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Is The Super Bowl Worth It?

November 19, 2010

I mentioned recently that Roger Goodell was in Atlanta encouraging that a new stadium be built if the city wanted to host a Super Bowl. This of course will get everyone thinking about whether it is worth it. The Atlanta Sports Council claimed that the city’s Super Bowl in 2000 generated $292 million in revenue. Some economists are skeptical of numbers that are supported by boosters that are self-interested. Here are things to think about:

1) The influx of people for the Super Bowl may cause corporations and other entities to host conventions in a different city.

2) Not all money stays in the host city’s economy as fans spend at chain restaurants, hotels, and companies that are not based in that city.

3) The marginal impact of the Super Bowl may not be great in cities like Miami where hotels, clubs, and restaurants are packed in January and February regardless of the circumstances.

The Super Bowl obviously has a positive economic impact and could have a positive public relations impact as well as the world focus on a particular city for a full week. There is no debating that. We must be careful in the numbers that we hear though because it may not all be as it sounds which makes Goodell’s pushy attitude to spend even more worthy of criticism.

– Jason

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