TEXAS MAJOR EVENTS REIMBURSEMENT PROGRAM

TAX IMPACT ANALYSIS

SUPER BOWL LI

BDO USA, LLP

Prepared for
Houston Super Bowl Host Committee
September 12, 2016

2016 BDO USA, LLP

Table of Contents
I.

Overview of Assignment ........................................................................................................ 1

II.

Summary of Opinions............................................................................................................. 2

III. Qualifications ......................................................................................................................... 2

IV. Background............................................................................................................................. 3
A. Road to the Super Bowl ..................................................................................................... 3
B. The Popularity of the Super Bowl ..................................................................................... 4
C. Schedule of Events ............................................................................................................ 5
V.

Methodology........................................................................................................................... 9
A. Market Area ....................................................................................................................... 9
B. Incremental Taxes ............................................................................................................ 10
C. National Economy ........................................................................................................... 10
D. Texas Regional Economy ................................................................................................ 12

VI. Inputs and Assumptions ....................................................................................................... 13

A. Attendance and Origins of Visitors ................................................................................. 13
B. Hotel Block and Length of Stay ...................................................................................... 19
C. Spending Assumptions .................................................................................................... 21
VII. Determination of Incremental Taxes from Out-of-State Visitors......................................... 24
A. Determination of Hotel Nights for Out-of-State Visitors ................................................ 24
B. Determination of People Days for Out-of-State Visitors ................................................ 25
C. Spending by Out-of-State Visitors................................................................................... 25
D. Incremental Taxes Associated with Out-of-State Visitor Spending ................................ 26
E. Event Spending ................................................................................................................ 27
VIII. Taxes on Event Tickets ........................................................................................................ 28
IX. Conclusion ............................................................................................................................ 29

Super Bowl LI

I.

Overview of Assignment

The Houston Super Bowl Host Committee (the Host Committee) has engaged the firm BDO
USA, LLP to estimate the incremental increase in certain tax revenues to the City of Houston,
Harris County and the State of Texas from out-of-state visitors directly attributable to Super
Bowl LI and related events (throughout this report, the game is referred to as Super Bowl LI
and the game plus related events is referred to as the Super Bowl Event). We understand that
this information will be provided to the Economic Development and Tourism Division of at the
Office of the Governor of Texas (Governors Office) as information on which it will make a
determination under Tex. Rev. Civ. Stat. art. 5190.14, Section 5A (the Act).
To perform our study of the tax impact of the Super Bowl Event we rely on the accuracy and
reliability of various pieces of information and estimates supplied by the staff at the Host
Committee. While we analyze, test and otherwise investigate the information supplied by the
Host Committee and the information we gather from other sources, our engagement is not
designed to disclose errors, irregularities, etc. that may exist.
This report is intended to provide the Governors Office with information necessary to make a
determination under Subsection (b) of the Act. The Act authorizes a Major Events
Reimbursement Program (MERP) for specific events including the Super Bowl. To be
eligible for funding the site must be selected through a competitive process where one or more
sites under consideration is outside the state, at least one portion of the event site is within the
state, and the event is not held more than one time in the state in any year. Upon request by the
municipality or county in which the event will be located, the Governors Office determines the
incremental increase in tax revenue from out-of-state visitors in the following categories (i)
alcoholic beverage taxes, (ii) sales and use taxes, (iii) rental car taxes, and (iv) hotel occupancy
taxes directly attributable to the event for a period of one year that begins two months prior to the
event, in accordance with procedures developed by the Governors Office. 1 It is our

We understand that the expected increase in state tax revenue is limited to 6.25 times the expected increase in
taxes from the City and County, and that all funding into the MERP is made in a fixed ratio of $6.25 from the
state for every $1 from the local level. We understand that the local governments may not contribute funds
outside this fixed ratio and that this ratio holds even if either the City or County does not participate.
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understanding that this event has met the necessary requirements and is eligible for funding
through a MERP.

II.

Summary of Opinions

Based upon our review of the information available related to this matter, we determine:

The estimated incremental increase in qualifying tax revenue under the Act is
$22,308,951 for the State of Texas and $3,569,432 for the maximum local
contribution. This is a total of $25,878,383. See Schedule 1.

The anticipated total spending in the State of Texas associated with out-ofstate visitors at Super Bowl LI is $603,069,914. The estimated direct spending
in the State of Texas associated with out-of-state visitors at Super Bowl LI is
$327,963,341. The estimate indirect and induced spending in the State of
Texas associated with out-of-state visitors at Super Bowl LI is $275,106,573.
See Schedules 1 and 2.

We expect that there will be a total of 140,800 attendees at the Super Bowl
Event. We expect that 109,264 attendees will be visiting from outside of
Texas. See Schedule 3.

The primary event for the Super Bowl Event is Super Bowl LI on February 5,
2017. The anticipated total attendance at the primary event is 82,800 attendees
(consisting of ticketed attendees, players and team personnel and credentialed
attendees). The anticipated out-of-state attendance at the primary event is
62,864 attendees (consisting of ticketed attendees, players and team personnel
and credentialed attendees). See Schedule 3.

III.

Qualifications

BDO Consulting is a division of BDO USA, LLP (collectively referred to as BDO where
appropriate). BDO Consulting provides litigation, economic, investigation, restructuring,
valuation and risk advisory services to major corporations, law firms, insurance companies,
financial service entities and government organizations. Our highly experienced and wellcredentialed professionals draw upon a range of industry knowledge and completed consulting
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engagements throughout the United States and internationally to provide clients with
unparalleled service. BDO Consulting leverages the global industry and accounting knowledge
of the BDO international network, providing rapid, strategic advice to assist our clients with
dispute resolution, risk management, financial solvency and regulatory compliance issues.
BDO engagement professionals have enjoyed significant professional recognition and
certification for professional development by national organizations such as the American
Institute of Certified Public Accountants, Association of Certified Fraud Examiners, National
Association of Certified Valuators and Analysts and American Society of Appraisers. In
addition, many of our professionals hold advanced degrees including Ph.D.s, MBAs and
Masters degrees in finance, economics, law and accounting. We have staff members who
possess a deep understanding of valuation, information retrieval and fact gathering, dispute
resolution and economic consulting assignments.
This report was prepared by Mr. Chris W. Johnson and Dr. James D. Woods and other
professionals at BDO working under their supervision. We have previously prepared tax impact
analyses under the Act for the 2014 and 2016 NCAA Division I Mens Final Four, the 2015
NCAA Division I Football Bowl Subdivision National Championship and the 2015 Academy of
Country Music Awards. We have also prepared tax impact analyses for other sporting events
including Major League Soccers 2010 All-Star Game, the 2013 and 2014 AT&T Cotton Bowl,
the 2013 and 2014 Shell and Pennzoil Grand Prix of Houston, the 2013 and 2015 NCAA
Division I Mens Basketball South Regionals and WrestleMania 32. Mr. Johnsons and Dr.
Woods resumes are attached as Exhibit A.

IV.

Background

A.

Road to the Super Bowl

The Super Bowl is an annual sporting event typically held on the last Sunday of January or the
first Sunday of February. It is the final post-season game of the National Football League (the
NFL) season and serves as the annual championship match for the sport.
The NFL has 32 football teams located in major cities across the country. These 32 teams are
grouped into two conferences, the American Football Conference (the AFC) and the National
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Football Conference (NFC). Each conference is further subdivided into four divisions; East,
North, South and West. The NFL has a 17 week regular season during which each team plays 16
games. Following the regular season, the four division champions and two wild card teams
with the best record within the conference advance to a 12-team postseason tournament. The
culmination of the postseason is the Super Bowl. The Super Bowl is hosted at a predetermined
venue, selected by the NFL through a competitive bidding process.
B.

The Popularity of the Super Bowl

Since the first Super Bowl, all games have been available for live viewing on television in the
United States. Television and other multimedia coverage of the tournament has grown over the
years to include coverage for certain ancillary events. In 2017, Super Bowl LI is expected to be
broadcast live by the Fox Broadcasting Company.2
The Super Bowl is an extremely popular event that draws millions of viewers annually. In fact,
the three most recent Super Bowls are the three most watched television broadcasts in the United
States.3 Additionally the media buyers guide states that the Super Bowl is the biggest single-day
event in sports.4
The Super Bowl is commonly considered more popular than the championships of other U.S.
professional sports leagues:
Neither the hugely popular Major League Baseball World Series nor the
National Basketball Association championship commands so much
attention. Possibly this is because the Super Bowl is a single game, a
winner-take-all contest. Add the televised entertainment that surrounds
the game, and Super Bowl Sunday becomes an event even for those who
are not football fans.5
The popularity of the Super Bowl is also evident through the high demand for game tickets and
their corresponding prices. According to the NFL, the demand for Super Bowl tickets greatly
2
3
4
5

http://www.thewrap.com/tv/article/nbc-fox-cbs-reach-long-term-nfl-deals-33611/.
http://money.cnn.com/2016/02/08/media/super-bowl-50-ratings/.
www.medialifemagazine.com/a-media-buyers-guide-to-march-madness/.
http://iipdigital.usembassy.gov/st/english/pamphlet/2014/01/20140130291861.html#axzz3eNIhuFJ5.
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exceeds the supply. Most of the tickets are allocated to the 32 teams, but a small portion are
allocated to the general public and are awarded via a random drawing. 6 However, it is not
uncommon to locate tickets on the secondary ticket market, where fans pay amounts that are
several times above the face value of tickets. For example, the average price of a ticket on the
resale market for Super Bowls XLIII-XLIX was over $2,500. 7 Reports indicate that on the
secondary market, the least expensive ticket for Super Bowl 50 was over $3,000.8
In recent years coverage of the Super Bowl has expanded to increase exposure online and on
mobile devices, making it easier for more fans to view the game. In fact, the Super Bowl has
become such a spectacle, there are numerous reports discussing the total amount of productivity
lost in the U.S. due to the number of people that miss work or come in later on Monday after the
Super Bowl.9
C.

Schedule of Events

Super Bowl LI will be hosted on Sunday February 5, 2017 at NRG Stadium in Houston. In
addition to the main draw of Super Bowl LI, many ancillary events are planned. These events
and Super Bowl LI are referred to in this report as the Super Bowl Event. These ancillary events
draw considerable crowds and visitor spending. Each year the local host committee and the NFL
track a large number of events that are hosted in conjunction with the Super Bowl. As part of the
bid package, the NFL commonly requests that the majority of large venues in the host city are
reserved for these types of events. The NFL and the local host committee then match the venues
with the variety of events that will be hosted. The Host Committee provided us with a calendar
of events associated with Super Bowl 50 held in Santa Clara in 2016. There were over 130
events surrounding Super Bowl 50 that were hosted in NFL reserved spaces by the NFL, NFL
Sponsors, the Super Bowl 50 Host Committee and other third parties. There were many other
events that were hosted in spaces not reserved by the NFL, but these events were not tracked by
the NFL or the host committees.
6
7
8
9

http://www.nfl.com/help/faq.
http://www.foxsports.com/nfl/laces-out/super-bowl-50-resale-ticket-prices-high-carolina-panthers-denverbroncos-012416.
http://money.cnn.com/2016/02/07/news/super-bowl-ticket-price-average-drop/.
http://www.foxsports.com/nfl/story/super-bowl-50-workplace-productivity-monday-after-game-broncospanthers-020416 and
http://www.washingtontimes.com/news/2008/jan/29/a-long-road-to-super-bowl-monday/.
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While details for the events surrounding Super Bowl LI are still being finalized, the Host
Committee has informed us that the schedule of events for Super Bowl LI is expected to be
similar to the events held in conjunction with Super Bowl 50. Most of the official events are
expected to take place between Saturday January 28 and Sunday February 5. Load-in is expected
to commence by January 6, 2017 and move-out is expected to be completed by February 12,
2017. The following paragraphs provide information on some of the prominent ancillary events
that are anticipated to be held in conjunction with Super Bowl LI.
On Saturday January 28 the Host Committee will hold its Host Committee Kickoff Party. This
will be a private event catering to VIP attendees including Host Committee and NFL officials.
The attendance for this event is expected to be approximately 500 people. The event will be
hosted in Houston, though a specific location has not yet been finalized.
The NFL Experience is also expected to begin on Saturday January 28. This is a multi-day
ticketed event which will be open through Sunday February 5. The NFL Experience is a
temporary interactive theme park produced by the NFL. The NFL Experience allows fans to
participate in interactive games such as running a 40-yard dash, kicking extra points and
throwing passes at targets to simulate professional quarterbacks. Fans also have the opportunity
to meet current and former players, visit replica locker rooms and take photos with the Lombardi
Trophy.
In recent years, total attendance at the NFL Experience has ranged from approximately 90,000
for a four-day event to more than 250,000 for ten-day events. In Houston in 2004, the NFL
Experience attracted more than 200,000 fans and the Host Committee expects to attract a similar
number of fans in 2017. The NFL Experience is produced by the NFL and is expected to be
hosted at the George R. Brown Convention Center (the Convention Center).
Super Bowl Live (SB Live), previously known by various names including Super Bowl
Central, Super Bowl Boulevard and Super Bowl City, is also expected to begin on Saturday
January 28. SB Live will be a free event that will include interactive activities, vendor exhibits
and autograph sessions. In addition to these activities, a centerpiece attraction (so-called wow
factor attraction) is expected to be featured at SB Live, which could be NASA or space-themed.

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In the past such centerpiece attractions had a local flair and included a zip line, a toboggan ride
and a rock wall with a backdrop photo of the Grand Canyon.
In addition to activities mentioned above, the Host Committee expects the SB Live will feature
free daily concerts and other performances by prominent artists. Prior events have featured
performances by The Band Perry, One Republic, Alicia Keys, Blondie, Matt Nathanson and The
Roots, along with local artists, DJs and emcees. While details are still being finalized, the Host
Committee expects that the performer lineup for 2017 will be similar to performer lineups of past
events.
In recent years, total attendance at SB Live has ranged from approximately 500,000 for a fourday event to approximately one million people for a ten-day event. The Host Committee expects
that around one million people will attend SB Live in 2017. SB Live will be produced by the
Host Committee and is expected to be hosted in a 35-block area around the Convention Center.
Monday January 30 will feature the Super Bowl Opening Night (the Opening Night). The
Opening Night is a ticketed event and serves as a replacement for the traditional NFL Media Day
that was held on the Tuesday before the Super Bowl. The Opening Night will be broadcast live
on the NFL Network. In addition to team appearances, the event includes media interviews,
meetings with past Super Bowl MVPs and entertainment features. Attendance is expected to be
approximately 7,000 in 2017. The event will be produced by the NFL and hosted in the City of
Houston, though a specific location has not yet been finalized.
Wednesday February 1 will feature the Play 60 Kids Day at NFL Experience (Kids Day).
The Kids Day is an interactive ticketed event where children are coached on basic football skills
by NFL players. The attendance for this event is expected to be approximately 2,000. The event
will be produced by the NFL and is expected to be hosted at the Convention Center.
Friday February 2 will feature the Pro Football Hall of Fame Super Bowl luncheon. Guests at
this exclusive ticketed event will enjoy a cocktail reception and a seated lunch. The luncheon
will also provide guests with an opportunity to meet some of the NFLs greatest players of all
time. Also present at this event will be 50 past hall of fame players who will share their stories
with guests. Attendance at this exclusive event will be limited to approximately 200 guests. The
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event will be produced by the NFL and hosted in the City of Houston, though a specific location
has not yet been finalized.
Saturday February 4 will feature the Athletes in Action Breakfast (the Breakfast). The
Breakfast is a ticketed event that includes a presentation of the Bart Starr Award given to the
NFL player who best exemplifies outstanding character and leadership in the home, on the field
and in the community. 10 Attendance at this event will be limited to approximately 1,500
business community executives and current and former NFL players. The event will be produced
by the NFL and hosted in the City of Houston, though a specific location has not yet been
finalized.
Sunday February 5 will likely feature multiple tailgating events, including events hosted by the
Host Committee, the NFL and ESPN. These events will include live music, open premium bars,
celebrity chefs, celebrity emcees and premium menus. Several active NFL players will also be in
attendance and signing autographs for fans. Combined attendance at these events is expected to
be approximately 6,000. These events will be hosted in the City of Houston in close proximity to
NRG Stadium, though specific locations have not yet been finalized.
As indicated previously, there are likely many more events that will be hosted as part of the
Super Bowl Event. In addition to the events described above, other ancillary events planned by
the Host Committee and the NFL include interactive exhibits, press conferences, lunches,
summits, media parties and mini-camps. Each of these events is expected to draw hundreds or
thousands of people.
In addition to the official events produced or sponsored by the Host Committee or the NFL, there
will be additional events that will be hosted in Houston sponsored by private groups during the
Super Bowl Event. While details are still being finalized, the Host Committee expects that the
parties featured in conjunction with the Super Bowl Event will be similar to events held at past
Super Bowls, and include events that are hosted annually in conjunction with the Super Bowl.
Such parties include the Maxim Party and The Rolling Stones Super Bowl Party.11 NFL sponsors
and other corporations also host events and parties during the Super Bowl Event. Attendance at
10
11

http://superbowlbreakfast.com/bart-starr-award.
See Table 3 referenced in Section VIII for additional examples.
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these parties ranges between 1,000 and 2,000 individuals and can cost thousands of dollars to
attend.
Similar to prior Super Bowls, the Host Committee expects that several prominent performers will
be appearing in concerts throughout the city during the Super Bowl Event. While details are still
being finalized, the Host Committee expects that the concerts featured in conjunction with Super
Bowl LI will be similar to events held at past Super Bowls. Past performers have included Jay-Z
and Beyonce, Red Hot Chili Peppers, the Dave Matthews Band, Pharrell Williams and Metallica.
In 2016 during Super Bowl 50, Metallica performed at AT&T Park, home of the San Francisco
Giants. Thousands of fans are expected to attend such concerts in Houston.

V.

Methodology

The incremental tax revenue for an event qualifying for a MERP consists of the eligible taxes
associated with the spending of out-of-state visitors to the market area. The impact is limited to
out-of-state visitors because it is assumed local residents would have spent money on alternate
entertainment in the market area if the event had been hosted elsewhere.
A.

Market Area

Super Bowl LI will be held at NRG Stadium, which is in a central location of both the City of
Houston and Harris County. It is our understanding that the City of Houston is an endorsing
municipality and Harris County is an endorsing county in connection with this MERP
application. We also understand that while many events will be held at central locations within
the City of Houston, others will be held throughout the greater Houston area and that attendees
are expected to utilize hotel rooms throughout the greater Houston area as well. We define the
market area for our study as the Greater Houston Metropolitan Area consisting of Harris,
Montgomery, Fort Bend, Galveston, Brazoria and Chambers Counties. We also understand that
the Host Committee proposes the same Greater Houston Metropolitan Area as the market area
for the MERP. This definition ensures that it is unlikely that a significant number of out-of-state
visitors will generate incremental tax revenues outside the market area.

