Youth sports bring Round Rock millions of dollars in revenue

Nancy Yawn said she drew a lot of skepticism from colleagues and friends when she left a prospering position as Round Rock's economic development director in 2004 to spearhead the city's fledgling Convention and Visitors Bureau.

Round Rock at that time was in the midst of a tremendous growth period that would see hundreds of new jobs added through major hospital, higher education and retail developments. Yawn and the city's leadership, however, foresaw another untapped opportunity to promote economic development: attracting tourists to Round Rock for youth sporting events.

Each year, thousands of parents in Texas send off or follow their children to sports tournaments throughout the state. Beginning with the creation of the CVB, the city of Round Rock began actively courting the tourism revenue that comes with drawing athletes and their families to the city.

"It is the purest form of economic development because visitors come to your city, they have a great time, and they compete ... in the best venues," Yawn said. "They spend their money—they stay in our hotels, they shop, they eat—and then they go home. So it doesn't require ongoing city services."

The CVB reports that in 2013, 84,717 athletes participated in Round Rock sports tournaments, resulting in a cash injection of more than $11.4 million to city businesses.

"This is new cash infused into the local economy that would not have come here otherwise," Yawn said.

Building a brand

After creating the CVB in 2004, city officials in short order secured the rights to "The Sports Capital of Texas" brand and began pumping more than $18 million into the sports facilities at the 645-acre Old Settlers Park. The CVB also started marketing the city as an ideal host for the numerous baseball and softball tournaments that can draw hundreds of teams from throughout Texas and neighboring states.

"[In 2004] the [youth sports] industry was very different. It was not nearly as competitive as it is these days," Yawn said. "Our council was very forward-thinking in seeing there was opportunity there."

Yawn said there was some initial skepticism to Round Rock claiming "The Sports Capital of Texas" moniker. Unlike the cities of Dallas, Houston or San Antonio, Round Rock does not host a major professional league sports team. To help explain the focus on youth as opposed to professional sports, the CVB chose a logo featuring the type of folding chair commonly occupied by parents during youth sporting events.

"Every parent who is traveling with their children understood the logo because everywhere they go to watch their kids play they are unfolding the chair," Yawn said. "So they understood ... what we were focused on, and the logo was there to help explain our story."

Round Rock City Manager Steve Norwood said by focusing on an industry that promotes the well-being of children, the city has discovered a revenue stream that is nearly recession-proof.

"When the economy is down people will defer vacations or improvements around the house. But when their son or daughter wants to play in a competitive league, they don't give that up," he said. "Sports tourism is a huge market. It weathers the storm better than other types of economic development efforts."

The data collected by the CVB backs up Norwood's claim. Since the launch of the CVB in 2004 the annual number of youth participants in Round Rock–based tournaments has increased 270 percent. The direct spending in Round Rock by visitors attending the tournaments and games increased 244 percent during the same period.

Rick Stevens is the owner and director of Blue Diamond Tournaments, a Round Rock–based youth baseball and softball tournament business founded in 2005. Stevens—who organizes tournaments throughout Central Texas—said the weekend tournaments he hosts at Old Settlers Park can draw more than 240 teams and 2,800 players in addition to the players' coaches, family and friends.

"We get a lot of compliments from the teams, and they continue to come back," Stevens said. "I would think if they were having a bad time ... those teams wouldn't make that long drive and spend all of that money."

Facility upgrades

Even after investing more than $18 million to improve Old Settlers Park, the city is in no way finished building its sports brand.

In November, Round Rock voters approved four bond propositions that included $20 million for improving and adding to the sports facilities at Old Settlers Park. The city cashed in the first series of those bonds in January and plans to use $11 million of the money toward building a new multipurpose field complex complete with stadium seating, parking, restrooms, vending and playground areas.

"It will give us the amenities that we need to bring in additional tournaments, whether they are soccer or football [or other sports]," said Rick Atkins, Round Rock Parks and Recreation director.

Atkins said the city plans to invest an additional $4.5 million of bond revenue in upgrading the park's seven existing soccer fields so they can also host tournaments and local league play. The city is also planning to construct a five-field adult softball complex adjacent to the existing youth baseball and softball fields. The new fields will serve as a replacement to the existing two-field complex at McNeil Park and could potentially open the city up to a new market of visiting adult sports participants.

"To go from two fields to five is huge," Atkins said. "We just know it will be a great place for the adults to play and congregate."

The biggest recent game-changer for the Round Rock sports tourism market may have already occurred, however. In January the Round Rock Sports Center, a $14.9 million, 83,000-square-foot indoor sports complex, opened off of Chisholm Trail Road. Located in close proximity to I-35, numerous hotels and restaurants, the facility has already hosted a number of volleyball and basketball tournaments.

City officials say the sports center has had an immediate effect on local businesses, from hotels filling their rooms to convenience stores reportedly running out of sports drinks. Yawn said a weekend volleyball tournament held in January resulted in more than $530,000 in direct spending in Round Rock hotels, restaurants and retailers.

"My traffic has been a lot heavier especially when they have large tournaments," said Ray Caldwell, who manages the CVS/pharmacy at 800 Old Settlers Boulevard near the new sports center. "I'm not complaining."

Round Rock ready for Major League call-up?

Round Rock City Manager Steve Norwood attracted widespread media attention in December 2012 when he announced to a Chamber of Commerce luncheon audience that the city was seeking to attract a Major League Baseball franchise.

"This may seem like an ambitious plan, but I think Round Rock could be an ideal location for Major League Baseball," Norwood said.

Austin is, in fact, the largest city in the United States without a major professional sports franchise. There is also precedent for suburbs such as Round Rock to host teams aligned with larger metropolitan areas.

In North Texas, the city of Arlington is the home of the Dallas Cowboys and the Texas Rangers. The Atlanta Braves recently announced that the team plans to vacate its downtown stadium and relocate to a new suburban location. Numerous other examples of suburbs hosting professional sports teams exist.

The most difficult part of making Norwood's vision a reality, however, may be the dearth of options for securing a Major League Baseball team.

"I don't see Major League Baseball expanding anytime soon," said Reid Ryan, Houston Astros president of business operations and co-founder of the Round Rock Express Minor League Baseball franchise. "And I don't know that there are any teams looking to move right now."

Ryan, whose father is Hall of Fame pitcher Nolan Ryan, said his family has kept a close eye on the possibility of bringing a Major League Baseball team to the Austin area.

"If city leaders want to make something like this a reality, you have to have a viable plan in place," he said. "Because when these things do happen, it is normally the team and the city that are most prepared and ready to go that end up getting it."