Thursday, May 10, 2018

Do Professional Sports really affect the economy?

Do professional sports really affect the United States economy?

May 2018 by Alex Clementi, Pewaukee High school Junior

What would result if professional sports and the sport industry discontinued all leagues and competition? How would the economy be impacted if this world of competition was destroyed?

Despite popular belief, the sports industry a major contributor to the United States economy and contributes to the employment rate immensely.  “The sports industry as a whole brings roughly $14.3 billion in earnings a year”(Burrow). The counted $14.3 billon does not even include the  indirect economic gain caused by various sporting events for example, Super Bowl Sunday which is the second largest food sale day in the country, right behind Thanksgiving. “The industry also contributes 456,000 jobs with an average salary of $39,000 per job”(Burrow). With these towering numbers of sales throughout each sports season, a loss of professional sports would send the United States into an economic hole. The thousands of jobs created due to these large sports events such as, security, food vendors and event planners. Not only are thousands of jobs created through professional sports, but millions of tourist dollars are brought in every year to cities around the United States. For example, “In 2010, the New York City Marathon boosted the city’s economy to the tune of $340 million.

Bob Nightengale of USA Today reported that the Chicago Cubs generate $600 million annually for the state of Illinois”(Depta).  Without these professional sports  and live events the United States economy would be set to decline and thousands of people would be out of their jobs. Local businesses would also lose money because with these large events fans are bound to buy souvenirs and products from these local companies. Overall, professional sports are way more than an overpaid athlete throwing a ball, it is an economic powerhouse that the United States continues to benefit from again and again. 


Works Cited
Burrow, Gwen. “Not Just a Game: The Impact of Sports on U.S. Economy.” Emsi, 9 June 2017, www.economicmodeling.com/2013/07/09/not-just-a-game-the-impact-of-sports-on-u-s-economy/.
Depta, Laura. “12 Ways Sports Make a Positive Impact.” Bleacher Report, Bleacher Report, 12 Apr. 2017, bleacherreport.com/articles/2347988-12-ways-sports-make-a-positiveimpact#slide0.

33 comments:

  1. It is very interesting that sports bring in so much money. The fact that it indirectly brings in money is very accurate, and I wonder how much revenue would be lost if a sports team relocated. How many businesses would close? The amount of traffic a sports team brings to a city is crazy.

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  2. Obviously professional sports are a offer a large boost to the US economy in particular. However, if these sports were not nearly as popular as they are in our culture, less people would be attending the games and less revenue would be brought in each year. Since, the sports are so popular the US is able to make a large chunk of their annual revenue and also give millions of people jobs and entertainment at the same time.

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  3. The thought of the Super Bowl being the second highest food day is crazy! Not even just the food but the other things that impact the economy through sports is a huge amount of money. Like hotels when people go out of state, stadium food, buses, tickets to games, jerseys and other clothes. The sport industry is a major compotate to the society and the economy.

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  4. I didn't know that sports really affected the economy as much as it did. But it does make sense with how much goes into a team and city. Its a huge industry that really is the staple of America. Without them, the economy would falter and the unemployment rate would soar and thousands would be out of a job a swell as city's revenue would fall significantly. Keeping these sports around and supporting what they are doing is very beneficial to the economy.

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  5. It is crazy to think how much some of our cities rely on major sporting events to bring money into the economy but it makes sense when you dig into it. Like you said, the major sporting events bring people from all over the state, this means that more people are supporting local businesses through hotels, restaurants, and other fun activities that they might do while they are in the area. In the end, some cities rely on sporting events to help fuel the cities economy and it definitely would be a disaster if they were taken away.

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  6. I do not find it surprising at all how much sports affect the economy. The amount of money people spend on tickets to football games, basketball games, soccer games, etc. all add up to a massive amount. Not only do the tickets cost money, but sporting arenas sell tons of overpriced concessions and team apparel on top of ticket prices. Additionally, sports fans will pay extremely large sums of money to see their favorite athlete in big games or tournaments; for example, people will pay thousands of dollars to have court-side seats at a March Madness game or to attend the Superbowl. Sports in the United States will continue to contribute to the economy immensely.

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  7. I think due to the large amounts of sports teams and sporting events that take place, it is not too shocking that these teams and events bring in so much money for the economy. Therefore, it is true that tons and tons of jobs would be lost, and far less money would be brought into the economy. And if the Superbowl really does ring up as the second largest food sale day, I wonder what would be next largest?

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  8. I am not surprised that sports play such a big role in our countries' revenue. With its increasing popularity and its merchandising. Every day I see someone wearing their packer gear. Especially being the price that it is. If you're a die hard fan you would be willing to pay as much money as possible for you team just to show your commitment. I'll never get it but when you grow up with a sports family you can see how it really brings people together. So not only is sports a good revenue but overall just a great way to unionize with each other in the U.S.