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B.

Incremental Taxes

Incremental taxes are the eligible taxes associated with visitor spending in the market area. There
are two basic levels of incremental taxes that can be measured, taxes associated with direct
spending and taxes associated with secondary spending. Secondary spending measures
subsequent rounds of spending in the market area and is divided into two parts, indirect and
induced spending. Indirect spending represents gains in industries that are located in the market
area where the original spending occurred. For example, restaurant supply companies see an
increase in business when spending at restaurants increases. Induced spending represents
increases in local spending due to increased income associated with direct spending. For
example, if restaurant workers worked overtime to keep up with increased customers, the
spending associated with their extra earnings falls under the induced spending category.
Secondary effects are estimated through the use of models of the local economy. These models
are known as input-output models because they trace the spending through the local economy by
accounting for the industry interactions. These interactions are the spending by each industry to
acquire inputs, such as raw materials and labor, which are necessary to produce outputs, such as
goods and services, used within the local economy. These models also account for the various
outflows from the region to the rest of the nations economy. These outflows are commonly
called leakages since they represent funds that are leaving the local economy. In this study, we
use the IMPLAN System to estimate the secondary effects based upon our estimate of the
primary spending generated by out-of-state visitors during the Super Bowl Event.
C.

National Economy

According to advance estimates released by the Department of Commerces Bureau of Economic

Analysis, Real Gross Domestic Product (GDP), the output of goods and services produced by
labor and property located in the United States, increased at an annualized rate of 1.2 percent
during the second quarter of 2016. Annualized GDP performance during the second quarter of
2016 was below economists expectations of 2.6 percent and follows increases of 0.9 percent and
0.8 percent in the fourth quarter of 2015 and the first quarter of 2016, respectively. GDP growth
was driven in part by consumer spending, which increased at an annualized rate of 4.2 percent in
the second quarter of 2016, compared to increases of 2.3 percent and 1.6 percent in the fourth
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quarter of 2015 and the first quarter of 2016, respectively. Economists generally anticipate GDP
growth to slow in the second half of 2016. A survey of economists conducted by The Wall Street
Journal reflects an average GDP forecast of 2.3 percent annualized growth in the third quarter of
2016. This estimate is higher than the growth in the most recent quarter, but is below last
quarters estimates.
The Conference Board (TCB) reported that the Leading Economic Index (LEI), the
governments primary forecasting gauge, increased 0.3 percent in June 2016 to 123.7, after a
decline of 0.2 percent in May and an increase of 0.5 percent in April. Traditionally, the index is
thought to gauge economic activity six to nine months in advance. Multiple consecutive moves
in the same direction are thought to be indicative of the general direction of the economy.
Conference Board economists view the LEIs recent movements as the loss of growth
momentum. According to the Director of Business Cycles and Growth Research at TCB, Ataman
Ozyildirim, While the LEI continued to point to moderating economic growth in the U.S.
through the end of 2016, the expansion still appears resilient enough to weather volatility in
financial markets and a moderating outlook in labor markets.
On June 23, 2016, British citizens voted to leave the European Union in a move that became
known as the Brexit. The Brexit vote was a surprise to many, resulting in turmoil in stock and
currency markets. Within a day, the pound had fallen to its lowest point since 1985, resulting in a
relatively strong dollar. Stock markets in Britain and the US fell following the results of the vote.
The long-term effects of Brexit remain uncertain. At the end of the quarter, analysts expected
global trade and currency markets to be impacted by Britains exit from the EU, although the
timing and magnitude of such impacts were unclear.
According to the Bureau of Labor Statistics (BLS), the Consumer Price Index (CPI)
increased 0.2 percent in June 2016 (on a seasonally adjusted basis), following increases of 0.4
percent and 0.2 percent in April and May, respectively. The Producer Price Index (PPI), which
is generally recognized as predictive of near-term consumer inflation, increased 0.5 percent in
June 2016 (PPI for total final demand, seasonally adjusted), after increases of 0.2 percent and 0.4
percent in April and May, respectively.
Ongoing low oil prices continue to depress exploration and production activities. The Baker
Hughes North American (U.S.) total oil rig count fell over 10 percent during the second quarter
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of 2016 and fell nearly 50 percent over the last twelve months as higher-cost, low-producing rigs
were taken offline. Despite this reduction, oil rig counts increased at the end of the quarter and
posted four consecutive weeks of gains. Gasoline prices rose throughout most of the quarter,
reaching year-to-date 2016 highs in mid-June before starting to decline. Gasoline prices began
falling again at the end of the quarter and are expected to remain below 2015 prices.
Fiscal 2015 and the first half of 2016 were both marked by volatility in the stock markets.
Despite ongoing volatility, financial markets generally exhibited growth during the second
quarter. The Brexit caused a sharp decline in prices that largely recovered by the end of the
quarter.
Treasury yields fell during the second quarter on all maturities. Bond prices are negatively
correlated with their respective yields, which can shift abruptly due to investor reactions to major
variances in reported economic data versus market expectations (e.g., expected inflation, growth,
monetary policy, and other Federal Reserve actions). Economists surveyed by The Wall Street
Journal anticipate yields to rise over the next several years.
While the Great Recession reached its official end in mid-2009, economic growth continues but
remains slow in some sectors. Although the housing market has strengthened, growth in the
economy remains modest and equity markets have been volatile. The unemployment rate has
recovered to pre-recession levels, but labor force participation remains low. Economic growth is
expected to remain positive, though rising interest rates and sluggish productivity are causes for
concern. GDP growth expectations from private economists surveyed by The Wall Street Journal
are on the order of 2.3 percent for the third quarter of 2016 and 2.3 percent for the fourth quarter.
This compares to annual GDP growth of 1.7 percent, 2.4 percent, and 2.6 percent in 2013, 2014,
and 2015, respectively. The Federal Reserve declined to increase interest rates based on mixed
economic signals. Rate increases are expected in 2016 or 2017.12
D.

Texas Regional Economy

Texas employment grew at a 1.1 percent annualized rate in June 2016; however, a big downward
revision to the first quarter job growth resulted in a year-to-date decline of 0.1 percent on an

12

Part of the National Economy section of this study is quoted from The National Economic Review, Second
Quarter 2016, published by Mercer Capital.
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annual basis. The Texas unemployment rate rose to 4.5 percent in June from 4.4 percent in May.
Texas real GP growth slowed to a 0.3 percent annualized rate in the first quarter of 2016 from
1.4 percent in the fourth quarter of 2015, in line with the deceleration seen in the labor market.
The Texas Leading Index was essentially flat in June after declining 1.1 percent in May. This,
along with the revised employment data has resulted in the Dallas Fed lowering its forecast for
2016 employment growth to 0.5 percent (December/December) from 1.3 percent.
The main risk factors going into the second half of 2016 remain the possibility of even lower
energy prices and the high value of the dollar along with its adverse impact on manufacturing.
Steep increases in the value of the dollar since the middle of 2014 have weakened exports. The
pullback of the dollar in early 2016 likely led to a spike in export activity, but with the dollar
rising again, exports may be depressed further. Over 90 percent of exports from Texas are
manufactured products, so further declines in exports could spell more weakness for the sector.13

VI.

Inputs and Assumptions

Key inputs and assumptions used in this analysis are included in Schedules 4 through 8.
This study is designed to measure the change in tax receipts that results from spending by out-ofstate visitors during the Super Bowl Event. These out-of-state visitors stay and spend money
throughout the market area. In its simplest form, the expected tax increase is measured by
multiplying the number of out-of-state visitors by the number of days spent visiting due to the
event by daily expenditures by the appropriate tax rates.
A.

Attendance and Origins of Visitors

Since the incremental tax impact measures the impact of spending within the market area by outof-state visitors, we must estimate the number of out-of-state visitors that will attend the Super
Bowl Event.
We start with the total expected attendance at Super Bowl LI. Expected attendance is composed
of ticketed attendees, players and team personnel and credentialed attendees. Credentialed
13

Part of the Texas Economy section is reprinted from Texas Employment Revised Down in First Quarter,
Rebounds in Second, Economic Update Regional, Federal Reserve Bank of Dallas, July 29, 2016.

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attendees include members of the media, league officials, stadium workers and halftime
performers.
It is our understanding that the NFL controls the ticketing and credentialing process. As part of
our analysis, we had conversations with the Host Committee regarding the expected number of
tickets and credentials that will be issued for Super Bowl LI. The Host Committee estimates that
71,500 tickets will be issued for the Super Bowl LI. The Host Committee also informed us that
this matches NRG Stadiums seating capacity without the addition of temporary seating. The
Host Committee estimates that the game will be sold out.
The attendance for the Super Bowls for the last 10 years is summarized in Table 1 below. Table
1 also illustrates the announced attendance as a percentage of stadium capacity.

Table 1: Summary of Historical Super Bowl Attendance

Year
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016

Stadium and Location

AFC Team

Dolphin Stadium, Miami Gardens, FL

Indianapolis Colts
University of Phoenix Stadium, Glendale, AZ New England Patriots
Raymond James Stadium, Tampa, FL
Pittsburgh Steelers
Sun Life Stadium, Miami Gardens, FL
Indianapolis Colts
Cowboys Stadium, Arlington, TX
Pittsburgh Steelers
Lucas Oil Stadium, Indianapolis, IN
New England Patriots
Mercedes-Benz Superdome, New Orleans, LA Baltimore Ravens
MetLife Stadium, East Rutherford, NJ
Denver Broncos
University of Phoenix Stadium, Glendale, AZ New England Patriots
Levi's Stadium, Santa Clara, CA
Denver Broncos

NFC Team
Chicago Bears
New York Giants
Arizona Cardinals
New Orleans Saints
Green Bay Packers
New York Giants
San Francisco 49ers
Seattle Seahawks
Seattle Seahawks
Carolina Panthers

Stadium
Capacity
75,540
63,400
65,890
75,540
80,000
63,000
73,208
82,500
63,400
68,500

Announced
Attendance
74,512
71,101
70,774
74,059
103,219
68,658
71,024
82,529
70,288
71,088

Attendance as
a Percent of
Stadium
Capacity
98.6%
112.1%
107.4%
98.0%
129.0%
109.0%
97.0%
100.0%
110.9%
103.8%

Table 1 indicates that the Host Committees estimate of 71,500 ticketed attendees is consistent
with historical attendance over the past ten years. In the past ten years, attendance has exceeded
70,000 nine times, exceeded 75,000 two times and exceeded 100,000 once. NRG Stadiums
capacity is also larger than the capacity of five of the stadiums that hosted the Super Bowl in the
last ten years. Based upon this historical attendance information, the capacity of NRG Stadium
and our experience conducting and reviewing analyses of this type, the ticketed attendance
estimate provided by the Host Committee appears reasonable.
We estimate that a total of 11,300 credentials will be issued. Schedule 3 provides a breakdown of
these credentials. We estimate that 300 credentials will be for players and team personnel of the
Super Bowl LI
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two teams participating in Super Bowl LI. This estimate is based upon our review of economic
impact studies of prior Super Bowls and our experience conducting and reviewing analyses of
this type. The remaining 11,000 credentials include media, league officials, stadium workers and
halftime performers. The Host Committee informed us that a total of 30,000 people were issued
45,000 credentials for Super Bowl 50 and related events (some were single day credentials).
News articles indicate that 12,150 credentialed attendees were in attendance at Super Bowl XLV
in Arlington and 11,000 credentialed attendees were in attendance at Super Bowl 50. Our prior
analyses for large sporting events hosted at NRG Stadium indicate that credentialed attendance at
the event ranges from approximately 5,000 to 12,000 attendees. Based upon this historical
information and our experience conducting and reviewing analyses of this type, the credentialed
attendance estimate provided by the Host Committee appears reasonable.
As shown on Schedule 3, we estimate that total attendance at Super Bowl LI will be 82,800. As
part of our past work on large events of this type, we observe that there are commonly additional
people that travel to the host city to participate in various surrounding activities, even if they do
not attend the game itself.
As part of our proprietary research into attendance at past Super Bowls, we note several
interesting data points that indicate there are more visitors in town than total people at the actual
game. The key points of our research are summarized in the following bullets:

A post-event analysis of Super Bowl XXXIV in Atlanta in 2000 indicated

there were 94,612 visitors in town. There were 72,625 game attendees. This
means there were approximately 22,000 more visitors in town than total
attendees at the game.

An economic impact study of Super Bowl XL in Detroit in 2006 estimated a

total of 73,100 visitors in town. There were 68,206 game attendees. This
means there were approximately 5,000 more visitors in town than total
attendees at the game.

A post-event analysis of Super Bowl XLII in Glendale in 2008 indicated there

were 91,200 visitors in town. There were 71,101 game attendees. This means
there were approximately 20,000 more visitors in town than total attendees at
the game.
Super Bowl LI
Page 15

A post-event article on Super Bowl XLV in Arlington in 2011 indicated there

were 150,000 visitors in town. There were 103,219 game attendees. This
means there were approximately 50,000 more visitors in town than total
attendees at the game.

A post-event analysis of Super Bowl XLIX in Glendale in 2015 indicated

there were 121,775 visitors in town. There were 70,288 game attendees. This
means there were approximately 50,000 more visitors in town than total
attendees at the game.

Additional reports from other Super Bowls provide less information. In general, some reports
only reference the total attendance at the various events surrounding the Super Bowl without
specifically addressing the portion of those attendees that are visitors. In some instances, total
attendance at the various events is reported to exceed one million people. These reports of total
attendance are generally indicative of the popularity of the Super Bowl and the related events
and further supports the fact that people will travel to attend or participate in these additional
events without tickets to the Super Bowl.
The data points discussed above indicate that the number of ticketed attendees at the game does
not represent the total number of attendees in town for the event. There are more people in town
for the games than are actually at the games. This means looking solely at ticketed attendance
can result in an understatement of total non-credentialed attendees.
We discussed this topic with the Host Committee and they followed up with the NFL. The NFL
tracks this information and estimates that there will be an additional 58,000 people that travel to
Houston to participate in activities surrounding Super Bowl LI. The data discussed above
indicates that 50,000 additional attendees have visited the host city without attending the Super
Bowl. This number has been increasing over time. Additionally, the Host Committee provided
information on the number of credentials issued at Super Bowl 50 in Santa Clara. There were
45,000 credentials issued to 30,000 people, the majority of which did not attend Super Bowl 50.
Combined this information indicates that the NFLs estimate of the additional number of people
that will be in town but not at the game is a reasonable estimate.

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Page 16

We estimate that there will be 82,800 attendees at Super Bowl LI and an additional 58,000
people in town but not at the game. As shown on Schedule 3, total attendance is expected to be
140,800.
The next step in the analysis is to assess the proportion of attendees that will be visiting from
outside Texas. We separately assess the out-of-state proportion of ticketed attendees,
credentialed attendees and additional attendees in town but not at the game.
As mentioned earlier, the NFL controls the ticketing and credentialing process. Discussions with
the Host Committee indicate that while the ticket allocations are not finalized for 2017, the same
allocation is generally used each year. The ticket allocation is helpful because it provides
information on who receives the tickets and their likely origin.
The NFL retains 25.2 percent of the tickets for distribution at its own discretion. These tickets
are primarily used internally or distributed to sponsors and other business affiliates of the NFL.
This block of tickets also includes tickets that are made available to the general public for
purchase via the random lottery drawing. The remaining 74.8 percent of the tickets are
distributed to the 32 NFL teams. The two teams participating in Super Bowl receive 35 percent
of the total tickets, the host team receives five percent of the total tickets and the remaining 29
teams each receive 1.2 percent of the total tickets. NFL teams commonly offer these tickets to
season-ticket holders, team sponsors and other team business affiliates, or use them internally.
The ticket allocation indicates that the majority of ticket holders are likely affiliated with the
NFL or teams based outside of Texas.
To estimate the percentage of out-of-state visitors, we review various historical studies, surveys
and articles quantifying the economic impact of Super Bowl. Our proprietary research indicates
that a vast majority of ticketed Super Bowl attendees are visitors to the state hosting the event,
with the out-of-state visitor percentage ranging from a low of approximately 70 percent to a high
of 91 percent in recent years.
Based upon our proprietary research on the historical economic impact of Super Bowl, the
distribution of tickets by the NFL and our experience conducting and reviewing studies for
events of comparable magnitude, we expect that 80 percent of the tickets attendees will be from
outside Texas. This implies that 57,200 of the 71,500 ticketed attendees will be from outside
Super Bowl LI
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Texas. This calculation is shown on Schedule 3. This estimate is consistent with historical ticket
data which shows that between 70 percent and 91 percent of ticketed attendees were from
outside Texas for those events. Our estimate of incremental taxes will be understated to the
extent our estimate of out-of-state attendance is below the actual out-of-state attendance.
We next assess the portion of players and team personnel that are likely to come from outside
Texas. While Table 1 shows that there have been no Texas teams in the Super Bowl in the past
ten years, we assume that each NFL team has an equal chance of making Super Bowl LI. Two of
the 32 teams are located in Texas. This indicates there is a 12.1 percent chance that both Texas
teams play in Super Bowl LI. This implies that 264 of the 300 players and team personnel will be
from outside Texas. This calculation is shown on Schedule 3.
We assess the out-of-state portion for credential holders by examining each of the different
groups of credential holders separately. Media are expected to have 5,000 credentials and league
officials are expected to have 1,000 credentials. Both groups are expected to have at least the
proportion of out-of-state attendees as ticketed attendees (80 percent). Stadium workers and
other miscellaneous credentials are expected to account for 4,000 credentials. The majority of
these attendees are expected to be from Houston. For large events such as the Super Bowl, many
of the vendors and contractors at NRG Stadium will bring in managers and supervisors from
across the country to ensure the event runs smoothly. Additionally, there are a number of federal
agencies that will be in attendance to monitor potential threats against the event. This
information indicates there are likely some attendees in this category from outside Texas. We
estimate 10 percent of the stadium workers and other miscellaneous credential holders will be
from outside Texas. Halftime performances at the Super Bowl have become more elaborate and
complex in recent years. There has been a trend towards the inclusion of superstar performers
and elaborate choreography, including the use of additional performers and fans running onto
the field to participate. Based upon our review of past events, we estimate there will be
approximately 1,000 half time performers and that the majority of them will come from Texas.
We anticipate that 20 percent of the performers, choreographers and other personnel assisting
with the halftime performance will be from outside Texas. In total, we expect that 5,664 (51
percent) of the 11,300 credentialed attendees will be from outside Texas.

