The Economic Impact of the United States Olympic Committee and Related Sports Organizations on the Pikes Peak Region

The Economic Impact of the United States Olympic Committee and Related Sports Organizations on the Pikes Peak Region 2009 September 2010

Contents Executive Summary 1 Introduction and Background 2 Methodology 5 Impacts of the United States Olympic Committee and National Governing Bodies 8 Development of the Regional Sports Industry 11 Impacts of Tourism 13 Other Impacts 14 Conclusions 16 End Notes 17 United States Olympic Committee Economic Impact Study

Executive Summary Executive Summary The United States Olympic Committee (USOC) is headquartered in Colorado Springs. In addition, almost half of the National Governing Bodies (NGBs) that oversee Team USA sports and a number of associated sports organizations are located in the area as well. These organizations support the training and development of Team USA athletes, the development of their individual sports, participation in Olympic and Paralympic Games, business development, international relations and the stewardship of the Olympic movement in the U.S. Each and every year, the USOC and associated NGBs generate economic impacts on Colorado Springs and more broadly on the El Paso County Region. The USOC and NGBs generated impacts through general business operations, activities conducted in partnership with area sports organizations, and the tourism generated by the Olympic Training Center and the other sporting events hosted in the Pikes Peak Region. The impacts for each of these activities are detailed in the figure below. In addition to quantitative economic effects, the activities of the USOC and related organizations have qualitative impacts for the Region as well. They include additional economic development opportunities, quality of life, and a sense of community. Since the arrival of the USOC in the Region in 1978, the area s sports, health, and wellness sector has expanded. In the past decade, employment in this sector has grown by more than 34 percent. Based on this historical growth and planned future Olympic related activities, the USOC is well positioned to be an ongoing positive economic driver in the Region. United States Olympic Committee Economic Impact Study 1

Introduction and Background Introduction and Background Study Objective The primary objective of this study is to understand the economic impacts that result from the presence of the USOC and related sports organization in the Pikes Peak Region (El Paso County primarily Colorado Springs). A discussion of the USOC s presence in Colorado Springs and its venues follows. Following this, technical assumptions are discussed in the Methodology section. USOC and the Home Town of the American Olympic Movement In 1978, the Amateur Sports Act appointed the United States Olympic Committee (USOC) as the coordinating body for all Olympic-related athletic activity in the United States. Its mission is to support U.S. Olympic and Paralympic athletes in achieving sustained competitive excellence and preserve the Olympic ideals, and thereby inspire all Americans. The USOC supports training, entering, and underwriting the full expenses for the U.S. teams in the Olympic, Youth Olympic, Paralympic, Pan American and ParaPan American Games by means of 46 National Governing Bodies (NGBs) that oversee the USA teams for each Olympic, Paralympic, and Pan American sport. The USOC has its main Olympic Training Centers (OTCs) in Chula Vista, Lake Placid, and Colorado Springs. This study focuses the impacts of activities in Colorado Springs. The USOC selected Colorado Springs as its headquarters in 1978. Since that time, the USOC has become integrated with the Region s economic development plans, and serves as an economic engine of the area. Over time, almost half of the NGBs have come to locate in the Region due to the resources and infrastructure of, and proximity to, the USOC. Many sports associations, federations, non-profits and training companies have also chosen Colorado Springs as their headquarters for similar reasons. Today, there are over 90 total companies in the Region s sports sector, 50 of which conduct regular business activities with the USOC. Through its own programming and work in partnership with local organizations, the USOC is also responsible for bringing thousands of sports leaders, athletes, and their supporters to the Region each year for conferences, competitions, and training. 1 USOC Operations The U.S. Olympic Committee is a highly sophisticated, multifaceted business. In its normal business operations, the USOC conducts a wide variety of activities from training and supporting the U.S. teams (Team USA), either financially or through linked United States Olympic Committee Economic Impact Study 2