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  9. It is crazy how much money professional sports generate. Additionally, it is interesting the effect that sports has on other businesses like souvenir shops and grocery stores. I feel professional sports could lower prices of food and the sports industry would make even more money because there would be more demand for the food.

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  10. It is very surprising how people pay to go watch other people play sports but in the end help out with the economy.It's a very interesting topic with how it works but it brings in a lot of revenue. I would se it being a major issue if we removed spots because if we did that would be a reasonable portion gone.

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  11. I am not surprised to hear that professional sports play a large role in our economy. Sports are a big part of American culture--players and teams are followed by millions of people. These fans are willing to pay lots of money to either see their team play or to buy merchandise, which creates hefty revenue. Furthermore, while indeed this area directly provides lots of obvious jobs (like you mentioned), professional sports impact many other career areas, such as the media. Reporters and even talk show hosts would have a major gap in their work if there were no professional sports to talk about.

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  12. I think that sports are one of the most impactful producers in our economy. The amount of merchandise, stadium revenue, television deals, and also the amount of people who go to bars and restaurants to watch the game is insane. Without sports it would kill so many different businesses, leave hundreds of thousands of people without jobs.

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  13. Not just local businesses would gain more revenue, but larger businesses, especially television networks would benefit from sports. Depending on who they hire as sports announcers and how the network runs their show, determines if the consumers will watch the games or not. Not all fans buy tickets because tickets are very expensive, so they watch the games on TV. They make a larger amount of revenue when there is a big sports event like the Super Bowl. When television networks air the Super Bowl, they also display all of the best advertisements so that they can earn more revenue and other businesses can be promoted as well.

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  14. Hopefully there will always be demand for sports because without it our economy would take a huge hit. I knew the sports industry generated a lot of money for the US, but I didn't realize it was to such a large degree. Not only does the country as a whole benefit, but so do cities that host these teams. Many locations likely rely on inflow from games and events.

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  15. It's interesting to see how much our country uses sports as entertainment and it's crazy the amount of revenue each team in every sport bring into their city or state. You also have to think what would happen with Nike, Adidas, and Under Armour if sports was taken away. If sports were taken away all of their contracts with athletes, amount of money they get from jerseys, and other apparel. If it wasn't for sports those athletes wouldn't have as much money as they do and the country's economy wouldn't be as strong or stable since a lot of people buy products just because of those athletes. Overall, having sports in our country is only helping our cause and it makes people happy.

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  16. I wonder if other countries use sports this much as their source of entertainment. Dependent on the answer to that, I would like to see the comparison of revenue generated in America from athletics versus other countries. There are so many factors that go into professional teams that benefit off the existence of competitive sport. The vendors, flooring company, landscapers, construction company and more. All of these people would have less business if it weren't for the popularity of sports in America. A lot of people rely on these teams as their source of income and business.

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  17. I agree that if we lost sports the economy would downfall. The reason is that people would stop having sports parties they would not buy tickets and not buy merchandise which counts for a lot of money.

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  18. Alex: I find your topic really interesting. I do think that professional sports affect the economy greatly. First off you can look at all the jobs that they provide outside of the players. You can work at different pop up shops there you can work as a tender you can work as a guard or a ticket seller etc. Like you said this provides many jobs for employment and helps the unemployment rate because they do provide a lot of jobs. There also is the business and management side that also provides a lot of job opportunities and brings in a lot of money for the different programs. There then of course is the payment of the players. While they do get a lot of money to bring people to the game and entertain, you do see a lot of them giving money to different charities or help to raise money because they are a big name player and this helps bring in a lot of money also for people in need.

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  19. I never thought about how large the sports industry impacted our economy but it makes sense. Bars/restaurants would also be greatly affected if there was no longer professional sports because a lot of costumers come to watch the game, eat and drink. If there was no important game to watch less people would be more inclined to go out and eat. While watching a sporting event people are also more likely to have a few drinks but without a game to bring them in the business will no longer be making that money.

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  20. This is very interesting. I also totally agree. I know that sports teams brought in a lot of people from all over the countries. This caused them to spend money on hotels, food and even items to bring home so they can remember the experience. However, I didn’t realize that it created so many jobs around the country. It does make sense because as sports teams kick of a game they are going to need security and people to sell everyone food. The biggests thing that surprised me was that Super Bowl Sunday is the second largest food sale day in the United States. So not only do these sports teams make jobs and money for the economy they help the sale of other items as people settle in to watch the games.

