Thursday, October 1, 2009

Importance of the Chicago Cubs to the Arizona Cactus League

Importance of the Chicago Cubs to the Arizona Cactus League


History of Spring Training in Arizona

The Cactus League has its roots in the 1940s and early 1950s when the number of Major League Baseball teams training in Arizona grew to four teams – the Indians, Giants, Cubs, and Orioles (later replaced by the Red Sox). From the beginning, a critical factor was the availability of other teams to provide pre-season competition.

By the early 1970s the Cactus League had grown to eight teams and remained stable at that size for roughly a decade.

In the 1980s competitive pressures from other spring training venues, outside Arizona, began to threaten the Cactus League. New sources of government funding for new facilities in these competitive venues threatened to draw a number of Cactus League teams away from Arizona.

Arizona responded with financial support for spring training facilities and over the intervening years has further expanded reaching fourteen teams in 2009.

Chicago Cubs History in Arizona

The Chicago Cubs were among the first teams to arrive in Arizona for spring training, first training in Mesa in 1952. Over the years, they have played at several facilities over the years in both Mesa and Scottsdale. They have been at Hohokam Park in Mesa since 1978.

Review of Cactus League Attendance in Recent Years

Cactus League Attendance

Season Total Avg. Game

2009 1,578,709 6,418

2008 1,316,160 7,436

2007 1,217,632 6,921

2006 1,169,030 6,587

Source: Cactus League, TMC

Over the last four years, from 2006 to 2009, total Cactus League attendance has increased from just fewer than 1.17 million people to almost 1.58 million people, an increase of over 30%. At the same time, the average number in attendance at each game has declined slightly, from 6,587 in 2006 to 6,418 in 2009, although it had grown by almost 13% from 2006 through 2008 to over 7,400. Undoubtedly, the difficult economic conditions, both nationally and in Arizona in 2009 contributed in large part to the drop in average attendance this year. The total attendance grew in 2009 as the number of Cactus League games increased by 69 games with the addition of two new teams and 11 World Baseball Classic games.

Chicago Cubs Home Game Attendance

Season Total Avg. Game

2009 203,105 10,690

2008 181,280 12,085

2007 175,891 10,993

2006 154,978 11,070

Source: Cactus League, TMC

Review of Chicago Cubs Attendance in Recent Years

For each of the last four years, the Chicago Cubs have had both the highest overall attendance at their home games (over 200,000 in 2009) and the highest average attendance (almost 10,700 in 2009).

The Cubs season attendance grew from around 155,000 in 2006 to over 203,000 in 2009, an increase of over 30%. Average attendance at Cubs home games has fluctuated in recent years with a peak attendance of over 12,000 in 2008. The team’s total attendance grew in 2009 over 2008 by 12% due to the additional four home games, as a result of the Cactus League expansion and the World Baseball Classic.

The Cubs have had the highest overall season home game attendance in each of the last four years as well as the highest average attendance at their home games every year from 2006 to 2009. The Cubs have also played in eight of the ten highest attendance Cactus League games in the League’s history, including six games in 2009.

Impact of the Cubs on Cactus League Attendance

Almost two-thirds more people attended the typical Cubs home game as the average Cactus League game in 2009. The average Cubs home game drew almost 10,700 spectators while the average for all other League teams was just over 5,800 during the 2009 season.

Furthermore, when the Cubs visit other teams in the Cactus League those teams’ attendance increases above their season average. In 13 of the 16 Cubs’ away games, attendance exceeded the home team’s average attendance for the 2009 season. In eight instances, the Cubs visit was the home team’s highest attended game of the season and for another three teams it was one of their top three most attended home games.

If the Cubs were replaced by a team with “average” home game attendance (5,819 in 2009), the 2009 season total attendance would have dropped by over 143,000 or 9.1%, to just fewer than 1,430,000. Put another way, if all Cactus League games had the same average attendance as the Cubs home games, the League’s total attendance in 2009 would have been over 2.6 million people, or two-thirds greater than that actual 2009 attendance.

Economic and Fiscal Benefit of the Cubs to the State of Arizona

As the most popular team in the Cactus League, the Cubs have a disproportionate economic and fiscal benefit to the State of Arizona compared to a “typical” Cactus League team. To measure this disproportionate impact, the Cubs above-average attendance was compared to the attendance of an “average” replacement team. The analysis, completed by Elliott D. Pollack & Company, assumes that the “average” replacement team participated on the same schedule as the Cubs in the 2009 season.

Overall Cactus League attendance would have been almost 144,000 attendees fewer, representing a 9.1% loss in attendance. (Attendance at the replacement team’s home games would have been lower and attendance at the replacement team’s away games would also have been lower.)

Many of the lost attendees would have been out-of-area visitors and so in addition to the game related spending that would result from the lower attendance, there would be a loss in travel related spending, including lodging, food & beverage, transportation, etc. In total, over $31.1 million dollars of Cactus League generated spending would be lost.

The over $31.1 million in directly lower spending would impact the overall state’s economy by over $52.2 million dollars as hotels, restaurants, retail stores, and other businesses would have less activity and in turn lower their payments to suppliers. Lower amounts of spending support fewer employees who spend money in the economy, so the losses become even larger.

In total, the losses (including direct, indirect, and induced) would translate into over 650 lost jobs in the State of Arizona and over $21.1 million in lost wages.

The loss of jobs, wages, and economic activity by replacing the Cubs with an “average” team would also mean lower state tax collections. Lower sales tax collections, lower bed tax collections, lower gas tax collections, lower income tax collections, and others would total over $2.0 million per year. Over a ten year period, the loss would exceed $20 million.

Summary and Conclusions

The Chicago Cubs have a large and dedicated spectator following. These fans attend Cubs home games in Cactus League record numbers. But, they also follow the Cubs as they visit other Cactus League teams. Consequently, the Chicago Cubs are a major contributor to the Cactus League both in terms of its tradition and its current success.


Prepared By

The Maguire Company

June 22, 2009