Introduction and Background services, to spreading the Olympic Ideals and working to inspire the nation. The USOC undertakes some of these activities directly. The 46 NGBs that govern each Olympic sport carry out these activities directly as well. Different NGBs receive funding at different levels from the USOC. They also obtain revenues through corporate sponsorships, membership fees, and a variety of other sources. They operate as independent entities and in tight integration and support of the USOC. El Paso County plays host to 22 NGBs, 2 which are as different from one another in their business operations as the sports they represent. Some NGBs host a significant number of sporting events and training in the area, while others define themselves as the central administrators for events in other areas. Some manage individual members, while others manage organizations of members. Some conduct merchandising, warehousing, and distribution from El Paso County while others outsource those operations to other areas. Banner Sporting Events in 2009/2010 State Games of America Rocky Mountain State Games USA Wrestling Dave Schultz Wrestling Tournament USA Boxing National Championships USA Gymnastics Men s National Team Qualifier U.S. Paralympics Warrior Games USA Taekwondo Senior/Junior World Championships Qualifier/Trials USA Pentathlon National Championships FIBA Americas Basketball Tournament (Women s Facilities and Activities The original Colorado Springs OTC was once the home of Ent Air Force Base and the headquarters of the North American Defense Command. The present day complex includes sports medicine, science, aquatic, and shooting centers, as well as the Olympic Sports Centers I and II. There are state-of-the-art sports medicine and sport science and athlete centers. The athlete center includes a dining hall and two residence halls. With 241 dorm rooms, the facility can provide dining, training, and other services for up to 557 athletes and coaches at once. U18) The aquatic center is 45,000 square feet, and contains a Jimi Flowers Open/Paralympic Swimming 50x25-meter swimming pool. The facility is primarily used Source: Colorado Springs Sports Corporation for training and testing of swimmers and water polo players, but is also used by other athletes for cross-training. The Olympic Shooting Center is the largest indoor shooting facility in the Western Hemisphere and the third largest in the world. Olympic Sports Center I is a 59,000 square-foot facility containing six multi-sport gymnasiums. It can accommodate the training requirements for 14 Olympic and Pan American sports. Olympic Sports Center II has over 54,000 square feet of training facilities. It can accommodate nine different sports. In addition to the training facilities, the campus includes an Olympic Visitor Center that is free and open to the public. In 2009, around 13,000 U.S. athletes and staff used the OTC for training and an additional 78,000 out of town visitors toured the facilities as part of a trip to the Pikes Peak Region. In 2009, after 30 years of residence in Colorado Springs, the USOC entered into a new 30 year economic development agreement (EDA) with the city. The EDA resulted in the development of a new headquarters in the heart of the city, renovation of a second building for use by the NGBs, and planned improvements to the OTC. In return, Colorado Springs will remain the Official Hometown of the USOC, and maintains the rights to the use of the Olympic marks, and USOC staff to help with outreach and marketing of the city for the remaining years of the agreement. United States Olympic Committee Economic Impact Study 3

Introduction and Background Study Area: Pikes Peak Region and El Paso County Area This study evaluates the impacts of the USOC and associated NGBs on El Paso County. Sixty percent of El Paso County residents, almost 80 percent of the regional workforce live in the county seat, Colorado Springs. Colorado Springs is also where the USOC and associated NGBs are located. The Region includes smaller cities and towns Fountain, Manitou Springs, Monument, Palmer Lake, Green Mtn. Falls, Calhan, Ramah. El Paso County, also known as the Pikes Peak Region, is situated about an hour south of Colorado s capitol, Denver. The county has a land area of 2,126 square miles, and a population of around 600,000 people. Over 20 percent of the working population is employed by various levels of government, of which 11 percent serve at the five major military installations in the area. The remainder of the economy is split between sectors each making up less than 13 percent of total employment (Figure 2). Figure 1. El Paso County Colorado Figure 2. Employment by Sector in El Paso County Agriculture, Forestry, Fishing, Hunting 0% Government 20% Mining 0% Utilities 0% Construction 6% Manufacturing 6% Wholesale Trade 2% Non-classifiable 0% Other Services 4% Retail Trade 11% Accommodation & Food Services 10% Transportation & Warehousing 2% Information 3% Source: US Census Bureau Arts, Entertainment & Recreation 2% Health Care & Social Assistance 10% Educational Services 2% Professional & Technical Services 9% Administrative & Waste Services 7% Finance & Insurance 5% Real Estate, Rental & Leasing 2% Management of Companies & Enterprises 0% Source: Bureau of Labor Statistics, Colorado Employment and Wages, 2009 Of particular importance to this study is the sports sector. This cross cutting area includes employers within various industries and accounts for approximately three percent of regional employment, with almost 9,000 employees in 2009. In the aggregate, the Region experienced population growth greater than the rest of the country in the past five years. 3 The area has higher than average household incomes and has experienced greater wage growth than other similar cities in the past 10 years. With relatively high wages and low cost of living, the area affords a high quality of life. 4 United States Olympic Committee Economic Impact Study 4

