Sports Add to Area’s Economy

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Los Angeles County sports organizations generated $1.2 billion in revenue lst year, according to a study released Wednesday by the Los Angeles Sports Council and the Los Angeles Area Chamber of Commerce.


Overall revenue among organizations surveyed increased to $1.7 billion, up 14 percent from the last survey three years ago.


The three-month study surveyed 52 professional and amateur sports organizations throughout Southern California, including the teams like Los Angeles Dodgers, Los Angeles Lakers, Los Angeles Clippers, and venues like Staples Center, Coliseum, Rose Bowl and Home Depot Center. It also included new organizations, such as Chivas USA soccer team.


“There have been new sports added to the market,” David Simon, president of the L.A. Sports Council, said in a statement. “They’ve clearly found a niche.”


The analysis showed the sports industry generated $4.1 billion in total economic impact to the region — up from $3.6 billion in 2003 — despite the lack of a professional football team and the cancellation of the professional hockey season.


Although the survey was not intended to help lure an NFL team to the area, the researchers concluded that the L.A. market has not yet reached a saturation point based on continued revenue, employment and attendance growth.


Attendance at sports events reached 29 million, representing a 3.3 percent compounded growth rate since 1993. It could have been as high as 4.5 percent if the National Hockey League had not canceled its 2005 season. The two highest paid attendances at a single-day event in 2005 were both auto races held at California Speedway. The Sony HD 500 drew 110,000 and the Auto Club 500, which drew 100,000.


The next highest attended events were both football games. The Rose Bowl game drew 93,486 and the UCLA vs. USC football game at the L.A. Coliseum drew 92,000. Horse racing attendance continued to decline at a rate of 4.2 percent since the inaugural 1993 study, a result attributed to increases in on-line and satellite gambling.


Part-time employment increased 8.4 percent annually since 2003 to 13,267. Full-time employment also increased, but at a much slower rate. Aggregate full-time employment increased to 3,135, up 115 jobs since 2003.


This year’s survey was the fifth survey conducted by the Los Angeles Sports Council since 1993. The Sports Council expects to conduct its study every two years going forward, with the next study scheduled for 2008.

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