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  21. I always thought that professional sports and the events affected the economy in a positive way. When you think about it, including the food, seats, and all of the swag you get for the games and at the games it makes sense that it would be a major part of the economy. Athletic teams have all of these people in a company working for them. From coaches to accountants, many people go into a franchise. Without all of these sports teams, many people would be without jobs and if it wasn’t for all of the fans that keep coming back, we wouldn’t have the teams anymore. People go for the experience like at Miller Park. The Brewers aren’t the best team in the league but people keep buying the tickets for the experience. It is an American custom to attend at least one sporting event and that alone can raise revenue and affect the economy in a positive way.

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  22. It is very interesting how the sports industry can affect the economy as a whole. But if you think about all the sports bars and television events, there is a lot of money being spent by consumers all on the sports industry. I like how you brought in Super Bowl Sunday and that it is one of the most profitable days for food. A lot of restaurants are created just around sports. There are even large companies like Dicks Sporting goods that would almost go out of business with out the sports industry. I was very interested in this topic and one I will do more research myself.

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  23. This is a really interesting topic, as many people, myself included, have never thought about how much revenue is actually brought in from sports teams.The love Americans have for sports is a huge determinant of our country's GDP. The jobs are also not just at the sports arena, there's businesses such as souvenir shops, bars, etc. that also heavily rely on sports teams to play in order to have business, which is why the sports teams provide much more economic growth. I am curious as to how our sports profits compare to other countries, considering most other countries are mainly targeted on soccer.

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  24. It's crazy to think how much sports can actually affect the economy. When you think of sports not a lot of people actually realize how much revenue and how much money it generates. If you look at the NCAA for example, for mens basketball the NCAA Tournament generates almost 1 billion dollars every singly year. This brings up the idea on if college athletes should get paid but that argument is for a different time. For the amount of demand that sports brings and the amount of people there are seeking to go to games it makes sense that sports can actually affect the economy.

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  25. This is a really interesting article. It's crazy to think how much professional sports affect the economy. Throughout your article you mostly talked about the direct affects of professional sports on the economy, but if there were no professional sports imagine the long term revenue damage it would do to sporting good businesses. There are entire stores dedicated to sports memorabilia! The affect of professional sports on the economy is huge just by itself, but added to the other industries it is affecting, together they bring in a massive portion of our country's GDP. Great article.

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  26. Seeing the numbers of how much of a positive economic impact that professional sports and athletes generate for their city is very interesting. A lot of people view these athletes as overpaid individuals making a lot of money for something a lot of people don't pay any attention to. However, professional sports are not only bringing in money through their arena. These sporting events, especially special events like playoffs, bring in money through consumers going to sports bars or spending their money on the entertainment. Additionally without professional sports have created a vast amount of jobs promoting a healthy economy.

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  27. I completely agree that the sports industry is a huge asset to America- not only are sports a huge contributor to our country's GDP, but many people have a strong love for them. In addition, the sports teams create many jobs specifically for the players, but also for other things such as restaurants that revolve around sports. Without sports, restaurants like that wouldn't be able to exist. Overall, sports affect America in a positive way. I liked this topic, great job!

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  28. I think sports are at the top for effecting the economy. It’s wild to think how much people pay to watch other people play a sport. Great blog post, I love when I can relate to topics.

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  29. I do not find it surprising at all that sports have a large impac on the economy. When thinking of the revenue a professional team generates, you can’t just think of the price of ticket sales, there’s countless more such as the price of merchandise sales. I really like when I can relate to a topic on a blog post. Great job!

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  30. The thought of the Super Bowl being the second highest food day is crazy! Not even just the food but the other things that impact the economy through sports is a huge amount of money. Like hotels when people go out of state, stadium food, buses, tickets to games, jerseys and other clothes. The sport industry is a major compote to the society and the economy.

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  31. To echo what a lot of others have said: this is not a big surprise, as Americans and all around the world we spend countless hours in front of a television cheering on our favorite teams and spend lots of money on tickets, merchandise, and food. Another aspect that causes a lot of revenue is advertising, especially during the Super Bowl. All of these definitely add up to create a large impact on the economy.

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  32. You mostly talked about professional sports, and how much they contribute to the economy, and in turn, they are paid very heavily, as a result of the money they bring in. Another thing that can be connected to this topic is college sports, as they too bring in billions in tv revenue and ticket sales, as well as sponsorships deals with the university. However, instead of rewarding athletes with this money they bring in, they give them a free education. I think this is great for most athletes, but for the top end athletes in the popular sports, this education worth $100,000 is nothing compared to the money they bring in. Whether or not these athletes should be further compensated is a matter of opinion, but there is no arguing that college athletics also bring in big bucks for many universities.

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  33. Sports are totally a huge factor in the way that many households spend their disposable income. Many family host parties during the football season, which increases the revenue that supermarkets get for everyday items like tortilla chips and salsa. Not only is quite a bit of money at sports stadiums on jerseys and other fan merchandise, but it is also spent at a local level, as was mentioned in the last paragraph.

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