Study shows UH brings in bucks to local economy

The University of Hawaii is touting a report on the economic impact generated by its athletic teams as a reason for financial assistance from the Hawaii Tourism Authority and the Legislature.

UH President David Lassner told the Board of Regents Thursday that athletics "generates about $66 million in direct spending, $128 million of Hawaii business sales, $36.9 million in income for Hawaii workers, $7 million in state tax collections and 860 jobs, so this is not small potatoes in terms of impact to the community."

In addition Lassner has said UH athletic events drew 20,000 visitors who spent a total of $31 million in 2013-14.

The figures were from a report commissioned by UH athletic director Ben Jay and compiled by the school’s Shidler College of Business.

Lassner said, "That’s part of the message that we will be bringing forward in seeking support from outside of our current general funds and outside our current tuition and fees to maintain a UH Manoa athletics program to serve the community."

With sales of more than $16 million, the report said the athletic department would rank "among the Top 215 largest companies by sales revenues in the state of Hawaii per the Hawaii Business Top 250 listing for 2013."

Regent Jeff Portnoy praised the report, saying, "I think it proves that UH athletics is a community event, not something that is solely the responsibility nor the province of the university. It brings in tens of millions of dollars to the community by way of tourist hotel spending and food and everything else."

Portnoy said, "We hope that the report will help assist our efforts to obtain funding from entities such as the Hawaii Tourism Authority, which funds many athletic endeavors like golf and the Pro Bowl but not any at (UH)."

The HTA declined comment, a spokeswoman said. It recently announced $3.3 million in grants to 156 programs and events. Jay said UH received $575,000 from the HTA three years ago but nothing since.

Regent Chuck Gee, who served as Dean of UH’s School of Travel Industry Management from 1976 through 1999, said, "… (UH) should be sure to talk to the HTA about their lack of contribution. I mean, there is money in the HTA budget for developing projects and entertainment is high on the list. Sports is very high on the list and we do not have major (league) teams here so it is UH."

The athletic department, which has run a deficit for 10 of the past 12 years, is projecting a $3.5 million deficit for the fiscal year.

Portnoy, who chairs the regents’ Committee on Intercollegiate Athletics, said the group has "reinforced to the athletic director and the chancellor that continuing to run an athletic program in the red is not something that the board is interested in condoning and that we need to find answers to the on-going financial difficulties arising from intercollegiate athletics."

Portnoy said the committee has tasked Jay with mapping a plan of "… how to minimize and, hopefully, eliminate the budget deficit" and expects a report shortly.