Governors Ball Music Festival:
Economic Impact Analysis 2016
TABLE OF CONTENTS
Introduction…………………………………………………………………………………............................
3
2016 Governors Ball Facts....…………………….…………………….............................................................
4
Impact Dashboard….....................................................…………………..................................................................
5
Methodology….....................................................…………………..............................................................................
6
Economic Impact….....................................................………………….....................................................................
8
Cumulative Economic Impact….....................................................………………….........................................
12
Philanthropy...........................................................................…........................................................................................ 13
Sustainability..………………………………………………..………………………………………………
15
Appendix......................................................……………………………………………………………………… 16
About AngelouEconomics…….....................……................................................................................................... 18
Governors Ball Economic Impact | 2
INTRODUCTION
Founders Entertainment & The Governors Ball Music Festival
In 2011, Founders Entertainme nt began the Governors B all Music Festival
which takes place each summer in New York City. In its first year, the single
day festival set the record for highest attendance for any eve nt taking place
on Governors Island.
In 2012, the festi val w as e xpanded to two days and move d to Randall’s Island
to acco mmo date the growth in popularity of the festi val. Again in 2013, the
festival expanded into a three-day event to meet the rising de mand set by
festival goers.
AngelouEcono mics (AE) was hired by Founders Entertainment in 2013 to
evaluate the econo mic i mpact of the Governors Ball Music Festival on New
York’s economy.
AE and Founders Entertainment’s long-ter m partnership e nables the impacts
to be me asured on an annual basis. As this is the third year of the
partnership, the cumulative impact of the festival is measured, along with the
festival’s impact in 2016.
In order to model the entire effe ct of the festival, this analysis considers both
expenses for festival operations as well as expenditures of out-of-town
festival attendees. The later has been calculate d using survey data provided
by Founders Entertainment along with AngelouEconomics proprietary
knowledge of music festivals and economic impact analyses.
Governors Ball Economic Impact | 3
2016 GOVERNORS BALL FACTS
v 50,000 music fans per day for 2 days.
v 44 musical artists from around the world.
v 55 food vendors from some of the best eateries,
food trucks, and chefs that New York has to offer.
v $63,466 raised for local charities.
v $15,000 donated to the Mayors Fund to Advance
NYC. The fund will use the contributions for
summer youth employment.
v 9 nonprofit organizations benefited from increased
volunteer hours and donations made by
Governors Ball and its attendees.
v 740 volunteers donated their time to either the
Governors Ball charity partners or aided in
ongoing festival operations.
v 10,200 of total volunteer hours.
v 65.1% of waste diverted from landfills with the
help of fans, volunteers, and staff.
Governors Ball Economic Impact | 4
IMPACT DASHBOARD
Economic Impact
Festival Attendee Impact:
Festival Operations Impact
$24.8M
$12.7M
Total Economic Impact
on NYC Economy:
$37.5M
Employment & Tax Impact
Full Time Job
Equivalents:
228
Labor Income:
State & Local Tax Revenue:
$18.3M
$1.8M
Governors Ball Economic Impact | 5
METHODOLOGY
AngelouEconomics employed the IMPLAN (IMpact Analysis for
PLANning) model for the analysis of the Governors Ball Music Festival.
The model utilizes multipliers specific to the New York County
economy. The total economic output of Governors Ball is comprised of
two inputs: Festival Operations & Attendee Expenditures
Ticket sales and festival operations data were provided by Founders
Entertainment and were used in generating the festival operations input.
The attendee expenditures input was calculated using inputs from survey
data and assumptions estimating the amount of money spent by
attendants on various categories of expenditures.
By applying 2014 IMPLAN multipliers on the inputs mentioned above,
AngelouEconomics generated output data for festival operations,
attendee expenditures, the sum of which creates the total economic
output for the Governors Ball Music Festival.
Festival
Operations
Attendee
Expenditures
TOTAL
ECONOMIC
OUTPUT
Governors Ball Economic Impact | 6
METHODOLOGY
The total economic impact of Governor’s Ball is the result of direct spending on festival operations and attendee expenditure. These
expenditures are translated into revenue for local businesses that support or supply Governors Ball. As these businesses experience
revenue growth, they can increase spending on new goods or employees. By hiring new employees or purchasing additional goods, money
flows back into the local economy. The following dollar amounts given in this report reflect the value of 2016 dollars.
Economists call this snowball spending effect the “multiplier effect”, and it is comprised of direct, indirect, and induced impacts. AE utilizes
IMPLAN’s Input-Output model to measure the effects of direct spending to New York County.
The IMPLAN model utilizes multipliers that are specific to the state of New York and New York County. Moreover, these multipliers
capture the unique relationships that exist between industries in New York. Through these multipliers, the model is able to measure the
economic output of the direct, indirect, and induced effects, which are defined below.
