Introduction
The National Football League (NFL) is now popular because of the Super Bowl which is held at the end of each post-season. While this event attracts many sports fans from different parts of the world, there are also other activities that attract people who are not sports fans. This includes the Half-Time Show where a celebrity performs or the television commercials where different products work to out-do each other. As a result, the Super Bowl is an attraction that involves millions of people who spend money to take part in. Consequently, the Super Bowl has an economic impact on the town it is hosted in and the different shareholders that get involved. This economic impact is substantial due to the magnitude of people who attend the games. For this reason, it is important to understand the extent of economic impact for better planning of future events.
Super-Bowl Funding.
First, it is crucial to explore where the financing for this even comes from before analyzing its economic effect. The Super Bowl takes place in large and well-equipped stadiums built and funded by tax-payer money of the host city. The quid pro quo is that once the city builds a stadium the NFL brings the Super Bowl. Notably, in the contract between the NFL and the hosts, the latter is expected to provide certain amenities such as at least 60 hotels close to the stadium, more than 3500 parking spaces, and security as well ( Depken & Fore, 2016) . These demands are provided at the expense of the city. Private companies also participate in the Super Bowl in terms of sponsorships where they offer food items, drinks and other items to be sold at the event. They also purchase advertising packages that they use to appeal to their clients. Association to the Super Bowl Brand regardless of the financial impact has positive repercussions in terms of sales and improving brand awareness.
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Economic Impact
There are a number of economic impacts of the Super Bowl. For instance, the Super Bowl increases tax revenue. This effect means that despite the fact that billions of tax-payer money are invested in stadiums and meeting NFL requirements for a Super Bowl, these funds are returned during the Super Bowl event. According to the Conventions, Sports & Leisure International, an average of $250 million dollars in taxpayer money is spent to build a Super Bowl stadium. In an analysis of the Super Bowl in Minneapolis, the Super Bowl contributed 343 million in taxes ( Tajalli & Peña, 2017). This funds not only settled the previous investment on the stadium but also added funds that were useful in other sectors such as education and security. Consequently, more states are building stadiums in the hope of benefiting from this wave of financial gain from sports events.
Also, the Super Bowl contributes to increasing revenue for private companies. Notably, private companies take advantage of the Super Bowl to air advertisements and also sell their products during the Super-Bowl weekend. While these advertisements cost million to make the investors are aware of the diverse audience that the Super Bowl grants them. Therefore, companies ranging from Coca Cola, Pepsi and even Old Spice purpose to show out. In return, these companies register a 45% increase in sales during that weekend ( Groothuis & Rotthoff, 2016) . Furthermore, since most of these institutions are allowed to have stands and sell their products during the games, they make millions in profit as well. For this reason, some of this companies have retained sponsorship of the events for years and will continue to do because of the positive economic impact on the brand as well as such open access to their target market.
Crucially, the Super-Bowl increases revenue for local business and also creates jobs. Thousands of people flock in cities once they are set to host the Super Bowl. These people range from fans seeking to support their favourite team, the players, and the event organizers. Each of these individuals spends money on food and board, as well as, other required amenities. Thus, local businesses are booming during the Super Bowl weekend. For example, it is estimated that the Super Bowl allows city hotels to make up for 230 nights during the entire weekend ( Siegfried & Zimbalist, 2012) . Hotels make more money because they increase their prices in light of the vent. This financial flood trickles down from big businesses to small businesses such as street vendors. Governments in hosting cities appreciate this economic impact because it is an opportunity to empower their locals and help them sustain their financial needs.
Conclusion
In conclusion, the Super Bowl has a positive economic impact for all its shareholders. Cities that have not had an opportunity to host the games should invest in meeting the requirements so that they too can benefit from such a grand event. However, future hosts should be aware of some of the economic challenges that the event presents. For instance, in the planning stage misappropriation of fund and inflated contract from suppliers are very common but should be avoided because they hurt the taxpayers. Additionally, there is a concern that the economic benefits are only felt by the business owners and do not trickle down to the workers. Ultimately, the Super Bowl has created a variety of financial opportunities that are worth continuing. The NFL should embrace the idea of incorporating new cities as a way of growing their brand name and including more suppliers in the event execution.
References
Jensen, R. W. (2017). Case 1 Bringing the National Football League’s Super Bowl to the big stage: the marketing and business aspects of Super Bowl XLVII. In International Cases in the Business of Sport . Routledge.
Tajalli, H., & Peña, A. I. (2017). Sports tourism does not have to be accompanied by crime: a case for the NFL Super Bowl. Journal of Sport & Tourism .
Groothuis, P. A., & Rotthoff, K. W. (2016). The economic impact and civic pride effects of sports teams and mega ‐ events: do the public and the professionals agree?. Economic Affairs .
Depken, C. A., & Fore, B. (2016). Professional Sporting Events and Firm-Level Economic Activity.
Siegfried, J., & Zimbalist, A. (2012). A note on the local economic impact of sports expenditures. Journal of sports economics .