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We estimate that the attendees that are in town but not at the game will have the same proportion
of out-of-state attendees as ticketed attendance (80 percent). This means out of the 58,000
attendees in town but not at the game, 46,400 are expected to be from outside Texas.
Schedule 3 summarizes the expected total attendance. We expect a total of 82,800 ticketed and
credentialed attendees plus an additional 58,000 attendees that are in town but not at the game.
Total expected attendance is 140,800 for the Super Bowl Event.
Schedule 3 also summarizes total expected out-of-state attendance. Total out-of-state attendance
consists of 62,864 ticketed and credentialed attendees and 46,400 attendees in town but not at the
game. Total expected out-of-state attendance is 109,264 for the Super Bowl Event.
On Schedule 3 we also re-categorize attendees into four spending categories that are used for the
remainder of the analysis; (i) Fans, (ii) Players and Team Personnel, (iii) Other Credentials and
(iv) League Credentials. These spending categories delineate different attendee characteristics
such as spending behavior and length of stay.
B.

Hotel Block and Length of Stay

The Host Committee indicated that the Host Committee and NFL worked to develop a room
block with pre-negotiated room rates. We were informed that hotels in the room block had to
guarantee availability of a certain number of rooms (not room nights) on a nightly basis for
several days leading up to Super Bowl LI. The Host Committee provided us the name, location,
number of rooms and pre-negotiated rate for each hotel in the hotel block. Schedule 4 provides a
summary of this information, along with our expectation regarding who will be utilizing these
rooms.
The room block includes 17,048 rooms at approximately 100 hotels in the greater Houston area.
Given the relatively limited number of rooms in relation to the number of visitors attending
Super Bowl LI, we expect that the room block will be filled at 98 percent. We distribute these
rooms among different visitor categories by location. We assume that all players and team
personnel, all NFL officials and 75 percent of other credentialed attendees will stay in the hotel
block. This allocation of attendees does not fill the hotel block. We assume the remaining rooms

Super Bowl LI
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in the hotel block are filled by ticketed attendees and fans in town but not at the game. This
distribution of rooms across visitors by location is summarized on Schedule 4.
The room block provides information on where a portion of attendees will stay. The remaining
attendees will also need hotel accommodations. We assume that 5 percent of the visitors not in
the room block will find accommodations in non-taxable locations, such as staying with
friends/family. This adjustment is illustrated in Schedule 4.
Schedule 5 summarizes our assumptions regarding the geographic distribution of visitor
categories. Since many of the events during the Super Bowl Event are expected to be hosted
within the City of Houston, we expect most visitors to stay within the City of Houston. Schedule
5 shows that a total of approximately 70,500 hotel rooms will be utilized with approximately
16,700 rooms included in the hotel block and approximately 53,800 rooms outside the hotel
block. Schedule 5 also summarizes the distribution of rooms across the greater Houston area.
We also estimate the length of stay for people within each spending category. To estimate the
length of stay for people within each spending category, we review historical economic impact
studies and related articles for prior Super Bowls. Our research indicates that fans commonly
stay between three and five nights during the Super Bowl Event. It is our understanding that the
minimum night stay in the hotel block for Super Bowl LI is four nights. We estimate that fans
stay an average of four nights. Teams and credentialed attendees are in town for longer periods
of time. Teams arrive seven or eight days in advance of the game. We estimate that the players
and team personnel stay an average of seven and a half nights. Credentialed attendees are
generally attendees that are performing various functions during the week such as assisting with
the preparation and production of the various events during the Super Bowl Event or providing
media coverage. Our research indicates credentialed attendees are commonly in town for a week
leading up to the Super Bowl.
We discussed these estimates with the Host Committee and they provided additional information
from the NFL. The NFL estimates that fans stay an average of four nights and credentialed
attendees stay an average of seven nights. The additional information from the NFL is supportive
of our estimates.

Super Bowl LI
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C.

Spending Assumptions

We estimate the amount of money attendees spend on hotels, food and beverage, entertainment
and shopping and rental cars. The expected room rate for hotels is based upon the contracted
daily rate for the hotel blocks or an estimate of expected room rate for the region. We derive
other spending estimates based upon an analysis of other large sporting events hosted in (i)
Houston, (ii) Texas and (iii) other locations around the country.
We use the contracted room rates for the rooms in the hotel block. The average rate for rooms in
the hotel block is $309 per night. We use an average rate of $385 per night for hotel rooms
outside the hotel block. We commonly see hotels in the greater Houston area with room rates in
excess of $385 per night for large events, particularly for rooms that are rated three stars or
higher.
Our independent research also supports our estimated hotel rate of $385 per night for hotels
outside the hotel block. For example, our proprietary research indicates room rates increase when
large events such as Super Bowl LI are in town. For example, during the past few years we noted
studies and articles indicating the following room rate increases in cities hosting the Super Bowl:

A post-event economic impact study for the Super Bowl in Indianapolis in

2012 indicated that during the four days leading up to and including the Super
Bowl, the average daily room rate (ADR) increased by more than 180
percent compared to typical ADRs for the period.

Articles about the Super Bowl in New Orleans in 2013, quoting Smith Travel
Research, indicated that the ADR for the Super Bowl weekend was more than
double the ADR for the city during the following year.

An article for the Super Bowl in East Rutherford in 2014, quoting Smith
Travel Research, indicated that the ADR for the Super Bowl weekend was
approximately 130 percent higher than the same period in 2013.

An article for the Super Bowl in Glendale in 2015, quoting Smith Travel
Research, indicated that the ADR for the Phoenix market (which includes

Super Bowl LI
Page 21

Glendale) for the Super Bowl weekend was 185 percent higher than the same
period in 2014.

An article for the Super Bowl in Santa Clara in 2016, quoting Smith Travel
Research, indicated that the revenue per available room for San Francisco and
San Jose for the Super Bowl weekend was 233.9 percent higher than the same
period in 2015.

The above information indicates that room rates increase significantly in cities that host the
Super Bowl.
We use this information to help determine the expected average hotel rate for hotel rooms not in
the hotel block. Our research indicates that attendees at the Super Bowl are often relatively
affluent and commonly stay in hotels rated three star or higher. Corporate travelers provide a
similar comparison because they often stay in similarly rated hotels. The 2016 Corporate Travel
Index shows an average room rate of $171 per night in the greater Houston area. A 100 percent
increase of that rate is approximately $342 per night and a 150 percent increase is approximately
$428 per night. While there is ample evidence to support an average hotel room rate of over $428
per night, based upon our research and experience conducting similar studies we believe an
average room rate of $385 per night (a 125 percent increase over the Corporate Travel Index) is
reasonable for this analysis. This rate is approximately $75 above the average rate for the room
block. In our experience conducting studies of this type, we observe that the rates in the room
block are lower than the market rates at other hotels. This makes economic sense; the hotel
provides a discount from market rates for a guarantee that the hotel will be full on the dates in
question.
As noted previously, we divide the attendees into four spending categories based upon our
expectations of their spending patterns for spending on items other than hotels: (i) Fans, (ii)
Players and Team Personnel, (iii) Other Credentials and (iii) League Credentials. Schedule 3
indicates which attendees are in each spending category. Schedule 8 summarizes our spending
assumptions by spending categories.

Super Bowl LI
Page 22

Our research and data indicate that recent comparable events have spending levels of
approximately $350 to $850 per person per day. Our estimate of spending per day for each of the
four spending categories is within this range.
The first spending category is Fans and generally represents those attendees traveling for leisure
to enjoy Super Bowl LI. We assume per person spending will be $147 per day on food and
beverage, $42 per day on alcoholic beverages and $192 per day on entertainment and shopping.
We assume 50 percent of Fans will rent cars. Given the expected location of the anticipated
events throughout the City of Houston, it appears the estimate that 50 percent of visitors rent cars
may be an understatement. We assume that the rental car rate is $39 per day for a car with three
people per car. For simplicity, the rental car rate is listed as $13 per person even though we
assume only half the visitors rent cars. This totals approximately $395 per person per day
without hotel or approximately $587 per person per day when including the hotel (using the rate
for hotels for outside the hotel block), assuming two people per room.
We make an adjustment to Fans spending to take into account specific behavior of game
attendees at Super Bowl LI. Based upon our experience conducting similar studies; it is common
for Fans to spend additional money on the day of the game. We assume that Fans will spend an
additional 20 percent on (i) food and beverage, (ii) alcohol and (iii) entertainment and shopping.
This additional spending is limited to Fans at NRG Stadium for Super Bowl LI.
The second spending category is Players and Team Personnel which consists of players and
official team traveling parties. We assume spending is limited to food and beverage with no
spending on alcohol, entertainment and shopping or rental cars. We understand that the players
and team personnel are focused on the game and the necessary events requiring their attendance.
We also understand that the Host Committee will provide transportation, likely buses, for their
movement around the city. We assume that spending on food and beverage will be $196 per
person per day.
The third spending category is Other Credentials and generally represents attendees who are, in
some capacity, working during the event rather than traveling for leisure. It is likely that the
attendees in this category will have lower spending than identified in our research because they
are working rather than traveling for leisure. We assume spending per person in this category
Super Bowl LI
Page 23

will be $49 per day on food and beverage, $14 per day on alcoholic beverages, $64 per day on
entertainment and shopping and $13 per day on rental cars. The same assumptions for rental cars
apply here as in the Fans spending category.
The fourth spending category is League Credentials and generally represents attendees who are
with the NFL or are their invited guests, such as sponsors or corporate executives. Individuals in
the League Credentials category are expected to spend more than attendees in the Fans category.
We assume spending by this category will be $196 per day on food and beverage, $56 per day on
alcoholic beverages, $256 per day on entertainment and shopping and $13 per day on rental cars.
The same assumptions for rental cars apply here as in the Fans spending category. This totals
approximately $521 per person per day without hotel or approximately $676 per person per day
when including the hotel (using the rate for hotels for inside the hotel block), assuming two
people per room.

VII. Determination of Incremental Taxes from Out-of-State Visitors

We measure certain incremental tax revenues to the City of Houston, Harris County and the State
of Texas generated by the spending of out-of-state visitors within the market area.
A.

Determination of Hotel Nights for Out-of-State Visitors

We use information from the hotel block as well as our estimates of the number of people
needing hotel rooms and length of stay to calculate the number of people visiting per night. We
convert the number of people per night into the number of out-of-state visitors per night using
our assumptions on whether the attendees are visitors from outside Texas. We then convert from
the number of out-of-state visitors needing hotels to the number of hotel rooms needed by out-ofstate visitors using our assumptions on the number of people per room.
Next, we remove hotel rooms that are not eligible for hotel occupancy tax under the Act. We
understand that hotel occupancy taxes collected at the Marriott Marquis are not eligible to be
included in the incremental taxes used to determine the funding of a MERP. As a result, we
remove the Marriott Marquis from the analysis of hotel occupancy tax which yields the number
of room nights for out-of-state visitors at eligible hotels. This calculation is shown as part of the
calculation of hotel spending on Schedule 9A.
Super Bowl LI
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B.

Determination of People Days for Out-of-State Visitors

After determining the number of room nights it is necessary to determine the number of people
days. Our spending estimates are calculated on a daily basis instead of a nightly basis like hotel
rooms.
We start with the number of out-of-state visitors needing hotels each night and add back the
attendees that will not stay in hotels. We also add back the out-of-state visitors that will stay at
the Marriot Marquis and those that are not staying in hotels. This yields the total number of outof-state visitors in town per night. We adjust the out-of-state visitors in town per night to the
number of out-of-state visitors in town per day by taking into account the fact that arriving and
departing attendees are likely to only spend half a day in town on the day of arrival or departure.
C.

Spending by Out-of-State Visitors

We determine spending by out-of-state visitors by adding together the spending on hotels with
the daily spending on other items. To determine spending on hotels, we multiply the number of
room nights for each category by the expected room rate. We use the contracted daily rate for
those staying in the hotel block. The average nightly rate in the room block is $309 per night. We
use an average of $385 per night for hotels outside the hotel block. The room rates are multiplied
by the number of hotel rooms filled each night to yield total hotel spending. These calculations
are summarized on Schedules 9, and detailed on Schedules 9A, 9B, 9C and 9D for Fans, Players
and Team Personnel, Other Credentials and League Credentials, respectively.
After determining total spending by out-of-state visitors on hotels, it is necessary to determine
their spending on food and beverage, alcohol, entertainment and shopping and rental cars. We
multiply the number of visitors per day by the respective spending assumptions to estimate
visitor spending on food and beverage, alcohol, entertainment and shopping and rental cars. This
yields an estimate of spending per day in each of these spending categories. These calculations
are summarized on Schedules 9, and detailed on Schedules 9A, 9B, 9C and 9D for Fans, Players
and Team Personnel, Other Credentials and League Credentials, respectively.

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After determining the incremental spending by out-of-state visitors, we use IMPLAN to

determine the indirect and induced impacts associated with hotel spending. The indirect and
induced effects are summarized on Schedule 2.
D.

Incremental Taxes Associated with Out-of-State Visitor Spending

We multiply total spending by out-of-state visitors by the applicable tax rates to determine the
incremental taxes received by the state and local governments in relation to this event. Table 2
summarizes the applicable tax rates.
Table 2: Applicable Tax Rates
Category
Hotel Occupancy Tax
Sales and Use Tax
Mixed Beverage Sales Tax
Mixed Beverage Gross Receipts Tax
Title 5 ABC Tax
Rental Car

City of
Houston
7.00%
1.00%
-

Harris
County
2.00%
-

State of
Texas
6.00%
6.25%
8.25%
6.70%
0.40%
10.00%

There are several alcohol taxes that are based upon spending on alcohol. We divide alcohol
spending into two categories for taxes on alcohol spending. We understand that it is commonly
estimated that 60 percent of alcohol spending is taxed under the mixed beverage taxes and the
other 40 percent of alcohol spending is generally on items such as beer and wine that are subject
to general sales tax. There is a mixed beverage gross receipts tax and a mixed beverage sales tax
for mixed beverages. We understand that these taxes are collected by the state and a portion is
remitted to the city and county in which the taxes were collected. We understand that the portion
remitted to the city and county is 10.7143 percent, which means the state gets approximately 80
percent of the tax revenue and the city and county each get approximately 10 percent. The mixed
beverage sales tax is calculated and distributed to the local municipalities in a similar fashion as
the mixed beverage gross receipts tax. Table 2 summarizes the tax rates for each. We understand
that in similar studies for the MERP, the applicable Title 5 ABC Tax has commonly been
calculated as alcohol spending times 0.4 percent and apply that formula in this analysis.

Super Bowl LI
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These calculations are summarized on Schedules 10, and detailed on Schedules 10A, 10B, 10C
and 10D for Fans, Players and Team Personnel, Other Credentials and League Credentials,
respectively.
After determining the incremental eligible taxes by out-of-state visitors, we use IMPLAN to
determine the indirect and induced impacts associated with that spending. The indirect and
induced effects are summarized on Schedule 2.
E.

Event Spending

In addition to spending by out-of-state visitors, the Host Committee and other entities will spend
on other events hosted in conjunction with the Super Bowl Event. This additional spending is
summarized in Schedule 11 by IMPLAN spending category.
The Host Committee provided preliminary budgets and estimates for the expected spending for
the production of the events hosted during the Super Bowl Event, including Super Bowl LI, and
the expected spending of parties/events hosted by other groups during the Super Bowl Event.
This information identified $55,590,087 in spending by the Host Committee; however, only
$35,375,552 of the $55,590,087 is expected to be spent within the eligibility period of the MERP
or on items eligible for inclusion in the tax impact analysis under the MERP. It is our
understanding that the Host Committee is a tax-exempt entity that will not pay taxes on its
expenditures. However these expenditures enter the local economy and create indirect and
induced impacts which create indirect and induced tax impacts. We assume the majority of the
spending by the Host Committee is concentrated in the City of Houston because that is where the
majority of the events will be hosted. We assume 80 percent of the Host Committees spending
is in the City of Houston, 10 percent is in other areas of Harris County outside the City of
Houston and 10 percent is in other parts of the market area outside Harris County. This
information is summarized in Schedule 11A by IMPLAN spending category.
Our analysis also indicates that a large number of other entities will be hosting various parties
and events during the Super Bowl Event. Based upon our proprietary research of other large
events hosted in Texas and around the country and our experience conducting and reviewing
studies for other large events, we estimate that these other entities will spend $20,000,000 on the
Super Bowl LI
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preparation and hosting of these other events. We estimate that 70 percent of the spending
associated with these events will be in the City of Houston, 10 percent in other areas of Harris
County outside the City of Houston and 20 percent in other parts of the market area outside
Harris County. This information is summarized in Schedule 11B by IMPLAN spending category.

VIII. Taxes on Event Tickets

Since many of the events that occur during the Super Bowl Event are ticketed events, we also
estimate the expected sales and use tax associated with tickets to other events.14 To estimate the
amount of ticket revenue subject to sales and use taxes, we researched ticketed events hosted
during Super Bowl 50. Table 3 summarizes events that were not hosted by charitable
organizations and are therefore representative of the type of events that will be hosted in Houston
in conjunction with the Super Bowl Event and will generate incremental sales and use taxes.
Table 3: Events from Super Bowl 50 that are Representative of Events
Lowest
Event Name
Date
Entry Price
Dave Matthews Band
4-Feb-16
$75
The Old School Show [1]
4-Feb-16
$600
Playboy Super Bowl Party
5-Feb-16
$1,000
Pharrell Williams
5-Feb-16
$75
Leather & Laces - Day 1
5-Feb-16
$495
ESPN Super Bowl Party [1]
5-Feb-16
$844
Pauly D [1]
5-Feb-16
$600
5-Feb-16
Little Help Playing the songs of Joe Cocker,
$300
John Cafferty and the Beaver Brown Band
Rolling Stones Live
6-Feb-16
$1,100
DirecTV Super Saturday Night
6-Feb-16
$1,002
Maxim Party
6-Feb-16
$950
Leather & Laces - Day 2
6-Feb-16
$495
Metallica "The Night Before" Concert
6-Feb-16
$50
Total

at Super Bowl LI
Ticket Price
Location
Range
$75 - $138
Warehouse at Pier 70
$600 - $1,250 City Nights
$1,000 - $1,990 AT&T Park
$75
Warehouse at Pier 70
$495 - $950
City View at Metreon
$844 - $1,448 Fort Mason Festival Pavilion
$600 - $1,250 City Nights
$300 - $750
The Fame Theatre
$1,100 - $1,500
$1,002 - $1,905
$950 - $1,500
$495 - $950
$50 - $150

Galleria Design Center

Warehouse at Pier 70
Treasure Island
City View at Metreon
AT&T Park

Attendance

Revenue

9,000
1,200
3,000
9,000
800
3,800
1,200
300

$675,000
720,000
3,000,000
675,000
396,000
3,207,200
720,000
90,000

2,000
9,000
3,000
800
40,000

2,200,000
9,018,000
2,850,000
396,000
1,980,000
$25,927,200

[1] Events without announced attendance. Venue capacity is used to estimate attendance.

