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As the calendar flipped to 2009, Houston rodeo officials held their breath and crossed their fingers. The economy was in the tank, post-hurricane repairs to Reliant Stadium were still ongoing and there was a faint whiff of controversy lurking in the wings thanks to a local politician asking questions about executive expenditures.
Not to worry, as it turned out. The repairs were completed with a week to spare, the “controversy” never materialized and the Houston Livestock Show and Rodeo set an attendance record with more than $1.8 million visitors and boasted record receipts for the carnival. The only dark lining to the large silver cloud was a reduction in philanthropic contributions, mostly via depressed auction prices, and that meant less money going into reserves.
This year's rodeo, which formally begins Tuesday and runs through March 21, could reap the benefits of an economy still in recovery. Attendance promises to remain strong as families may be reluctant to use discretionary money on expensive trips and vacations. But many of the affluent, who account for much of the philanthropic income, have seen investments rebound and portfolios stabilize.
“We are extremely optimistic,” said Leroy Shafer, the show's chief operations officer. “Our ticket sales are up 4.2 percent over the same time last year. Our auction pre-sales for about half the auctions are up this year. If we have weather equal to last year's, there's no question in my mind we'll set a new all-time record.”
In truth, Shafer acknowledges, the Houston rodeo has grown into such a large local institution that it can withstand a temporary economic shock. Thirty years ago, for example, the total gross revenue barely topped $5 million (or $13.3 million in 2009 dollars). Last year's total take was more than $83 million, with an almost identical economic impact in so-called new money coming in from outside the Houston metro area.
In short, it ain't your grandpa's rodeo anymore.
“We were just named the largest fair event in North America,” Shafer said. “When you take into account the corporate sponsors and those 23,000 volunteers — who account for 60 percent of the tickets that are bought — it's going to take something catastrophic to have a big negative impact on us. We are buffered in so many ways.”
Shafer recalls the darker days of the 1980s when the outlook was not so rosy. A boom had turned bust, the energy industry was struggling and rodeo officials could not get a steady lineup of top-shelf entertainment. The rodeo was not exactly in trouble, he said, but it was an uncomfortable time. Today the show boasts about $125 million in reserves, enough to sustain a disastrous year of no income, Shafer said, and still fund the philanthropic mission.
Officials hope the educational fund reserves eventually grow large enough to sustain the scholarship effort, which will award 563 scholarships worth $15,000 apiece this year.
The show's rise can be attributed to many things: population growth, better facilities, greater marketing, more and varied entertainment and an ongoing expansion of show activities. What began in 1932 as a simple livestock show, an event to tie the burgeoning city to the state's agricultural operations and Western roots, is now big business.
A formula of sorts has been figured out. Start with a large dose of Texas, add a lot of activities for young people and mix in a star-studded lineup of musical entertainment. If the music appeals to a younger audience, so much the better.
It's not lost on rodeo officials that half of the top 10 single-day attendance figures were shows that had a youth appeal. Hannah Montana/Miley Cyrus accounted for two of the top three.
Furthering the appeal to kids also accounts for an expansion of the AGventure activities that introduce children to farm and ranch animals; a larger carnival space for younger riders; and more opportunities to participate in “Mutton Bustin',” a competitive event in which young children try to stay on the back of a lamb for as long as they can.
Shafer said the livestock show and rodeo considers itself just one more competitor for the entertainment dollar. It markets aggressively and has expanded its reach to 60 counties across southeast Texas. As long as the economy doesn't soar in the next couple weeks or Houston is hit with a blizzard, all should be well.
“Fairs and festivals historically have their best years in hard times,” he said. “People are looking for something they can afford. They can afford us.”
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