MONEY TALKS: THE ECONOMIC IMPACT OF THE SUPER BOWL

Super Bowl week is in full swing, and, for host city Los Angeles and the surrounding communities, that means a potential economic windfall.

Every time a major sporting event descends on a city, there is (theoretically) money that comes along with it. If projections are to be believed, Super Bowl LVI will be no different.

According to a report released by Micronomics, an economic research and consulting firm, the game will add anywhere between 2200 to 4700 new jobs, and generate from $234 to $477 million for the region’s economy.

The majority of those jobs will be in transportation, hotels, restaurants, and personal care.

Photo Credit – NBC Peacock

It is expected that 150,000 out-of-town visitors will come into southern California for the big game, according to the report. Each person is expected to spend $350 a night on lodging, and $300 per day on other things. Up to $22 million in taxes will be generated.

“People are sick and tired of being home all the time and this is going to be their big splurge,” managing director of Microeconomics Roy Weinstein told the Los Angeles Times.

Detractors point out, however, that projections often tend to be inflated. 

“In general, these numbers are vastly overestimated,” Nola Agha, professor of sports management at the University of San Francisco, told the Los Angeles Times.

He predicts numbers closer to $47 million.

The 2020 Super Bowl in Miami brought 4597 full and part-time jobs to south Florida and a total economic impact of $571.9 million to the region, according to a report released by the Super Bowl Host Committee. Furthermore, the report stated that the average spectator spent $1781 per day and stayed in town for a little over three days.

The last game to be held in the Los Angeles area, Super Bowl XVII at the Rose Bowl in Pasadena, generated $183 million in new business for the region, according to a UCLA study.