Executive sum-up

It ‘s no uncertainty that American football and the Super Bowl event for that affair is a multi-million dollar concern. Most estimations put its part to host cuties ‘ economic systems systematically over $ 300 million. A good figure of Americans follow events that shape the athletics and contribute to its well being in one manner or the other. Besides the benefits that the participants and industry regulators reap there are legion other ways that ordinary people benefit. Entertainment is one such avenue but the biggest of them all is the economic impact that the event brings to the host metropolis

This paper seeks to analyze the economic impacts that come along with the hosting of the event. The direct and indirect impacts that are accrued from activities that surround the theatrical production of the title run into 1000000s of dollars. There is important investing from the governments that is required for the success of the title. The governments so profit fro gross aggregation and betterment of substructure. The event besides accords the host metropolis concern chances that local persons and companies exploit to hike the local economic system.

Documented grounds and critical reappraisals on the economic impact of Super Bowl exist. This provided the footing of this research as the starting point and the fleshing up of the decisions arrived. The paper dwells chiefly on the background, statistical grounds every bit good as the sectors benefit as direct consequence of the theatrical production of Super Bowl.

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The contents of this paper aides the decision at the terminal of it. This is the general thought that can be deduced from the whole findings that are contained in the paper.

Introduction

Sports are today an built-in portion in the development of states. It ‘s an income earner for many people both straight and indirectly. In Europe association football is the major athletics developed through the assorted association football conferences in Europe. Rugby is common excessively in Europe as is cricket in Asia ( Layden, 2005 ) . In the United States basket ball, base ball and American football form the top pick of athleticss concern amusement and concern. They are immense money coining machines that responsible for the coevals of 1000000s in revenue enhancements to the governments hence playing a large portion in economic development.

The Super Bowl is possibly the biggest and most alone one-year featuring events that take topographic point in the United States. This is the concluding game of the national football conference title which can comfortably claim to be the most watched telecasting broadcast in the US. It holds such significance in the American civilization that some consider it an unofficial vacation. The Super Bowl Sunday, the twenty-four hours that the game is staged is the 2nd biggest nutrient ingestion twenty-four hours in the United States merely following to thanks giving twenty-four hours. That translates to a large encouragement in nutrient concerns and others every bit good.

Besides the game which is the star attractive force of the event, there has been the cooption of assorted public presentations from creative persons. The creative persons perform during the pre-game and half times. Its importance is good demonstrated when the run of the so senator Barrack Obama bought airtime in assorted webs 30 proceedingss before the Super Bowl to publicize his policies. Television channels have used the Super Bowl clip to present series of the plans that the privation to pull immense followerss

It ‘s non lost to any insouciant perceiver that the Super Bowl has importance that stretches beyond the field and beyond the female horse fact that it ‘s a popular game. To many the hosting nowadayss a windfall of chances. The impacts of the game span past athleticss to civilization and the economic system. That has ever been the topic of argument from the game ‘s decision makers to observers and independent perceivers.

Harmonizing to Depken and Wilson ( 2003 ) , the viewership of the Super Bowl is estimated to be near to 100 million people world-wide and a potency of one billion. That can easy equal the FIFA association football World Cup and the Olympic. While it has non acquired the position of the above two, the economic impact that the event is likely to bless a host metropolis with is unprecedented.

That is besides other advantages like the opportunity to revamp its substructure and better its security. Economists have ever dismissed that the economic impact that the Super Bowl brings to the host metropolis may a fraction of what it ‘s usually touted to be. But that is capable to debate ( Feinstein, 2007 ) . Extensive surveies are carried out every twelvemonth to find the economic impacts that championship game brings to the host metropolis. However at that place appears to be consensus among attendants, local concern leaders, and corporate contrivers that it ‘s good to host the event, whichever manner one looks at it.

