Okc Economic Impact of the Thunder, $60 -80 Million!

[okclee]

Experts say the economic impact of OKC Thunder is substantial
Dean Anderson
6.21.2010

If there was ever any doubt that Oklahoma City was caught up in Thunder fever this season, all one had to do was look up in May. The flagpole at the corner of Oklahoma and Sheridan avenues, which has always flown the U.S. flag proudly, masted a 60-by-40-foot Oklahoma City Thunder banner during the franchise’s first playoff series. Former Bricktown Association President Jim Cowan swears it was simply a matter of a new U.S. flag on backorder to replace the tattered and torn one that had been removed, but the symbolism was poignant.

“We know patriotism trumps playoff basketball,” Cowan says.

Maybe.

Nothing this year could overshadow the Thunder’s grip on Oklahoma City in terms of excitement, enthusiasm and — more importantly — the city’s bottom line....

Read the full story here.

OKCBiz > Experts say the economic impact of OKC Thunder is substantial

[Kerry]

And Oklahoma City is getting even more than it asked for. Williams remembers traveling to Dubai in March and waiting for an elevator at his hotel. A local was talking hoops in front of him.

“I just love that Kevin Durant,” Williams recalls hearing.

The other day I was watching SpongeBob with the kids and during a commercial break Nickelodian did a 2 minute look at the the Thunder's mascot. It was pretty cool.

[rcjunkie]

Awesome news for the OKC/State economy, but it's just a matter of time before all of the negative, naysayers start posting.

[Mesta Parker]

While in Beijing, I had a similar expeience to William's. When someone I was introduced to found out I was from OKC, their first comment was, "Ah.... Kevin Durant".

[Dustin]

The other day I was watching SpongeBob with the kids and during a commercial break Nickelodian did a 2 minute look at the the Thunder's mascot. It was pretty cool.

Cartoon Network had a similar look into Rumble.

[soonerguru]

Awesome news for the OKC/State economy, but it's just a matter of time before all of the negative, naysayers start posting.

Looks like you've already started in with your usual negative tirade.

[rcjunkie]

Looks like you've already started in with your usual negative tirade.

No, I'm positive. Positive that someone (most likely you), will try to turn the Thunders success into a negative

[dismayed]

The other day I was watching SpongeBob with the kids and during a commercial break Nickelodian did a 2 minute look at the the Thunder's mascot. It was pretty cool.

That is really awesome.

[Larry OKC]

From the linked article:

He says economic impact numbers are difficult to come by, because of the city’s financial relationship with the Thunder versus the Hornets. Oklahoma City’s contract with the Hornets required the visiting tenant franchise to provide economic data for revenue-sharing purposes. That impact was nearly $1 million per home game.
...
“We believe, based on everything we see, this has been beyond that,” he says. “It has to range somewhere between $60 million to $80 million in economic impact.”

From the City (not a direct quote but wanted to set it off) (www.okc.gov/fordcenter/economic_impact.pdf):

Hornet’s Economic Impact
1st Season = $70,524,599
2nd Season = $66,453,894*

*The slight drop in the 2nd season was attributed to the Hornets had announced they were going back to New Orleans the following season

One would certainly expect the playoff appearance to be beneficial. But when looking at the numbers above, not all that much different from the Hornets (just as number of sell-out games has stayed consistent, avg number of tickets etc etc).

This is not an anti-Thunder slam, it applies to any business and economic impact. Always remember and never forget to consider the source any time economic impact numbers are tossed around. The Chamber admitted that the Hornet’s economic impact numbers were based on a few, shall we say questionable, presumptions. The Chamber has been known to inflate figures to suit their purposes.

Also keep in mind that economic impact really boils down to NEW money being spent, not the shifting of money already being spent from one business or one part of town to another.

During the Seattle/Sonics relocation, both sides argued both sides of the economic impact. Depending on which point they were trying to prove both the City & the Team said it had substantial economic impact and then would do a complete turn around and both sides would argue it had Zero economic impact.

[rcjunkie]

From the linked article:




From the City (not a direct quote but wanted to set it off) (www.okc.gov/fordcenter/economic_impact.pdf):



One would certainly expect the playoff appearance to be beneficial. But when looking at the numbers above, not all that much different from the Hornets (just as number of sell-out games has stayed consistent, avg number of tickets etc etc).

