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Estimates Vary On Super Bowl’s Economic Impact On Detroit

Estimates Vary On Super Bowl’s Economic Impact On Detroit

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Report Estimates Super Bowl XL
Economic Impact On Detroit Around $50M
A new report by Michigan-based Anderson Economic Group estimated that Super Bowl XL will have a $49.3M economic impact on the Detroit area, compared to the $302M estimate from an ‘04 study commissioned by the Super Bowl XL Host Committee, according to Amy Lane of CRAIN’S DETROIT BUSINESS. The new report estimated a direct benefit of $30.8M, including visitor spending, sponsorship revenue and a local share of ticket sales, as well as spinoff indirect impact of $18.5M. Anderson Economic Group consultant Scott Watkins said that the figures “do not include spending by major Detroit area corporations to promote the event” because “such spending likely would have occurred anyway but in a different direction, like other event promotions or charitable contributions” (CRAINSDETROIT.com, 1/31). ESPN.com’s Darren Rovell noted some economists believe the “impact of Super Bowls in hot-weather sites is minimized by the tourism already booming at that time of year.” Univ. of Texas at Arlington economics professor Craig Depken said Super Bowl XL in Detroit “makes more of a difference than it does in other cities that have hosted. They are playing in a city where economic activity is not very large to begin with when the game comes to town.” However, Depken added, “Hosting a Super Bowl in Detroit is hardly a major economic event. In order for that to happen, you’d have to bring the Super Bowl to a place like Moscow, Idaho (pop. 21,271).” Sportsimpacts.com’s Patrick Rishe, who was hired by the Detroit Metro Convention & Visitors Bureau to produce the economic study on Super Bowl XL, anticipates that the direct economic impact will be about $100M. But Rishe said that the NFL “will not allow him to do his surveying on Ford Field premises come game day” (ESPN.com, 2/1).

ENTICEMENTS: HBO’s Peter King noted the enticements that Super Bowl host committees offer NFL owners, and said, “The business of the Super Bowl is costing these host committees more and more money each year.” King, on whether the league will crack down on the practice: “It doesn’t sound like it to me. The only thing they want is for people not to find out about it so we don’t report about it and make the owners sound seedy” (“Inside The NFL,” HBO, 2/1).

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