All eyes were on the city of Indianapolis this past weekend as the town hosted dual events that had people worldwide glued to their TV screens, social media, and most importantly, attracted thousands to the city. Of those that came into town, their dollars helped boost the local economy.
The Indianapolis 500 IndyCar race is an annual staple during Memorial Day weekend, however, basketball fans were able to continue cheering for the Indiana Pacers as they strive toward their first NBA championship.
“These events not only deliver an immediate economic return, but also long-term value through positive media exposure. It was a great weekend to be a Hoosier,” said Leonard Hoops, president and CEO of Visit Indy.
Indianapolis is known as the racing capital of the world, so many expect the races to bring dollars to the city. Based on a 2012 study commissioned by the Indianapolis Motor Speedway (IMS), more than 200,000 out-of-state visitors spent more than $145 million combined at three IMS events – the Indianapolis 500, the Brickyard 400 and the Red Bull Indianapolis GP.
“Visitors came from all 50 states and more than 50 countries,” added Chris Gahl, vice president of marketing and communications for Visit Indy.
Also, events and operations at the IMS and associated motorsports businesses generate more than $510 million annually to the Indiana economy, according to a study by the Indiana University Public Policy Institute.
“This study shows how the IMS and its associated industries form a powerful engine that helps drive the Indiana economy,” said Mark Miles, chief executive officer of Hulman and Co., the parent company of the IMS and IndyCar, in a previous interview. “This state is very fortunate that IMS, its events and associated industries deliver an even greater economic contribution every single year.”
Doug Boles, chief operating officer for IMS, said a 2013 study looked at new dollars that would not be in the state of Indiana, but for IMS being in the capital city.
“It’s more than half a billion dollars a year added to the Central Indiana economy,” said Boles. “If you included dollars that would have been spent say in the region near Chicago, Fort Wayne or Evansville, the impact is even bigger.”
Direct contributions made to the city by racing include: Approximately 6,200 direct and indirect jobs created by IMS events and operations, Indiana-based IndyCar teams and the Dallara facility; and direct spending by IMS and associated motorsports businesses in 65 of 92 Indiana counties.
“The success of IMS and the growth of the motorsports business go hand-in-hand and combine to provide a potent economic force in our state,” said Jeff Belskus, president and chief executive officer of IMS.
Gahl added that while the race draws in millions in revenue, the Indy 500 also draws in many corporate decision makers who may take a second look at Indianapolis when hosting a major event or meeting. The race helps them see the city in a new light.
Boles encourages local residents to experience events at the Speedway not only to contribute to the economy, but also to experience a unique event with a storied history.
Despite lackluster performances in previous NBA playoff seasons, the Indiana Pacers have found their mojo and have done incredibly well this year. The Pacers are squaring off against the NBA defending champions, the Miami Heat in the NBA Eastern Conference Finals. The victor will go on to play the San Antonio Spurs in the NBA Finals beginning June 6.
The home team is in their third round of the NBA playoffs and has had several games in Indianapolis that have brought substantial dollars to the city.
“We know each time the city hosts a home Pacers playoff game, more than $1 million in visitor spending is generated,” said Gahl.
Having NBA greats such as Reggie Miller, Shaquille O’Neal and Julius “Dr. J” Erving in town in addition to national media coverage also helped focus a lens on the city and what it has to offer. Gahl said that during the last home playoff game, Greg Anthony, former NBA player and sports commentator, tweeted that Indianapolis may be the most underrated city in America.
“You can’t buy attention and advertising like this,” said Gahl. “This really goes a long way when positioning the city as a vibrant place to visit.”
Indianapolis, also known as the amateur sports capital of the world, is currently enjoying the spotlight, however, there is buzz that the Pacers are not only boosting their brand, but boosting bargaining power.
Recently, the NBA rejected bids to move the Sacramento Kings to Seattle. This leaves the Washington State city, full of tech-driven wealth, still in need of a team. Several one-year deals between Indianapolis and the Pacers run out next year giving the Pacers leverage to demand more dollars.
Indianapolis wants to strike a long-term deal, however, with the police department understaffed, basic services being cut and other financial woes, the city may have trouble convincing residents to help fund sports teams.
“I’m confident that you have two parties that are willing to actively negotiate,” said Ann Lathrop, president of the Capital Improvement Board, in a previous interview. “Can I tell you with 100 percent certainty that it will happen? No. But we have an active partner in the Indiana Pacers and they care a lot about remaining in Indianapolis.”
The Capital Improvement Board (CIB) is a municipal corporation of Marion County to finance, construct, equip, operate and maintain any capital facilities or improvements of general public benefit or welfare which promote and serve the commercial, industrial and cultural interests of Indiana and its citizens. The CIB operates and/or owns the Indiana Convention Center, Lucas Oil Stadium, Bankers Life Fieldhouse and Victory Field.
Despite the Pacers’ exceptional playoff performance, Gahl said the city doesn’t count on them to bring events and tourists to the city. They use every opportunity such as concerts at The Lawn at White River Park and Old National Centre or the opening of the Indianapolis Cultural Trail to bring a wide range of visitors to the city. Promoting all of Indianapolis’ events and keeping the updated Indiana Convention Center full also keeps downtown jobs in places such as hotels and restaurants alive and well.