Aim

With ace bowl comes a host of chances for the companies that win clip to publicize and those that manufacture anything associated with the theatrical production of the event. Of peculiar importance nevertheless is the benefit that the host metropolis reaps from the theatrical production of the event. The economic impact on the metropolis can be tremendous and careful planning may guarantee the gauze of a good sum of gross besides the promotion that the metropolis gets. The current NFL policy is to present the Super Bowl in a metropolis that has an NFL franchise. Cities usually bid fro the hosting and they are determined five old ages before the game is played. Presently the metropoliss have been determined up to the twelvemonth 2013.

There has been a twine of unfavorable judgment that the figures and projections that are presented by NFL to the host citations are non based on world. The intent of this paper therefore is to cast some visible radiation into the whole issue of the economic impact of the host metropolis of Super Bowl. This research will seek to find the economic impact that the Host metropolis receives. All dimensions are examined, the virtues and demerits every bit far as its economic system is concerned.

Background

Football has been played in the US for a long clip merely like other athleticss like baseball. Professional football in the United States began in the twelvemonth 1920. Super Bowl the prime event of the game-Super Bowl title – nevertheless is comparatively immature holding been played for the first clip in 1967 ( Schwartz, 1998 ) . Since so the event has acquired lift to one of the most valued athleticss traditions in the history of athleticss.

Super Bowl is the football game that is played yearly to find the title-holder of the National Football League. Winners from the American Football Conference title game and the National Football Conference face each other in the tally up to the National Football League playoffs.

The amalgamation understanding between the American football conference and the national football conference saw the creative activity of the Super Bowl. The NFL has a long history dating back to the 1920 ‘s while the AFL started deriving laterality in the 1960 ‘s. There was as a consequence intense competition between the two conferences in respects to fans, participants and control of the game. To avoid fiscal ruin, the two challengers decided to prosecute in negotiations in 1966 which resulted in the subsequent amalgamation. Since so it has become a national interest activity whose popularity is rivaled by few events in America.

The Pittsburgh Steelers is the squad that has won the most Ace Bowls- six while the Dallas cowpuncher and the San Francisco have both won five each

Data aggregation

The findings and decisions that were made in this research paper were really dependent on informations. There was no field research conducted, nevertheless secondary informations signifier books, scholarly research articles and the cyberspace was used in this research. All beginnings were included in the in text commendation and the bibliography at the terminal of the paper.

General figures

The figures associated with Super Bowl indicate clearly why the event is an of import one in American civilization and concern, most significantly the host metropolis. It ‘s the most watched telecasting plan every twelvemonth in the state. 40 % of all families in the US melody to telecasting during the game as are 60 % of all places ( St. John, 2009 ) . Close to 90 million Americans melody into the Super Bowl game while another stopping point to 120 million partly making so.

Hallmark Cards Inc rates Super Bowl as the figure one place party event every twelvemonth, possibly bigger than New Year ‘s Eve.

Wenner ( 2005 ) reveals that it ‘s the biggest eating twenty-four hours in the U.S apart from thanks giving twenty-four hours. 15,000 metric tons of french friess and four 1000 tones of Zea mays evertas are consumed in places during the Super Bowl. Avocado which is indispensable for the readying of guacamole is another type of nutrient that is widely consumed on ace Sunday. Harmonizing to the California alligator pear committee, twelve million alligator pears are sold in readying for the game.

Figures available on the impact of the Super Bowl indicate that metropoliss experience economic impacts amounting to 1000000s of dollars. In 1994 Atlanta Georgia made 166 million dollars from the Super Bowl, Miami made 365 million in1995 ; phoenix reaped 306 million in 1996 while New Orleans raked in 200 million in 1997. Others include 295 million for San Diego in 1998,336 million for Huston Texas in 204 and 372 million for Detroit Michigan in 2006.

Economic impact

For the host metropolis to be determined it has to be appealing to tourist, patrons and witnesss. That is besides being a franchise metropolis of the NFL ( Depken & A ; Wilson, 2003 ) .

