Economic impact of the Super Bowl

I read this article on Forbes this morning and it is very well written.

 

The author discusses the challenge in estimating the economic impact of an event to the host city, and the mayor of Glendale believes they will lose money on the Super Bowl.

 

With all the money in the league how is it possible that host cities actually lose money to host events? I think that there are a lot of variables to that, but some of them are:

 

Competition for hosting the big game. When competition is high, the NFL ultimately wins.

The Stadium agreements. How much of the revenue generated by the stadium returns to the City where it is located? If there are tax incentives this might not be as much as a city would like.

Cost of public safety. As the article points out, having more police officers on duty and earning overtime is a very fast way to spend a lot of money.

Local taxes and hotels. Ideally, when visitors come to the town they stay in the hotels, eat at the restauants, shop at the local stores and spend a lot of money in the local economy. In turn, the City would make more money from this spending come tax season. Time will tell how many non-locals came to Glendale and stimulated the economy.

 

While the big game can shed some light on the host city, it may not be as much of a financial boon as some would like.

 

But, with the popularity of football, and sports in general, we can expect the competition to host events to continue.

 

http://www.forbes.com/sites/kellyphillipserb/2015/02/01/salaries-ads-security-whats-the-real-cost-of-super-bowl-xlix/?utm_campaign=Forbes&utm_source=GOOGLE_PLUS_PAGE&utm_medium=social&utm_channel=Investing&linkId=12094888