Methodology Methodology Approach In making economic impact estimates, generally accepted industry economic principles and modeling approaches were used in this report. A gross expenditures approach was used to estimate the economic impacts and trace the cash flows of spending associated with USOC s operations and to identify impacts relating to employees, athletes, and tourist visitors. The study also used analysis of secondary data from the government and other available economic statistics. This study draws on the IMPLAN input-output model. 5 This helps to predict the spending patterns and economic multipliers related to effects in the relevant study area. Terminology For the purposes of this study, certain terms are defined as follows: USOC and associated NGBs refers to the United States Olympic Committee and the 22 National Governing Bodies (NGBs) located in Colorado Springs. 6 Other local sports organizations refers to those organizations that regularly conduct business or events in partnership with the USOC that are not NGBs. The area sports industry is the super set of the USOC, NGBs and USOC-related organizations, as well as the other sports and wellness affiliated organizations that conduct business in the Region. Data Sources This study draws its assumptions, analysis, and conclusions from 2009 calendar year data and nearly a dozen interviews with key area stakeholders including: The USOC and area NGBs The City of Colorado Springs The Colorado Springs Sports Corporation Experience Colorado Springs The Greater Colorado Springs Chamber of Commerce Summit Economics Angelo Economics Economic Impact Analysis As this study indicates, the USOC and related NGBs have direct, indirect and induced economic impact on the El Paso County economy. Direct Impacts are the first round expenditures made directly, for example, by the USOC and related NGBs for operations, employment, and the goods and services required to operate the United States Olympic Committee Economic Impact Study 5

Methodology organization. For example, this could include the expenditures of USA swimming when it hosts training camps at the OTC Aquatics Center. It may also include local spending by athletes that use USOC and NGB facilities and by tourists that attend USOC and NGB affiliated events. Indirect Impacts are impacts made by other organizations activities to support the delivery of their respective products to the USOC and NGBs. For example, to keep the pool clean, the company servicing the USOC Aquatics Center purchases chemicals and tools from its suppliers who procure materials to sell to the pool servicing supply company, and so on. Induced Impacts represent the spending by households caused by the direct and indirect impacts. For example, the company providing supplies to the Aquatics Center service company will use funds received to pay employees. Employees, in turn, use their salaries to purchase groceries and pay rent. Figure 3. Overview of Economic Impact Approach Of course, spending effects do not continue ad infinitum because all spending does not occur within the Region, and because of other leakages such as savings. Some expenditure leakage occurs when spending takes place outside of the community, such as when an employee purchases goods or services in Denver or elsewhere outside the Pikes Peak Region. It is also important to note that the proportion of direct spending retained in the area will not equal the total spending, as the proportion of this spend is fairly low for certain expenses such as gasoline and merchandise. For these goods, much of the impact is received in the area where the goods are produced. While the precision and methods for measuring economic impacts have improved over time, the results are highly dependent on the data chosen for inclusion. A conservative set of variables was included in this study. Therefore, results are on the lower end of what is probable. General practice in determining economic impacts requires an evaluation of the Substitution Effect. The idea of the substitution effect is that, all prices being equal, one good can easily substitute for another in the mind of the consumer. In the case of this economic analysis, it is essential to link impact only to spending and behavior resulting specifically from the presence of the USOC and related NGBs. Similar to the substitution effect, it is valuable to consider the concept of additionally what economic activity would be taking place in the absence of the USOC. While the attribution of impacts in this study are conservative, the longtime presence of the USOC in the Region and unique United States Olympic Committee Economic Impact Study 6

