PNC Arena could generate $3 billion for Wake County in next five years, report says

In the next five years, PNC Arena could generate more than $3 billion for the Wake County economy, according to a new economic impact study commissioned by the Centennial Authority, the arena landlord.

The report, released Thursday, was prepared by John Connaughton, an economics professor at UNC Charlotte’s Belk College of Business. Connaughton did a similar report for the authority in 2018.

The release of the economic update comes with major plans being considered — with funding from Raleigh and Wake County — for an extensive, $300 million renovation and enhancement of an arena that opened in 1999.

The $3.165 billion figure was based on the 2022-2023 season impact of the on-site and off-site economic activities associated with events at PNC Arena, which hosts Carolina Hurricanes and N.C. State men’s basketball games in addition to other events. The report also was based on a continuation of the activities at recent levels.

“The foresight from 30 years ago clearly got us to this point,” authority chairman Philip Isley said Thursday in noting the $3 billion estimate. “Our pitch to our partners this year is that (PNC Arena) is an important economic generator for this area, and clearly the money we received was to bolster the economic impact to the area. So they really go hand in hand.”

Other details included in the Connaughton report:

▪ Over 600 events take place at PNC Arena annually.

▪ On average PNC Arena hosts over 1.5 million people annually at national and community events.

▪ The Hurricanes had a two-year average attendance of 900,368 fans for 51 events in 2021-22 and 2022-23 (17,654 per game).

▪ N.C. State had an average attendance of 214,040 for 17 events in those two years (12,591).

▪ The total (direct, indirect, and induced) on-site and off-site revenue for all activities at PNC Arena is $590,643,004.

▪ The combined on-site and off-site total employment for all activities at PNC Arena is 2,636 jobs.

“These numbers are incredible,” Isley said. “When I heard the numbers, I was blown away. When you hear the number of close to $3.2 billion, that’s mind-boggling.”

Future plans for PNC Arena

The authority held its monthly board meeting Thursday at PNC Arena. The authority recently terminated its contract with an architecture team – Ratio and HOK – that had been working on arena renovation plans since 2014 and is in the process of seeking new architects.

Future plans include both the arena renovation and a new entertainment district surrounding the arena that will include hotels, an outdoor concert venue and restaurants and shops.

Authority lawyers continue to work on the arena development agreement that was reached in August with Hurricanes owner Tom Dundon. That is a prerequisite for the authority to receive the $300 million from Wake County and the City of Raleigh from the tourism/tax fund.

The economic report noted that 46% of those attending events at PNC Arena are from surrounding counties. It said arena events accounted for an average of 205,240 hotel nights in Wake County a year and that total hotel expenditures were about $26 million per year.

Add in restaurant spending and other associated off-site revenue and the report said total adjusted spending for those coming to PNC Arena events was more than $50 million per year.