Lincoln Nebraska Sports
Lincoln's downtown and Haymarket area suffered a crushing blow with the cancellation of the Nebraska - Omaha football game on Tuesday night. Business leaders and workers alike were left in despair when the conference released a revised football plan after Tuesday's cancellation.
On the other hand, there is still a holiday volume in the fourth quarter that could make up the shortfall in the third quarter, and the utilization of the hotel with 252 rooms is now about 45 percent. Several Lincoln-area hotels were closed due to the worsening coronavirus situation, but reopened in July as the Lincoln Marriott and Cornhusker. With football matches and other bookings cancelled, business at the embassy has fallen by about 20 per cent compared with the same period last year. Sullivan predicted that business would grow in the second half of the year and return to full occupancy by the end of July.
The financial consequences of pulling the plug on football cannot be measured solely by a series of numbers on a table. In a broader context, football will result in a loss of about $1.5 million to $2 million in revenue for the university in the fall. And that's not even the cost of cobbling together a Cornhusker football team to play this fall, or even next spring.
Nationwide, the research bureau reports that football's annual economic impact exceeds $200 million, including much-needed sales tax revenue to shore up the state budget. In the first study, Matheson found that Nebraska's annual revenue from the Cornhusker football team and the university is likely to be inflated. The second report examines even more detailed data and determines what the local economy receives in return for losing the football program and other state and local revenue.
Matheson said there were three reasons why spending was not higher, what he called the substitution effect or crowdleakage. He said that for all the money spent in Lincoln during a home game weekend, much of that money does not stay in the state. For every 50 cents a fan spends, one dollar ends up elsewhere, he said, and that's because of the "substitution effect" or "crowdleakage."
In 2014, the University of Nebraska's Bureau of Business Research examined the economic impact of nebulous athletics on the local economy. The money spent by fans and the money generated by ticket sales, merchandise sales and other non-sporting activities generated a total of $1.5 million in economic activity for the state.
The kind of things that make sport look like it has a fairly modest impact, but they don't cause the economic activity associated with the Games to disappear. As for the crowd effect, what happens to all the other activities that normally take place, and what does it do?
Biut and Matheson said the impact of the cancellation of Big Ten football games will be felt by individual stores and restaurants. The marketing team will meet in the coming months to discuss how to generate more business in the city. Farwell said he plans an aggressive advertising budget for the fourth quarter that will highlight Cornborn's distinctive design.
Sullivan said plans were in the works to welcome fans to Cornborn on Saturday, September 18, for the first time in more than a decade. In response to the coronavirus that is sweeping the United States, Sullivan said news of a revised football plan gave them something to look forward to.
Victor Matheson is a PhD student in the Department of Public Health at the University of Nebraska-Lincoln. DOA research partner and member of the National Institute of Allergy and Infectious Diseases (NIH).
Meanwhile, the University of Nebraska - Lincoln's new $35 million hotel and convention center - has not experienced any pandemic delays, he said. It is due to open next week, said Chris Solt, director of public relations at the Ministry of Health and Human Services. The name of a Marriott hotel connected to the hotel will be announced at this time, Solts said, but for now an official groundbreaking ceremony for the project, which was originally scheduled to take place in mid-March, is planned.
While many find ways to escape the storm, Maul said that amid all the chaos there is a silver lining.
As the owner of Omaha - based in Ticket Express - Carr makes a significant portion of its revenue from ticket sales for football games in Nebraska and other events. Sullivan said that once the conference - just fall football schedule was released - the phones in the Embassy Suites began ringing as people searched for books for the room. Mike Osborne is looking forward to football weekends in Lincoln as much as he has in the past. The younger Osborne lives off selling Nebraska clothing and memorabilia and is tied to sports in Nebraska.
He said he expected a challenging third quarter after experiencing a normal first half. One final caveat is that "Covid 19 gives you the ability to repay money, so there's a substitution effect.