"What is a person worth? Philosophers, statesmen, economists, and of course, trial lawyers have grappled with that question for centuries. Magazines calculate and rank the personal wealth of the world's richest people. Authors write books assessing the financial impact of athletes and celebrities. Yet all previous assessments sadly miss the mark.
Lately, the talk around the water cooler focuses on the relative worth of the UK men's basketball team, and more specifically, its coach. Yet few people are looking beyond the wins and losses to look at the investments Coach Tubby Smith has made in our community and predicting what they'll be worth years from now. Looking at the numbers, it's easy to conclude that Tubby Smith isn't simply a coach or a mentor — he's an economic engine.
"Coach Smith wants to give back because, coming from a family of 17, he understands what it's like to appreciate everything you have," said Van Florence, the executive director of the Tubby Smith Foundation. "He wants to make sure that others have the benefits that he had."
However, the "Tubby Quotient" is measured in more than sentiment. Smith serves as a philanthropy magnet. He attracts financial and physical capital to the region and leverages it to maximize its impact.
The "TQ" can perhaps be best measured through Tubby's Clubhouses, a program that kicked off in 2004 to serve at-risk middle school students in Lexington. Under Coach Smith's leadership, the program brings local civic and government leaders together with Dell Computers. Rosendo Parra, a senior vice president at Dell, is also co-owner of Millennium Farms and heads the Parra Foundation, a major contributor to the program.
Participants in the program receive life skills education, as well as hands-on training in computer skills through the Dell "TechKnow" Program. Of the 319 students who have participated in the program, 311 have "graduated" and received a refurbished Dell computer that they have taken apart and rebuilt themselves. Kids who weren't likely to finish high school now have a better chance to receive their diplomas, and have the skills to go far beyond.
To calculate the "TQ," first take the expected lifetime earnings of a high school dropout — $630,000 as calculated by the U.S. Bureau of Labor Statistics — and multiply it by 311, the number of kids who graduated from Tubby's Clubhouse. If these kids don't finish high school, they'll earn a total of about $196 million in their lifetimes.
Now assume that Tubby's Clubhouses help 200 of the participants go on to finish high school. The lifetime earnings of a high school graduate are about $994,000. Furthermore, because they've acquired these technical skills from Dell's contribution, assume that 50 of the high school grads go on to earn an associate's degree (lifetime earnings of $1.27 million), and another 25 earn a bachelor's degree ($1.67 million). The estimated earnings for all the Tubby's Clubhouse graduates, over their lifetimes, are now over $299 million.
That's a "TQ" of $103 million over the lifetimes of hundreds of local kids, and counting.
Keep in mind the Tubby Quotient isn't an exhaustive economic model prepared by a nobel laureate, and this column isn't material for a peer-reviewed, academic journal. Economists may want to pick them apart, or find other relevant factors — and Business Lexington certainly invites anyone to do so. The "TQ" is just a discussion piece based on simple math and guesswork, but hopefully, it makes an important point. Coach Smith's impact can be seen not only on the basketball court, but also in the investments the business community has made into Tubby's Clubhouses and other causes Coach Smith has embraced, and in the improvement in quality of life of those the programs serve.
Companies like Dell understand the "TQ" and how it helps them. They're not just helping kids, they're building their own workforce. "Dell is committed to helping students develop the 21st Century skills they'll need to compete in today's digital economy, and our participation in Tubby's Clubhouses builds on that commitment," said Michelle Mosmeyer, a Dell spokesperson. "We're excited to be able to provide the Dell TechKnow program in the Lexington area."
Doing the right thing with Coach Smith is both good business and great marketing. "You can't have a successful company in a failed world," says Nancy Murphy, a former program officer at the Corporation for National Service (and a colleague of this Business Lexington columnist at APCO Worldwide). "Businesses must do more to contribute directly to those outside their individual companies and help tackle serious social and environmental issues." Murphy points to a 2004 APCO survey that found that 72 percent of "opinion elites" — leaders in the fields of business, policy and the media — had purchased a product or service from a company in response to information that made them believe the company is socially responsible. Sixty-one percent recommended the company to a friend. That's proof enough for companies that believe working with Coach Smith is often worth more than a multi-million-dollar advertising blitz.
Skeptics can scoff at the idea that Coach Smith has an economic impact over $100 million. There's no way of knowing yet if Tubby's Clubhouses will have that kind of quantifiable success. Still, there's no denying Coach Smith's commitment to this community and his compassion for our youngsters. There's no doubt that the return on Coach Smith's many investments will go far beyond his team's wins or losses.
Of course, it's also possible that Tubby's Clubhouses could help produce the next Rosendo Parra or the next Tubby Smith. If that's the case, the TQ has been dramatically understated.
David Wescott is a Lexington-based senior associate for APCO Worldwide, a global public affairs firm headquartered in Washington, D.C. He's easily stumped by long division, so you may want to check his math.
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