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Truth or ConsequencesReleased by Think BIG
January 20, 2012
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Introduction
According to Brookings, the capital of California was the worst-
performing large metro economy in North America. In either America,actually.
The Atlantic, The 10 Fastest-Growing (and Fastest-Declining) Cities in the
World, January 19th, 2012
Sacramento has been ranked the 5th fastest declining economic zone inthe world. Only one other U.S. city made the bottom 10 list (Richmond,
VA).
Even more troubling is the fact that numbers 1-4 are all Eurozone
impacted cities (Seville, Spain; Lisbon, Portugal; Dublin, Ireland; andAthens, Greece).
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Contents
1. Overview
2. Economic Consequences in NBA Cities
3. Cultural Consequences to Sacramento
4. Conclusion
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Overview
The ESC represents a major opportunity for the economic future of
Sacramento, including the direct creation of4,100 jobs and $7B ineconomic activityover 30 years
If the ESC project is unsuccessful, there will be major consequences, as
the region will effectively be taking a significant step backwards
These consequences will be manifested through economic and cultural
losses to the region, as Sacramento will no longer be a professional sports
city with a venue capable of hosting world class concerts and cultural
events
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Contents
1. Overview
2. Economic Consequences in NBA Cities
3. Cultural Consequences to Sacramento
4. Conclusion
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Examples of Lost Economic Activity
Chicago
Los Angeles
Memphis
Seattle
Sacramento
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Chicago
Chicago estimates a loss of$3.5M in direct economic impact for every lost
NBA game
Additionally, Chicago estimates a loss in indirect economic impact of$11.2M
for every lost game
They estimate a direct economic impact per NBA playoff game of $4.68M
Chicago estimates that the City/County earns $300,000 per NBA Game
through taxes on ticket sales, parking, and concessions
Source 1999 Chicagoland Chamber of Commerce Study Adjusted for Inflation 7
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Los Angeles
Staples Center provides the City of LA with $35.6M per yearin taxable
sales directly
Staples Center generates an additional estimated $58.5M in event ticket
and parking revenue
Each Lakers game has an estimated direct impact of nearly $33M and an
indirect impact of an additional $40M
Sources John Blank, Chief Economist LAEDC & Robert A. Baade 8
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Memphis
The FedEx Forum in Memphis creates over $223M in Direct Economic
Impact each year, including over $9M in spending from visiting NBAteams/fans.
FedEx Forum is responsible for approximately 1,534 jobs each year.
The FedEx Forum generates over $5M in local tax revenue each year
Source 2010 Greater Memphis Chamber of Commerce 9
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Seattle
The Seattle Sonics generated between $183M and $194M annuallyin
economic output between 2003 and 2007, before the team left Seattle in2008
When the Sonics relocated to Oklahoma City, Seattle suffered over 1,400
lost jobs, including 124 Sonic employees and 300 employees at Key Arena
The jobs were responsible for $25-26M per year in Seattle Household
Income prior to the relocation of the team Increased Household Income
Source Navigant Consulting 10
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Economic Impact to Sacramento
Without an entertainment and sports complex, the Sacramento region
will not only lose out on 4,100 new jobs and $7B in economic activity butwill suffer the loss of approximately 750 employees of Power Balance
Pavilion and 150 Kings employees
Similarly, the region will lose:
An estimated $100M of annual spending,
$7.5M of annual payroll to employees,
and $1.3M per NBA game of economic outputin the local economy.
Sources based on similar figures via 2004 Portland Trailblazers Study, SacBee, Power Balance Pavillion, H&R Block 11
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Contents
1. Overview
2. Economic Consequences in NBA Cities
3. Cultural Consequences to Sacramento
4. Conclusion
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Cultural Impact to Sacramento
Performance information provided by Maloof Sports & Entertainment
Without an ESC, it is unlikely Sacramento will be able to host these major concerts in the future
From 2009-2011, Sacramento did host some major shows, including :
Britney Spears Usher
Glee Live in Concert
Lady Gaga
Disturbed and Korn
Eric Clapton The Judds
So You Think You Can Dance
Godsmack
Nickelback
Justin Bieber Shakira
Muse
Michael Buble Rihanna
Cirque de Soleil
Disney on Ice
Black Eyed Peas
Carrie Underwood Bon Jovi
Green Day
The Jonas Brothers
Beyonce
Keith Urban Sade
John Legend
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Cultural Impact to Sacramento
Artist 2011 Revenue California Performances
U2 $156M Anaheim, Oakland
Taylor Swift $97.7M Los Angeles, San Jose
Kenny Chesney $84.6M Anaheim
Lady Gaga $63.7M Anaheim, Los Angeles (3x), Oakland, Sacramento, San Diego
Bon Jovi $57.1M N/A
Elton John $51.8M N/A
Sade $48.6M Anaheim (2x), LA (3x), Oakland (2x), Sacramento, San Diego, San Jose
Jay Z/Kanye West $48.3M Los Angeles (3x), San Jose
Lil Wayne $44.4M Anaheim (2x), Oakland, Sacramento, San Diego, San Jose
Celine Dion $41.2M N/A
North American Tours Only
Top 10 Tours of 2011
Of the top ten North American tours only three played in Sacramento. Those three each
played one night in Sacramento, while playing multiple nights in other California cities.
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Cultural Impact to Sacramento
Artist Average Ticket Price California Performances
Roger Waters $222.98 Los Angeles, San Diego, San Francisco
Kenny Chesney & Tim McGraw $202.13 Anaheim
Lady Antebellum $141.26 Fresno, Los Angeles, Sacramento, San Diego, San Jose
Red Hot Chili Peppers $178.72 Los Angeles (2x), Oakland (2x), San DiegoJason Aldean $187.67 N/A
Neil Diamond $210.72 San Jose
Brad Paisley $161.21 N/A
Coldplay $257.27 Los Angeles (3x), San Jose (2x)
George Strait $180.88 N/A
Rascal Flatts $169.69 N/A
Based on tickets sold as of 12/22/11
Top 10 Tours of 2012
Of the top ten North American tours in 2012, only one is scheduled to play in
Sacramento. Six of the ten are scheduled to come to California.15
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Contents
1. Overview
2. Economic Consequences in NBA Cities
3. Cultural Consequences to Sacramento
4. Conclusion
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Summary
Sacramento has a choice either move forward with aproject that creates thousands of jobs and billions in
economic activity
Fail to complete the ESC project, and experience the
economic and cultural consequences of no longer being aprofessional sports city and a venue for hosting major
cultural events
OR
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