Austin Witthun
The Iron Horse Creates a Bull Economy in MotoGP
When a city hosts a sporting event, it's normally pretty easy to assume that there is an economic impact on the location from general attendance, but when the sport is as complex as the Moto Grand Prix motorcycle race, many aspects may not be so obvious.
General attendance of races makes a good amount of money through ticket sales for spectators. However these spectators, estimated to rise to a total of 130,000 to 170,000 for the three day event would need hotels as about 55% of them come from out of state (MotoGP). With the demand for shelter and food on the rise leading up to race day, local hotels and restaurants can expect a decent rise in sales after they increase their prices. Most of the people arriving are motorcycle enthusiasts, making the journey by bike, allowing the doors of cycle repair and detail shops to have their doors open 24/7. Trackside vendors selling equipment and gear from helmets to tires to riding clothing are expected to sell as much as $200,000 in three days (City). In total, it is estimated that $2.8 billion is added into the local economy from the Circuit of the Americas organization which supports nearly 10,000 jobs in the area alone.
The side that may not be so obvious are the engineering breakthroughs that are a result of research done by motorcycle manufacturers. Advanced technologies in breaking, weight reductions, and power plants find their way into the consumer market after being put to the ultimate test in these races. Even in products that are necessary for bikers like helmets and one piece suits are often replicated to exact race specs and then sold to the public. Advancements in the quality of the products allows for a market competition not dissimilar to the competition on the track. 
The selling of the bikes made by the sponsors of the race open up a large section of trade, as none of the brands are native to the U.S.; all of the brands are located in Italy or Japan. However, the current official tire sponsor is Michelin, a French company. All that is left is to trade with one of the largest importers in the world: the U.S.
The selling of the bikes made by the sponsors of the race open up a large section of trade, as none of the brands are native to the U.S.; all of the brands are located in Italy or Japan. However, the current official tire sponsor is Michelin, a French company. All that is left is to trade with one of the largest importers in the world: the U.S. 
It’s always weird to think how much money can be made from any sporting event, and especially a motorcycle race. At 150,000 people, there’s a lot of room for revenue. Typically someone who can afford a motorcycle is going to be able to afford all of the aftermarket parts and wheels that could go with it. That $200,000 won’t be too hard to get from all of those fans, like I said before, who are always willing to drop a few G’s on their bike on one item. My dad was invited to go since he works at H-D in Milwaukee and can attend any race/event at anytime.
ReplyDeleteI didn't know so much revenue could be generated from such an event. I could see it if it was football, but as far as sports go I always thought that motor sports had a smaller audience than the ball-based sports. What you said in your post makes sense though, and it never would have occurred to me that those kinds of innovations would come out of sporting events.
ReplyDeleteKelin Olson
I would agree that the race would bring a lot of people to city and they would increase the income. This is like when a city has a all star game for the MLB or NBA. All sports fans want to to see all the best players play together so why not go to and watch all the all star game. I think the importance of sports and things like all stars games are great because they give back to the fans. By bring all the money to the host city and it gives the fans to see there favorite players go one on one with one other. Other than that great blog post
ReplyDeleteI definitely would agree with this in saying that motoGP races do bring in a lot of revenue just from the ticket sales. Plus all of the costs from the hotels and all of the vendors. You wouldn't think that motorcycle racing is that popular because it's basically meant for a specific crowd, but people who don't like motorcycles still come to watch the races including myself. I've been a car guy my whole life and I've been taught that motorcycles are the most dangerous vehicles on the road, but in reality, they're really fun to watch and looks really fun to ride. Most of the people that go to the races are there for entertainment and to watch what happens. So motoGP races are a really good for the organizers.
ReplyDeleteOverall, COTA has done a lot to help the local economy of Austin. Not only does the facility host MotoGP, but also the FIA Formula 1 and World Endurance Championships, the IMSA United Sportscar Championship, Pirelli World Challenge, and a number of Vintage and Club races. This brings many fans in from across the country and the world, and millions of dollars in revenue with them. Austin has also been helped to be established as an international city, especially with the global audience of Formula 1.
ReplyDeleteMotoGP does bring a lot of money to businesses, but most people would not think that because they think only some people like racing. Which is correct but then there are people that want to try something new or their friends drag them there. With all the people there people are going to want food, shelter, and souvenirs. Events like this is good for cities and for businesses.
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