Question

NFL-sponsored studies of the economic impact of the Super Bowl on host communities typically generate large numbers. They report the impact of the 1999 Super Bowl on the Miami area was $396 million. However, studies that compared January spending in six Super Bowl host cities to spending in those cities during a series of non Super Bowl years before and after the event found the net economic impact of a Super Bowl is virtually zero. EXPLAIN.

Further discuss how your answer may change for a Super Bowl in Seattle.

Answer 1

Super bowl was an american football game played between the american football conference (AFC) champion denver broncos .the game was played on 31 january,1999,at proplayer stadium in miami,florida.A joint study conducted by the National football league(NFL) and the sport management research insitute (SMRI) of westin florida estimated an economic impact of $393 million from super bowl on the south florida economy(NFL,1999).if those numbers are accurate,''super''is an apt adjuective for the event .only the summer olympic games can seriously be thought to generate an impact of such magnitude for a short term sporting event.reasons for skepticism ,however,abound,and one may well need took no further than the NFL's motivation for macking such lofty claims.the purpose of the study is to estimate the economic impact of super boel from 1970 through 2001.the results indicate that the economic empact of the super bowl is likely on average one quarter or less the magnitude of the most recent NFLestimates.the NFL-SMRI study is the most optimistic appraisal attributing a $670 million increase in taxable sales in south florida (miami-dae,broward,and plam beach counties)and an increase in economy activity of $396 million to the event (NFL,1999).tacitly,the NFL commissioned study envisioned a horde of affluent spendthrifts desending on the three country area.the NFL-SMRI team reported that the average income of super bowl attendees is more than twice that of the average visitor to south florida during the peack tourist months of january and february.jim steeg the NFL's vice president for special events since 1977,puts the bowl at the center of the mega event universe.the NFL understand that it is competing for the sports entertainment dollar,and the leagues belives that stadiums factor prominently into consumer decisions relating to leisure spending .a second reason economic impact may be exaggerated relates to what economists refer to as the ''multiplier'',the nation that direct spending increases induce additional round of spending due to increase incomes that occur as a result of additional spending.the national football league and other sports leagues have used the promise of an all arenas,and with few expections,at considerable punlic expence.recent NFL studies have estimated that super bowl increase economic activity by hundreds of millions of dollars in hosts cities.conclusion and policy implications:cities would be wise to view with caution super bowl economic impact estimates provided by the NFL.estimating the actual economic impact of the super bowl is about as easy leading a 90 yard scoring drive in the final minute of the game estimates this year super bowl could cost employers over$5.1 billion in lost productivity in the week leading up to the game,as well as from employees missing work on monday.but norwalk also known about the problems herefor this yearsuper bowl.super bowl in seattle is closer than ever to meeting the NFLnumbers requirment for the big game,he adds.''i think more and more so over the last several years the nfl has been very aggressive about extracting as much money as possible out of all these venues,''said victor matheson,an economic profeesor at holy cross university who authored a 2009 paper called ''economic of the super bowl.''despites claims that cities will see between $300 million and $500 million in gains from super bowl,matheson said his research shows its more like $30 million to $130 million.