The NFL, local authoritiess and assorted associations of hotels and eating houses usually predict the economic impact that the hosting will hold on the metropolis ( Depken & A ; Wilson, 2003 ) . This chiefly takes into history the outgo that the metropolis is likely to incur while finding the existent benefits that it will acquire. For case the constabulary and fire sections are paid for the overtime hours that they work to guarantee safety and security is maintained. The disbursement is done harmonizing to the projected impact and the extent to which the predominating economic system can let. Tampa Bay had to scale back disbursement on the Super Bowl due to the province of the current province of the economic system.

The possible positive impact on the local economic system is the major inducement for the metropolis that is hosting the Super Bowl. Economists by and large estimate that super bowl ever has had an impact of between $ 300- $ 400 million on the host metropolis ‘s economic system ( Coates & A ; Humphreys, 2002 ) There are direct and indirect impacts that come with the event, which can besides be long-run and short-run every bit good ( Christopher & A ; Peters, 2006 ) . In simple layperson footings, the amount entire comprise of the economic impact of the Super Bowl on the host metropolis ( Polzer, 2003 ) . The direct impacts come organize the disbursement by the assorted participants while indirect impacts are the multiplier consequence the is felt manner after the event is done. The money that was spent locally is re-spent once more taking to extra unit of ammunitions of disbursement ( Wenner, 2005 ) . Indirect impacts besides include rise in local occupants incomes due to the activities associated with the game every bit good as the dollars that are withdrawn form the local economic system. Further the direct impacts comprise of the big scale purchase of goods by companies chiefly from local manufacturers and makers ( Depken & A ; Wilson, 2003 )

The economic impacts of any clean event are normally measured in footings of the addition in gross aggregation for the governments and single concern that aid prolong it. Direct and indirect outgo is besides factored in. Super Bowl is a alone event that can non be truly compared to any type of athletics. However the economic impact that it breeds is comparable to those other universe events mentioned earlier.

The above statistics paint a rose-colored image of the Super Bowl event and twenty-four hours. They are non exaggerated in any manner significance they can interpret to existent economic benefits on the land. The host metropolis will hold to reassess its full system to be able to cover with the demands of the travelling fans that flock to town for the Super Bowl. The economic impact of the metropolis is more or less positive because of the increased ingestion of goods and services that are as a direct consequence of the impermanent population detonation.

Overall the alteration in economic activity associated with the event is the most appropriate index of the benefits. It ‘s arrived at by multiplying the direct impacts by the multiplier and adding the consequence to the direct impacts. To be more precise the economic activities that result into the benefits in the local economic systems have been highlighted in the undermentioned subdivision.

Tourism

Tourism is one of the major income earners particularly for any governments that enjoy any grade of liberty. Tourism is boosted by assorted events that attract record Numberss of people. Sports events like Super Bowl are some of them.

There is ever an inflow of visitants chiefly going fans to the ace bowl host metropolis. A joint commissioned survey by the NFL and the Sport Management Research Institute in 1999 concluded that the mean outgo of attendants who flocked to the south Florida Super Bowl were dual the outgo of tourers during the peak season of that topographic point ( Leiker, 2005 ) .These comprise of the bulk of tourers that visit the metropolis during that peculiar clip. The locals who take interruptions from their work to watch the event to some extent comprise of the domestic tourers of the metropolis.

Harmonizing to Price Water House Coopers, Indianapolis that is offering to host the event in 2011 will have over 98,000 visitants and about $ 131 million in direct disbursement from the visitants and the locals. An estimated 95600 people visited Atlanta during the Super Bowl period. Huston was estimated to hold received near to 90,000 visitants during its Super Bowl ( Layden, 2005 ) .

