Super Bowl: A Money Machine, But for Whom?

Introduction

• The Super Bowl is one of the biggest sporting events globally, with over 100 million viewers.
• Generates significant revenue: attendees pay thousands for tickets and companies millions for commercials.
• Revenue estimates range from $300 million to $1.3 billion annually.

Economic Impact

• The economic impact is often exaggerated.
• Estimated net direct income to residents is around $150 million.

Revenue Distribution

• NFL's Earnings:
  • NFL receives 100% of ticket sales revenue.
  • Profits from merchandise and broadcasting deals.
  • Example: ViacomCBS pays $2.1 billion annually to air NFL games including the Super Bowl.
• Broadcast Partners:
  • Make millions from advertising during the event.

Hosting the Super Bowl: Is It Worth It?

• Generates money through sales, hospitality, and gas taxes for local businesses and governments.
• Local and state governments invest heavily in stadium infrastructure.
  • Example: Allegiant Stadium in Las Vegas received $750 million in public funding.
• Costs vs. Benefits:
  • Example: Glendale, Arizona, spent between $579,000 and $1.2 million on the 2015 Super Bowl.
  • Money often leaks to national businesses rather than local.

Benefits of Hosting

• Showcases city attractions and culture to a large audience.
• Potential increase in tourism revenues.
• Can foster civic pride and a sense of community.

Challenges and Issues

• May not result in positive socioeconomic outcomes for all.
• Environmental impacts and socioeconomic issues like gentrification.
• Displacement of regular tourists due to event attendees.

Conclusion

• Importance of leveraging these events for positive outcomes.
• Need for increased public awareness and scrutiny to ensure beneficial results for the host cities.