Table 3 shows that these events generated $25,927,200 in ticket revenue. We estimate that
similar events in Houston will generate $25,000,000 in ticket revenue, inclusive of applicable
sales and use tax. We remove the applicable sales and use tax and apply the overall estimate of
out-of-state visitors (77.6 percent) to estimate the pre-tax ticket revenue associated with out-ofstate visitors. We estimate that 70 percent of these events will be hosted in the City of Houston,
10 percent will be hosted in other areas of Harris County outside the City of Houston and 20
percent is in other parts of the market area outside Harris County. We assume the sales and use
14

We assume the sale of Super Bowl game tickets is except from sales and use tax.
Super Bowl LI
Page 28

tax will be paid based upon the geographic area where the event is held. We apply the applicable
sales and use tax to the pre-tax ticket revenue in each geographic area to estimate the expected
sales and use tax from out-of-state visitors who purchased tickets to these other events during the
Super Bowl Event. This calculation is summarized in Schedule 12.

IX.

Conclusion

The primary event for the Super Bowl Event is Super Bowl LI on February 5, 2017. The
anticipated total attendance at the primary event is 82,800 attendees. The anticipated out-of-state
attendance at the primary event is 62,864 attendees (consisting of ticketed attendees, players and
team personnel and credentialed attendees). See Schedule 3.
The anticipated total direct spending within the market area associated with out-of-state visitors
at Super Bowl LI generates total spending within the State of Texas of $603,069,914. The
anticipated direct spending that generates the incremental tax revenue discussed in this analysis
is $327,963,341. The anticipated indirect spending that generates the incremental tax revenue
discussed in this analysis is $135,040,742. The anticipated induced spending that generates the
incremental tax revenue discussed in this analysis is $140,065,832.
The anticipated total spending in the City of Houston and Harris County associated with out-ofstate visitors at Super Bowl LI is $452,540,424. The anticipated direct spending in the City of
Houston and Harris County associated with out-of-state visitors at Super Bowl LI is
$284,276,361. The anticipated indirect spending in the City of Houston and Harris County
associated with out-of-state visitors at Super Bowl LI is $94,721,668. The anticipated induced
spending in the City of Houston and Harris County associated with out-of-state visitors at Super
Bowl LI is $73,542,395.
The estimated incremental increase in qualifying tax revenue under the Act is $22,308,951 for
the State of Texas, $6,978,555 for the City of Houston and $1,657,499 for Harris County. This is
a total of $30,945,005.
The Act limits contributions of the State of Texas and the local governments to a fixed ratio of
$6.25 in state contributions for every one dollar of local contributions. Given this cap, the
Super Bowl LI
Page 29

contributions provided by the local governments (City of Houston and Harris County) in this
case are limited to $3,569,432 ($22,308,951 / 6.25). The estimated incremental increase in
qualifying tax revenue is $22,308,951 for Texas and $3,569,432 for the local governments (City
of Houston and Harris County). This is a total of $25,878,383. These calculations are
summarized in Schedule 1.We do not provide an estimate on the division of the contributions
from the local governments.

Respectfully submitted,

__________________________________
Chris W. Johnson

__________________________________
James D. Woods, Ph.D.

Super Bowl LI
Page 30

Exhibit A

Incomplete Work Product Without Tax on Game Tickets

Super Bowl LI

ChrisJohnson
Director
EXPERIENCESUMMARY

Email:
Direct:

[email protected]
7134073941

INDUSTRYEXPERTISE
Energy
Entertainment/Sports
FinancialServices
HealthCare
Manufacturing&Distribution
Technology
ACTIVE&PRIORPROFESSIONALMEMBERSHIPS
NationalAssociationofCertifiedValuatorsand
Analysts
AssociationofCertifiedFraudExaminers
LicensingExecutiveSociety
AssociationofFormerStudentsTexasA&M
University
TrinityUniversityAlumniNetworkExOfficio,
HoustonChapter

Chriscoretechnicalstrengthsincludeeconomicandfinancialanalysis.
Hisworkfocusesprimarilyintheareasofexpertwitnessservices,
valuationanalyses,andeconomicanalyses.

ChrishasbeendesignatedasanexpertinFederalandStateCourts.His
areasofexperienceincludeintellectualpropertydamages,lostprofits
analysis,contractdamagequantification,andclasscertificationin
classactionlawsuits.Chrisalsospecializesinthehandlingand
analysisoflarge,complexdatasets.

Hehasprovidedvaluationservicesinthecontextoflitigationandfor
managementsstrategicplanningandfinancialreporting.Hehas
valuedintellectualproperty,options,warrants,andpreferredstock.
Chrisalsoassiststhefirmsauditpracticewiththeirreviewofcomplex
valuationissuesthatusemethodologiessuchasMonteCarloanalysis
andlatticemodels.

Chrisalsoconductseconomicimpactanalysestodeterminethe
economicimpactassociatedwithvariousformsofstimulus.Hehas
developedanalysesestimatingtheimpactthatmajorsportingevents,
conventions,andcorporaterelocationshaveonregionaleconomies.

PROFESSIONALEXPERIENCESUMMARY
Commerciallitigation,includinglostprofitanalysisandcalculationof
economicdamages
Intellectualpropertylitigationincludingpatentandtradesecret
litigation
Economicimpactanalysesincludingspecializedimpactstudiesfor
TexasEventTrustFunds,EB5immigration,andTexasEnterprise
Funds
Analysisofbusinessandsalesprojections
Financialanalysis/modeling
Valuationofbusinessentities,securities,andintangibleassets
Complexsecuritiesvaluation
MonteCarlosimulation
Businessinsuranceconsulting,businessinterruptionclaims
Classcertificationanalyses
Classactiondamagesanalyses
Forensicinvestigations
ERISAlitigation
Financialanalysesofclaimspaymentsunderhealthinsuranceplans
Statistical/dataanalyses
Evaluationandcritiqueofopposingexpertreportsandopinions
Assistanceinplanningandstrategiesforexaminationofexpertand
factwitnesses

BACKGROUNDHIGHLIGHTS

CertifiedValuationAnalyst(CVA)
CertifiedFraudExaminer(CFE)
M.S.inEconomics,TexasA&MUniversity,CollegeStation,TX
B.A.inEconomics,TrinityUniversity,SanAntonio,TX
Principal,UHYAdvisorsFLVS,Inc.
SeniorAssociate,CRAInternational,Inc.

BDOUSA,LLP,aDelawarelimitedliabilitypartnership,istheU.S.memberofBDOInternationalLimited,aUKcompanylimitedbyguarantee,andformspartoftheinternationalBDO
networkofindependentmemberfirms.BDOisthebrandnamefortheBDOnetworkandforeachoftheBDOMemberFirms.

ChrisJohnson
Page2

BACKGROUNDHIGHLIGHTS(CONT)
TexasA&MUniversity
CoursesTaught
PrinciplesofMicroeconomics
PrinciplesofMacroeconomics

THOUGHTLEADERSHIP
WhostheBoss?:ChangesinJointEmployerLiability,SelectionsBlog,February2016.
IP&LicensingBasics:AOneDayReviewacontinuingeducationcoursesponsoredbytheLicensingExecutivesSociety
(USA&Canada)HoustonChapterattheUniversityofHoustonLawCenter,Houston,TX,2015.
EconomicImpact:ANewApproachforProvingOutcomes,StanfordSocialInnovationReview,August2015.
SuccessfullyCommunicatingSuccess:ThreeApproachesforNonprofits,NonprofitStandardNewsletter,July2015.
HowChangesinJointEmployerLiabilityCouldImpactFranchisors&Franchisees:AnEconomicPerspective,Franchising
World,Volume47,SpecialEdition2015
TexasUniformTradeSecretAct:DamagesAnalysisaCLEPresentationforCrainCaton&James,Houston,TX,August2014
ImplicationsofEarnOuts:FromanAccounting,Valuation,andDisputePerspective,CLEPresentationfortheMergers&
AcquisitionsSectionoftheHoustonBarAssociation,January2014
TheSuperBowlWinnerIsntAlwaysMeasuredOntheField,TheNextLevelofServiceExpress,February22,2012
DecisionMaking:EconomicImpactAnalysis,ConferencePresentationatEnvironmentalChallengesandInnovations
ConferenceGulfCoast2012,TexasAssociationofEnvironmentalProfessionals,September2012
UnderstandingandUsingFinancialStatements
CLEPresentationforHoustonBarAssociation,Houston,TX,October2013
CLEPresentationforWinsteadPC,Houston,TX,November2012
CLEPresentationforMontgomeryCountyBarAssociation,Conroe,TX,September2012
CLEPresentationforJacksonWalker,Houston,TX,November2011
CLEPresentationforAndrewsKurth,Houston,TX,April2011
CLEPresentationforBoyarMiller,Houston,TX,August2010
CLEPresentationforCrainCaton&James,Houston,TX,September2010
CLEPresentationforCokinos,Bosien&Young,Houston,TX,March2008
WorkingwithFinancialExpertsisLikeDancingwithaStar
CLEPresentationforLockeLordLLP,June2012
CLEPresentationforHoustonYoungLawyersAssociation,May2012
CLEPresentationforReynoldsFrizzellBlackDoyleAllen&OldmanandLevinthalWilkindsandNguyen,May2012
CLEPresentationforPorter&Hedges,May2012
CLEPresentationforEdison,McDowell&Hetherington,March2012
CLEPresentationforWeilGotshal&Manges,January2012
CLEPresentationforMontgomeryCountyBarAssociation,Conroe,TX,January2012
CLEPresentationforStrasburger,Houston,TX,December2011
CLEPresentationforMunschHardt,HoustonTX,October2011
CLEPresentationforCrainCaton&James,Houston,TX,October2011
ExpertTestimony,GuestLectureintheGraduateSchoolofAccountingatBaylorUniversity,ACC5331FraudExamination,
Waco,TX,June2009
MakingSenseoftheSubprimeMess:TheFirstStepinPreparingfortheInevitableWaveofLitigation
CLEPresentationfortheHoustonChapterofWomenineDiscovery,Houston,TX,November2008
CLEPresentationforHoustonMetroParalegalAssociation,Houston,TX,May2008
UnderstandingthePastandForecastingtheFuture:TheRoleofTimeSeriesAnalysis,FromtheWitnessStand,Summer
2007
PrinciplesofMicroeconomics,Textbookreviewer,ThirdEdition,textbookauthoredbyN.GregoryMankiw,Thomson
SouthWestern,2004

JamesD.Woods,Ph.D.
Principal
EXPERIENCESUMMARY

Email:
Direct:

[email protected]
7134073856

INDUSTRYEXPERTISE
Telecommunications
ComputersandHighTechnology
MedicalDevicesandPharmaceuticals
Energy
FinancialMarkets
PROFESSIONALMEMBERSHIPS
LicensingExecutivesSociety(USA&Canada)
CertifiedLicensingProfessional
ACTIVEANDPRIORCIVICMEMBERSHIPS
President,TheFallsatChampionForest
HomeownersAssociation

Overthepasttwentyyears,Dr.Woodshashelpedclientsrespondto
difficultchallengesandtakeadvantageoflucrativeopportunities.
Clientshaverelieduponhisexpertisetovaluepatents,copyrights,
trademarksandtradesecrets,complexsecuritiesandderivatives,to
developintellectualpropertymonetizationstrategies,toestimatethe
economicimpactofdecisionsandevents,todetectandquantify
fraudulentactivityandtodevelopandsupportopinionsofdamages
forintellectualpropertyandcommerciallitigation.Dr.Woodsdraws
uponhistrainingasafinancialeconomistandtheresourcesofthe
firmtodevelopefficient,analyticalsolutionstofithisclientsneeds.

Inadditiontohisworkforclients,heservesasanadjunctprofessorof
financefortheC.T.BauerCollegeofBusinessattheUniversityof
Houstonwhereheteachesfinancialstatementsanalysistograduate
students.

PROFESSIONALEXPERIENCESUMMARY
Experttestimonyandreportsconcerningopinionsrelatedtothe
valueofdamagesandtoopposingexpertsdamagemodelsin
numerouslitigationcases.
Litigationexperienceincludespatent,trademark,tradesecretand
copyrightinfringement,fraud,wrongfuldeathandcontractdisputes.
Developedreasonableroyaltyandlostprofitcalculationsand
providedtestimonyrelatedtodamagesinpatent,trademark,trade
secretandcopyrightinfringementcases.Opinionsexpressed
supportedbyGeorgiaPacificfactors,Panduitfactors,analytical
approach,profitsplitapproachandotherrecognized
methodologies.
Ledteamsinroyaltyinvestigationsrelatedtoallegedunderpayment
ofroyaltiesinthecomputerandmedicaldeviceindustries.
Additionallyhasservedastechnicaladvisortoseveralinternalaudit
teamsinthedesignofroyaltyinvestigationprocedures.
Assistedclientsbypreparingandpresentingbusinessinterruption
insuranceclaims.

BACKGROUNDHIGHLIGHTS
Ph.D.,Finance,MaysBusinessSchoolatTexasA&MUniversity,
CollegeStation,TX.
MBA,UniversityofMissouri,St.Louis,MO.
BSBA,FinanceandBanking,CumLaude,RobertJ.Trulaske,Sr.
CollegeofBusiness,UniversityofMissouri,Columbia,MO.
ManagingDirector,UHYAdvisorsFLVS,Inc.
Principal,GrantThorntonLLP.
SeniorManager,Deloitte&TouchLLP.
ExecutiveConsultant,InteCap,Inc.
PrincipalConsultant,PricewaterhouseCoopersLLP.
Analyst,SouthwesternBellTelephoneCompany.
AssistantExaminer,FederalReserveBankofSt.Louis.

THOUGHTLEADERSHIPEXAMPLES
TheEconomicsofReasonableRoyaltyDamagesinPatentLitigation,
Lucentv.GatewayinLANDSLIDE,May/June2010.

BDOUSA,LLP,aDelawarelimitedliabilitypartnership,istheU.S.memberofBDOInternationalLimited,aUKcompanylimitedbyguarantee,andformspartoftheinternationalBDO
networkofindependentmemberfirms.BDOisthebrandnamefortheBDOnetworkandforeachoftheBDOMemberFirms.

JamesD.Woods,Ph.D.
Page2

EntireMarketValueRule:RecentCasesonReasonableRoyaltyDamagesinIPLitigator,January/February2010.
PerilousShores:NavigatingtheConfluenceofPatentValueSourcesandTechniques,inFromAssetstoProfits:Competing
forIPValue&Return,JohnWiley&Sons,Inc.2008.
PatentBrands:PositioningIPforShareholderValue,inFromIdeastoAssets:InvestingWiselyinIntellectualProperty,
JohnWiley&Sons,Inc.,2001.

PROFESSIONALEXPERIENCE
DisputeConsultingServices
Experttestimonyandreportsconcerningopinionsrelatedtothevalueofdamagesandtoopposingexpertsdamage
modelsinnumerouslitigationcases.
Litigationexperienceincludespatent,trademark,tradesecretandcopyrightinfringement,fraud,wrongfuldeathand
contractdisputes.
Industryexperiencespanswidevarietyofeconomicactivitywithparticularexpertiseinsemiconductordesignand
manufacturing,telecommunicationsincludingcellularandVoIPtechnologies,computerharddriveanddisplaytechnology,
medicaldevices,securitizationproducts,andoilfieldservices.
Experiencedassistinginhouseandoutsidecounselwithprefilinginvestigation,documentdiscoveryandotheraspectsof
managingcommerciallitigationprojects.
Providedtestimonyinstatedistrictcourts,arbitrationhearings,bankruptcycourtsandFederalcourts.

IntellectualProperty
Overfifteenyearsofexperiencevaluing,managingandprotectingintellectualpropertyincludingpatents,trademarks,
copyrightsandtradesecrets.
Reviewed,analyzedandsummarizedhundredsoflicenseagreementsinawiderangeofindustriestoestimatereasonable
royaltiesinpatentinfringementlitigation.
Developedreasonableroyaltyandlostprofitcalculationsandprovidedtestimonyrelatedtodamagesinpatent,trademark,
tradesecretandcopyrightinfringementcases.OpinionsexpressedsupportedbyGeorgiaPacificfactors,Panduitfactors,
analyticalapproach,profitsplitapproachandotherrecognizedmethodologies.
Ledteamsinroyaltyinvestigationsrelatedtoallegedunderpaymentofroyaltiesinthecomputerandmedicaldevice
industries.Additionallyhasservedastechnicaladvisortoseveralinternalauditteamsinthedesignofroyaltyinvestigation
procedures.
Examplesofpatentedtechnologyvaluedincludelasercatheters,drugdeliverytechnology,retractablesyringes,spinal
implants,downholeoilfieldequipment,petgroomingtools,childrensplayyards,electronicequipmentstands,grocery
bagdispensers,votingmachines,consumerelectronics,semiconductorfabricationequipmentandawidevarietyof
telecommunicationandcomputertechnologies.
Valuationexperienceintradesecretsincludesdrillbitdesigntechnologies,variousdownholeloggingandsteeringsystems,
valvesandminingprocesses,semiconductorfabricationtechniques,andderivativespricingalgorithms.
Copyrightanddesignpatentcaseshaveincludedanalysisofcostaccountingrecords,invoicesandindependentanalysisto
determinerelevantcostsrelatedtohomeconstructionandclothingretailingandanalysisoffactorsrelatedtothevalueof
shoesandchildrensplayyarddesignpatents.
Trademarkcaseshaveincludedoilfieldservicesbrandnames,famousnamesandlikenessesandsupplychainmanagement
marks.

EconomicConsulting
Developedeconomicimpactassessmentsofseveralsportingeventsandconventionstodeterminetheincreaseinsales
taxes.TheseassessmentswereusedbytheTexasComptrollertoestablishSpecialEventTrustFunds.
Estimatedtheeconomicimpactofrelocatingandexpandingtheadministrationandengineeringfunctionsofanengineering
firmintheHoustonmetropolitanarea.
Estimatedthevalueofembeddedoptionsinvariouscontractswithsalesagentsinthefinancialservicessector.
Valuedequitycomponentofconvertiblebondstosatisfyfinancialreportingrequirements.

