In a review of the economic value of Patrick & Henry Community College (P&HCC) athletics, Lightcast EIS has determined that for every $1, student-athletes gain $3.30 in lifetime earnings and society gains $5.10 in added income and social savings.
The results of the analysis (reflecting fiscal year 2022-2023) demonstrate that P&HCC athletics creates a significant positive impact on the business community and generates a return on investment to its major stakeholder groups – students and society, along with substantial benefits to taxpayers.
The results of this study indicate that P&HCC athletics creates value from multiple perspectives. The college benefits regional businesses by increasing consumer spending in the region with visitors spending $235,000 and student athletes spending $815,300 in 2022-2023 alone. Resulting tax revenue and public sector savings related to P&HCC athletics yields a taxpayer gain of $1.6 million for the same period. Ultimately, P&HCC athletics benefits society as a whole by creating a more prosperous economy and generating a variety of savings through the improved lifestyles of students.
P&HCC president Dr. Greg Hodges briefed the P&HCC Board on the study at its regular monthly meeting on Monday, highlighting the following:
Visitor spending added approximately $235.0 thousand in income to the P&HCC Service Region economy.
Approximately 72% of student-athletes attending P&HCC originated from outside the region. All these students relocated to the P&HCC Service Region. In addition, some in-region student-athletes, referred to as retained students, would have left the P&HCC Service Region for other athletic and scholastic opportunities if not for P&HCC Athletics. These relocated and retained students spent money on groceries, mortgage and rent payments, and other living expenses at regional businesses.
The expenditures of relocated and retained student-athletes in FY 2022-23 added $815.3 thousand in income to the P&HCC Service Region economy.
Over the years, student-athletes have studied at P&HCC and entered or re-entered the workforce with newly acquired knowledge and skills. Today, thousands of these former student-athletes are employed in the P&HCC Service Region.
The net impact of P&HCC Athletics’ former student-athletes currently employed in the regional workforce amounted to $826.8 thousand in added income in FY 2022-23.
P&HCC Athletics’ FY 2022-23 student-athletes paid a present value of $0.3 million to cover the cost of fees and supplies. They also forwent $2.2 million in money that they would have earned had they been working instead of attending college.
In return for their investment, student-athletes will receive a cumulative present value of $8.2 million in increased earnings over their working lives. This translates to a return of $3.30 in higher future earnings for every dollar students invest in their education. Student-athletes’ average annual rate of return is 12.4%.
Taxpayers provided P&HCC Athletics with little to no funding in FY 2022-23. In return, they will benefit from added tax revenue, stemming from students’ higher lifetime earnings and increased business output, amounting to $1.5 million. A reduced demand for government-funded services in Virginia will add another $162.1 thousand in benefits to taxpayers.
Total taxpayer benefits amount to $1.6 million, the present value sum of the added tax revenue and public sector savings.
In FY 2022-23, Virginia invested $3.2 million to support P&HCC Athletics. In turn, the Virginia economy will grow by $15.7 million, over the course of student-athletes’ working lives. Society will also benefit from $485.4 thousand of public and private sector savings.
For every dollar invested in P&HCC Athletics in FY 2022-23, people in Virginia will receive $5.10 in return, for as long as P&HCC Athletics’ FY 2022-23 student-athletes remain active in the Virginia workforce.
“This report reinforces the important role P&HCC athletics plays in our regional economy and the impact our programs have on keeping our community vibrant,” Hodges said.