The direct impact as a consequence of the clean event is widespread disbursement by the local occupants every bit good as tourer. In Tampa Bay for case cordial reception and touristry industry activities as a consequence of the Super Bowl XLIII were estimated to bring forth about $ 150 million in direct disbursement. In past titles, the same activities generated $ 195 million in Phoenix and Miami. Detroit generated $ 118 million, $ 124 million for Jacksonville in 2005 and $ 135 million for Huston in 2004 all from direct disbursement signifier tourer and cordial reception activities as consequence of the theatrical production of the Super Bowl ( Depken & A ; Wilson, 2003 ) . They spend on hotels, rental autos, taxis and visits to local attractive forces. The outgo that is pumped into the city/s caissons from adjustment, nutrient and other tourer activities is the blessing that is capitalized on most.

Harmonizing to Schwartz ( 1998 ) , most hotels report 100 % booking rate in the period on the tally up to the games a few yearss after. Bed tenancy and demand for the proviso of other services are critical in the gross coevals of hotels that are involved during the Super Bowl.

Shoping

It ‘s an unofficial fact among all athleticss fans, Super Bowl fans are the biggest spend-all there are today. Commodity monetary values lift due to the market forces of demand. Some bargainers excessively hard currency in on the event with modest monetary value increases that translate to the addition in gross. Many retail ironss in the host metropoliss find it economically feasible when the Super Bowl is held in their metropolis. They are among the direct donees of the free disbursement wonts of the travelling fans and tourers. The impact it has on their gross revenues can non be missed.

The hebdomad before the Super Bowl ever sees a rush in shopping that pumps rather a good sum of money into the economic system. Americans spend near to one million adult male hours making shopping chiefly for nutrient points that are consumed during the game. That has ever been the tendency and indicants show that it acquiring bigger whether there is a recession or non. The event is large nutrient eating event and shoppers are estimated to pass at least $ 55 million on nutrient entirely.

Infrastructure

China invested to a great extent in the physique up to the Olympics ; South Africa is involved in monolithic up step n of substructure in front of the 2010 FIFA World Cup. The same tendency can be seen in Brazil and London who are in line to present the Olympics every bit good. The same scenario is common in the physique up to NFL games. It ‘s a critical constituent that is a must for the any successful theatrical production.

Huge investings from local governments, NFL and persons in readying to the theatrical production of the Super Bowl provide the stimulation money that is needed to hike the local economic systems. The successful attractive force of the event to the host metropolis calls for the capableness for the host metropolis to supply the locale, hotels, and conveyance and amusement installations. Public wellness and safety installations re besides renovated to run into the demand that comes with the people go toing the event ( Feinstein, 2007 ) .

An increased demand to restitute substructure fro such an event forces the governments to mend them this guarantee a positive long-run consequence for the local economic system log after the Super Bowl is gone. Roads, pavings and public public-service corporations like Parkss are upgraded to be able to suit the high Numberss of travellers come ining the metropolis. The bowl where the event is staged is the individual biggest substructure activity that the host metropolis carries. It has to run into the lower limit demands that the NFL sets. The governments inject significant sums of money usually in 100s of 1000000s into the economic systems in the attempts to restitute the NFL bowls. Since 1995 through 2003 604 billion dollars has been spent on restituting twenty one NFL bowls ( Leiker, 2005 ) .

The redevelopment is a beginning of legion occupations that boost the metropolis ‘s employment rate. Promotion

There is ever a media blitz that accompanies such a clean event with a national followers. The sort of promotion that the host metropolis gets is adequate to hike its image among attendee and non attendants. Prospective investors and tourers get a opportunity for an in-depth reappraisal of the metropoliss ‘ potency. The metropolis is hence saved 1000000s in footings of publicizing itself as Prime Minister concern or tourer finish.

Occupations

With such an event the demand for labour rises. This leads to the creative activity of occupations that are needed in the overall readying pf the event. They range from skilled experts to parttime societal workers who tend to visitants new to the metropolis. These experts usually sourced locally comprise of building workers, contrivers and organisers.

