounding towns of Acton, Maynard and Sudbury. National economic impact comprised anything outside of Massachusetts.
"That the Bank of America Championship has been able to generate such a positive economic impact demonstrates how people throughout the region have wholeheartedly embraced this tournament," said Tracy West, Bank of America Championship tournament director since 1999. "In addition to being a major boon to our local economy, including the nonprofit community, the tournament allows us to show spectators, locally and fans internationally through television coverage, the history and beauty of Massachusetts and all the things this region has to offer."
"Bank of America is pleased to support this world-class tournament. In addition to bringing outstanding golf to the region, it also makes a significant and meaningful impact on the economy, helping to stimulate the economic vitality of the state and the larger region," said Bob Gallery, president, Bank of America Boston. "We're proud of our association with this prestigious event and the role it plays in helping our communities to grow and prosper."
The study estimated direct annual spending surrounding tournament activities to be $16,593,987, which included tournament spending on areas like operations and management, advertising, vendors and charity donations, as well as employee, volunteer, player and spectator spending on items like hotels, transportation, retail purchases, recreation, entertainment, food and beverage.
Study authors applied an economic expansion factor and multiplier to the $16.5 million number to account for data necessarily missing from statistical analyses and to reflect accurately the ripple effects of spending surrounding tournament activities in order to arrive at a $27 million total annual economic impact.
The study's conclusions were based on tournament financial records, interviews with chambers of commerce, tourism offices, hotels, restaurants, shops, tournament vendors and area businesses and comparisons of similar economic activity surrounding PGA TOUR events in other locations.
Daniel Webster College's Sport Management program has performed marketing research studies in partnership with numerous sporting events and organizations, including the Boston Marathon, Gillette Stadium, NHL and NASCAR and, in additional to economic impact analysis, has completed projects in facility design and risk management assessment.
A second new economic impact study was conducted concurrently with the Daniel Webster College by Stefanie Niedzwiecki of the Bentley College Economics Honors Program under the direction of Dhaval Dave, Ph.D., of the Bentley Department of Economics and National Bureau of Economic Research. The Bentley study produced results similar to the Daniel Webster study. Using slightly different parameters, the Bentley study found that the Bank of America Championship has an estimated average annual economic impact within Massachusetts of $10.5 million and outside the state of $14.6 million for a total economic impact of $25.1 million.
The Bank of America Championship, which began in 1981 and has been played at Nashawtuc Country Club since 1984, is among the top five spectator sporting events in New England, annually drawing more than 70,000 spectators. The tournament is owned by Nashawtuc Charities, Inc., and operated by Hayson Sports Group. Through Nashawtuc Charities, the tournament has donated more than $4 million over the past 25 years to more than 40 charitable organizations in eastern Massachusetts, with a focus on those in the Assabet Valley region.
The twenty-sixth annual Bank of America Championship takes place June 5-11, 2006, at Nashawtuc Country Club, where once again some of the game's top players will compete in the oldest 54-hole event on the Champions Tour. Mark McNulty will defend his championship against a field that includes four World Golf Hall of Fame members, six of the Champions Tour's top ten money leaders so far this season and five previous Bank of America Championship winners.
Also, for the first time at the Bank of America Championship, through a new partnership between the tournament and the Major League Baseball Players Alumni Association, 12 of baseball's greatest legends will compete alongside professional golfers in a tournament within a tournament called Swing with the Legends. Fans also will be able to get autographs from these baseball legends.
Tournament week highlights will include Hogan's Alley Skills Challenge, BJ's/PepsiCo Golf Clinics, Hilarity for Charity Tournament, Hilarity for Charity Stand-Up Comedy Show featuring headliner Lenny Clarke, Win Tournament Treasures contest, Comcast Family Fun Zone, Massachusetts General Hospital Fit for the Fairway Pavilion and Fan Putting Challenge.
Bank of America Championship information and tickets are available at www.bankofamericachampionship.com.
