How does the Super Bowl affect the taxpayers of the host city? Exploring the economic impact of the big game on the host city

Staging a Super Bowl involves significant expenditure, and taxpayers are often left on the hook for the cost of increased security at the event and other expenses associated with the event's organization.

Using the 2015 Super Bowl as a case study, the state of Arizona calculated that the Phoenix region's gross effect on the economy was $719.4 million. According to reports, Super Bowl XLIX-related hotel bookings, car rental companies, and other expenses brought in over $26 million in additional revenue for state and municipal authorities.

According to the NFL and its associated organizing associations, host cities earn between $300 to $500 million from the Super Bowl. Conversely, in 2019, Victor Matheson, an economist and writer for the Journal of Sports Economics, estimated that the big game only brings in around $30 million to $130 million.

According to Matheson, the inflated predictions incentivize towns to keep giving the NFL tax breaks so they can host the game and build new stadiums.

New construction expenses, such as those associated with constructing a stadium big enough to stage the Super Bowl, may be levied against taxpayers. The aim is to provide a boost to the local economy. This is often the pitch given to local taxpayers in host communities, who must bear the additional costs associated with hosting these events.

Every city that organizes the big game pays for some of the associated costs with taxpayers' money, which may be a point of contention. However, researchers assert that the expenses are a small inconvenience to bear for hosting the most prestigious sporting event, which benefits various enterprises, both big and small.

The Super Bowl has a significant impact on everything from restaurants to merchandise vendors, and it has an effect on local businesses, jobs, and municipal morale.

How does the Super Bowl benefit the host city?

The push to expose a city to an extensive global market is a goal that public administrators long for, and recent economic data appears to support the notion.

The Super Bowl Host Committee stated that the game between San Francisco 49ers and Kansas City Chiefs held in Miami in 2020 had a $571 million net impact on the economy and created nearly 4,500 new job opportunities.

The local economy in L.A. shot up by up to $477 million in 2022 after Los Angeles Rams triumphed over Cincinnati Bengals at the SoFi Stadium.