Methodology business operations, make attribution of certain impacts more challenging, and thus the scale of additionality may be understated. It is a challenge in determining economic impacts studies to separate activities and spending of local residents from that of visitors. For some activities, it is nearly impossible to distinguish the contribution of local residents from that of travelers or tourists with regard to levels of participation and spending at USOC sponsored athletic events. A local resident, unlike a visiting spectator, might buy a movie ticket of the same price on a given day, if a USOC event were not also taking place at the same time. While every attempt was made to distinguish between local and non-local visitors, it is likely that this study combines the impacts of both groups to some degree, though the impact would be nominal. This study uses 2009 data, and assumes this data is a fair representation of the economic impact of the USOC and related NGBs in general. Because of the recent economic downturn, using 2009 as the evaluation year may understate the results for future years or on average over multiple years. 7 United States Olympic Committee Economic Impact Study 7

Impacts of the United States Olympic Committee and National Governing Bodies Impacts of the United States Olympic Committee and National Governing Bodies Business Operations with Broad Impact The impacts of the USOC and NGBs in the Region can be understood in terms of two components: operations and employment, and athletes and support staff. Operations and Employment From an operations perspective, the USOC and NGB s development, operations, maintenance, and support activities result in a variety of non-payroll expenditures both in and outside the Pikes Peak Region. Expenditures cover the costs of: Operating and maintaining the Olympic Training Centers in Colorado Springs and elsewhere Providing support to athletes Supporting U.S. cities in their bids to host the Games and other major sports competitions Coordinating with international sports federations, host cities, and governments Conducting marketing and communications for Team USA Managing financial and legal affairs Planning for dignitaries, and leaders to attend conferences and events Developing corporate relationships and sponsorships From a revenue perspective, the organization obtains funding from royalties, licensing, advertising, merchandise, sponsorships, sports foundations, fundraising and development. Portions of this revenue are passed through to the various training centers around the country, the NGBs, and other subsidiary organizations or spent on non-local organizations. The rest remains within El Paso County. This creates cash flows to local companies and generates local sales tax revenues. A draw for Local Funds Large grant-making institutions contribute to the USOC and thereby bring money into the region that might otherwise go elsewhere. One of the area s non-profit foundations helped to fund the initial move of the USOC to Colorado Springs, and thereafter began a sports funding category. The size of these contributions in the area continues to grow. From an employment perspective, the USOC and NGBs conduct these activities through the efforts of 719 employees in El Paso County. In support of these activities within the Region, the USOC and NGBs provide high quality job opportunities for workers living in the Pikes Peak Region, as well as unique incentives Source: Colorado Springs Sports Corporation for highly talented individuals to relocate to the Region. The workforce is an even mix of existing area residents and individuals who moved into the area. United States Olympic Committee Economic Impact Study 8

