What would Penn State hosting a College Football Playoff game mean for the local economy?

Centre County is no stranger to hosting events that attract visitors from all corners of the commonwealth. From historic summer fairs and musicians’ national tours, to Penn State commencement and related university events, you never have to flip the calendar too far without finding something worth circling.

But, when it comes to drawing the biggest crowds, football remains king in Happy Valley. And, when it comes to separating out-of-towners from their wallets, studies show no event boosts the local economy quite like a Penn State football home game.

That’s why local businesses are keeping an especially close eye on this football season.

For the first time in its storied history, Penn State could potentially host a College Football Playoff game in late December. With the recent expansion of the playoff to 12 teams, that means the top four teams will see a first-round bye while Seeds 5-8 will host home playoff games against Seeds 9-12.

So, sure, that extra home game benefits only four teams a season. But James Franklin’s Nittany Lions tend to flirt with Nos. 5-8 every year — and a future home game seems more like a matter of when and not if. If the format existed the past eight seasons, for example, Penn State would’ve qualified for six playoff berths — and would’ve hosted one home playoff game.

Plus, Penn State is already getting prepared. The university’s board of trustees last year approved $70 million toward the Phase 1 renovation of Beaver Stadium, which includes winterization costs (e.g. insulating pipes) to host playoff games in below-freezing temperatures.

Regional economic impact

Envision Beaver Stadium as the bull’s-eye when it comes to the economic impact of a home game. Typically, the closer the bull’s-eye, the bigger the impact.

Based on a 2022 study commissioned by the Happy Valley Sports & Entertainment Alliance (HVSEA), the average Penn State football home game generated about $12 million regionally from weekend visitor spending. That region isn’t simply limited to Happy Valley either, but within about an hour’s drive of Beaver Stadium — meaning most, but not all, of the impact remains in Centre County.

According to HVSEA executive director Eric Engelbarts, that $12 million is a fair baseline to start from when looking to a potential playoff game. But there are plenty of variables to take into account: What is the weather? Who is the opponent? What else is going on around Penn State?

“But you’ve got to assume, especially the first time, it’s going to be a big draw,” Engelbarts added.

When it comes to the most-impacted industries from sporting events, experts usually point to lodging first, followed by transportation, food and retail. Local hotels aren’t afraid to triple their rates — or more — on football weekends. But supply influences price, and Centre County’s estimated 2,500 hotel rooms sometimes don’t even satisfy 25% of the demand, per Engelbarts.

That’s why the biggest games mean significantly higher hotel prices. County hotel revenue from Michigan weekend (Nov. 10-11) stood at just under $3.49 million last year, according to data provided by HVSEA and the Happy Valley Adventure Bureau. For UMass on Oct. 13-14? Try $1.85 million.

Representatives for hotels around State College repeatedly declined to share their own figures. But those who spoke with the CDT acknowledged an extra home game would be substantial for the local industry.

“Weekends in general are usually pretty busy in State College, but there’s definitely a significant jump in traffic on football weekends so having another game would be a plus,” said Ronald Balle, vice president of sales and marketing for Scholar Hotel Group, which owns six area hotels.

Food, problems & more

Pat Romano Jr., owner of Philipsburg’s We Are Inn, remains busy just about every weekend.

His inn boasts only 16 rooms, so he’s usually sold out whether Penn State is preparing for Michigan or a bye. And, regardless of the football schedule, his bar/grill sees a steady business Friday through Sunday.

But football is another animal. And Romano said he brings in about 50% more revenue on a football weekend, compared to a non-football weekend.

“A playoff game would almost be the equivalent of having another White Out game, and that’s the greatest game of the year, as far as being able to get the room costs we need and having people coming in to dine,” he said. “It gets packed.”

We Are Inn is about 25 miles west of Beaver Stadium, but it’s also right off U.S. Route 322 — so it remains a popular stop for fans traveling from western Pennsylvania. Axemann Brewery, near Bellefonte, is about 10 miles north of the stadium — and owner Rod Stahl said he can also count on about 50% more business on a football weekend.

While areas like Philipsburg and Bellefonte see noticeable increases, the larger impact comes from the bars and restaurants in downtown State College. Even for the lesser-attended annual scrimmage, the Blue-White game, employees at several downtown bars previously told the CDT they could do four times the normal business that weekend.

But hosting a College Football Playoff game would be supremely unique. Neither Penn State nor the general public would discover if the Nittany Lions were hosting a game this year until Selection Day on Dec. 8, the day after most conference championships. The first round of the playoffs would then take place Dec. 20 and 21.

And Penn State’s fall commencement is already scheduled for Saturday, Dec. 21 this year.

In other words, the economic impact of a home game would be at least slightly mitigated by commencement because — even without the game — local businesses would still see an uptick in sales. Stahl said, on fall commencement weekend, he sees about a 25% increase, or half the boost that football sees. County hotel revenue for December 2023 commencement weekend stood at just over $685,000.

It would be better, business owners said, if the two events were on separate weekends. The overlap reminded Romano of the 2022 football season, when Penn State scheduled its Homecoming for the same weekend as the White Out.

“Two years ago when they did that, I was like, ‘Man, they didn’t do us any justice on that day,’” he said.

Questions & planning

Very few questions have answers at this early stage, and some pressing topics are certain to influence the economic impact of a College Football Playoff home game.

Will the dorms stay open longer, or will most students look to leave during commencement? Will it snow? Will CATA continue to operate at full capacity? Will final exams still take place on gameday?

“As we enter this new version of the College Football Playoff, there is much to be determined moving into the 2024 football season,” said Kris Petersen, Penn State’s senior associate athletic director for communications, content and branding. “While we would not know if we were hosting a playoff game until early December, we need to prepare for the potential of hosting, and those discussions will involve all parties — the university, community, athletics — who could be impacted by this exciting opportunity.

“We are early in these discussions, and it would be premature to comment on plans at this point.”

Most decisions and possibilities will have a ripple effect. If the kickoff is early, that helps out businesses like Axemann Brewery, where fans tend to visit after the game. If it’s later, that benefits bars and restaurants downtown, since visitors usually stick close to the stadium before kickoff.

If Penn State does host a game, State College Borough would likely approach a six-figure payday when it comes to parking revenue. But that would also come at the expense of suspending free holiday parking, which was partially implemented to increase holiday spending among locals. And not every business benefits from the extra football traffic.

“Some businesses do not see the financial impacts during a football weekend,” said Lee Anne Jeffries, executive director of the Downtown State College Improvement District. “Food and beverage establishments and Penn State apparel businesses see a spike, but boutique retailers will not necessarily benefit.”

Other businesses might benefit from the game indirectly. Exactly 1% of county hotel revenue, derived from a 5% occupancy tax, will go toward local tourism/business grants organized by Happy Valley Adventure Bureau. In the past, that’s meant technological improvements to Grange Fair, promotional billboards for the Central PA Tasting Trail, new parking lots for several farms, etc.

So, overall, when it comes to Centre County’s economy, the county wins when Penn State football does. Even if it snows, even if there’s commencement, even if there’s just two weeks’ notice, tens of thousands of football fans would refuse to miss the Nittany Lions’ first-ever home playoff game.

There’s still a long way to go until then — but even the possibility of a home playoff game has caught a lot of businesses’ attention.

“There’s a lot of questions that need to be answered,” Engelbarts said. “But I really hope we get the chance to figure out all the answers.”