Direct
Indirect
Limited to the effects in the local
economy that occur as a direct result of
Governors Ball expenditures.
Includes increases to sales, incomes, and
jobs in business sectors that support or
supply Governors Ball.
Induced
The household spending patterns of
employees through all business sectors
that experience increased earnings as a
result of Governors Ball.
Governors Ball Economic Impact | 7
ECONOMIC IMPACT
Total 2016 Economic Impact
Total Economic Impacts
Total Economic Impacts of The Governors Ball Music
Festival:
ü
The 2016 Governors Ball Musi c Festival contributed $37.5M
to the New York economy.
ü
The 2016 Governors Ball Music Festival is responsible for 228
full-time job equivalents.
ü
The 2016 Governors B all Music Festival provided over
$18.3M in income to employees throughout the New York
economy.
ü
Full-Time Job
Equivalents
Labor Income
Total
Economic
Output
Direct
173
$12,859,420
$26,575,870
Indirect
39
$4,224,486
$7,988,205
Induced
15
$1,241,516
$2,940,226
Total
228
$18,325,420
$37,504,299
Total State & Local Tax
Revenue: $1.8M
Nearly 30% of the total econo mic output can be attributed
to downstream businesses’ and employees.
Top Impacts on Major Sectors
$800,000
Facility
Support Staff:
$3.6M
$600,000
Restaurants & Bars:
$4.2M
Hotels:
$3.1M
$705,459
$700,000
$500,000
$585,870
$501,265
$400,000
$300,000
$200,000
$100,000
$0
Sources: AE, Implan, Founders Entertainment
Sales Tax
Property Tax
Other
Governors Ball Economic Impact | 8
ECONOMIC IMPACT
Impact of Festival Operations
Festival Operations Impacts
The econo mic impacts o f Founders Entertainmen t’s
operational expenses to host Governors Ball:
ü
Festival Operations co ntributed $24.8M to the New
York economy.
ü
Festival operations are responsible for 126 full-time job
equivalents.
ü
The 2016 Governors B all Music Festival provided over
$11.6M in income to employees throughout the New York
economy.
ü
Full-Time Job
Equivalents
Labor Income
Total
Economic
Output
Direct
84
$7,364,067
$16,817,114
Indirect
33
$3,447,391
$6,230,960
Induced
9
$759,062
$1,798,081
Total
126
$11,570,519
$24,846,154
Total State & Local Tax
Revenue: $902,739
Over 66% of the total e conomic output can be attribute d to
festival operations.
Top Impacts on Major Sectors
Facility
Support Staff:
$3.6M
Public Relations
& Advertising:
$408,473
Public Transit:
$401,354
$500,000
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
$433,224
$216,037
Sales Tax
$253,478
Property Tax
Other
Governors Ball Economic Impact | 9
ECONOMIC IMPACT
Impact of Attendee Expenditures
The economic impacts of Governors Ball attendee
expenditures:
Attendee Expenditures Impacts
Full-Time Job
Equivalents
Labor Income
Total
Economic
Output
ü
Festival attendees contributed $12.7M to the New York
City economy.
ü
Festival attendees gener ated 101 full-time job
equivalents via their expenditures during Governors Ball.
Direct
89
$5,495,353
$9,758,756
Indirect
6
$777,095
$1,757,245
Festival atte ndees produce d over $6.8M in income to
employees throughout the New York City economy.
Induced
6
$482,454
$1,142,145
Total
101
$6,754,901
$12,658,145
ü
ü
Over 33% of the total e conomic output can be attribute d to
attendee expenditures.
Top Impacts on Major Sectors
Restaurants & Bars:
$4.2M
Hotels:
$3.1M
Transportation:
$1.6M
Total State & Local Tax
Revenue: $889,855
$400,000
$350,000
$300,000
$332,392
$285,228
$272,235
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Sales Tax
Property Tax
Other
Governors Ball Economic Impact | 10
POTENTIAL ECONOMIC IMPACT
Sunday Cancellation
Adjusted Methodology
Unfortunately, this year’s Governors Ball Music Festival was cut
short due to inclement weather on Sunday – the final day of the
festival. Despite the extensive planning and preparation that went
into making Governors Ball such a success on its first and se cond
days, the de cision was made by Founders Entertainment, the
Mayors Offi ce, and Parks Department to cancel the festival based
on forecasted severe weather.
To gain a comprehensive understanding of Governors B all’s impact
on New York City, this report calculates the potential econo mic
impact that the festival would have had if Sunday had not been
cancelled. A detailed explanation can be found in the Appendix in
the section titled, “Expanded Methodology”.