DueDiligence/BusinessValuation
Reviewedvaluationreports,documentsrelatedtoduediligenceandstockpurchaseagreementstodevelopanopinionof
thefairnessofthepricepaidforatravelservicecompany.Examinedseveralcomplexissuesincludingtheretentionof
escrowfundsrelatingtoaccountingandauditirregularitiesandtheeffectsofacceptingdebtaspartofthepurchaseprice.
Reviewedastockpurchaseagreementinconnectionwithestimatingtheexpectedexpensesandidentifyingtheresponsible
partyrelatedtoenvironmentalcleanupcosts.
Basedondocumentscollectedduringtheduediligenceprocess,developedacomplexiterativefinancialmodeltoestimate
thevalueofabusinessinvolvedinafailedacquisition.

JamesD.Woods,Ph.D.
Page3

WrongfulDeath
Assistedseveralclientsinevaluatinglostwagesandbenefitsandlossofvaluetothedecedentsestateinwrongfuldeath
matters.Workperformedincludedananalysisofindustrysalarystructure,benefitprograms,demographicstudies,industry
normsandreviewofbusinessplans.

WrongfulTermination
Evaluatedclaimsoflostearningsandotherdamagesrelatedtotheterminationofthechieffinancialofficerofalarge
corporation.
Baseduponinformationprovidedbyvocationalexperts,calculatedlostearningsduetoallegedsexualdiscriminationin
severalcases.

Lostprofits
Performedlostprofitsstudiesinvolvingnumerousindustries.Workperformedincludedresearchofindustryandmarket
dynamicsandanalysisofcapacity,marketdemandandcoststructure.

ContractDisputes
Appliedcomplexputpricecalculationlanguagefromacontracttodeterminepriceofarefinery.
Reviewedaccountinginformationandvariousmanagementreportstodetermineroyaltiesowedfromtheoperationofa
sandpit.
Appliedcontractlanguagetocalculatepayoutofanemploymentincentiveplan.
Reviewedextensivedatabaseofexpenditurestodeterminecontractcompliance.

FinancialInstrumentrelatedLitigation
Reviewedpoolingandservicingagreements,trustagreementsandloanfilestoevaluatepotentiallossesinsubprime
mortgagebackedsecurities.
Examinedportfolioofreversemortgagestoevaluateclaimofusuryandpredatorylendingpractices.
Evaluatedresidualclaimholderspotentialrecoveryinacaseinvolvingallegationsofimproperunderwritingstandardsin
mortgagebackedsecurities.
Calculateddamagesfrominsurancecancellationrelatedtocollateralizedsubprimeautomobileloans.

StatisticalAnalysis
Reviewedregressionanalysespresentedinseveralsettings.Providedopinionstohighlighttheapplicabilityofthe
techniquestothematteratissue.
Developedstatisticalmodelstosupportconclusionsconcerningvariableandfixedcostsundervaryingconditions.

FraudInvestigations
Developedworkplansandprocedurestodeterminetherelevanceandimportanceofcallsplacedtofraudhotlines.
Industriesservedincludeemploymentagencies,casinos,andrestaurants.
Responsibleforprovidingguidancetoauditteamconcerningtheadequacyofclientsinvestigativeeffortsandfor
interpretingtheresultsofthoseefforts.
Investigatednumerousscamsuncoveringmillionsofdollarsofpreviouslyunknownlosses.
Engagedbyaninsurancecompanytoestimatelossesduetoemployeetheftofinventory.
Participatedinantimoneylaunderinginvestigationsforseverallargebanks.
Investigatedvendorrelationshipsandpaymentstodeterminescopeofpotentiallyfraudulenttransactionsbetweenaheavy
equipmentdealeranditssuppliers.
Analyzedaccountingrecordsandpaymenthistoryofalargecommercialrealestatedevelopmenttoidentifypotentially
fraudulenttransactionstosupportthefindingsofaconstructionindustryexpert.

IntellectualAssetManagementServices
Designedworkplans,consultedwithclientsandsupervisedteamsperformingroyaltyinvestigationsinthebiotechand
computerindustry.
Valuedintellectualpropertyrightscontainedinsoftwaresourcecoderelatedtoreservationsandschedulingsystems.
Providedcounselandadvicetoseniorexecutivesofnationwiderailroadconcerningstrategytonegotiateandstructurea
licensetomaximizevalueofintellectualpropertyrights.Ultimatelicenseincludedcashroyaltiesandinkindpaymentsand
allowedforuseoftechnologyinseveralinternationalrailroadprojects.
Analyzedissuesrelatedtothevalueoftechnologycontributedbytwomultinationalcorporationstocommercializein
housedatamanagementskills.
Valuedtrademarksofaregionalconfectionery.

JamesD.Woods,Ph.D.
Page4

Consultedwithseniorexecutivesofamajorchemicalcompanyconcerningissuesrelatedtolicensingmanufacturing
technology.EngagementrelatedtoimplementingaplandevelopedbyMcKinsey&Co.todecentralizeresinmixing
operationstocustomerlocations.Assistedinthedesignandstructureofeconomictermsinthelicenseagreementfor
patentedtechnologyneededtooperatetheequipmentatsatellitelocations.
Estimatedvalueandanalyzedlicensingopportunitiesfortechnologyrelatedtologiccircuitdesignusedtoincrease
calculationefficiency.
Workedwithseniorexecutivesofafablesssemiconductorcompanytodevelopalicensingplanrelatedtointellectual
propertyfromabandonedbusinessunits.Preparedindepthanalysisusedbymanagementtolicenseand/orsellportfolioof
over60patents.
Participatedinateamconsistingofinhousecounsel,outsideintellectualpropertycounsel,outsidelitigationcounsel,
engineersandbusinessunitmanagerstoreviewpatentportfoliotoidentifylicensingopportunities.Ourworkledto
agreementsgeneratingover$45millionfrompatentlicensees.
Consultedwithseniormanagementatamanufacturingfirmtodevelopandimplementalicensingprogramforpatents
relatedtostructuralsupportbeams.Workincludedestimatingtotalmarketsizeandpotentiallicensees.Ultimately,client
licensedpatentstoitslargestcustomertoobtainfavorablelongtermpricingforrelatedproducts.
Valuedpatentsrelatedtoheatingblanketsfortaxpurposes.
Valuedpatentsrelatedtosolarpowercellsforbusinessdissolutionagreement.
Developedmonetizationplanforapatentandsoftwareusedinadvertising.
ValuedpatentsusedbyDarkPooltradingsystems.

CorporateFinance
Participatedinaloanduediligencereviewforanalarmmonitoringcompany.
Conductedfinancialanalysisandcreatedprojectionstosupportaliquidationanalysisforafirminbankruptcy.

RELEVANTEMPLOYMENTHISTORY
JoinedthefirminDecember2014
SoftwareDevelopment
Designedanddevelopedsoftwarepackagestoautomatefinancialanalysisandreportcreationinseveralmacroandhigh
levelcomputerlanguages.
Analyzed,critiquedandauditedsoftwarealgorithms,sourcecodeandsoftwaredesigntoimproveprogramefficiency.
Developedafullyintegratedfinancialmodelingprogramforestimatingthevalueofphysiciansofficespace.
ExperiencedwithBASIC,C,PASCAL,SAS,FORTRAN,ExcelandLotus123macros,andWordandWordPerfectmacros.
FamiliarwiththePC,MacintoshandVMS/CMSenvironments.

Banking
Responsibleforinternalcontrolreviews,cashtransactionreportsandotheraspectsofbankexaminations.
Reviewedloandocumentationandperformedanalysistodetermineloanportfolioquality.
Reviewedbankapplicationsforpermissiontoopenbranchlocationsandtomakecapitalexpenditures.

PreviousPositions

ManagingDirector,UHYAdvisorsFLVS,Inc.
Principal,GrantThorntonLLP.
SeniorManager,Deloitte&TouchLLP.
ExecutiveConsultant,InteCap,Inc.
PrincipalConsultant,PricewaterhouseCoopersLLP.
Analyst,SouthwesternBellTelephoneCompany.
AssistantExaminer,FederalReserveBankofSt.Louis.

JamesD.Woods,Ph.D.
Page5

EDUCATIONALBACKGROUND

Ph.D.,Finance,MaysBusinessSchoolatTexasA&MUniversity,CollegeStation,TX.
MBA,UniversityofMissouri,St.Louis,MO.
BSBA,FinanceandBanking,CumLaude,RobertJ.Trulaske,Sr.CollegeofBusiness,UniversityofMissouri,Columbia,MO.
Teaching
TaughtCorporateFinance,FinancialStatementsAnalysis,Microeconomics,InternationalFinance,RealEstate
FinanceandMoneyandBankingatfouruniversities.
Developedsystemsandprocedures,includingsoftware,torecordandtrackgradesandinformationforover800
students.
InstructorforCharteredFinancialAnalystexaminationreviewcourseonportfoliomanagement,quantitativeanalysis
andinvestmentpolicyissues.
Research
Presentednumerouspapersandprovidedcommentaryatprofessionalassociationmeetings,seminarsandexecutive
trainingprograms.

PROFESSIONALMEMBERSHIPS
CertifiedLicensingProfessional
LicensingExecutivesSociety,pastchair,HoustonChapter
FinancialManagementAssociation

SPEAKINGENGAGEMENTS
SettingFeesinInternationalFranchiseAgreements,at#IFA2016ConventionfortheInternationalFranchiseAssociation,
SanAntonio,TX,2016.
CurrentEconomicUpdate,HoustonaTaleofTwoCities,atthe2015YearEndAccounting&TaxUpdate,Houston,TX,
2015.
ModeratorforCurrentTrendsinIPMonetizationStrategy(notanotherAlicediscussion),attheLicensingExecutives
Society(USA&Canada)HoustonChaptermeeting,Houston,TX,2015.
PanelistonDontFallOfftheLifeCycle,attheFinancialExecutivesInternationalHoustonChaptermeeting,Houston,TX,
2015
PanelistonWhatIstheImpactoftheAIA,RecentU.S.SupremeCourtOpinions,andOtherPatentLawDevelopmentson
PatentLicensingandValuation?attheLicensingExecutivesSociety(USA&Canada)HoustonChaptermeeting,Houston,
TX,2014.
IP&LicensingBasics:AOneDayReviewacontinuingeducationcoursesponsoredbytheLicensingExecutivesSociety
(USA&Canada)HoustonChapterattheUniversityofHoustonLawCenter,Houston,TX,2014.
TexasUniformTradeSecretAct:DamagesAnalysisaCLEcoursepresentedtoCrainCaton&James,Houston,TX,2014.
PanelistonValuationofFRANDPatentsatTheUniversityofTexasSchoolofLawAdvancedPatentLawInstitute,Austin,
TX,2013.
WorkingwithyourFinancialExpertisLikeDancingwiththeStarsaCLEcoursepresentedtotheHoustonBarAssociation,
Houston,TX,2012.
ASeaChangeinPatentDamages?RecentCasesandObservationsaCLEcoursepresentedtoWeilGotshal&MangesLLP,
Houston,TX,2010.
ASeaChangeinPatentDamages?RecentCasesandObservationsaCLEcoursepresentedtoBakerBottsLLP,Houston,
TX,2010.
HowmuchmarketvalueshouldbeattributedtoIP?atCIPForum,Gteborg,Sweden,2009.
FinancialStatementsforLitigators,aCLEcoursepresentedtoBrownMcCarrollLLP,Houston,TX,2008.
CrossRoads:Attheintersectionofintellectualpropertyandbusiness,forHalliburtonsintellectualpropertymanagement
team,Houston,TX2008.
UpdateonPatentDamages:ConsiderationsinDeterminingRoyaltyBasedCompensationaCLEcoursepresentedatGrant
ThorntonLLP,KansasCityMO,2008.
UpdateonPatentDamages:ConsiderationsinDeterminingRoyaltyBasedCompensationatTheUniversityofTexas
SchoolofLawAdvancedPatentLawInstitute,Austin,TX,2007.
Invitedparticipant,Uncertainty&CostAvertingaGlobalPatentCrisis,sponsoredbytheInternationalIntellectual
PropertyInstitute,GeorgeWashingtonUniversityLawSchool,WashingtonDC,2006.
TheLitigatorsBootCamp,aCLEcoursepresentedatGrantThorntonLLP,Houston,TX,2006.
TrendsinMonetizingIntellectualPropertyatTheUniversityofTexasSchoolofLawAdvancedPatentLawInstitute,
Austin,TX,2005.
AccountantsintheCourtroom:Alookatlitigationsupportservices,asaguestlecturerfortheAccountingColloquium,
UniversityofHouston,Houston,TX,2005.

JamesD.Woods,Ph.D.
Page6

ImplementingaDocumentRetentionPolicyinanElectronicEnvironment:KnowwhatyouarekeepingandHowyouare
keepingit.ataseminar,DocumentRetentionandDestructioninTexas,Houston,TX,2004.
TheRoleofIntellectualPropertyinaNewEnterprise,asaguestlecturerforDr.NeilA.Iscoe,Technology
Commercialization:IdeatoProduction,attheUniversityofTexas,Austin,TX,2003.
TheContinuingEvolutionofPatentDamages,atTheUniversityofTexasSchoolofLawAdvancedPatentLawInstitute,
Austin,TX,2002.
DeterminingtheRealValueofTrademarks,IntellectualPropertyOwnersAssociationAnnualMeeting,LosAngeles,CA,
2002.
PanelistatBrandAid:TurningYourBrandInsideOutAndOutsideIn,PublicRelationsSocietyofAmericaMeeting,
ClevelandChapter,Cleveland,OH,2002.
BuildingaPatentBrandEnhancingShareholderandIPAssetValuethroughMarketingandCommunication,LESAnnual
Meeting,Chicago,IL,2002.
PatentBrands,PositioningIPforShareholderValue,IPMastersConferenceSeries,KilpatrickStocktonLLP,2002.
WhatEveryExpertShouldKnowaboutDaubert,aCLEcoursepresentedtoAndrews&KurthLLP,Houston,TX,2002.
TheTop6ReasonsYouShouldbeInterestedinYourFinancialExpert:TheUseandAbuseofExperts,attheBerkeley
CenterforLaw&TechnologyandTheUniversityofTexasSchoolofLawAdvancedPatentLawInstitute,SanJose,CA,2001.
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PartyonInternationalContractPracticesinIndustry,MeetingoftheUN/ECEAdHocExpertGroupEnforcementof
IntellectualPropertyRights,PalaisdesNations,UN/ECE,Geneva,Switzerland,1998.
Additionally,Dr.Woodsisafrequentspeakeratcontinuinglegaleducationcoursesandinhouseprogramsconcerning
intellectualpropertylicensingandvaluationissues.

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JamesD.Woods,Ph.D.
Page7

ExDividendDayStockPricePerformanceofAmericanDepositoryReceiptsabstractpublishedinProceedingsofthe
GlobalFinanceAssociationAnnualMeetings,Monterey,CA,1994.

Schedules

Incomplete Work Product Without Tax on Game Tickets

Super Bowl LI

Schedule 1
Super Bowl LI
Summary of Expected Contributions to Major Events Reimbursement Program
Expected Total Spending by Out-of-State Visitors [1]
City of
Houston

Description
Hotels
Food & Beverage
Alcoholic Beverage
Entertainment/Shopping
Rental Car
Event Spending
Ticket Sales - Other Events [2]
Total

$
$
$
$
$
$
$
$

86,276,550
91,570,410
26,233,189
124,628,999
3,863,404
70,710,849
12,545,364
415,828,767

Harris County
Excluding
Houston
$
16,112,274
$
3,588,104
$
1,034,855
$
4,916,402
$
153,157
$
9,114,670
$
1,792,195
$
36,711,657

State of
Texas

Other Areas
$
$
$
$
$
$
$
$

28,873,624
8,732,581
2,518,587
11,965,336
372,812
12,366,966
3,584,390
68,414,296

$
$
$
$
$
$
$
$

151,107,509
123,206,955
35,464,293
161,759,754
4,938,893
108,670,562
17,921,949
603,069,914

Expected Increase in Tax Revenue from Out-of-State Visitor Direct Spending

Category
Hotel Occupancy Tax [3]
Food/Beverage [3]
Sales Tax on Alcohol [3]
Mixed Beverage Sales Tax [3]
Mixed Beverage Gross Receipts Tax [3]
Title 5 ABC Tax [3]
Entertainment/Shopping [3]
Rental Car [3]
Event Spending [4]
Sales Tax - Other Event Tickets [5]
Total

$
$
$
$
$
$
$
$
$
$
$

City of
Houston
3,780,151
578,745
65,699
87,110
70,744
750,850
238,941
125,454
5,697,695

$
$
$
$
$
$
$
$
$
$
$

Harris
County
1,281,743
90,547
73,535
1,445,825

$
$
$
$
$
$
$
$
$
$
$

State of
Texas
4,929,582
4,103,842
466,242
725,339
589,063
74,599
5,328,480
293,930
363,224
1,120,122
17,994,423

Expected Increase in Tax Revenue from Out-of-State Visitors

Taxes Generated By
Direct Spending
Secondary Spending [4]
Total Taxes

City of
Houston
$
5,697,695
$
1,280,861
$
6,978,555

$
$
$

Harris
County
1,445,825
211,674
1,657,499

$
$
$

State of
Texas
17,994,423
4,314,527
22,308,951

Maximum Local Contribution to

Major Events Trust Fund
Description

Amount
22,308,951
6,978,555
1,657,499

State of Texas
City of Houston
Harris County

$
$
$

Total Tax Impact before Statutory Ratio

State of Texas
Statutory Ratio [6]

$
$

30,945,005
22,308,951
6.25

Maximum Local Contribution

3,569,432

Expected Contribution to Major Events Trust Fund

Description
State of Texas
Maximum Local Contribution
Total

Total
Incremental
Tax Impact
$
22,308,951
$
3,569,432
$
25,878,383

Notes:
[1] From Schedule 2.
[2] We expect that revenues generated from tickets sales will not have an impact on secondary spending.
[3] From Schedule 10.
[4] Results from IMPLAN analysis.
[5] From Schedule 12. We expect that taxes generated from tickets sales will not have an impact on secondary spending.
[6] Contributions are capped at a fixed ratio of $6.25 from the State of Texas for each dollar provided by participating
local governments.

