Super Bowl isn’t merely about who will take the trophy home. The annual championship also means big business! Every year the sporting event brings massive business possibilities for the host city. In fact, at certain times Super Bowl helps those cities bounce back from economic downfall. So how does the Super Bowl benefit the economy?
From global tourism exposure, broadcasting, and brand campaigning to non-profit grants, the NFL opens various income channels. According to the National Football League, it impacts the local economy by $300 to $400 million.
This time, Arizona is ready to reap the benefits of hosting Super Bowl LVII. Let’s find out what is the Super Bowl’s impact on the US economy.
What is the Cost to Taxpayers of the Host City for the Super Bowl?
Usually, the host US state hikes and uses taxpayer funds to improve infrastructure, increase security for players, and build stadiums. However, it’s an investment if you’re eyeing a long-term financial boost.
The NFL believes that improving local infrastructure makes economic sense. For instance, Minnesota’s hosting committee claimed that it generated revenue worth $450 million with tax receipts of over $32 million during Super Bowl LVII league.
Similarly, the Arizona host committee expects more than $500 million in revenue for the state’s economy by playing host to the championship league. Massive revenue-generating possibilities exist in various local sectors, such as transportation, hospitality, retail, small businesses, and sponsors. Eventually, creating a positive financial impact for the host city.
Let’s dive deep into how do the Super Bowls affect businesses in the host cities.
Business Expansion
The 2015 mega-event had a gross economic impact of over $719 million in Arizona, according to Jay Parry (CEO and President of the Arizona Super Bowl Hosting Committee). This data covers the revenue generated from the Super Bowl league and other game-related activities during the event.
Thus, the NFL championship can again be an economic booster for the fourth-time host, Arizona. Not to forget, the hosting committee team for Super Bowl LVII is the same as last time.
For instance, short-term lodging by NFL fans attending live matchups in the stadium could account for million of the total impact. Further, restaurant owners create exclusive menus and events to make the Super Bowl a more profitable cultural marvel.
Job Opportunities
Big businesses mean more job openings in the Super Bowl-hosting city. Several companies search for more employees to manage various tasks during the week-long event. Undoubtedly, new vacancies always contribute to the local economy.
The 2015 season positively impacted 400,000 local youth in Arizona. So what is the economic impact of the Super Bowl on the host city this year?
During Super Bowl LVII, Arizona citizens can expect tens of thousands of jobs with the boost in local businesses. It includes openings for security guards, drivers, dishwashers, cooks, production managers, and many more. To expedite the hiring process, some companies even reportedly used a Phoenix-based app Qwick.
Tourism Exposure
Hold a Super Bowl, and the city witnesses a spike in the tourism business. As per stats, Super Bowl attracted 120,000 visitors to Arizona in 2015. Hotels, rentals, restaurants, clubs, and local transportation were immediate beneficiaries of an influx of tourists.
With several rooms already booked, Phoenix anticipates a boost in hotel occupancy this time too. Moreover, America’s biggest sports event puts more than 100 million eyes on the host city globally. Eventually, casual and business travelers both show interest in exploring the region even after the league concludes.
Hence, NFL believes that Super Bowl can once again boost visibility for Arizona on a global stage.
Philanthropic Grants
Every year the NFL launches various philanthropic programs for the host cities to develop a thriving environment for locals. Even the city’s non-profits and volunteers offer unmatched support to execute the grand event seamlessly.
With $2 million in Arizona’s non-profit grants, the Super Bowl LVII season will positively impact the regional community. Besides, the hosting committee is also encouraging minority and female-led businesses this year, based on reports.
Betting Market
Arizona will don a new hat as the first state to host legal Super Bowl betting events in the US market.
After sports gambling legalization in the state, the local punters placed around $620 million worth of bets in October last year. Besides, the experts predict a 30 to 35% increase in the betting market due to the range of Super Bowl bet options offered by bookies online.
So, legal and offshore e-sportsbooks can supposedly create record-breaking profits during Super Bowl 2023.
Final Thoughts
Undoubtedly, no other sporting event compares to the long-lasting economic effect of the Super Bowl league. The annual championship brings the lost spirit to the hosting city while promising a substantial boost to the local economy.
Whether it’s volunteers, sponsorships, or visitors, everybody converts this cultural sports league into a revenue-generating model. Hence, the economic impact can be enormous, financially benefiting locals in the valley.