Total Potential Economic Impacts
Full-Time Job
Equivalents
Labor Income
Total
Economic
Output
Direct
187
$13,491,780
$27,795,714
Indirect
40
$4,319,712
$8,218,464
Induced
16
$1,292,714
$3,061,504
Total
243
$19,104,205
$39,075,681
As predicte d, the festival w as hit with a quick, yet extremel y strong
storm. The result w as flooding, 40+ MPH winds, damaged fencing
and trees, nearby lightning, and unsafe festival conditions.
Additional Sunday Impacts:
$2M à Increase to Total Economic Impact
$100,000 à Additional State & Local Tax Revenue
$1M à Additional Impact to Restaurant & Bar Sector
15 à Additional Full-Time Job Equivalents
Governors Ball Economic Impact | 11
CUMULATIVE ECONOMIC IMPACT
Total Impacts, 2014-2016
Year
Festival Operations
Attendee Expenditures
Total
2014
$17,752,491
$20,698,377
$38,450,869
2015
$24,668,262
$24,584,084
$49,216,346
2016
$24,846,154
$12,658,145
$37,504,299
$67,266,907
$57,940,606
$125,171,514
Cumulative Total
Year-to-Year Economic Impacts of Governors Ball:
2016: Sunday’s cancellation reduced the attendee expenditures input, which severely reduced the total economic impact of this year’s
Governors Ball. Since this input is built using a survey given to patrons after they attend the festival, only spending patterns that patrons
would have made inside the festival could be estimated (more details of this methodology can be found in the Appendix). The inside-thefestival expenditures of 50,000 patrons over 1-day of Governors Ball has over $2 million impact on New York,
which is about $40 per patron.
Furthermore, this was the first year that attendees were given a survey to answer questions regarding specific expenditure categories during
the festival. In previous years, this input was estimated using surveys from other music festivals in major U.S. cities, and adjusted to account
for cost of living increases in New York. This years attendee expenditures input more accurately reflect the actual
purchases that took place over the weekend. It is important to remember that this input is an estimate, and it is impossible to
know the exact amount that patrons spend throughout the economy.
The model now illustrates with greater accuracy attendee expenditures impact on major sectors of New York’s economy. This year’s results
demonstrate that the hotel and transportation sectors have a much larger share of the total economic impact than previously measured in
past years.
Governors Ball Economic Impact | 12
PHILANTHROPY
Governors Ball partnered with 11 nonprofit organizations
to give back to the City of New York.
v Mayor’s Fund to Advance New York City: Founders
Entertainment donate d $15,000 to the fund, which will be used for
summer youth employment programs.
v Answer Th e Call: New York Police & Fire widow’s & children’s
benefit fund.
v David Lynch Foundation: Healing traumatic stress and r aising
performance in at-risk populations.
v Food Bank for New York City: Ending hunger by organizing
food, information and support for community survival and dignity.
v HeadCount: Non-partisan organization that
musicians to promote participation in democracy.
works
with
v The Salvation Army: Re ducing hunger and improving the lives
of New Yorkers in need.
v New York Common Pantry: Reducing hunger
throughout New York City while promoting dignity and selfsufficiency.
v Citymeals on Wheels: Provides home-delivered meals to
New York’s homebound elderly.
v Proj ect FIND: Provides low- and mo derate-inco me and
homeless seniors with the servi ces and support they need to
enrich their lives and live independently.
v Randall’s Island Park Alliance: Sustains, maintains,
develops, and programs the Park to support the wellbeing of
all New Yorkers.
v Hotels for Hope: Founders Entertainment partnered with
Hotels for Hope to build a customized hotel reser vation
platform for this year’s festival. For each actualized room ni ght
booked through the platform, Hotels for Hope donate d $2 to
nonprofit organizations whi ch help children live happier and
healthier lives. In total, over $2,000 was donated to
Hotels for Hope charities.
Governors Ball Economic Impact | 13
PHILANTHROPY
Governors Ball Gives Back
Founders Entertainment encour aged festi val goers to give back to the
community by offering GA tickets in e xchange for volunteer hours at
local non-for-profit food programs. Eighty volunteers co mpleted
approximately 25-27 ho urs for the Salvation Army, Food Bank for NYC,
Citymeals on Wheels, NY Common Pantr y, Project Find, and Randall’s
Island Park Alliance to help reduce hunger and improve the lives of New
Yorkers in need.
Volunteers: Pre/Post Festival
Festival goers also had the option to volunteer before and after the
festival in exchange for a GA wristband. 160 Volunteers complete d 20
hours each, assisting with festival dé cor, lawn games, ADA accessibility,
and hospitality.
