Sites spend heavily on debates; is it worth it?
Venues cite benefits of national exposure
When the GOP debate series visits Boulder, Colo., later this month, the public university there will roll out the red carpet for the candidates and the television spectacle hoping to cash in on the global media spotlight. The university’s leaders are not alone in investing thousands or even millions of dollars to woo the debates, and to expect a huge surge in exposure in return.
As the debates unfold over the coming year or so, including the Democrats’ first primary debate on Tuesday night in Las Vegas, the events are sure to draw huge TV audiences and advertising dollars. The financial benefits to the debate sites are less certain.
Documents released under state open records laws show the University of Colorado-Boulder has agreed with the Republican National Committee and CNBC to shoulder the bulk of the expenses for the Oct. 28 GOP primary debate.
The state university will waive its normal rental fee of $15,000 for use of the 11,000-seat Coors Events Center basketball arena. Only about 1,000 seats will be available for spectators, of which only 100 will be distributed to university students and officials.
Responding to student complaints about being shut out of the debate, Colorado Chancellor Philip DiStefano said CNBC’s requirements limited space for in-person attendance. He said that in return for its investments, the university expects “unprecedented national and international media coverage.”
The university also will print the tickets and provide parking, free shuttles and a designated protest area. It plans to pay for the debate expenses with private fundraising dollars and insurance rebates.
“We as an institution will get great branding and PR capacity, so we feel that it is a good investment,” said Ryan Huff, a spokesman for Colorado University.
The value of that media coverage is often overstated, however.
Lynn University, which hosted a 2012 general election presidential debate in Boca Raton, Fla., estimated the event generated a staggering $63.7 million in “earned media.”
That figure is based on the university’s name appearing in news stories. But, it’s an inaccurate accounting, said Victor Matheson, an economist at Holy Cross University who studies the financial impact of live events.
“That is a laughable number. I’d say it’s probably inflated by a factor of 20 to 100,” Matheson said. “Ask anyone in the U.S. where one of the 2012 debates was, do you think they’ll say Boca Raton?”
Lynn University estimated the event generated $13.1 million in direct impact, but counted its own $4.5 million investment to host the debate in addition to attendees’ spending on hotels, restaurants and other costs. One example: Lynn estimated that some 4,000 media representatives visited for the debate and spent $2.6 million while in town.
Once a university declares a huge windfall from hosting a debate, the figure spreads and gets repeated by other potential hosts, USA TODAY found.
Representatives from the University of Nevada-Las Vegas and Longwood University, both host sites for 2016 general-election presidential debates, cited the exact same pre-debate projection of “more than $50million in publicity” issued by Lynn in2012.
Las Vegas received $4 million from the city’s convention and visitors authority to cover costs of hosting next October’s presidential debate, an event it says will “garner tremendous media exposure for Las Vegas and reinforce its reputation as a place to do business.”
Longwood University in Farmville, Va., plans to invest $3 million for its October 2016 vice presidential debate, paid for with private donations and cash reserves, not tuition or operating funds, said President W. Taylor Reveley. As in Boulder, however, officials have warned that students most likely won’t be able to attend in person.
“It’s a once-in-a-lifetime opportunity for our students and it’s an important civic responsibility at a national level,” Reveley said.
Nearly 50 sites inquired about hosting a general election debate. Janet Brown, executive director of the non-profit Commission on Presidential Debates, said the commission received 16 bids.
“The fact that multiple universities bid says they believe they get something out of it,” Brown said. “These are historic, exciting events.”
“Ask anyone in the U.S. where one of the 2012 debates was, do you think they’ll say Boca Raton?”
Victor Matheson, economist, Holy Cross University