We all know the Super Bowl; it’s the annual playoff championship game for the NFL. The game that brings millions of people to a city, and if you are hosting it, your city becomes the focus of the universe. They patronize your restaurants and shops, stay in your hotels, and always take souvenirs from your city. This event usually has a major financial effect on the locals. It is said to give the locals approximately a $300-$500 million jolt. But with all this, not everyone is buying it. Some say it can have bad effects on the city, even more than what it will gain from the event. Whether hosting the Super Bowl is worth it depends on who you ask.
Some might say it brings more money and more tourist attractions, but some might say that’s not always the case. There are a few repercussions to hosting the Super Bowl. And whether it is worth it depends on how it affects your economy.
Is Hosting The Super Bowl Worth It?
Sports economist Victor Matheson opposes that notion. He said the numbers don’t add up. After studying the economic impact the Super Bowl has on hosting cities for a year, he argues that visitors won’t spend as much money as they were believed to before the big game.
He says the Super Bowl hinders a lot of international economic activity. No museums are closed; no conventions will be held; and some of the locals will avoid coming out because of the crowded areas.
Furthermore, he said that most of the money gotten from the event is not going to the cities, which are trying to improve the landmarks and improve infrastructure. Most of it is going to the bigger chains.
The Effects Of Hosting The Super Bowl On A City
Knowing the effects the Super Bowl has on a city is the major factor in determining if hosting the event is worth it. Hosting the Super Bowl has a few bad effects on the city, but there are also effects that the city will benefit from greatly.
Pay To Play
The NFL uses a tactic to convince cities to build new stadiums to host the Super Bowl. And building a new stadium isn’t an easy endeavor. It will cost the cities a whole lot of money to build these new stadiums. It is stated that in the last 12 years, seven cities built new stadiums, and before 2020, they all hoped to host the Super Bowl.
According to Victor Matheson, an average of $250 million is contributed by taxpayers to give tax breaks and subsidies to the NFL. Aside from that, the NFL makes a lot of demands, like free packing space, public transportation for fans, security, exemption from paying taxes, free accommodation in hotels, and billboards, all of which are just so the city can host the event.
He also revealed that in 2014, NJ Transit was billed $5.6 million for transporting fans around the city during the event in New Jersey.
Payoff
When the Super Bowl host committee hired Rockport Analytics to investigate the economic impact on the host city of Minneapolis, it was discovered that the Super Bowl would bring an average of $407 million. This is to pay for all the expected expenditures of 125,000 visitors and the $122 million expected to be spent on local game operations.
Despite this, Rockport has acknowledged that $68 million in regular tourist spending will be lost as a result of the project, and the estimated net balance would be $343 million in GDP. With $242 million in wages, the event gives the host a massive tax receipt for $29 million and $51 million in local and federal taxes, respectively.
Furthermore, Rockport estimated that 230,000 room nights would be generated at local hotels by the visitors and that these visitors would spend an average of $620 a day.
Non-zero-sum Game
There is a lot of money that taxpayers lose as a result of this event, aside from all the attention and visitors the event brings. For example, durHow Much Do Super Bowl Losers Get Paid?
ing the LII Super Bowl, the taxpayers spent approximately $498 million and received only $342 million in return. That would be $156 million down the drain. However, there was a silver lining. The U.S Bank Stadium wasn’t only for the Super Bowl; the Vikings used the stadium to play their home games in the U.S, and the stadium could be used to hold events and competitions, which could still bring in more attention and money.
Conclusion
There may be an increase in money and more tourist attractions in the area if the Super Bowl is hosted in the area, but there are also a few disadvantages associated with it. You will have to evaluate the effects of this on your economy in order to decide whether or not it is worth it.
FAQ’S
How Much Do Super Bowl Losers Get Paid?
After the NFL and the Players Association came to an agreement that the losing team players get half of the $150,000 that the winning players get. That means the losing team gets paid $75,000 each.
How Much Is a Super Bowl Ring Worth?
There isn’t really a fixed number for how much a Super Bowl ring is worth, but estimating the price of jewels and the circumstances,specialists say the rings are estimated at $30,000 to $50,000.
Who Pays For NFL Rings?
The final cost per ring frequently varies from $30k to $50k. Many well-known athletes have sold or donated their rings due to financial hardship. The league pays between $5,000 and $7,000 per ring for up to 150 rings per team, with any further expenses being covered by the team.