Volunteers: During Festival
Similarly, festi val goers could gain a GA wristband in exchange for three,
5 hour volunteering shifts during the festival. 500 volunteers co mpleted
10 hours e ach – which would have bee n 15 hours if Sunday had not
been cancelled. These volunteers assisted with lawn games, ADA
accessibility, water filling stations, ferry wrist banding, and greeting guests
and providing them with festival information.
10,200 TOTAL
VOLUNTEER HOURS
Gov Ball
Gives Back:
2,000
hours
Pre/Post
Festival:
3,200
hours
During
Festival:
5,000
hours
Governors Ball Economic Impact | 14
SUSTAINABILITY
Founders Entertainment partnered with Clean Vibes to facilitate responsible on-site waste
management. Clean Vibes is an organization that aims to promote recycling, composting, and
proper waste disposal by diverting waste from landfills and increasing the amount of material that
is recycled and composted.
With over a decade of experience, Clean Vibes has a consistent track record of providing greener
results for festivals around the country. By working with Clean Vibes, Founders Entertainment
provided real substance to Governors Ball’s greening efforts.
Across the festival, Clean Vibes volunteers collected loose litter from the grounds and
consolidated bags of recycling and refuse. In exchange for their service, Clean Vibes volunteers
received access to each day of the festival.
In total, 65.1% of all waste materials collected were recycled and diverted from
landfills.
Recycling and Landfill Disposal Profile
Material Collected
Weight (tons)
Diversion/Disposal Type
Paper, Cardboard, Plastics, Glass, and Metal
50.18
Recycle
Wood
42.23
Recycle
Non Recoverable Trash
49.54
Landfill; Waste-To-Energy
Total Recycled
92.41
Total Materials Collected
141.95
Percent Recycled
65.1%
Governors Ball Economic Impact | 15
APPENDIX
I. Additional Definitions
Multipliers: unique to the region being studied and used to calculate the specific effe cts brought about by a change to a regional e conomy.
For instance, a positive e conomi c acti vity will have a multiplier greater than 1. This means that the e conomic impacts are greater than just the
direct expe nditures from the analyzed activity. Si mply put, a multiplier is the ratio that defines the total econo mic output create d for each
dollar invested.
Jobs: are created through induced effects and are full-time equivalents
Tax Impacts: include federal, state, and local impacts are included in the total economic output
Labor Income: includes all forms of employment income. This includes both wages and benefits
Governors Ball Economic Impact | 16
APPENDIX: EXPANDED METHODOLOGY
Potential vs. Actual Economic Impact Models
In order to adjust for Sunday’s cancelation, the following
adjustments were made in the potential economic impact model.
Festival Operations
Founders Enter tainme nt utilized an event weather insurance policy
to protect Governors Ball against adverse weather conditions
during the festi val. This type of insurance protects against
inclement weather conditions that may reduce revenue from ticket
sales, concessions, food and transportation.
To build the potential i mpact s cenario, adjustme nts are made to
account for attendee expenditures whi ch would have bee n made if
Sunday had taken place. Any purchases that patrons could have
made within the festi val are adjusted to reflect potential three-day
expenditures, while purchases made ou tsid e the festival remained
unchanged across both mo dels. Outside purchases are not
adjusted since the survey asked how much patrons spent while in
New York City outside Governors B all – impl ying that if patrons
spent mone y on outside acti vities on Sunday, these e xpenditures
would be accounted for in their response.
Since Sunday w as ultimately cancelled, full refunds were issued for
Sunday patrons, w hile 33% refunds were issued to three-day ticket
holders – for both festi val and tr ansportation ti cket holders. The
event weather insur ance policy protected Founders Ente rtainment
from this loss in revenue, leaving festi val oper ations unchanged in
the potential and actual economic impact models.
Attendee Expenditures
The attendee e xpenditures input is created using a sur vey given to
patrons after the festi val took place. Therefore, survey respondents
provided answers that reflected spe nding habits during their twoday actual experience at Governors Ball – rather than their threeday potential experience.
Governors Ball Economic Impact | 17
ABOUT ANGELOUECONOMICS
AngelouEconomics partners with client communities and
regions across the United Sta tes and abroad to candidly assess
current economic development realities and identify
opportunities.
Our goal is to leverage the unique
strengths of each region to provide new,
strategic direction for economic
development.
As a result, AngelouEconomics’ clients are able to diversify
their economies, expand job opportunities and investment,
foster entrepreneurial growth, better prepare their
workforce, and attract ‘new economy’ companies.
Project Team
Angelos Angelou
Principal Executive Officer
William Mellor
Vice President
General Manager, Economic Impact
Anthony Michael
Project Manager
To learn more, visit www.angeloueconomics.c om
Governors Ball Economic Impact | 18