Impacts of the United States Olympic Committee and National Governing Bodies The employees already located in Colorado Springs before their employment with the USOC work in a variety of positions from finance and administration, to operations. Those relocating to the Region include a number of the organization s executives who were recruited from some of the world s leading companies. Likewise, many employees of the USOC and NGBs possess a highly technical skill or experience with a specific sport and were recruited from national pools of candidates and moved to the Region specifically to work with the USOC and NGBs. Of note is the fact that many individuals choose to remain in the area after their service to the USOC and NGBs concludes. The result is a net population (and economic) gain. The employees of the USOC and NGBs create Table 1. USOC Operations and Employment Impacts Operations and Employment Impacts Category Direct Indirect Induced Total Jobs 719 719 Employee Earnings $57 Million $30 Million $87 Million Purchases from Local Businesses $28 Million $6.7 Million $6.5 Million $41 Million Employment Generated by Employee Spending Employment Generated by Non-Payroll Operating 257 257 249 52 56 357 Sources: USOC, Colorado Springs Economic Development Corporation economic impacts by living and spending in El Paso County as a portion of employee income remains disposable, after taxes savings, and payroll deductions are considered. They purchase houses, buy goods, and consume services. Table 1 represents the economic impacts of operations and employment of the USOC. 8 Spending and income generates local sales and property taxes. These are included in the values within the Earnings and Purchases categories in Table 1. They are detailed in Table 2. Athletes and Support Staff The OTC is a site where some of the world s best athletes come to train and compete. In 2009, the OTC hosted more than 13,000 athletes and staff, for more than 183,000 user days. 9 Athletes training at the facility are usually one of two types: 1) NGB endorsed elite or pre-elite athletes or, 2) development athletes. Elite or pre-elite athletes are generally those supported by USOC and NGBs, while development athletes come from athletic clubs or training programs. Commonly, elite athletes spend the entirety of their visit within the USOC campus eating, sleeping, training and competing whereas development athletes vary in their containment on the OTC campus. Frequently, development teams will stay in area s hotels and eat in local restaurants, while using the OTC to train or compete. Table 2. Tax Receipts Generated By Spending and Employment Tax Impacts Category Direct Indirect Induced Total City and County Tax Revenue Property Taxes (Employees) $1.4 Million $1.15 Million Sources: USOC, Colorado Springs Economic Development Corporation United States Olympic Committee Economic Impact Study 9

Impacts of the United States Olympic Committee and National Governing Bodies Both types of athlete groups are typically accompanied by coaches, support staff and family. Like the athletes they support, these individuals stay at the OTC but also in area hotels. They also eat meals at the facility and outside the OTC. The money spent outside the OTC creates economic impacts and additional tourism sector jobs that might not exist if the USOC were not in the area. Because these individuals are neither employees nor tourists, information on impacts is represented distinct from other groups. Table 3 presents impacts of athletes and support staff on the Region. Table 3. Impacts of Athletes and Support Staff Athlete and Support Staff Impacts Category Direct Indirect Induced Total Total Athletes and Support Staff 13,000 Total Athlete and Support Staff Nights 135,000 Out of Facility Expenditures $11.5 Million $1.7 Million $1.8 Million $15 Million Tourism Sector Employees 92 13 15 120 Lodging and Car Rental Tax $105,000 United States Olympic Committee Economic Impact Study 10

Development of the Regional Sports Industry Development of the Regional Sports Industry Economic Growth through Sports A Unique Sports Sector When the USOC first arrived in Colorado Springs in the late 1970s, there were only a small number of sports related organizations in the Region. The USOC has served as a magnet for NGBs to come to the Region. It has also been a draw for other sports organizations to relocate or begin operations in the area as well. These organizations can be understood in two ways. First, there is a set of organizations working in regular and direct partnership with the USOC. The USOC provides NGBs guidance, resources, and facilities to enhance their operations. A second, larger set of organizations exists in the Region conducting business within the sports, health and wellness sector. 10 The economic impact of the first set of organizations can be directly attributed to the USOC, whereas the sector is an indirect beneficiary of the economic impacts of the USOC. The growth in USOC related organizations has served as a catalyst for growth in the overall sports sector in the area. Since 2001, employment in sports related industries have increased by more than 34 percent, and the sector has grown 16.5 percent, significantly outpacing the growth of the overall labor force (4.3 percent) over the decade. Today there are a total of 90 companies and an estimated 9,000 employees in the Region today. Figure 4 and Figure 5 indicate the growth in NGBs, USOC related organizations and the overall sports sector after the arrival of the USOC to Colorado Springs. Figure 4. Growth in Associated Organizations Number of Organizations 60 50 50 45 40 37 30 25 23 20 17 10 11 4 0 1978 1980 1985 1990 1995 2000 2005 2009 USOC/NGBs Related Sports Orgs. Total Organizations Source: USOC, El Pomar Foundation Figure 5. Growth in Area Sports Sector Number of Employees 9,000 8,000 8,497 8,127 8,131 7,663 7,000 6,323 6,409 6,534 6,000 5,000 4,000 3,000 2,000 1,000-2001 2002 2003 2004 2005 2006 2007 Year Sources: Angelou Economics, Bureau of Labor Statistics Colorado Springs has come to be known as the Fittest City in America and a Top Sports Town in the country. 11 Building on this increasingly strong identity, regional economic development plans have identified this as a target sector for growth in the future. United States Olympic Committee Economic Impact Study 11

