Super Bowl Financial Affect
By: Collin Sternad
Sports spur lifelong rivalries among fans and competitors alike. Unfortunately it isn’t uncommon for the competition to bring out a side in people that would be better off concealed than exposed. However, economically sports do nothing, but bolster the U.S.’s GDP and send shockwaves into economies in help due to the multiplier effect. Blatantly speaking, no U.S. sporting event brings in more economic revenue thought than the Super Bowl, which is why it is one of the U.S.’s most important events from an economic perspective.
The economic impact that a Super Bowl brings to a city makes it location a hot commodity. A projection for next year’s Super Bowl in Arizona is estimated to have a $600 million dollar economic benefit, according to the NFL’s Super Bowls host committee. The true economic revenue generated in the Super Bowls ‘host city isn’t universally agreed on as “Robert Baade, a sports economist with Lake Forest College in Illinois, puts Super Bowl benefits for host cities at between $30 million and $90 million”. Although there might not be as profound of affect in the host city of the Super Bowl as the NFL might proclaim, there clearly is a correlation between the game and economic revenue. It brings tourism to the city and encourages re-visitation among those attending the game. Not only does the host city see great economic benefits, but so does American companies who provide apparel.
As the graph shows above a spike in the demand for gear from the Super Bowl champion is emanate. Everyone wants to feel as though they are part of the team’s successes even if they clearly have little effect. Consumer purchases increase the US’s GDP even if some of the gear in produced abroad. Leading up to the past Super Bowl in New York the NFL expected to surpass the $200 million dollars mark in apparel sales according to the sports business daily. The manufactures of the apparel feel the economic benefit as the aggregate demand for their good increase. In the short run the demand can increase and prices may rise, but as time goes on the price level will once again drop as the long run aggregate supply and aggregate demand meet at the equilibrium. The booms in production demand not only helps the manufactures, but the retail stores as well.
Retail chains across the country feel the benefits of increase sales do to excitement among fans. It isn’t uncommon for it to be near impossible for stores to keep anything having to do with a team that is exceeding expectations on the shelves. It is a struggle that is a good problem to have, but certainly one that is frustrating to those who could be making more revenue from sales. A whole array of various shirt designs hit the market following a Super Bowl game and everyone wants a piece of the pie.
Sports enthusiasts are among the most loyal and fanatic personalities that roam the earth. They don’t just live domestically, but demand for American products is seen globally as the NFL truly has expanded its reign. Even though sports might not bring out the best in people, few can argue that it doesn’t bring out the best in the nation’s economy.
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