Posts Tagged ‘Super Bowl economic impact’

The Super Bowl – showcasing North Texas

July 1, 2010
Notes from our researcher, Steve Triolet
Those of us currently living in North Texas already know many of the reasons why the Dallas/Fort Worth area is a great place to live and work–warm weather (okay hot weather nearly half the year), a business friendly environment, and an affordable cost of living.  What you may not realize is that Texas, particularly Dallas and Houston, is more often than not on the short list of locations that business leaders evaluate when they consider relocating or expanding their perspective businesses.  DFW is an attractive target for relocations and expansions because of our growing labor force (we had the largest population growth of any major MSA over the past year), lower priced real estate (both homes and commercial real estate) and tax advantages (no state income or corporate income tax).  We here at Jones Lang LaSalle discuss these issues every day with our clients and prospects.  In a recession, expenses matter more than ever and in recent months, we’ve seen an increase in inquires about relocations to DFW.
 
“I’m currently working with two companies outside of Texas who are considering the region for their headquarters.  Of the many reasons why North Texas is a fit, one stands out in my mind – we’re business friendly.  Jobs grow our communities so it’s obvious they are welcomed.”                –  Jeff Staubach 
 
According to NFL sources, 65% of all Super Bowl attendees are corporate decision makers – most of whom are traveling to the game from other parts of the country.  To many, the Super Bowl is just a sporting event, but to the business world and to North Texas in 2011, it will be a chance to showcase the Metroplex – the people and attractions that have made our area the fastest growing in the nation.  There’s been some recent news coverage on the local networks on the Super Bowl’s impact, how some of the estimates seem too high and cannot be easily defended.  We’re not going to pick a side in that debate, but undoubtably the Super Bowl XLV gives North Texas one more opportunity to showcase what a great place it is.  I think we can all agree that’s a good thing.
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What’s the impact of a Super Bowl, economically speaking?

February 15, 2010

Notes from our researcher, Steve Triolet
There’s been plenty of debate going on over the years about how much a city gains in economic growth by winning the golden ticket to host a Super Bowl. The figures are painted with a broad brush and vary significantly whether they are quoted by The NFL, an accounting firm or an economist.

The NFL claims $400 million was the magic number back in 2007 for Miami, and Arizona scratched off a $500 million lotto ticket in 2008. Keep in mind though; times were good back in ’07 and ’08. Really good (or so we thought).

PricewaterhouseCoopers estimates the 2010 game totaled out at $153 million in gained economic growth for South Florida; dropping their estimate from their 2007 figure, which they estimate brought in $195 million. Why the $42 million dollar difference? Well, we are in a recession after all.  

Some economists are arguing that the impact is much lower still.  Victor Matheson, a Holy Cross economics professor—who co-authored a study back in 2006 about this very topic—estimated that the absolute highest economic impact was around $90 million; with the low-end impact estimate falling in the $30-40 million range.  

Regardless of which number sounds right to you, there’s no doubt that hosting the big game brings in the big bucks. It’s no wonder Jerry Jones built the new Cowboy’s stadium this past year in order to bring North Texas into the spotlight. Was the $40 million TV worth it? Well, we’ll let you decide.

As our conversation progresses over the next year, we will delve deeper into the numbers to see what assumptions are behind this data.  The burning question is how will North Texas stack up? After all, Super Bowl XLV is projecting 30,000 more fans will pile into the Dallas-Fort Worth area next year than Miami saw the weekend of February 7, 2010. As the saying goes, everything is bigger in Texas. Let’s hope that holds true for the value we realize this coming year.