One For the Money, Two for the Show: The Economic Impact of Super Bowl XLVII in NYC

The Economic Impact of Super Bowl XLVII in New York City:

Super Bowl XLVIII is being held in New York City next year. This is surprising for many reasons, but none more so than the fact the super bowl is usually held in a city that boasts a temperate climate in February. Just taking a quick look back: In 2013 it was held in New Orleans Louisiana where the Ravens defeated the 49ers, in 2012 I was in attendance at Lucas Oil stadium in Indianapolis Indiana as my beloved Patriots were defeated by the evil New York Giants, in 2011 the Packers defeated the Steelers in Arlington Texas, in 2010 the Saints defeated the Colts in Miami Florida. Only once in the last 20 years has the Super Bowl been played in a cold weather city (Detroit in 2006 when the Steelers beat the Seahawks).

New York is the financial capital of the world, and the money associated the most watched event each year is bound to reach unprecedented levels in this setting. The NFL estimates that the Super Bowl produces about $400 million for the local economy. Academic research believes that number to be inflated. Regardless of what the mean is, this year may exceed it. Suites for the Super Bowl will cost record setting prices. The most expensive of which, is currently listed for almost $1 Million. That Suite better come with a helipad to get in and out of the stadium conveniently. 

The NFL is expected to make millions on the big game, and their profits are pretty easy to derive or at least estimate. The economic impact the Super Bowl will have on New York is less simple to predict or calculate after the fact. The direct economic impact of the Super Bowl will be all the money spent by the attendees and visitors who would otherwise not be there. The indirect economic impact is how the vendors and establishments who benefited from the direct impact spend their money.

The game is an economic boost to the local market, which is usually awarded to a city with appealing weather that just built a new stadium. While the projection of $550M being injected into the New York economy seems to be a little high, having the game in the city at the heart of finance should lead to a little extra money being thrown around along with a few footballs.