Development of the Regional Sports Industry Impacts of USOC Related Organizations As described above, there is a symbiotic relationship between the USOC and the area related partner organizations. Much like the USOC, and often in partnership with the USOC, these organizations conduct business operations in the area. These activities draw the participation and spending of Team USA and non-elite athletes, participants, and spectators. Table 4 summarizes the economic impacts of the USOC as they relate to the business operations of associated sports organizations. 12,13 Table 4. Economic Impacts of Associated Non-NGB Sports Organizations Associated Sports Organizations Category Direct Indirect Induced Total # of Employees 242 242 Employee Earnings $19 Million $10 Million $29 Million Local Purchases $21.2 Million $5.3 Million $5 Million $31.5 Million Employment Generated by Employee Spending Employment Generated by Non- Payroll Operating Expenses 86 86 191 40 43 274 The result of these business operations is sporting events, conferences, and training camps in the area. These events attract people from all over the country and across the globe to Colorado Springs that might not have otherwise visited. Importantly, these events generate economic benefit Table 5. Visitor Impacts of Associated Sports Organizations Impacts of Visitors from Associated Sports Organizations Category Direct Indirect Induced Total Visitor Nights 75,000 Visitor Spending $8.3 Million $1.4 million $1.4 Million $11 Million Employment Generated by Visitors 73 10 12 95 to the Region. One notable example, the State Games of America attracted more than 10,000 athletes and an estimated 13,500 spectators to the area in 2009. 14 The impacts of visitors related to associated sports organizations are summarized in Table 5. Associated sports organizations and their visitors generate tax revenues for the Pikes Peak Region. These are included in the spending and earnings values in Table 4 and Table 5. They are detailed in Table 6. Table 6. Tax Receipts of Associated Sports Organizations Tax Impacts Category Direct Indirect Induced Total City and County Tax Revenue $1.6 Million Lodging and Car Rental Tax $249,000 Property Taxes (Employees) $ 322,000 United States Olympic Committee Economic Impact Study 12

Impacts of Tourism Impacts of Tourism A Sight to See In 2009, an estimated 4.7 million people traveled to the Pikes Peak Region for pleasure and another 800,000 traveled for business. Colorado Springs is the second most popular city for tourists visiting Colorado, next to Denver. These tourists generated over $1 billion in revenues and $20 million in local tax receipts. Nearly eight percent, of all trips were for a special event in the Region. 15 As discussed in the previous section, the USOC, NGBs and related sports organizations create hundreds of thousands of visitor nights per year. Because the visitor nights for these specific events are accounted for elsewhere in this report, this section describes just the additional tourism impacts created by the USOC. Top El Paso County Attractions: 1. Garden of the Gods Park 2. Pikes Peak and Railway 3. US Air Force Academy 4. Royal Gorge Bridge and Park 5. Focus on the Family 6. US Olympic Training Center 7. Flying W Ranch 8. Northern Cheyenne Cañon Park 9. Cheyenne Mountain Zoo 10. Pioneers Museum The OTC is one of the area s top attractions receiving over Source: Experience Colorado Springs 78,000 out of town visitors a year. 16 The typical visitor at the OTC spends half a day visiting the training facilities and shopping at the visitor center gift shop. This attraction serves to bring people to the campus, and on the reverse, it can be reasonably assumed that athlete visitors to the OTC spend additional days in the Region vacationing that they would not have done otherwise. 17 This can be understood as the economic effect of the USOC and NGBs. Table 7 summarizes the projected economic impacts of the USOC as they relate to tourism. 18,19 Table 7. Impacts of USOC on Tourist Industry Impacts on Tourist Industry 1 Category Direct Indirect Induced Total Visitors 78,000 Visitor Nights 39,000 Visitor Spending $ 1.45 Million $103,000 $120,000 $1.67 Million Employment 6 1 1 8 City and County Tax Revenue $55,000 United States Olympic Committee Economic Impact Study 13

