By Barry Janoff
January 27, 2014: Super Bowl XLVIII is getting as much attention for the outdoor location of the game as for the participants in the game. But that could translate into bigger dollars than usual for the host Super Bowl region and for the NFL.
This year, the direct spending in the New York metropolitan area related to Super Bowl XLVIII is expected to top $210 million, a new high-water mark for the Big Game, according to global professional services firm PricewaterhouseCoopers, which has its domestic headquarters in New York.
"From an impact perspective, one of many unique considerations of having New York/New Jersey host this year's game is the opportunity for the market to locally capture the dollars spent by its deep corporate base on Super Bowl hospitality and sponsor activation – spending that has historically been exported to the other host markets," Adam Jones, director, sports and tourism sector, PwC US, said in a statement.
PwC US said that the direct spending total is based on estimated spend by the NFL, businesses, visitors and media on area lodging, transportation, food and beverage, entertainment, business services and other hospitality and tourism activities related to Super Bowl XLVIII in MetLife Stadium between the Denver Broncos and Seattle Seahawks.
The $210 million tops the previous high of $200 million in direct spending impact during Super Bowl XLV (2011) in the Dallas area when the game was played in Cowboys Stadium (now AT&T Stadium) between the Pittsburgh Steelers and Green Bay Packers.
According to PwC, the spending impact total of the game this Sunday is about $20 million more than Super Bowl XLVII, which was played in the SuperDome in New Orleans between the Baltimore Ravens and San Francisco 49ers; and an estimated $50 million more than the spending impact during Super Bowl XLVI, played in Lucas Oil Stadium in Indianapolis between the New York Giants and New England Patriots.
PwC said that the $210 million estimate is based on a "proprietary analysis that considers characteristics unique to this year's event, such as the participating teams, attributes of the New York/New Jersey area, national economic conditions and corporate and other ancillary activities."
"Barring any major weather issues impacting travel, New York/New Jersey should still yield one of the highest inflation-adjusted results for a Super Bowl."
Excluded from the analysis, per PwC, is the "so-called 'multiplier effect,'" which the firm said accounts for "'indirect' impacts such as a concession company's purchase of goods from local producers and manufacturers; and 'induced' impacts which occur when the income levels of residents rise as a result of increased economic activity and a portion of the increased income is re-spent within the local economy."
Following Super Bowl XLVIII and Super Bowl XLV, the two Big Games that have produced the highest direct spending impact since 2005 were Super Bowl XLI (2007), played in South Florida's Dolphin Stadium (now Sunlife Stadium), and Super Bowl XLII (2006), played in Arizona's University of Phoenix Stadium, both of which had an estimated spending impact of $195 million.
Super Bowl XLIX will be played in University of Phoenix Stadium, the historic Super Bowl L in Levi's Stadium in Santa Clara (about 45 miles south of San Francisco) and Super Bowl LI in Houston's Reliant Stadium.
But for now, the focus, and dollars, are focused on Super Bowl XLVIII.
"While a world-class destination, Super Bowl-related visitor volume and length of stay in New York/New Jersey could be mitigated by factors such as cold weather, a compressed event and activity calendar, shorter hotel minimum night requirements, and a higher proportion of local attendees, compared to traditional host markets," said PwC's Jones.
"Yet, barring any major weather issues impacting travel, it's anticipated that New York/New Jersey should still yield one of the highest inflation-adjusted results for a Super Bowl, given the relative destination costs and the planned scale of Super Bowl-related events and activities," said Jones.
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