This is not an anti-Thunder slam, it applies to any business and economic impact. Always remember and never forget to consider the source any time economic impact numbers are tossed around. The Chamber admitted that the Hornet’s economic impact numbers were based on a few, shall we say questionable, presumptions. The Chamber has been known to inflate figures to suit their purposes.

Also keep in mind that economic impact really boils down to NEW money being spent, not the shifting of money already being spent from one business or one part of town to another.

During the Seattle/Sonics relocation, both sides argued both sides of the economic impact. Depending on which point they were trying to prove both the City & the Team said it had substantial economic impact and then would do a complete turn around and both sides would argue it had Zero economic impact.

I must admit, it took a little longer than I expected.

[Larry OKC]

RCJunkie,

Is it safe to presume you are referring to your original comment: "but it's just a matter of time before all of the negative, naysayers start posting"?

Is pointing out that the numbers are consistent with the Hornets being negative somehow?

Or perhaps it is negative that people need to consider the source when looking at any "economic impact" figures and keep them in perspective?

Sorry if you think that keeping things in perspective and a dose of reality thrown in is somehow being negative, but so be it. To each their own.

[betts]

Actually, Larry is right, in terms of definable numbers. The Hornets had similar sellout numbers and attendance numbers, with the exception of the playoffs. For regular season games, there probably wasn't much difference in terms of economic impact. Obviously if restaurants had as much increase in business during the playoffs as they did, that's an important factor. Increased restaurant sales increases tax collections, and increased numbers of people in local hotels increases the hotel tax. Increased sales in the Thunder gift shops increases sales tax collections. But none of those were probably massive numbers.

Where I think the Thunder have had the most impact is in the area that cannot easily be measured. Look at this quote and think about the significance:

Nearly 5 million viewers watched the Thunder vs. Lakers Game Six playoff on Fox Sports Oklahoma and ESPN. It was ESPN’s most-viewed first-round NBA playoff game ever.

The Lakers are in the playoffs virtually every year. They always play in the first round of course. So, it's hard to ascribe the increase in viewers to Lakers' fans. That's an impressive statement there, and that kind of interest translates into incredibly good press for our city. That makes ESPN much more inclined to put the Thunder on television, and as we've seen, every game is an ad for the city in which it is held. Every time they go to commercial, they show an attractive view of the city. Is is possible that the out of town companies that we're being told are interested in Devon's current space were influenced by televised Thunder games? Absolutely. Quality of life for their employees is important to businesses, and lots of people like sports. "Move to OKC and you can watch Kevin Durant play basketball 41+ nights a year" is probably far more effective a piece of advertising than we imagine.

[hoya]

I agree. We can debate the number of dollars that the Thunder has brought to the city, but overall the real benefit has been to quality of life and public relations. Every game is an advertisement for the city. Now, I doubt there are a lot of companies that are going to say "Yes! Let's move there! It's all because of the Thunder!" But it's one step in creating an overall better picture of the city. It's like graduating from college. It's not going to make you rich, but it certainly helps people take you seriously.

The real impact won't be felt for another 20 years. When I was a kid, guys like Larry Bird, Magic Johnson, and (later) Michael Jordan were some of the coolest guys around. I grew up thinking they were awesome, and came away with a positive impression of Boston, LA, and Chicago just because those guys were there. It was the same for millions of other guys. Now, I'm not gonna move to Boston because of the Celtics, but it doesn't hurt, and you can bet I'll try to make it to a Celtics game the next time I head up there. Having those players, and those teams, are an overall positive influence on those cities. Think about this. Right now, there's a kid in Maryland buying a Kevin Durant jersey. And as long as the team is managed properly, and the city guards its investment well, 20 years from now that kid is gonna bring his family to OKC to see a Thunder game. They'll stay in a hotel, eat at a few restaurants, and hopefully have a good time. Point being, this is an investment that will pay dividends for decades, as long as we manage it successfully. Those types of returns are impossible to calculate.

[HOT ROD]

While in Beijing, I had a similar expeience to William's. When someone I was introduced to found out I was from OKC, their first comment was, "Ah.... Kevin Durant".

Ditto that, from my numerous trips DEEP inside of China (Chongqing, Chengdu). OKC - Kevin Durant, and many of the games were on CCTV 5, including ALL of the OKC playoffs.