Schools and states like to boast about the economic impact intercollegiate athletics has on their local economies, despite skepticism as to how one arrives at an actual number.
The University of Tennessee took such analysis a step further, and the Knoxville News Sentinel on Thursday published a breakdown of the 10 industries that experience the most economic impact via the University of Tennessee athletics department.
Per the reporting of Adam Sparks, UT Athletics generated $1.15 billion in economic impact throughout the state during fiscal year 2025, according to a study conducted by a private consulting firm contracted by the school.
"It’s an eye-opening figure," Sparks wrote. "A closer look at the 38-page report, which UT provided to Knox News, reveals just how far the Vols reach to boost industries statewide. Construction, restaurants, hotels and clothing retail stores are among the biggest beneficiaries of the UT athletics economic engine.
"Fans visiting Knoxville to attend UT sporting events accounted for $366.1 million, almost one-third of the total impact. And 8,120 jobs statewide were supported by the Vols, including UT athletic department employees, vendors, contractors, construction firms and hospitality workers."
According to Sparks, UT athletics director Danny White said UT wanted an independent study to understand the full effect of the Vols locally and statewide to inform future conversations with business owners and government officials. The study was created by Tripp Umbach, a national leader in economic impact research.
“I figured [the economic impact] would be significant. I didn’t have a number in mind, but I’m not surprised at all that it was over a billion dollars,” White said. “The Knoxville economy, in particular, benefits greatly when we’re filling [Neyland] Stadium every game and filling [Food City Center] every game because we’re also filling a lot of hotel rooms and restaurants.”
That said, restaurants and hotels only rank third and fifth, respectively, on Tennessee's list of top 10 impacted industries:
- Universities, colleges, professional schools: $262.7 million
- Construction of educational, vocational structures: $148.1 million
- Full-service restaurants: $120 million
- Other real estate: $58.3 million
- Hotels, motels: $37.9 million
- Owner-occupied dwellings: $36.8 million
- Clothing retail: $33.3 million
- Gas stations: $30.1 million
- Financial sector: $19.5 million
- Hospitals: $17.9 million
The Vols' statewide impact breaks down thusly:
- $410.2 million in direct impact, including employee payroll, operating expenses and capital expenditures
- $739.8 million in indirect and induced economic activity resulting from the circulation of athletics-related spending throughout the state economy
- $53.9 million generated in state taxes
In Knoxville alone, the breakdown looks like this:
- $332.2 million in direct impact
- $599.2 million in indirect and induced economic activity
- $43.7 million in local taxes
