Tuesday, July 24, 2012

State College businesses ponder impact of sanctions

But a great deal remains unknown about the future of the program and thus the quality of the football, which helps drive the economic engine of the town.

With scholarships dramatically cut and no postseason appearances for four years, the Lions' recruiting is bound to take a hit. That means mediocre (or worse) seasons are likely, which could lead to smaller crowds and fewer fans spending money around the area.

"It will have an impact on our business, but it could have been much worse," said Michael Desmond, co-owner of the Hotel State College for 26 years. "What impact it will have is yet to be seen. But people in the community understand there's a process in place, and we're thankful the seasons haven't been removed.

"There's a new coach (Bill O'Brien), and people have a very favorable impression of the coach and the players. We're thankful there's a season, and if we embrace it and promote this team, it shouldn't be a problem. I heard (ESPN analyst) Lou Holtz (Monday) morning saying he had problems envisioning 55,000 seats filled in a 110,000-seat stadium. I disagree with that. Penn State fans are very resilient."

The long-standing "big-event nature" of football in the area will carry the day, Desmond believes.

Still, there's no downplaying the importance of football Saturdays to the area.

"We're in a business that has high overhead, and we have 280 employees on the average, so we don't have a profitable year without Penn State football weekends," he said.

Caroline Gummo, advertising manager for the Family Clothesline, a large Penn State apparel store, cautioned that it's too early to tell what the future might hold. "We're all just absorbing the information ? It's kind of uncharted territory," she said. "Things have been changing so quickly since last November that we're just trying to keep up with the news. We may not even see the full impact even after this first year. It might take a couple of years."

But, she said, generally, the better the season, the better it is for business.

"There are always fluctuations," Gummo said. "If we're going to a Bowl Championship Series game or the Rose Bowl, it's definitely going to be a better year than if we're just going to a non-BCS bowl."

Desmond said his hotel had "flat years" in the early 2000s when the Nittany Lions were struggling, but said the economy of the area is traditionally stable, since it's based largely on the school itself, which is always open for business.

"The ups and downs of a football season are all part of it and are not unexpected," he said.

But seven good-selling football weekends can make up for 350 mediocre days of sales at her business, said Laura Sweeny, manager of the Old State Clothing Company.

"Football weekends are everything. They're the lifeblood of the town," Sweeny said. "It's the biggest thing for us."



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