Other Impacts Other Impacts Qualitative Contributions In addition to the quantitative impacts described in this report, the Pikes Peak Region experiences non-monetary benefits from the presence of the USOC. Their impact is not just one of financial and economic outputs but of cultural and social outputs in the form of additional economic development opportunities, quality of life, and a sense of community. Economic Development Opportunities As part of its partnership with the USOC, the City of Colorado Springs can use the Olympic marks in marketing, branding and advertising for the city. As one of the most recognized brands in the world, use of these highly valued symbols places Colorado Springs among other sponsor organizations such as Coca Cola, Visa, and McDonalds. Some private sector sponsors pay up to $20 Million dollars per year for a sponsorship. Consumers are 25 percent more likely to use a product if it includes the USOC Team USA Audience Profile brand. 20 Male: 54% The USOC also provides exposure to the area that might not Female: 46% Average age: 38 otherwise exist. From the standpoint of direct exposure, local Education level: 72% college economic development organizations draw on members of Median Income: $56,000 the USOC and Team USA to serve as ambassadors for Avg. hours/week online: 18 employers looking to move into the area. The Region also Avid or casual Olympic fan: 97% receives exposure and press as a result of the events hosted in the Region. The Olympic activities taking place at the OTC Source: USOC Tracking Study, March 2008 and in the Region are often highly publicized. This brings the community national and worldwide attention visibility that is worth millions of dollars in advertising annually at no cost. This is external exposure that the area might not otherwise receive. Highlights of coverage by major media outlets in 2009 included: NBC ESPN The Chicago Tribune Los Angeles Times New York Times Boston Globe Washington Post USA Today Yahoo! The full potential of USOC branding for the Region remains largely untapped as the area s leaders have just now begun to use the Olympic marks in marketing and public relations. Plans are being developed to expand the use of this substantive brand strength to attract employers, new residents United States Olympic Committee Economic Impact Study 14

Other Impacts and tourists. In these ways, use of the USOC brand to enhance the Region s identity will have both direct and indirect economic benefits. Quality of Life The USOC and NGBs serve as stewards for the Olympic Movement around the globe and in its hometown, making distinct impacts on the quality of life in El Paso County through diversity and contribution to the community. The USOC and NGBs bring into the area a diverse set of conferences, leadership summits, and athletic events with delegates from all over the country and around the globe participating. Diversity encourages greater understanding of new cultures and experiences, deepens social trust, and provides broader influences into the community. This impact on cultural diversity may be unique among primary employers in the Region. Many of the USOC and NGB s employees and programs are deeply connected to the area community, and focus on improving the quality of life for less fortunate residents of the Region through sport. The organization encourages its employees to share their passions with the Region through community based organizations. The result is a number of local non-profits started or supported by USOC staff and athletes. The influence of the USOC and NGBs deepens the community of sport to all demographics in the area. This culture might not exist but for the presence of the USOC. Sense of Community The mission of the USOC can provide a point of integration for the area s multiple strong sources for identity. With the presence of strong military and religious groups, in addition to other competing sectors, one single area identity has yet to emerge for the Region. The USOC and spirit of sport have the potential to unite them all into one. The Warrior Games illustrates the role the USOC plays in connecting the military populations in the area, with the general public through a spirit of nationalism and sport. This can help create a clear sense of place for its population, strong networks among people within a given area, and social capital. United States Olympic Committee Economic Impact Study 15

