Will Super Bowl LIII Be Super for Retailers and Its Host City?

A blend of myth and fact, the Super Bowl Stock Market Predictor suggests that the stock market will rise or fall depending on the conference affiliation of the winning team (American Football Conference wins have produced mostly down years, the National Football Conference mostly reporting gains).

This phenomenon is highly-debated, and now the reality of the Super Bowl’s impact on the economy is too. Opinions range from the Super Bowl being a major boost for local businesses to the big event being an overrated expense for the host region. Facts and statistics reveal the complicated truth.

On Sunday, Feb. 3, the New England Patriots will take on the Los Angeles Rams in Atlanta, Georgia and the city is hoping the influx of visitors provides an economic burst.

What the Super Bowl Really Costs

Hosting a major event like the Super Bowl comes at a cost to the local area. Concerns like traffic, security, stadium prep, team lodgings, celebrity arrangements, media personnel setup, and much more can be expensive.

Where Funding for Major Costs Comes From

The National Football League (NFL) of course foots some of the Super Bowl bill. News, media, and advertising networks spend money, too, as do both local and traveling fans. What many do not realize is how much host cities and states use tax dollars to fund the event as well. In 2018, Minnesota spent nearly $500 million in tax dollars to make the event possible.

Surprising Facts About Super Bowl Costs

• The NFL foot the bill for 150 $5,000 Super Bowl rings for the winning team- a cost of $750,000 in 2011.
• Cities bidding to host the Super Bowl meet a list of aggressive demands by the NFL– like rent-free stadium use, free rooms for 150 people, and much more.
• Super Bowl ticket prices in 2019 average $3,000 to $6,000.
• A 30-second Super Bowl commercial slot in 2018 cost about $5 million.
• Halftime show performers typically don’t get paid (but the cost of travel, entourage, etc. is usually covered.)

Revenue Generated by the Super Bowl

Given the cost of the Super Bowl for everyone from fans to advertisers to the host city, it may seem odd that there is competition for who gets to host or take part in it each year. However, the Super Bowl yields returns.

How Host Cities Benefit From the Super Bowl

Given that Americans will spend an average of $81.30 celebrating the Super Bowl by hosting parties and buying apparel, it is not a surprise that host cities at the heart of the celebrations see higher revenue.

After hosting the Super Bowl in 2018, the Minnesota Vikings reported that: “more than $450 million was spent in Minnesota by visitors, companies hosting events and the broadcast and operations teams who executed one of the world’s largest sporting events.”

According to Rockport Analytics, the Super Bowl had a $278 million impact in Indianapolis in 2012, and added $347 million to the Houston economy in 2017.

Have the Slots Gotten Too Expensive?

Coca-Cola will not run an ad during the Super Bowl this year. Instead the iconic beverage company will show a commercial before the game starts. Ads during the big game on CBS this year will cost up to $5.3 million. Before kickoff, they are reportedly half of that. According to Coca-Cola, its commercial before the Super Bowl will focus on diversity. The ad will feature cartoon characters telling viewers that the drink is “for everyone.”

Predicting 2019 Super Bowl Economic Outcomes

Balancing the ledger of Super Bowl spending versus revenue for host cities is still a complicated matter. Experts point out that soaring hotel prices, packed restaurants, and other economic benefits of the Super Bowl are not necessarily felt the working class- or return much of a profit on what is spent to host the big game. The 2019 impact of the Super Bowl on Atlanta remains to be seen.

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