The Economic Effects of the Superbowl

As most of the North American population knows we are fast approaching the biggest sporting weekend of the year with the Super bowl coming this Sunday. Though many people are extremely excited for the game and turn to websites like sports illustrated for round the clock coverage of the team that they are cheering for(or against). The luck few that managed to snag a ticket to the game, are most likely preparing to fly to Indianapolis. For all the excitement of the game few would be surprised to know the economic factors that accompany it for the better and the worse.

                To give you the bad news first due to all the hype around the game, and the time that people dedicate to following it, business in the US alone lose close to $850 million in the week leading up to the game due to lost worker productivity. Much of this is due to people standing around the water cooler chatting instead of working. Much of this lost productivity is also due to workers arranging betting pools, this also has a negative effect if things go bad, or one employee fails to pay up, as it can kill company culture. The day after the Super bowl is a whole different story, companies lose a ridiculous 350 million due in part to everyone having to give their own recap of the events that happened in the game, and an estimated 1.5 million people phoning in “sick”. This has even led a group to create a petition to designate the Monday after the big game a national holiday. (see www.superbowlmonday.com)

                Now onto the good, especially if you are the host city. The super bowl can bring an economic stimulus of $500 million dollars to the host city, which includes on average spending of $1,500 per tourist not including their game day ticket.  During a recession this cant be looked at as bad for local economies. Nationwide spending is also stimulated in the restaurant, retail, and grocery industries, as people load up on booze and food for at home super bowl parties, or decide to head out to the local tavern to enjoy the festivities with their friends. Jersey and apparel sales also increase at sporting goods and specialty stores during the lead up to the game.  Super bowl advertisement which is a whole different discussion in its own is also a great way for companies to get their name out there and increase their brand visibility, along with sales, even though it does come with a hefty price tag.

                To conclude, the super bowl has both good and bad economic effects, but it should be one hell of a game. Go Patriots!

Photo Courtsey of TheCount.com