Conclusions Conclusions A draw for Jobs, Spending and Visitors in the Region After more than 30 years in the Region, the USOC and NGBs continue to provide economic benefits to the Pikes Peak Region. Its presence has resulted in a steady inflow of NGBs, infrastructure supports for the launch of related sports organizations, and a base on which an entire sector of the area economy continues to build. Table 8 summarizes the overall impacts of the USOC, related sports organizations and USOC related tourists on the Region. Table 8. Total Impacts in 2009 Total Impacts in 2009 Category Direct Indirect Induced Total Employment 1,571 116 470 2,158 Visitors 111,000 Visitor and Athlete Expenditures $ 20 M $ 3.3 Million $ 3.2 Million $ 26 Million Employee Earnings $ 76 Million - $ 40 Million $ 116 Million Local Purchases/Non-Payroll $ 49 Million $ 12 Million $ 11.5 Million $ 72.5 Million Operating Expend City and Local Tax Receipts 4.9 Million Total Output $ 145 Million $ 15.3 Million $ 54.7 Million $ 215 Million If the USOC were to leave the area, it could take up to $215 Million out of the local economy and reduce city and county revenue by $4.9 million each year. The next 30 years present additional opportunities for economic impacts beyond those demonstrated by the activities in 2009. With the renewed partnership between Colorado Springs and the USOC, continued economic benefits and opportunities for future growth can surely be realized. United States Olympic Committee Economic Impact Study 16

End Notes End Notes 1 It is worthy to note that this report extracts only the components of USOC operations that relate specifically to the study area and not the operations of the organizations that occur all over the country. 2 NGBs headquartered in Colorado Springs include: U.S. Assoc. of Blind Athletes, USA Archery USA Badminton, USA Basketball, U.S. Bobsled and Skeleton, USA Boxing, USA Cycling, U.S. Fencing, USA Field Hockey, U.S. Figure Skating, USA Hockey, USA Judo, USA National Karate-do U.S. Pentathlon, U.S. Racquetball, USA Shooting, USA Swimming, USA Table Tennis, USA Taekwondo, USA Triathlon, USA Volleyball, USA Weightlifting, USA Wrestling. 3 Angelou Economics 2009 Pikes Peak Region Market Assessment 4 Angelou Economics 2009 Pikes Peak Region Market Assessment 5 IMPLAN is a tool that provides multipliers and statistical analysis of economic impacts of regional activity. 6 Many of the NGBs receive direct financial support from USOC in addition to other sources. This study documents effects attributable to NGB spending, irrespective of whether such spending was financed through USOC support. 7 This study seeks to represent regularly occurring economic activities and therefore excludes irregular or one time spending that occurred in 2009 such as construction expenditures. 8 Direct effect for employee earnings includes payroll expenditures made to local employees. USOC impacts include employment and expenditures made by the USOC as well as by related NGBs. Tax estimates include that generated by athletes. 9 USOC 2009 estimates 10 Assumptions used in the development of this data were used to avoid double counting of tourists and visitor nights resulting from USOC, associated sports organizations and tourist categories. 11 Experience Colorado Springs. 2009 Annual Stakeholders Report. 12 The impacts described in the table below consider only the spending of persons during the period of the actual sporting events (as opposed to additional vacation time built into the trip). 13 Direct effect for employee earnings includes payroll expenditures made to local employees. Direct effect for visitor spending includes sum of local visitor lodging and meal expenses. 14 Colorado Springs Sports Corporation, Summary of State Games 2009 15 Experience Colorado Springs. 2009 Annual Stakeholders Report. 16 Information obtained from USOC. Data considers out of town visitors only. 17 Analysis in this report does not make projections as to the travel behaviors of USOC visitors or athletes. 18 Direct effect for employee earnings includes payroll expenditures made to local employees. Direct effect for visitor spending includes sum of local visitor lodging and meal expenses. 19 Visitor spending assumptions for all categories include consumption on meals, hotels, tickets and merchandise. It does not include transportation expenditures such as gasoline or rental vehicles. 20 USOC Tracking Study, March 2008. Sample made up of USOC website visitors and intenders. Accessed online. United States Olympic Committee Economic Impact Study 17