Brad Humphreys, a WVU economics professor, said research shows Super Bowls aren't typically lucrative for host cities. (WVU Photo)
A West Virginia University economist sees Super Bowl LVIII, being held for the first time Sunday (Feb. 11) at Allegiant Stadium in Las Vegas, as the fulfillment of an economic promise to Sin City that likely won't pay off in any supersized way.
Brad Humphreys, associate dean for academic affairs and research and economics professor in theWVU John Chambers College of Business and Economics, said when National Football League teams and local officials decide to build new stadiums —like Allegiant Stadium which opened in 2020 as the home of the Las Vegas Raiders and a future Super Bowl site — the promise of hosting the “Big Game” is often used to secure subsidies.
Humphreys is available to discuss research that shows the Super Bowl does not deliver many tangible economic boosts to host cities.
Quotes:
“The promise of hosting the Super Bowl plays a large role in many new stadium deals. The league announces that, if a new stadium is built, the city will get to host the Super Bowl in year X, possibly more than once.Both the team and local officials quickly point out that this will be a big economic win for the city, justifying a large subsidy.
“The prospect of hosting a future Super Bowl played a large role in attracting the Raiders to Las Vegas and also in determining the $380 million subsidy the state of Nevada provided for the construction of a new stadium in the city.A majority of the Super Bowl host cities over the last 20 years were tied to new stadium deals.
“Peer-reviewed academic research shows hosting the Super Bowl has no tangible economic impact on the economy of the host city.The game has been played since the 1960s and moves around every year.This provides an ideal situation for comparing local economic outcomes when a city hosts the Super Bowl compared to years when the game was not played in the city. The reason hosting the game provides no tangible economic benefits is that it is a single game.While the game clearly draws a lot of people from out of town to the host city, the cities that host the Super Bowl are all large tourist destinations in their own right.
“Las Vegas attracted nearly 40 million visitors in 2022.This Super Bowl weekend, people traveling to Las Vegas to watch the game will rent hotel rooms, eat and drink in bars and restaurants, and visit other attractions that other visitors would have spent money on had the Super Bowl not been played there this week.The spending by fans going to the game just replaces spending by other visitors. That’s not net new economic impact. It’s just dollars coming out of the pockets of a different group of visitors.” — Brad Humphreys, economics professor and associate dean for academic affairs and research, WVU John Chambers College of Business and Economics
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FAQs
For host cities, the Super Bowl generates money for local businesses and governments through sales taxes, hospitality taxes and gas taxes. But there are related expenses such as additional security measures, emergency services and infrastructure like stadiums.
Is it worth it to host the Super Bowl? ›
“Peer-reviewed academic research shows hosting the Super Bowl has no tangible economic impact on the economy of the host city. The game has been played since the 1960s and moves around every year.
What is the cost to taxpayers of the Host city Super Bowl? ›
The cost for taxpayers in a Super Bowl host city can vary. Reports estimate that local tax revenue can shoot up to between $12 million to $22 million when the Super Bowl comes to town.
How much money was spent on the Super Bowl in 2024? ›
In 2024, Super Bowl spending increased by 4.8% from 2023's numbers, to hit a record high of $17.3 billion. This translates to an average expenditure of $86.04 per household, up 0.8% from 2023.
What does a city have to do to host the Super Bowl? ›
The host stadium must be in a market that hosts an NFL team and must have a minimum of 70,000 seats, with the media and electrical amenities necessary to produce the Super Bowl. Stadiums may include temporary seating for Super Bowls, but seating must be approved by the league.
How many cities have hosted the Super Bowl? ›
For the first time, Las Vegas will be the host location for a Super Bowl, as the 2023 season will conclude with the NFL championship game at Allegiant Stadium, home of the Las Vegas Raiders. It is the 16th different host city for the Super Bowl in its 58-year existence.
Why can't Denver host a Super Bowl? ›
Which brings us to the final and maybe the most important reason why the city of Denver has not hosted the Super Bowl, the weather. The NFL required temperature in the month leading up to the Super Bowl is an average temperature of 50 degrees. Denver's average is 30.7 degrees.
Do Super Bowl losers get paid? ›
Players on the losing team will get $89,000. That's $7,000 more than last year's Super Bowl bonus. In the first Super Bowl back in 1967, players on the winning team received $15,000 and the losing team got $7,500.
Has host team ever played Super Bowl? ›
No Super Bowl host team had managed to reach the title game until the 2020 season, when the Tampa Bay Buccaneers played in Super Bowl LV and won at their home stadium. The next year, the Los Angeles Rams defeated the Cincinnati Bengals in a home game during Super Bowl LVI.
Who makes money off the Super Bowl? ›
Given the huge exposure of the Super Bowl, it is unsurprising that the event generates millions of dollars in advertising revenue for the NFL.
Stadium subsidies can come in the form of tax-free municipal bonds, cash payments, long-term tax exemptions, infrastructure improvements, and operating cost subsidies. Funding for stadium subsidies can come from all levels of government and remains controversial among legislators and citizens.
How much money does the owner get for winning the Super Bowl? ›
According to Equity Atlas, a Super Bowl-winning owner can expect to earn about $30 million from the NFL. Furthermore, winning the Super Bowl is known to boost a franchise's overall value significantly. According to a report, a Super Bowl win can increase a franchise's value by an estimated 20-30%.
How much are the hotel rooms for the Super Bowl 2024? ›
Hotel guests in Las Vegas during Super Bowl 2024 paid the highest room rates in continental U.S. history, according to an analysis by CoStar's STR. The average daily rate on Saturday and Sunday during Super Bowl weekend in Las Vegas was $758 and $808, respectively.
What is the cheapest Super Bowl ticket 2024? ›
The most affordable entry ticket for the upcoming Super Bowl at Allegiant Stadium is presently priced at $5,477, while the average cost of tickets already purchased for Super Bowl LVIII stands at approximately $9,300, CBS reported quoting StubHub.
How much is Usher getting paid for the Super Bowl halftime show in 2024? ›
Usher Is Not Getting Paid to Perform at the 2024 Super Bowl
Turns out, Usher is earning literally $0.00 for giving everyone a free 15-minute concert in the middle of a football game. But before you spiral in a rage, please note the NFL has a long and illustrious history of paying their halftime show artists nothing.
How much money will a Super Bowl bring in for a host city? ›
Using conservative estimates for number of visitors, average hotel rates, and daytime spending per person per day, we forecast that Super Bowl LVI will produce economic benefits between $234 million and $477 million, including tax revenue to the LA region ranging between $12 million and $22 million.
How does a Super Bowl affect the future well being of a city? ›
Host cities of the Super Bowl spend an increased amount of money on infrastructure and security. These cities increase their expenditures in hopes of a great economic return. There is a general idea among the population that hosting the Super Bowl generates a massive revenue for the host economy.
What factors are considered when the NFL chooses a host city for the Super Bowl? ›
How NFL determines cities, venues for the Super Bowl
- "Super Bowl is not just Super Bowl Sunday," he said. ...
- The NFL will also consider how long it's been since a city hosted the big game, Shapiro said.
- Local partnership and support also play a factor — "politically, logistically and otherwise," he said.
The estimated economic impact of recent Super Bowls in host cities has surged to over $1 billion. Experts predict Las Vegas could get $1.1 billion in gross economic impact from this year's game. Here are the locations that could reap big benefits in the years to come.