The Super Bowl is thought to make an estimated lower limit of 500 occupations any clip that it ‘s staged. In other instances there have been statistics that suges5t that in fact the event creates far more occupations than it ‘s reported. Harmonizing to Christopher and Peters ( 2006 ) the event created over 2700 occupations in Atlanta Georgia besides the $ 166 million that it pumped into the economic system. That is rather the most direct impact that the host metropolis feels. Though most of these occupations are short-run and parttime, there is good compensation that comes along with it that makes them economically feasible. Local governments hire occupants for the occupations therefore assisting in the keeping and circulation of the money in the local economic system.

Assurance edifice

The successful theatrical production of such a athleticss event like Super Bowl construct assurance in the direction of the metropolis. Together with the promotion that the metropolis gets pairs up to guarantee long-run success of the economic ventures of the metropolis.

Criticism

However no everyone agrees with the impression that Super Bowl is an economic resuscitating machine in the host metropolis. There is some positives but non as they are put frontward by industry participants. They have presented their instance with researches that advance grounds why they think that is the instance.

Some bookmans have accused the NFL of blow uping the figures that are presented to metropoliss that are offering to host the event. They assert that the economic impact is non every bit large as it ‘s meant to look on paper. The figures harmonizing to them are presented to be ale to convert loath metropoliss into accepting the NFL proposals. There is a general understanding among the critical bookmans that the estimations usually ne’er travel beyond gross steps.

There is besides a feeling among these bookmans that the multiplier consequence they economic experts use to gauge the economic impact of athleticss events may non be accurate after all and it pants the wrong image every bit far as the benefits are concerned. Further more the usage of outgo multipliers is non clear in instances like where for case hotels are owned by a countrywide concatenation. It does non clearly articulate the fraction of the gross that remains and circulates in the peculiar vicinity where outgo occurs.

The mean impact is likely to be a one-fourth of or less the estimations that are presented by the NFL. Harmonizing to Leiker ( 2005 ) , several factors lead to the unlawful appraisal of the economic impact of the Super Bowl. Investigator prejudice and informations measuring mistake rank high as some of the taking factors that are used influence the inaccurate presentation of economic impact figures. Capacity restraint and altering merchandise relationships are the other factors that Porter came up with. He arrived at the decision after reexamining the available short-run informations on gross revenues grosss for a figure of Super Bowls.

Polzer ( 2003 ) postulates that, after analyzing twenty five Super Bowls from 1973-1977 concluded that Super Bowl was merely responsible for the creative activity of 535 occupations. The economic impact of the game harmonizing to them was non in the 100s of 1000000s but approximately 30 million dollars. That represented approximately a ten percent of the figure that NFL touted.

On the same note, Coates and Humphrey ( 2002 ) examined the station season drama in all American athleticss. They concluded that hosting the Super Bowl had small or no statistical impact on the per capita income of the metropolis occupants where the title was staged.

Decision

The undermentioned facts are clear from the findings above.

That 1000000s of dollars are received as gross by governments and persons of the host metropolis of the Super Bowl event

That, there are occupations created due to the theatrical production of the event in the metropolis that that is the host. These clearly are indexs of positive results of the event on the economic system of the metropolis.

There is a long-run positive economic consequence that the host metropolis enjoys after the event is over. This is from the promotion that comes along with the theatrical production of the title game. The betterment of substructure surely bodes good for the host metropolis since it will non necessitate to undergo major redevelopments should the event or an tantamount semen up once more.

Whether or non the figures that are presented in the by civilian and athleticss governments are existent, remains to the topic of treatment. Even if they do non amount into the proportions that are presented there must be some net benefit that is realized from the successful theatrical production of a Super Bowl title game. The event still has a batch of potency that has yet to be tapped. The legion surveies that have been conducted provide the arrows as to where the failings are and what needs to be done.

Though it ‘s non guaranteed that the event can be staged in any peculiar metropolis, the net incomes from the athletics can be improved. That is what the hereafter host metropoliss need to concentrate on.