Colgate Athletics

Sam Levy, '08, worked with Professor of Economics Jill Tiefenthaler during the summer of 2006 to assess the economic impact of the creation of a second sheet of ice for the Colgate Athletics program on the local community. His final report is below:

Ice Arena Economic Analysis

Sam Levy, Class of 2008

Advisor: Jill Tiefenthaler

            This project evaluates the potential benefits that a second ice rink may bring to the University and the surrounding community.  Starr Rink, Colgate University’s current arena, is becoming increasingly outdated compared to their Patriot League opponents’ rinks.  The athletic department proposed building a new state-of-the-art facility and converting Starr Rink into an indoor turf practice field.  Members of the Board of Trustees suggested that a second rink may be a valuable asset; it would help improve the current hockey programs, provide more ice time for students and community members, and become a catalyst for economic development in Hamilton by bringing in tourists.

            After reading academic literature on the effects of a new sports stadium and franchise on city development, paging through manuals on how to operate a hockey rinks, investigating websites for many of the rinks in Upstate New York, and interviewing hockey coaches, facility supervisors, and managers of local rinks, it was apparent that having two rinks is a fairly unique circumstance.  It is overall consensus that a twin rink facility that can fill the ice time will be profitable.  It would also allow the University the space to adequately host major hockey tournaments and figure skating competitions.  Due to the fact that nearby Morrisville State College has a double rink, the town of Hamilton may be already benefiting from their tourists’ spillover spending.  Operating a twin rink facility would only force the University to compete with Morrisville and undermine their economic development.  On the other hand, maintaining the second sheet of ice would help recruit hockey players and coaches, hopefully elevating the varsity teams to the top teams of the nation. 

            In this study, I have outlined the direct and indirect, tangible and intangible benefits and costs that would be associated with keeping the second sheet of ice.  Revenues from the use of the facility, ticket sales, advertising, pro shop sales, and concession sales were estimated based on assumptions on spending and the demand of consumers.  Furthermore, the benefit to the community from spillover spending, the effect of tourists spending money within the arena and in town, were projected based the estimated number of tourist visits per year and their spending habits.  Lastly, indirect job creation benefits were calculated based on the number of new jobs that the facility would create and a multiplier specific to this region.