Super Bowl LI - BDO USA, LLP

Schedule 2
Super Bowl LI
Summary of Spending
Expected Direct Spending by Out-of-State Visitors
City of
Houston

Description
Hotels [1]
Food & Beverage [1]
Alcoholic Beverage [1]
Entertainment/Shopping [1]
Rental Car [1]
Event Spending [2]
Ticket Sales - Other Events [3]
Total

$
$
$
$
$
$
$
$

54,002,160
57,874,531
16,424,838
75,084,975
2,587,090
42,424,441
12,545,364
260,943,400

Harris County
Excluding
Houston
$
10,084,984
$
2,267,762
$
647,932
$
2,961,974
$
102,560
$
5,475,555
$
1,792,195
$
23,332,962

State of
Texas

Other Areas
$
$
$
$
$
$
$
$

18,072,559
5,519,185
1,576,910
7,208,731
249,650
7,475,555
3,584,390
43,686,980

$
$
$
$
$
$
$
$

82,159,703
65,661,478
18,649,680
85,255,680
2,939,300
55,375,552
17,921,949
327,963,341

Expected Indirect Spending by Out-of-State Visitors [4]

City of
Houston

Description
Hotels
Food & Beverage
Alcoholic Beverage
Entertainment/Shopping
Rental Car
Event Spending
Ticket Sales - Other Events [3]
Total

$
$
$
$
$
$
$
$

18,627,845
18,235,737
5,741,786
27,894,932
868,640
15,768,748
87,137,688

Harris County
Excluding
Houston
$
3,478,778
$
714,551
$
226,504
$
1,100,407
$
34,436
$
2,029,305
$
$
7,583,980

State of
Texas

Other Areas
$
$
$
$
$
$
$
$

6,234,062
1,739,045
551,255
2,678,126
83,822
2,731,700
14,018,011

$
$
$
$
$
$
$
$

34,885,379
27,637,355
9,010,817
35,879,222
1,056,516
26,571,453
135,040,742

Expected Induced Spending by Out-of-State Visitors [4]

City of
Houston

Description
Hotels
Food & Beverage
Alcoholic Beverage
Entertainment/Shopping
Rental Car
Event Spending
Ticket Sales - Other Events [3]
Total

$
$
$
$
$
$
$
$

13,646,546
15,460,141
4,066,565
21,649,093
407,675
12,517,659
67,747,679

Harris County
Excluding
Houston
$
2,548,513
$
605,792
$
160,419
$
854,020
$
16,161
$
1,609,811
$
$
5,794,715

State of
Texas

Other Areas
$
$
$
$
$
$
$
$

4,567,003
1,474,351
390,421
2,078,478
39,340
2,159,711
10,709,305

$
$
$
$
$
$
$
$

34,062,427
29,908,123
7,803,796
40,624,852
943,077
26,723,557
140,065,832

Expected Total Spending by Out-of-State Visitors

City of
Houston

Description
Hotels
Food & Beverage
Alcoholic Beverage
Entertainment/Shopping
Rental Car
Event Spending
Ticket Sales - Other Events
Total

$
$
$
$
$
$
$
$

86,276,550
91,570,410
26,233,189
124,628,999
3,863,404
70,710,849
12,545,364
415,828,767

Harris County
Excluding
Houston
$
16,112,274
$
3,588,104
$
1,034,855
$
4,916,402
$
153,157
$
9,114,670
$
1,792,195
$
36,711,657

State of
Texas

Other Areas
$
$
$
$
$
$
$
$

28,873,624
8,732,581
2,518,587
11,965,336
372,812
12,366,966
3,584,390
68,414,296

$
$
$
$
$
$
$
$

151,107,509
123,206,955
35,464,293
161,759,754
4,938,893
108,670,562
17,921,949
603,069,914

Notes:
[1] From Schedule 9.
[2] From Schedule 11.
[3] From Schedule 12B. We expect that revenues generated from tickets sales will not have an impact on
secondary spending.
[4] Results from IMPLAN analysis.

Super Bowl LI - BDO USA, LLP

Schedule 3
Super Bowl LI
Breakdown of Attendance
Expected Attendance at the Game
Description
Ticketed Attendance
Players and Team Personnel
Media Credentials
Non-Media Credentials - League Officials
Non-Media Credentials - Stadium Workers/Miscellaneous
Non-Media Credentials - Halftime Performers
Total

Total
Attendance
71,500
300
5,000
1,000
4,000
1,000
82,800

% Out-ofState
80.0%
87.9%
80.0%
80.0%
10.0%
20.0%
75.9%

Out-of-State
Visitors
57,200
264
4,000
800
400
200
62,864

Spending Category
Fans
Players and Team Personnel
Other Credentials
League Credentials
Other Credentials
Other Credentials

Expected Other Attendance

Description
Additional People in Town but not at the Game
Total

Total
Attendance
58,000
58,000

% Out-ofState
80.0%
80.0%

Out-of-State
Spending Category
Visitors
Fans
46,400
46,400

All Visitors by Attendance Category

Attendance Category
Expected Attendance at the Game
Expected Other Attendance
Total

Total
Attendance
82,800
58,000
140,800

% of
Attendees
58.8%
41.2%
100.0%

Out-of-State
Visitors
62,864
46,400
109,264

% Out-of-State
75.9%
80.0%
77.6%

All Visitors by Spending Category

Spending Category
Fans
Players and Team Personnel
Other Credentials
League Credentials
Total

Total
Attendance
129,500
300
10,000
1,000
140,800

% of
Attendees
92.0%
0.2%
7.1%
0.7%
100.0%

Out-of-State
Visitors
103,600
264
4,600
800
109,264

% Out-of-State
80.0%
87.9%
46.0%
80.0%
77.6%

Super Bowl LI - BDO USA, LLP

Schedule 4
Super Bowl LI
Inputs and Assumptions - Allocation of Rooms in Hotel Block

Summary of Hotel Block Rooms by Location

Number of
Rooms

Location
City of Houston
Harris County Excluding City of Houston
Hotel Rooms in Other Areas
Total

15,372
140
1,536
17,048

Hotel Rooms
Utilized from
Hotel Block [1]
15,065
137
1,505
16,707

% of Hotel
Block Fill [1]
98.0%
98.0%
98.0%
98.0%

Average
Rate
$
$
$
$

312
188
297
309

Average People per Room

Category
Fans
Players and Team Personnel
Other Credentials
League Credentials

People/Room
2.0
1.0
1.2
1.2

Allocation of Rooms
Spending Category
Fans
Players and Team Personnel
Other Credentials
League Credentials
Total

Total
Attendance
129,500
300
10,000
1,000
140,800

Less: % Not
Staying in
Hotels [2]
5.0%
5.0%
-

Number of
People Needing
Hotels Rooms
123,025
300
9,500
1,000
133,825

Number of
People per
Room
2.0
1.0
1.2
1.2

Other Areas

Total

Total Hotel
Rooms
Needed
61,513
300
7,917
833
70,563

% Staying in
Hotel Block
15.7%
100.0%
75.0%
100.0%

Hotel Rooms
Utilized from
Hotel Block
9,636
300
5,938
833
16,707

Hotel Rooms
Outside
Hotel Block
51,876
1,979
53,855

Allocation of Hotel Block Rooms

Spending Category
Fans [3]
Players and Team Personnel [4]
Other Credentials [5]
League Credentials [4]
Total

City of
Houston
8,431
300
5,500
833
15,065

Harris County
Excluding
Houston
137
137

1,205
300
1,505

9,636
300
5,938
833
16,707

Notes:
[1] There are 17,048 hotel rooms in the hotel block. We assume the hotel block with be 98% full.
[2] We assume that 5% of fans and 5% of attendees holding credentials other than league credentials will not stay at hotels.
[3] Fans occupy the rooms in the hotel block not utilized by visitors in other categories.
[4] We assume all League Credentials and all Players and Team Personnel stay at rooms inside the hotel block within the City of Houston.
[5] We assume (a) 75% of rooms required by Other Credentials are within the hotel block, (b) 5,500 of the 5,938 rooms within the hotel block allocated to Other Credentials are
within the City of Houston, (c) all 137 hotel rooms that are within Harris County but outside the City of Houston will be utilized by Other Credentials and (d) the remaining 300 rooms in the
hotel block are located in other areas.

Super Bowl LI - BDO USA, LLP

Schedule 5
Super Bowl LI
Allocation of Rooms Outside Hotel Block

Number of Hotel Rooms Needed Outside the Hotel Block

Spending Category
Fans
Players and Team Personnel
Other Credentials
League Credentials
Total Hotel Rooms

Total Hotel
Hotel Rooms
Rooms
Utilized from
Needed
Hotel Block [1]
61,513
9,636
300
300
7,917
5,938
833
833
70,563
16,707

Hotel Rooms
Outside
Hotel Block
51,876
1,979
53,855

Allocation of Rooms Outside the

Hotel Block Across Locations
Location
City of Houston
Harris County Excluding Houston
Other Areas

% of Rooms
60.0%
15.0%
25.0%

Number of Hotel Rooms Needed Outside the Hotel Block by Location

Spending Category
Fans
Players and Team Personnel
Other Credentials
League Credentials
Total Hotel Rooms

Rooms in City
of Houston
31,126
1,188
32,313

Rooms in
Harris County
Excluding
Houston
7,781
297
8,078

Rooms in
Other Areas
12,969
495
13,464

Total
51,876
1,979
53,855

Total Number of Hotel Rooms by Location

Description
Rooms in Hotel Block [1]
Rooms Outside the Hotel Block
Total Hotel Rooms

Rooms in City
of Houston
15,065
32,313
47,378

Rooms in
Harris County
Excluding
Houston
137
8,078
8,216

Rooms in
Other Areas
1,505
13,464
14,969

Total
16,707
53,855
70,563

Notes:
[1] From Schedule 4.

Super Bowl LI - BDO USA, LLP

Schedule 6
Super Bowl LI
Hotels - Determination of Room Nights - All Attendees
Rooms in Hotel Block Assigned to Spending Categories
Spending Category

Fans
Players and Team Personnel
Other Credentials
League Credentials
Total

Number of Rooms per Night [1]

Harris
Total Rooms
County
City of
per Night
Other Areas
Excluding
Houston
Houston
8,431
1,205
9,636
300
300
5,500
137
300
5,938
833
833
15,065
137
1,505
16,707

Number of
Nights
4.00
7.50
7.00
7.00

Total Number of Rooms

Harris
County
City of
Other Areas
Excluding
Houston
Houston
33,725
4,820
2,250
38,500
960
2,102
5,833
80,308
960
6,922

Total Room
Nights
38,545
2,250
41,563
5,833
88,191

Hotels Rooms Outside Hotel Block Assigned to Spending Categories

Spending Category

Fans
Players and Team Personnel
Other Credentials
League Credentials
Total

Number of Rooms per Night [2]

Harris
Total Rooms
County
City of
per Night
Other Areas
Excluding
Houston
Houston
31,126
7,781
12,969
51,876
1,188
297
495
1,979
32,313
8,078
13,464
53,855

Number of
Nights
4.00
7.50
7.00
7.00

Total Number of Rooms

Harris
County
City of
Other Areas
Excluding
Houston
Houston
124,503
31,126
51,876
8,313
2,078
3,464
132,816
33,204
55,340

Total Room
Nights
207,505
13,854
221,359

Total Hotel Rooms Assigned to Spending Categories

Spending Category

Fans
Players and Team Personnel
Other Credentials
League Credentials
Total

Number of Rooms per Night

Harris
Total Rooms
County
City of
per Night
Other Areas
Excluding
Houston
Houston
39,557
7,781
14,174
61,513
300
300
6,688
434
795
7,917
833
833
47,378
8,216
14,969
70,563

Number of
Nights
4.00
7.50
7.00
7.00

Total Number of Rooms

Harris
County
City of
Other Areas
Excluding
Houston
Houston
158,228
31,126
56,696
2,250
46,813
3,039
5,566
5,833
213,124
34,164
62,262

Total Room
Nights
246,050
2,250
55,417
5,833
309,550

Average Room Rate

Description
Rooms in Hotel Block
Rooms Outside Hotel Block
Total

Number of
Rooms
16,707
53,855
70,563

Average
Room Rate
$
309
$
385
$
367

Notes:
[1] From Schedule 4.
[2] From Schedule 5. This calculation excludes the 5% of fans and 5% of other credentials who are expected to stay at accommodations other than hotels.

Super Bowl LI - BDO USA, LLP

Schedule 6A
Super Bowl LI
Hotels - Determination of Room Nights - Out-of-State Visitors
Rooms in Hotel Block Assigned to Spending Categories
Spending Category

Fans
Players and Team Personnel
Other Credentials
League Credentials
Total

Number of Rooms per Night [1]

Harris
Total Rooms
County
City of
per Night
Other Areas
Excluding
Houston
Houston
6,745
964
7,709
264
264
2,530
63
138
2,731
667
667
10,205
63
1,102
11,371

Number of
Nights
4.00
7.50
7.00
7.00

Total Number of Rooms

Harris
County
City of
Other Areas
Excluding
Houston
Houston
26,980
3,856
1,978
17,710
442
967
4,667
51,334
442
4,823

Total Room
Nights
30,836
1,978
19,119
4,667
56,599

Hotels Rooms Outside Hotel Block Assigned to Spending Categories

Spending Category

Fans
Players and Team Personnel
Other Credentials
League Credentials
Total

Number of Rooms per Night [1], [2]

Harris
Total Rooms
County
City of
per Night
Other Areas
Excluding
Houston
Houston
24,901
6,225
10,375
41,501
546
137
228
910
25,447
6,362
10,603
42,411

Number of
Nights
4.00
7.50
7.00
7.00

Total Number of Rooms

Harris
Total Rooms
County
City of
Nights
Other Areas
Excluding
Houston
Houston
99,602
24,901
41,501
166,004
3,824
956
1,593
6,373
103,426
25,857
43,094
172,377

Total Hotel Rooms Assigned to Spending Categories

Spending Category

Fans
Players and Team Personnel
Other Credentials
League Credentials
Total

Number of Rooms per Night

Harris
Total Rooms
County
City of
per Night
Other Areas
Excluding
Houston
Houston
31,646
6,225
11,339
49,210
264
264
3,076
200
366
3,642
667
667
35,652
6,425
11,705
53,782

Number of
Nights
4.00
7.50
7.00
7.00

Total Number of Rooms

Harris
Total Rooms
County
City of
Nights
Other Areas
Excluding
Houston
Houston
126,582
24,901
45,357
196,840
1,978
1,978
21,534
1,398
2,560
25,492
4,667
4,667
154,760
26,298
47,917
228,976

Average Room Rate

Description
Rooms in Hotel Block
Rooms Outside Hotel Block
Total

Number of
Rooms
11,371
42,411
53,782

Average
Room Rate
$
309
$
385
$
369

Notes:
[1] Number of rooms from Schedule 6 multiplied by the out-of-state percentage from Schedule 3.
[2] This calculation excludes the 5% of fans and 5% of other credentials who are expected to stay at accommodations other than hotels.

Super Bowl LI - BDO USA, LLP

Schedule 7
Super Bowl LI
Determination of People Days - All Attendees
Length of Stay and People Days by Spending Category
Spending Category
Fans
Players and Team Personnel
Other Credentials
League Credentials
Total

Total
Length of
Attendance [1] Stay - Days [2]
129,500
4.00
300
7.50
10,000
7.00
1,000
7.00
140,800
4.24

People Days
518,000
2,250
70,000
7,000
597,250

Attendance by Location - People in Hotel Block

Spending Category
Fans
Players and Team Personnel
Other Credentials
League Credentials
Total

City of
Houston
16,862
300
6,600
1,000
24,762

Total Attendance [3]

Harris County
Excluding
Other Areas
Houston
2,410
165
360
165
2,770

State of
Texas

Length of
Stay - Days

19,272
300
7,125
1,000
27,697

4.00
7.50
7.00
7.00
4.92

City of
Houston
67,450
2,250
46,200
7,000
122,900

Total People Days

Harris County
Excluding
Other Areas
Houston
9,640
1,152
2,523
1,152
12,162

State of
Texas
77,090
2,250
49,875
7,000
136,215

Attendance by Location - People in Hotels Outside Hotel Block

Spending Category
Fans
Players and Team Personnel
Other Credentials
League Credentials
Total

City of
Houston
62,252
1,425
63,677

Total Attendance [3]

Harris County
Excluding
Other Areas
Houston
15,563
25,938
356
594
15,919
26,532

State of
Texas

Length of
Stay - Days

103,753
2,375
106,128

4.00
7.50
7.00
7.00
4.07

City of
Houston
249,006
9,975
258,981

Total People Days

Harris County
Excluding
Other Areas
Houston
62,252
103,753
2,494
4,156
64,745
107,909

State of
Texas
415,010
16,625
431,635

Attendance by Location - People Not Staying in Hotels

Spending Category
Fans
Players and Team Personnel
Other Credentials
League Credentials
Total

City of
Houston
5,504
425
5,929

Total Attendance [4]

Harris County
Excluding
Other Areas
Houston
324
648
25
50
349
698

State of
Texas

Length of
Stay - Days

6,475
500
6,975

4.00
7.50
7.00
7.00
4.22

City of
Houston
22,015
2,975
24,990

Total People Days

Harris County
Excluding
Other Areas
Houston
1,295
2,590
175
350
1,470
2,940

State of
Texas
25,900
3,500
29,400

Total Attendance
Spending Category
Fans
Players and Team Personnel
Other Credentials
League Credentials
Total

City of
Houston
84,618
300
8,450
1,000
94,368

Total Attendance
Harris County
Excluding
Other Areas
Houston
15,887
28,996
546
1,004
16,433
30,000

State of
Texas
129,500
300
10,000
1,000
140,800

Length of
Stay - Days
4.00
7.50
7.00
7.00
4.24

City of
Houston
338,471
2,250
59,150
7,000
406,871

Total People Days

Harris County
Excluding
Other Areas
Houston
63,547
115,982
3,821
7,029
67,368
123,011

State of
Texas
518,000
2,250
70,000
7,000
597,250

Notes:
[1] From Schedule 3.
[2] Average length of stay in nights from Schedule 6 is converted to days. We assume people arrive and depart mid-day. We calculate the average length of stay in days by
subtracting a half a day for arrival and adding a half a day for departure to the average length of stay in nights.
[3] Number of rooms (Schedule 6) multiplied by people per room (Schedule 4).
[4] We assume that 85% of people not staying in hotels will stay in the City of Houston, 5% will stay in Harris County outside the City of Houston, and 10% will stay in
other locations in the Greater Houston Metropolitan Area.

