Colts play keystone role in Central Indiana economy
INDIANAPOLIS (WISH) — On a gameday morning barely a mile from Lucas Oil Stadium, William Hogg is expecting another rush of customers.
Hogg owns Red’s Classic Barber Shop. Its location near the intersection of Washington and Meridian streets puts it in the heart of downtown. He said any time the Colts play at home, business picks up.
“On a normal day, we average 40 or so customers, but on game day, that number probably goes up to about 60,” he said.
Hogg said any event at the stadium means more customers. Besides Colts home games, he said he can count on people dropping in while attending the Big Ten championship, the NCAA basketball tournament, the firefighters’ convention and even car shows. Many of those customers simply come in because they walk by the store and more than a few become regulars.
“That happens a lot more than what you really would think,” he said. “They may be from Connersville, Indiana, or something, and say ‘Wow, I found this old barber shop’ and then they end up becoming regular customers.”
Hogg said many of the business owners he knows report similar trends and research backs up those claims. A 2014 IUPUI study found sports overall add more than $3 billion in revenue to the central Indiana economy each year. The 2022 College Football Playoff championship game alone generated more than $156 million in new economic activity, exceeding pre-game estimates. Dr. Mark Rosentraub, a professor of sports management at the University of Michigan, said the Colts play an anchor tenant role downtown. He worked on downtown revitalization under Mayors Bill Hudnut and Steve Goldsmith, with a particular emphasis on working with the Colts to keep them in town.
It starts with Lucas Oil Stadium. Rosentraub said the stadium makes it possible for Indianapolis to host a wide variety of events throughout the year.
“(Colts games) give a base of roughly about 10 to 12 events a year. You have to build off that base,” he said. “But if you don’t have the anchor tenant, it becomes much more difficult to figure out a strategy that makes the venue financially feasible.”
Rosentraub said it’s not enough to simply have a stadium for an NFL team to play in. He said the city has to continually work with the Colts on their evolving needs as a team. As an example, Rosentraub cited the ongoing renovations at the nearby Gainbridge Fieldhouse. Even though the facility itself is only 23 years old, he said the way in which fans enjoy basketball games has changed and their expectations for amenities have shifted accordingly.
“When we have a vibrant downtown, we have higher values of houses, apartments, et cetera in downtown Indianapolis,” he said. “That’s important for the city of Indianapolis. And Boone County or Hamilton County can think, well if something goes back in Indianapolis, it won’t affect us. It won’t affect you immediately, but the wave eventually reaches you.”
When it comes to Sunday and Monday night games, Rosentraub said there’s no real difference between the two days in terms of economic impact. He said most of the people who attend Colts games live in central Indiana and will be there either way. He said Monday night games tend to get more viewers than Sunday games because they aren’t competing with other NFL games but he said that mainly boosts publicity. Hogg said the boost he gets from the games has less to do with the day of the week and more to do with how well the Colts are doing, though he can still count on extra business even during a losing season.
Kickoff is scheduled for 8:15 p.m., so Hogg said he most likely will get the most foot traffic from 2 to 6 p.m. He said business downtown tends to be fastest in the hours leading up to kickoff. Hogg said downtown businesses like his build off of each other’s success.
“Whenever restaurants are doing well and places down here are doing really well and people are frequenting these places, it’s a trickle effect, it helps the surrounding business,” he said.