Rishe puts price tag on NC sports losses

CNBC turned to Olin’s Patrick Rishe this morning for his take on two big sports stories in the news. Rishe, Director of the Business of Sports Program at Olin, says Twitter’s deal with the NFL to live stream games is a good play to attract a younger audience.

As for the Atlantic Coast Conference’s (ACC) announcement Wednesday to relocate all neutral-site championships from North Carolina just two days after the NCAA announced it will pull all 2017 championships from the state to protest the HB2 “bathroom” law, Rishe predicted the state will lose $125 million – $175 million in 2017 due to lost sports-tourism spending.

In July, the NBA announced its decision to relocate its 2017 All Star Game from Charlotte due to the law that bars transgender people from using government building restrooms in accordance with their gender identities.

In his column on Forbes.com, Rishe identifies four areas the state will likely lose out based on the NBA and NCAA’s decisions to pull out of the state:

  • Loss of new spending by non-North Carolina residents (coming to the state for sports events)
  • Leakage of spending by North Carolina residents (going to other states to see sports events)
  • Loss of new spending by non-local organizations (event-related expenditures)
  • Loss of local spending through the multiplier effect (money injected into the NC economy gets spent at local businesses who then spend money at other local businesses)

Link to CNBC video.

 

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