Super Bowl LI - BDO USA, LLP

Schedule 7A
Super Bowl LI
Determination of People Days - Out-of-State Visitors
Length of Stay and People Days by Spending Category
Spending Category
Fans
Players and Team Personnel
Other Credentials
League Credentials
Total

Total
Length of
Attendance [1] Stay - Days [2]
103,600
4.00
264
7.50
4,600
7.00
800
7.00
109,264
4.16

People Days
414,400
1,978
32,200
5,600
454,178

Attendance by Location - People in Hotel Block

Spending Category
Fans
Players and Team Personnel
Other Credentials
League Credentials
Total

City of
Houston
13,490
264
3,036
800
17,590

Total Visitors [3]

Harris County
Excluding
Other Areas
Houston
1,928
76
166
76
2,094

State of
Texas

Length of
Stay - Days

15,418
264
3,278
800
19,759

4.00
7.50
7.00
7.00
4.67

City of
Houston
53,960
1,978
21,252
5,600
82,789

Total People Days

Harris County
Excluding
Other Areas
Houston
7,712
530
1,160
530
8,872

State of
Texas
61,672
1,978
22,943
5,600
92,192

Attendance by Location - People in Hotels Outside Hotel Block

Spending Category
Fans
Players and Team Personnel
Other Credentials
League Credentials
Total

City of
Houston
49,801
656
50,457

Total Visitors [3]

Harris County
Excluding
Other Areas
Houston
12,450
20,751
164
273
12,614
21,024

State of
Texas

Length of
Stay - Days

83,002
1,093
84,095

4.00
7.50
7.00
7.00
4.04

City of
Houston
199,205
4,589
203,793

Total People Days

Harris County
Excluding
Other Areas
Houston
49,801
83,002
1,147
1,912
50,948
84,914

State of
Texas
332,008
7,648
339,656

Attendance by Location - People Not Staying in Hotels

Spending Category
Fans
Players and Team Personnel
Other Credentials
League Credentials
Total

City of
Houston
4,403
196
4,599

Total Visitors [4]

Harris County
Excluding
Other Areas
Houston
259
518
12
23
271
541

State of
Texas

Length of
Stay - Days

5,180
230
5,410

4.00
7.50
7.00
7.00
4.13

City of
Houston
17,612
1,369
18,981

Total People Days

Harris County
Excluding
Other Areas
Houston
1,036
2,072
81
161
1,117
2,233

State of
Texas
20,720
1,610
22,330

Total Out-of-State Visitors

Spending Category
Fans
Players and Team Personnel
Other Credentials
League Credentials
Total

City of
Houston
67,694
264
3,887
800
72,645

Total Visitors
Harris County
Excluding
Other Areas
Houston
12,709
23,196
251
462
12,960
23,658

State of
Texas
103,600
264
4,600
800
109,264

Length of
Stay - Days
4.00
7.50
7.00
7.00
4.16

City of
Houston
270,777
1,978
27,209
5,600
305,563

Total People Days

Harris County
Excluding
Other Areas
Houston
50,837
92,786
1,758
3,233
52,595
96,019

State of
Texas
414,400
1,978
32,200
5,600
454,178

Notes:
[1] From Schedule 3.
[2] Average length of stay in nights from Schedule 6 is converted to days. We assume people arrive and depart mid-day. We calculate the average length of stay in days by
subtracting a half a day for arrival and adding a half a day for departure to the average length of stay in nights.
[3] Number of rooms (Schedule 6) multiplied by people per room (Schedule 4).
[4] We assume that 85% of people not staying in hotels will stay in the City of Houston, 5% will stay in Harris County outside the City of Houston, and 10% will stay in
other locations in the Greater Houston Metropolitan Area.

Super Bowl LI - BDO USA, LLP

Schedule 8
Super Bowl LI
Inputs and Assumptions - Spending Assumptions for Other Items
Spending by Category
Spending Category
Fans
Players and Team Personnel
Other Credentials
League Credentials

$
$
$
$

Food &
Beverage
147
196
49
196

$
$
$
$

Regular Spending
Alcoholic
Entertainment/
Beverage
Shopping
42 $
192
- $
14 $
64
56 $
256

Rental Car
$
$
$
$

13
13
13

$
$
$
$

Additional Game Day Spending [1]

Food &
Alcoholic
Entertainment/
Beverage
Beverage
Shopping
29 $
8 $
38
- $
- $
- $
- $
- $
- $
-

Spending Location Based on Where Individuals Stay

Hotel Location

Spending
Within City of
Houston

City of Houston
Harris County Excluding Houston
Other Areas

100.0%
70.0%
60.0%

Percentage of People Renting Cars

50.0%

Spending
Within Harris
County
Excluding
Houston
30.0%
-

Spending in
Other Areas
40.0%

Notes:
[1] Additional spending only applies to Fans attending the Super Bowl.

Super Bowl LI - BDO USA, LLP

Schedule 9
Super Bowl LI
Summary of Spending - Out-of-State Visitors
Summary of Spending by Category
City of
Houston

Description
Hotels
Food & Beverage
Alcoholic Beverage
Entertainment/Shopping
Rental Car
Total

$
$
$
$
$
$

54,002,160
57,874,531
16,424,838
75,084,975
2,587,090
205,973,594

Harris County
Excluding
Houston
$
10,084,984
$
2,267,762
$
647,932
$
2,961,974
$
102,560
$
16,065,212

State of
Texas

Other Areas
$
$
$
$
$
$

18,072,559
5,519,185
1,576,910
7,208,731
249,650
32,627,035

$
$
$
$
$
$

82,159,703
65,661,478
18,649,680
85,255,680
2,939,300
254,665,840

Super Bowl LI - BDO USA, LLP

Schedule 9A
Super Bowl LI
Calculation of Incremental Spending - Out-of-State Visitors - Fans
Hotel Room Nights [1]
City of
Houston

Description
Hotel Block
Hotels Outside Hotel Block
Less: Marriott Marquis [2]
Total Eligible Hotels

26,980
99,602
(4,112)
122,470

Harris County
Excluding
Houston
24,901

State of
Texas

Other Areas
3,856
41,501
45,357

24,901

30,836
166,004
(4,112)
192,728

Spending on Hotels [3]

Hotel Block
Hotels Outside Hotel Block
Total

Harris County
Excluding
Other Areas
Houston
7,074,556 $
- $
1,192,895 $
38,322,055 $
9,580,514 $
15,967,523 $
45,396,611 $
9,580,514 $
17,160,418 $

City of
Houston

Description
$
$
$

State of
Texas
8,267,451
63,870,092
72,137,543

People Days [4]

City of
Houston

Description
Hotel Block
Hotels Outside Hotel Block
People Not Staying in Hotels
Total

53,960
199,205
17,612
270,777

Harris County
Excluding
Houston
49,801
1,036
50,837

State of
Texas

Other Areas
7,712
83,002
2,072
92,786

61,672
332,008
20,720
414,400

Spending on Other Items [5]

City of
Houston

Description
Food & Beverage
Alcoholic Beverage
Entertainment/Shopping
Rental Car [6]
Total

$
$
$
$
$

53,219,064
15,205,447
69,510,615
2,353,224
140,288,350

Harris County
Excluding
Houston
$
2,241,922
$
640,549
$
2,928,225
$
99,133
$
5,909,829

State of
Texas

Other Areas
$
$
$
$
$

5,455,813
1,558,804
7,125,960
241,243
14,381,821

$
$
$
$
$

60,916,800
17,404,800
79,564,800
2,693,600
160,580,000

Game Day Spending [7]

Description
Food & Beverage
Alcoholic Beverage
Entertainment/Shopping
Total

$
$
$
$

City of
Houston
1,681,680
480,480
2,196,480
4,358,640

Summary of Spending by Category

City of
Houston

Description
Hotels
Food & Beverage
Alcoholic Beverage
Entertainment/Shopping
Rental Car
Total

$
$
$
$
$
$

45,396,611
54,900,744
15,685,927
71,707,095
2,353,224
190,043,601

Harris County
Excluding
Houston
$
9,580,514
$
2,241,922
$
640,549
$
2,928,225
$
99,133
$
15,490,343

State of
Texas

Other Areas
$
$
$
$
$
$

17,160,418
5,455,813
1,558,804
7,125,960
241,243
31,542,239

$
$
$
$
$
$

72,137,543
62,598,480
17,885,280
81,761,280
2,693,600
237,076,183

Notes:
[1] From Schedule 6A.
[2] The Marriott Marquis is a new hotel that will have a capacity of 1,028 rooms. While no rooms are currently
contracted at this hotel, we understand that it will eventually be part of the hotel block. It is our understanding
that hotel occupancy taxes collected at the Marriott Marquis are not eligible to determine the funding under the
Major Events Reimbursement Program.
[3] Hotel room nights multiplied by hotel rate (Schedule 6A).
[4] From Schedule 7A.
[5] Number of people days multiplied by average daily spending (Schedule 8) and spending in locality (Schedule 8).
[6] Number of people days multiplied by average daily spending (Schedule 8), spending in locality (Schedule 8) and
percentage of people renting cars (Schedule 8).
[7] Calculated for 57,200 fans at the game at the Super Bowl.

Super Bowl LI - BDO USA, LLP

Schedule 9B
Super Bowl LI
Calculation of Incremental Spending - Out-of-State Visitors - Players and Team Personnel
Hotel Room Nights [1]
City of
Houston

Description
Hotel Block
Hotels Outside Hotel Block
Total

1,978
1,978

Harris County
Excluding
Houston
-

State of
Texas

Other Areas
-

1,978
1,978

Spending on Hotels [2]

City of
Houston

Description
Hotel Block
Hotels Outside Hotel Block
Less: Hotel Spending by the Host Committee [3]
Total

$
$
$
$

611,783
(400,000)
211,783

Harris County
Excluding
Houston
$
$
$
$
-

State of
Texas

Other Areas
$
$
$
$

$
$
$
$

611,783
(400,000)
211,783

People Days [4]

City of
Houston

Description
Hotel Block
Hotels Outside Hotel Block
People Not Staying in Hotels
Total

1,978
1,978

Harris County
Excluding
Houston
-

State of
Texas

Other Areas
-

1,978
1,978

Spending on Other Items [5]

City of
Houston

Description
Food & Beverage
Alcoholic Beverage
Entertainment/Shopping
Rental Car [6]
Total

$
$
$
$
$

387,598
387,598

Harris County
Excluding
Houston
$
$
$
$
$
-

State of
Texas

Other Areas
$
$
$
$
$

$
$
$
$
$

387,598
387,598

Summary of Spending by Category

City of
Houston

Description
Hotels
Food & Beverage
Alcoholic Beverage
Entertainment/Shopping
Rental Car
Total

$
$
$
$
$
$

211,783
387,598
599,381

Harris County
Excluding
Houston
$
$
$
$
$
$
-

State of
Texas

Other Areas
$
$
$
$
$
$

$
$
$
$
$
$

211,783
387,598
599,381

Notes:
[1] From Schedule 6A.
[2] Hotel room nights multiplied by hotel rate (Schedule 6A).
[3] Included in spending by the Host Committee on Schedule 11A. This spending is not subject to taxation.
[4] From Schedule 7A.
[5] Number of people days multiplied by average daily spending (Schedule 8) and spending in locality (Schedule 8).
[6] Number of people days multiplied by average daily spending (Schedule 8), spending in locality (Schedule 8) and
percentage of people renting cars (Schedule 8).

Super Bowl LI - BDO USA, LLP

Schedule 9C
Super Bowl LI
Calculation of Incremental Spending - Out-of-State Visitors - Other Credentials
Hotel Room Nights [1]
City of
Houston

Description
Hotel Block
Hotels Outside Hotel Block
Total Eligible Hotels

17,710
3,824
21,534

Harris County
Excluding
Houston
442
956
1,398

State of
Texas

Other Areas
967
1,593
2,560

19,119
6,373
25,492

Spending on Hotels [2]

City of
Houston

Description
Hotel Block
Hotels Outside Hotel Block
Total

$
$
$

5,478,870
1,471,188
6,950,058

Harris County
Excluding
Houston
$
136,673
$
367,797
$
504,470

State of
Texas

Other Areas
$
$
$

299,146
612,995
912,141

$
$
$

5,914,689
2,451,980
8,366,669

People Days [3]

City of
Houston

Description
Hotel Block
Hotels Outside Hotel Block
People Not Staying in Hotels
Total

21,252
4,589
1,369
27,209

Harris County
Excluding
Houston
530
1,147
81
1,758

State of
Texas

Other Areas
1,160
1,912
161
3,233

22,943
7,648
1,610
32,200

Spending on Other Items [4]

City of
Houston

Description
Food & Beverage
Alcoholic Beverage
Entertainment/Shopping
Rental Car [5]
Total

$
$
$
$
$

1,488,589
425,311
1,944,280
197,466
4,055,647

Harris County
Excluding
Houston
$
25,839
$
7,383
$
33,749
$
3,428
$
70,399

State of
Texas

Other Areas
$
$
$
$
$

63,371
18,106
82,771
8,406
172,655

$
$
$
$
$

1,577,800
450,800
2,060,800
209,300
4,298,700

Summary of Spending by Category

City of
Houston

Description
Hotels
Food & Beverage
Alcoholic Beverage
Entertainment/Shopping
Rental Car
Total

$
$
$
$
$
$

6,950,058
1,488,589
425,311
1,944,280
197,466
11,005,704

Harris County
Excluding
Houston
$
504,470
$
25,839
$
7,383
$
33,749
$
3,428
$
574,868

State of
Texas

Other Areas
$
$
$
$
$
$

912,141
63,371
18,106
82,771
8,406
1,084,796

$
$
$
$
$
$

8,366,669
1,577,800
450,800
2,060,800
209,300
12,665,369

Notes:
[1] From Schedule 6A.
[2] Hotel room nights multiplied by hotel rate (Schedule 6A).
[3] From Schedule 7A.
[4] Number of people days multiplied by average daily spending (Schedule 8) and spending in locality (Schedule 8).
[5] Number of people days multiplied by average daily spending (Schedule 8), spending in locality (Schedule 8) and
percentage of people renting cars (Schedule 8).

Super Bowl LI - BDO USA, LLP

Schedule 9D
Super Bowl LI
Calculation of Incremental Spending - Out-of-State Visitors - League Credentials
Hotel Room Nights [1]
City of
Houston

Description
Hotel Block
Hotels Outside Hotel Block
Total

4,667
4,667

Harris County
Excluding
Houston
-

State of
Texas

Other Areas
-

4,667
4,667

Spending on Hotels [2]

City of
Houston

Description
Hotel Block
Hotels Outside Hotel Block
Total

$
$
$

1,443,707
1,443,707

Harris County
Excluding
Houston
$
$
$
-

State of
Texas

Other Areas
$
$
$

$
$
$

1,443,707
1,443,707

People Days [3]

City of
Houston

Description
Hotel Block
Hotels Outside Hotel Block
People Not Staying in Hotels
Total

5,600
5,600

Harris County
Excluding
Houston
-

State of
Texas

Other Areas
-

5,600
5,600

Spending on Other Items [4]

City of
Houston

Description
Food & Beverage
Alcoholic Beverage
Entertainment/Shopping
Rental Car [5]
Total

$
$
$
$
$

1,097,600
313,600
1,433,600
36,400
2,881,200

Harris County
Excluding
Houston
$
$
$
$
$
-

State of
Texas

Other Areas
$
$
$
$
$

$
$
$
$
$

1,097,600
313,600
1,433,600
36,400
2,881,200

Summary of Spending by Category

City of
Houston

Description
Hotels
Food & Beverage
Alcoholic Beverage
Entertainment/Shopping
Rental Car
Total

$
$
$
$
$
$

1,443,707
1,097,600
313,600
1,433,600
36,400
4,324,907

Harris County
Excluding
Houston
$
$
$
$
$
$
-

State of
Texas

Other Areas
$
$
$
$
$
$

$
$
$
$
$
$

1,443,707
1,097,600
313,600
1,433,600
36,400
4,324,907

Notes:
[1] From Schedule 6A.
[2] Hotel room nights multiplied by hotel rate (Schedule 6A).
[3] From Schedule 7A.
[4] Number of people days multiplied by average daily spending (Schedule 8) and spending in locality (Schedule 8).
[5] Number of people days multiplied by average daily spending (Schedule 8), spending in locality (Schedule 8) and
percentage of people renting cars (Schedule 8).

Super Bowl LI - BDO USA, LLP

Schedule 10
Super Bowl LI
Summary of Incremental Taxes - Out-of-State Visitors
Summary of Taxes by Category
Category
Hotel Occupancy Tax
Food/Beverage
Sales Tax on Alcohol
Mixed Beverage Sales Tax
Mixed Beverage Gross Receipts Tax
Title 5 ABC Tax
Entertainment/Shopping
Rental Car
Total

$
$
$
$
$
$
$
$
$

City of
Houston
3,780,151
578,745
65,699
87,110
70,744
750,850
5,333,300

$
$
$
$
$
$
$
$
$

Harris
County
1,281,743
90,547
73,535
1,445,825

$
$
$
$
$
$
$
$
$

State of
Texas
4,929,582
4,103,842
466,242
725,339
589,063
74,599
5,328,480
293,930
16,511,078

Super Bowl LI - BDO USA, LLP

Schedule 10A
Super Bowl LI
Calculation of Incremental Taxes - Out-of-State Visitors - Fans
Spending by Category [1]
City of
Houston

Description
Hotels
Food & Beverage
Alcoholic Beverage
Entertainment/Shopping
Rental Car
Total

$
$
$
$
$
$

45,396,611
54,900,744
15,685,927
71,707,095
2,353,224
190,043,601

Harris County
Excluding
Houston
$
9,580,514
$
2,241,922
$
640,549
$
2,928,225
$
99,133
$
15,490,343

State of
Texas

Other Areas
$
$
$
$
$
$

17,160,418
5,455,813
1,558,804
7,125,960
241,243
31,542,239

$
$
$
$
$
$

72,137,543
62,598,480
17,885,280
81,761,280
2,693,600
237,076,183

Applicable Tax Rates

City of
Houston
7.00%
1.00%
-

Category
Hotel Occupancy Tax
Sales and Use Tax
Mixed Beverage Sales Tax
Mixed Beverage Gross Receipts Tax
Title 5 ABC Tax
Rental Car

Harris
County
2.00%
-

State of
Texas
6.00%
6.25%
8.25%
6.70%
0.40%
10.00%

Expected Tax Increase from Out-of-State Visitor Spending

Category
Hotel Occupancy Tax
Food/Beverage
Sales Tax on Alcohol [3]
Mixed Beverage Sales Tax [4]
Mixed Beverage Gross Receipts Tax [5]
Title 5 ABC Tax [6]
Entertainment/Shopping
Rental Car
Total

$
$
$
$
$
$
$
$
$

City of
Houston
3,177,763
549,007
62,744
83,192
67,562
717,071
4,657,338

$
$
$
$
$
$
$
$
$

Harris
County [2]
1,099,543
86,589
70,321
1,256,452

$
$
$
$
$
$
$
$
$

State of
Texas
4,328,253
3,912,405
447,132
695,609
564,919
71,541
5,110,080
269,360
15,399,299

Notes:
[1] From Schedule 9A.
[2] This includes taxes on spending within the City of Houston.
[3] Sales tax on alcohol is 40% of alcohol spending multiplied by the sales tax rate.
[4] We assume 60% of alcohol spending is taxed at the mixed beverage sales tax rate. Texas collects this tax
and redistributes 10.7143% to each the city and county where the tax was collected (thereby retaining 78.6%).
[5] We assume 60% of alcohol spending is taxed at the mixed beverage gross receipts tax rate. Texas collects this
tax and redistributes 10.7143% to each the city and county where the tax was collected (thereby retaining 78.6%).
[6] Title 5 ABC tax is alcohol spending multiplied by 0.4%.

