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PHCC Athletics Adds $2.4 Million to Economy


P&HCC Board Vice Chair Jewell Drewery and President Dr. Greg Hodges discuss the Athletics economic impact study from Lightcast EIS.

 

MARTINSVILLE, VA


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 the 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 in 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.


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