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Economic Impact

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Economic Analysis The Memphis Grizzlies and The FedEx Forum
Bill Madigan
Southern New Hampshire University

Abstract
Economic impact is generated by the continuous operations of the FedEx Forum facility and by the daily operations of the Memphis Grizzlies. Additional impact is generated by the spending of visitors who come to Memphis for the sports and other entertainment events held at the FedEx Forum throughout the year. Visiting NBA teams also spend money which has direct impact on Memphis and Shelby County.
Each year numerous events are held at the FedEx Forum and they bring in out-of-county visitors to Memphis and Shelby County. This impact is also a key point in the revenue generated for the area. In 2009/2010 the revenue generated by the Memphis Grizzles and other entertainment was about $223 million. The total number of jobs brought in by the Memphis Grizzles and the FedEx Forum is close to 1,534. This includes the jobs employed directly by the two entities and jobs that exist throughout the county that assist in visitors who come to the area.
When discussing the economic there are many facets to look at besides jobs and income. The business plan of the Memphis Grizzles is Fans First. They do a tremendous job taking care of the fans and in return have seen a tremendous growth in ticket sales. Full Season Ticket sales for 2013-14 increased by over 20%. They have sold out 17 consecutive home playoff games. Corporate renewal rate is well over 90 percent. They have branded their team as well as any NBA team. “The Grizzlies a young, hip team with a cult following” –Sports Business Journal June, 2013. Local tax revenue related to the Grizzlies and FedEx Forum is estimated at $5.3 million annually. With over 600,000 visitors to FedEx Forum per year, an estimated $4.9 million annually is spent outside FedEx Forum with an economic impact of $8.8 million annually. The Memphis Grizzles have made a major impact not only on Memphis but the entire state especially since it is the only major professional team in the state.
Local businesses also benefit from the existence and success of the Memphis Grizzles. The recent success on the court has led to on average a 20% increase in sales for local businesses. Ten years ago the taxpayers questioned the building of FedEx Forum. Now they are all in and are definitely benefitting from the Memphis Grizzles and will continue to benefit in the future.
References

Memphis Grizzlies & FedExForum Economic Growth Engine. (n.d.). Retrieved May 11, 2015, from http://www.tncpe.org/.../Keynote - Memphis Grizzlies & FedEx Forum

Associates, Y. (2010, September 1). Economic Impact Analysis of The Memphis Grizzlies and The FedEx Forum. Retrieved May 10, 2015.

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