By: Collin Sternad
Sports spur lifelong rivalries
among fans and competitors alike. Unfortunately it isn’t uncommon for the
competition to bring out a side in people that would be better off concealed
than exposed. However, economically sports do nothing, but bolster the U.S.’s GDP and send shockwaves into economies
in help due to the multiplier effect.
Blatantly speaking, no U.S. sporting event brings in more economic revenue
thought than the Super Bowl, which is why it is one of the U.S.’s most
important events from an economic perspective.
The
economic impact that a Super Bowl brings to a city makes it location a hot
commodity. A projection for next year’s Super Bowl in Arizona is estimated to have
a $600 million dollar economic benefit, according to the NFL’s Super Bowls host
committee. The true economic revenue generated in the Super Bowls ‘host city
isn’t universally agreed on as “Robert Baade,
a sports economist with Lake Forest College in Illinois, puts Super Bowl
benefits for host cities at between $30 million and $90 million”. Although
there might not be as profound of affect in the host city of the Super Bowl as
the NFL might proclaim, there clearly is a correlation between the game and economic
revenue. It brings tourism to the city and encourages re-visitation among those
attending the game. Not only does the host city see great economic benefits,
but so does American companies who provide apparel.
As the graph shows above a spike in the demand for gear from
the Super Bowl champion is emanate. Everyone wants to feel as though they are
part of the team’s successes even if they clearly have little effect. Consumer
purchases increase the US’s GDP even if
some of the gear in produced abroad. Leading up to the past Super Bowl in
New York the NFL expected to surpass the $200 million dollars mark in apparel
sales according to the sports business daily. The manufactures of the apparel
feel the economic benefit as the aggregate
demand for their good increase. In the short run the demand can increase
and prices may rise, but as time goes on the price level will once again drop as the long run aggregate supply and
aggregate demand meet at the equilibrium. The booms in production demand not
only helps the manufactures, but the retail stores as well.
Retail
chains across the country feel the benefits of increase sales do to excitement
among fans. It isn’t uncommon for it to be near impossible for stores to keep
anything having to do with a team that is exceeding expectations on the
shelves. It is a struggle that is a good problem to have, but certainly one
that is frustrating to those who could be making more revenue from sales. A
whole array of various shirt designs hit the market following a Super Bowl game
and everyone wants a piece of the pie.
Sports enthusiasts are among the
most loyal and fanatic personalities that roam the earth. They don’t just live domestically,
but demand for American products is seen globally as the NFL truly has expanded
its reign. Even though sports might not bring out the best in people, few can
argue that it doesn’t bring out the best in the nation’s economy.
Works Cited
The increase in jerseys make sense because since they won the Superbowl, every person in the world who has ever watched a Seahawks will buy a jersey and proclaim themselves as a die hard fan for life, until the next year when a different team wins it all. It is worth it for any city to want to hold the superbowl, because they won't have to build new structures and the local business will be racking in the big bills for a whole week.
ReplyDeleteSince there are not many substitutes for Super Bowl apparel, people may see it as an elastic good; yet with all of the hype of the Super Bowl, people feel that it is a necessity so it temporarily becomes an inelastic good. Even people who were not originally fans of the Seahawks see the change in consumer tastes and are swayed to join the club. The demand for Super Bowl apparel makes the demand for other articles of clothing much less, therefore hurting those companies. I never thought that the Super Bowl had a negative impact on the economy, but apparently it does.
ReplyDeleteWhen one team wins the Super Bowl, there are always going to be an instant spike increase of profit made from apparel alone. The fad is to always go along with what is hot, and the Seattle Seahawks reached hot when they won the Super Bowl by defeating the Denver Broncos. It only makes sense, because people are willing to feel like they were part of the team or at least a huge fan, when their favorite team wins the Super Bowl; or at least make it look like someone would be a fan. But the reality is, the Seahawks are able to make so much revenue of profit alone, even if there are fake fans, but no one in the organization really cares about if the people are bandwaggon fans or not.
ReplyDeleteAfter the superbowl happened with the victor accuring, it would make sense that the apparel would skyrocket especially over seattle clothing. However I didn't know that city it is held in can have such a benefit like that. With $600 million going towards the economy in Arizona, it would be an amazing benefit. However with all of the bills being added with all of this, I had no idea it could have such a negative impact on the economy.
ReplyDeleteAround the time the Super Bowl happens everyone is routing for the team the like the most to win. I personal didn't care who one this year but I what I did notice that a lot of the people in the school changed there backgrounds on there laptops to the Seahawks. Then everyone started getting Seahawk gear after they won. It effects the teams profit off of that majorly, even after they win.
ReplyDelete