Super Bowl LI - BDO USA, LLP

Schedule 10B
Super Bowl LI
Calculation of Incremental Taxes - Out-of-State Visitors - Players and Team Personnel
Spending by Category [1]
City of
Houston

Description
Hotels
Food & Beverage
Alcoholic Beverage
Entertainment/Shopping
Rental Car
Total

$
$
$
$
$
$

211,783
387,598
599,381

Harris County
Excluding
Houston
$
$
$
$
$
$
-

State of
Texas

Other Areas
$
$
$
$
$
$

$
$
$
$
$
$

211,783
387,598
599,381

Applicable Tax Rates

City of
Houston
7.00%
1.00%
-

Category
Hotel Occupancy Tax
Sales and Use Tax
Mixed Beverage Sales Tax
Mixed Beverage Gross Receipts Tax
Title 5 ABC Tax
Rental Car

Harris
County
2.00%
-

State of
Texas
6.00%
6.25%
8.25%
6.70%
0.40%
10.00%

Expected Tax Increase from Out-of-State Visitor Spending

Category
Hotel Occupancy Tax
Food/Beverage
Sales Tax on Alcohol [3]
Mixed Beverage Sales Tax [4]
Mixed Beverage Gross Receipts Tax [5]
Title 5 ABC Tax [6]
Entertainment/Shopping
Rental Car
Total

$
$
$
$
$
$
$
$
$

City of
Houston
14,825
3,876
18,701

$
$
$
$
$
$
$
$
$

Harris
County [2]
4,236
4,236

$
$
$
$
$
$
$
$
$

State of
Texas
12,707
24,225
36,932

Notes:
[1] From Schedule 9B.
[2] This includes taxes on spending within the City of Houston.
[3] Sales tax on alcohol is 40% of alcohol spending multiplied by the sales tax rate.
[4] We assume 60% of alcohol spending is taxed at the mixed beverage sales tax rate. Texas collects this tax
and redistributes 10.7143% to each the city and county where the tax was collected (thereby retaining 78.6%).
[5] We assume 60% of alcohol spending is taxed at the mixed beverage gross receipts tax rate. Texas collects this
tax and redistributes 10.7143% to each the city and county where the tax was collected (thereby retaining 78.6%).
[6] Title 5 ABC tax is alcohol spending multiplied by 0.4%.

Super Bowl LI - BDO USA, LLP

Schedule 10C
Super Bowl LI
Calculation of Incremental Taxes - Out-of-State Visitors - Other Credentials
Spending by Category [1]
City of
Houston

Description
Hotels
Food & Beverage
Alcoholic Beverage
Entertainment/Shopping
Rental Car
Total

$
$
$
$
$
$

6,950,058
1,488,589
425,311
1,944,280
197,466
11,005,704

Harris County
Excluding
Houston
$
504,470
$
25,839
$
7,383
$
33,749
$
3,428
$
574,868

State of
Texas

Other Areas
$
$
$
$
$
$

912,141
63,371
18,106
82,771
8,406
1,084,796

$
$
$
$
$
$

8,366,669
1,577,800
450,800
2,060,800
209,300
12,665,369

Applicable Tax Rates

City of
Houston
7.00%
1.00%
-

Category
Hotel Occupancy Tax
Sales and Use Tax
Mixed Beverage Sales Tax
Mixed Beverage Gross Receipts Tax
Title 5 ABC Tax
Rental Car

Harris
County
2.00%
-

State of
Texas
6.00%
6.25%
8.25%
6.70%
0.40%
10.00%

Expected Tax Increase from Out-of-State Visitor Spending

Category
Hotel Occupancy Tax
Food/Beverage
Sales Tax on Alcohol [3]
Mixed Beverage Sales Tax [4]
Mixed Beverage Gross Receipts Tax [5]
Title 5 ABC Tax [6]
Entertainment/Shopping
Rental Car
Total

$
$
$
$
$
$
$
$
$

City of
Houston
486,504
14,886
1,701
2,256
1,832
19,443
526,622

$
$
$
$
$
$
$
$
$

Harris
County [2]
149,091
2,295
1,864
153,249

$
$
$
$
$
$
$
$
$

State of
Texas
502,000
98,613
11,270
17,533
14,239
1,803
128,800
20,930
795,188

Notes:
[1] From Schedule 9C.
[2] This includes taxes on spending within the City of Houston.
[3] Sales tax on alcohol is 40% of alcohol spending multiplied by the sales tax rate.
[4] We assume 60% of alcohol spending is taxed at the mixed beverage sales tax rate. Texas collects this tax
and redistributes 10.7143% to each the city and county where the tax was collected (thereby retaining 78.6%).
[5] We assume 60% of alcohol spending is taxed at the mixed beverage gross receipts tax rate. Texas collects this
tax and redistributes 10.7143% to each the city and county where the tax was collected (thereby retaining 78.6%).
[6] Title 5 ABC tax is alcohol spending multiplied by 0.4%.

Super Bowl LI - BDO USA, LLP

Schedule 10D
Super Bowl LI
Calculation of Incremental Taxes - Out-of-State Visitors - League Credentials
Spending by Category [1]
City of
Houston

Description
Hotels
Food & Beverage
Alcoholic Beverage
Entertainment/Shopping
Rental Car
Total

$
$
$
$
$
$

1,443,707
1,097,600
313,600
1,433,600
36,400
4,324,907

Harris County
Excluding
Houston
$
$
$
$
$
$
-

State of
Texas

Other Areas
$
$
$
$
$
$

$
$
$
$
$
$

1,443,707
1,097,600
313,600
1,433,600
36,400
4,324,907

Applicable Tax Rates

City of
Houston
7.00%
1.00%
-

Category
Hotel Occupancy Tax
Sales and Use Tax
Mixed Beverage Sales Tax
Mixed Beverage Gross Receipts Tax
Title 5 ABC Tax
Rental Car

Harris
County
2.00%
-

State of
Texas
6.00%
6.25%
8.25%
6.70%
0.40%
10.00%

Expected Tax Increase from Out-of-State Visitor Spending

Category
Hotel Occupancy Tax
Food/Beverage
Sales Tax on Alcohol [3]
Mixed Beverage Sales Tax [4]
Mixed Beverage Gross Receipts Tax [5]
Title 5 ABC Tax [6]
Entertainment/Shopping
Rental Car
Total

$
$
$
$
$
$
$
$
$

City of
Houston
101,060
10,976
1,254
1,663
1,351
14,336
130,640

$
$
$
$
$
$
$
$
$

Harris
County [2]
28,874
1,663
1,351
31,888

$
$
$
$
$
$
$
$
$

State of
Texas
86,622
68,600
7,840
12,197
9,905
1,254
89,600
3,640
279,659

Notes:
[1] From Schedule 9D.
[2] This includes taxes on spending within the City of Houston.
[3] Sales tax on alcohol is 40% of alcohol spending multiplied by the sales tax rate.
[4] We assume 60% of alcohol spending is taxed at the mixed beverage sales tax rate. Texas collects this tax
and redistributes 10.7143% to each the city and county where the tax was collected (thereby retaining 78.6%).
[5] We assume 60% of alcohol spending is taxed at the mixed beverage gross receipts tax rate. Texas collects this
tax and redistributes 10.7143% to each the city and county where the tax was collected (thereby retaining 78.6%).
[6] Title 5 ABC tax is alcohol spending multiplied by 0.4%.

Super Bowl LI - BDO USA, LLP

Schedule 11
Super Bowl LI
Summary of Event Spending by IMPLAN Sector

Summary of Event Spending

Total Event
Spending

IMPLAN Description
Advertising, public relations, and related services
All other food and drinking places
Architectural, engineering, and related services
Bowling centers
Business support services
Commercial and industrial machinery and equipment rental and leasing
Computer systems design services
Construction of other new nonresidential structures
Custom computer programming services
Employment services
Full-service restaurants
Grantmaking, giving, and social advocacy organizations
Hotels and motels, including casino hotels [1]
Independent artists, writers, and performers
Insurance carriers
Investigation and security services
Landscape and horticultural services
Legal services
Local government electric utilities
Local government passenger transit
Management consulting services
Marketing research and all other miscellaneous professional, scientific, and technical services
Men's and boys' cut and sew apparel manufacturing
News syndicates, libraries, archives and all other information services
Other amusement and recreation industries
Other educational services
Other personal services
Photographic services
Printing
Promoters of performing arts and sports and agents for public figures
Radio and television broadcasting
Real estate
Retail - Miscellaneous store retailers
Specialized design services
Transit and ground passenger transportation
Women's and girls' cut and sew apparel manufacturing
Total

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

2,465,097
5,859,386
25,000
26,580
155,000
1,638,696
894,790
5,775,000
282,745
225,928
175,965
587,500
620,000
199,348
762,918
913,631
1,025,000
929,561
465,145
500,000
1,500,025
1,094,496
664,493
136,221
2,089,769
3,854,060
318,957
75,000
331,072
5,408,974
5,307,200
1,164,493
2,259,277
6,131,704
848,028
664,493
55,375,552

Allocated to
City of Houston
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

1,884,205
4,322,016
20,000
19,606
124,000
1,286,087
715,832
4,620,000
222,051
166,649
140,772
470,000
620,000
147,044
610,334
704,791
820,000
743,648
343,102
400,000
1,200,020
815,122
490,145
100,480
1,603,838
2,842,842
235,270
60,000
244,207
3,989,782
4,245,760
890,145
1,666,494
4,522,884
647,169
490,145
42,424,441

Allocated to
Harris County
Excluding
Houston
$
246,510
$
585,939
$
2,500
$
2,658
$
15,500
$
163,870
$
89,479
$
577,500
$
28,274
$
22,593
$
17,596
$
58,750
$
$
19,935
$
76,292
$
91,363
$
102,500
$
92,956
$
46,515
$
50,000
$
150,003
$
109,450
$
66,449
$
13,622
$
208,977
$
385,406
$
31,896
$
7,500
$
33,107
$
540,897
$
530,720
$
116,449
$
225,928
$
613,170
$
84,803
$
66,449
$
5,475,555

Allocated to
Other Areas
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

334,382
951,432
2,500
4,316
15,500
188,739
89,479
577,500
32,419
36,686
17,596
58,750
32,370
76,292
117,476
102,500
92,956
75,529
50,000
150,003
169,924
107,899
22,119
276,954
625,812
51,791
7,500
53,759
878,295
530,720
157,899
366,855
995,650
116,056
107,899
7,475,555

Notes:
[1] We assume all spending on hotels occurs within the City of Houston.

Super Bowl LI - BDO USA, LLP

Schedule 11A
Super Bowl LI
Summary of Event Spending by IMPLAN Sector - Host Committee Spending

Summary of Non-Taxable Event Spending

IMPLAN Description
Not Applicable [5]
Advertising, public relations, and related services
All other food and drinking places
Architectural, engineering, and related services
Bowling centers
Business support services
Commercial and industrial machinery and equipment rental and leasing
Computer systems design services
Construction of other new nonresidential structures
Custom computer programming services
Employment services
Full-service restaurants
Grantmaking, giving, and social advocacy organizations
Hotels and motels, including casino hotels [6]
Independent artists, writers, and performers
Insurance carriers
Investigation and security services
Landscape and horticultural services
Legal services
Local government electric utilities
Local government passenger transit
Management consulting services
Marketing research and all other miscellaneous professional, scientific, and technical services
Men's and boys' cut and sew apparel manufacturing
News syndicates, libraries, archives and all other information services
Other amusement and recreation industries
Other educational services
Other personal services
Photographic services
Printing
Promoters of performing arts and sports and agents for public figures
Radio and television broadcasting
Real estate
Retail - Miscellaneous store retailers
Specialized design services
Transit and ground passenger transportation
Women's and girls' cut and sew apparel manufacturing
Total
Less: Not Applicable
Total Applicable Spending

Non-Taxable
Spending [1]
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

20,214,536
1,586,372
2,204,457
25,000
10,000
155,000
1,390,000
894,790
5,775,000
241,295
85,000
175,965
587,500
620,000
75,000
762,918
652,500
1,025,000
929,561
175,000
500,000
1,500,025
489,750
250,000
51,250
1,410,000
1,450,000
120,000
75,000
124,558
2,035,000
5,307,200
750,000
850,000
2,306,910
535,500
250,000
55,590,087
(20,214,536)
35,375,552

Harris County
Excluding
Houston [3]
16,371,629 $
1,921,454
1,269,098 $
158,637
1,763,565 $
220,446
20,000 $
2,500
8,000 $
1,000
124,000 $
15,500
1,112,000 $
139,000
715,832 $
89,479
4,620,000 $
577,500
193,036 $
24,130
68,000 $
8,500
140,772 $
17,596
470,000 $
58,750
620,000 $
60,000 $
7,500
610,334 $
76,292
522,000 $
65,250
820,000 $
102,500
743,648 $
92,956
140,000 $
17,500
400,000 $
50,000
1,200,020 $
150,003
391,800 $
48,975
200,000 $
25,000
41,000 $
5,125
1,128,000 $
141,000
1,160,000 $
145,000
96,000 $
12,000
60,000 $
7,500
99,647 $
12,456
1,628,000 $
203,500
4,245,760 $
530,720
600,000 $
75,000
680,000 $
85,000
1,845,528 $
230,691
428,400 $
53,550
200,000 $
25,000
44,796,070 $
5,397,009
(16,371,629) $
(1,921,454)
28,424,441 $
3,475,555

City of
Houston [2]
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

Other Areas
[4]
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

1,921,454
158,637
220,446
2,500
1,000
15,500
139,000
89,479
577,500
24,130
8,500
17,596
58,750
7,500
76,292
65,250
102,500
92,956
17,500
50,000
150,003
48,975
25,000
5,125
141,000
145,000
12,000
7,500
12,456
203,500
530,720
75,000
85,000
230,691
53,550
25,000
5,397,009
(1,921,454)
3,475,555

Notes:
[1] It is our understanding that the host committee is a nonprofit organization, and its spending is not subject to taxes.
[2] We assume 80% of spending by the Host Committee to occur in the City of Houston.
[3] We assume 10% of spending by the Host Committee to occur within Harris County but outside the City of Houston.
[4] We assume 10% of spending by the Host Committee to occur in other areas.
[5] This portion of spending occurs outside the relevant time period or the market area for the purposes of the MERP.
[6] The Host Committee is expected to spend $620,000 on team lodging and other expenses at the hotels, of which $400,000 is expected to be for hotel rooms.

Super Bowl LI - BDO USA, LLP

Schedule 11B
Super Bowl LI
Summary of Event Spending by IMPLAN Sector - Taxable Spending on Events by Other Entities

Summary of Taxable Event Spending

IMPLAN Description
Advertising, public relations, and related services
All other food and drinking places
Bowling centers
Commercial and industrial machinery and equipment rental and leasing
Custom computer programming services
Employment services
Independent artists, writers, and performers
Investigation and security services
Local government electric utilities
Marketing research and all other miscellaneous professional, scientific, and technical services
Men's and boys' cut and sew apparel manufacturing
News syndicates, libraries, archives and all other information services
Other amusement and recreation industries
Other educational services
Other personal services
Printing
Promoters of performing arts and sports and agents for public figures
Real estate
Retail - Miscellaneous store retailers
Specialized design services
Transit and ground passenger transportation
Women's and girls' cut and sew apparel manufacturing
Total

City of
Houston [1]

Total Spending
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

878,726
3,654,929
16,580
248,696
41,449
140,928
124,348
261,131
290,145
604,746
414,493
84,971
679,769
2,404,060
198,957
206,514
3,373,974
414,493
1,409,277
3,824,794
312,528
414,493
20,000,000

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

615,108
2,558,450
11,606
174,087
29,015
98,649
87,044
182,791
203,102
423,322
290,145
59,480
475,838
1,682,842
139,270
144,560
2,361,782
290,145
986,494
2,677,356
218,769
290,145
14,000,000

Harris County
Excluding
Houston [2]
$
87,873
$
365,493
$
1,658
$
24,870
$
4,145
$
14,093
$
12,435
$
26,113
$
29,015
$
60,475
$
41,449
$
8,497
$
67,977
$
240,406
$
19,896
$
20,651
$
337,397
$
41,449
$
140,928
$
382,479
$
31,253
$
41,449
$
2,000,000

Other
Areas [3]
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

175,745
730,986
3,316
49,739
8,290
28,186
24,870
52,226
58,029
120,949
82,899
16,994
135,954
480,812
39,791
41,303
674,795
82,899
281,855
764,959
62,506
82,899
4,000,000

Notes:
[1] We assume 70% of spending by other entities to occur in the City of Houston.
[2] We assume 10% of spending by other entities to occur within Harris County but outside the City of Houston.
[3] We assume 20% of spending by other entities to occur in other areas.

Super Bowl LI - BDO USA, LLP

Schedule 12
Super Bowl LI
Sales Tax on Other Event Tickets - Out-of-State Visitors
Calculation of Average
Pre-Tax Ticket Sales for Super Bowl Tickets
Description
Revenue on Tickets to Other Events Including Sales Tax
Sales and Use Tax [1]
Pre-Tax Ticket Revenue

Amount
$ 25,000,000
8.25%
$ 23,094,688

Calculation of Pre-Tax Ticket

Revenue for Out-of-State Visitors
Description
Pre-Tax Ticket Revenue
Out-of-State Percentage for All Visitors [2]
Average Pre-Tax Ticket Revenue

Amount
$ 23,094,688
77.60%
$ 17,921,949

Calculation of Sales and Use Tax for Other Event Tickets

Description
Total Taxable Ticket Revenue
Qualifying Sales and Use Tax [1]
Tax Revenue

City of
Houston [3]
$ 12,545,364
1.00%
$
125,454

Harris
County [4]
$ 1,792,195
$
-

Other
Areas [5]
$ 3,584,390
$
-

State of
Texas
$ 17,921,949
6.25%
$ 1,120,122

Notes:
[1] The Houston Metropolitan Transit Authority receives 1.00% of the 8.25% sales and use tax. It is our understanding
that this tax is not eligible to be included in the incremental taxes used to determine funding for a MERP application.
[2] From Schedule 3.
[3] We assume 70% of the average pre-tax ticket revenue to occur in the City of Houston.
[4] We assume 10% of the average pre-tax ticket revenue to occur within Harris County but outside the City of Houston.
[5] We assume 20% of the average pre-tax ticket revenue to occur in other areas, which is included in this amount.

Super Bowl LI - BDO USA, LLP