Topic: Miller College of Business
April 11, 2008
Hosting the Super Bowl in 2012 could mean a $365 million economic boost for the Indianapolis metro area, says a new study from Ball State University.
Mike Hicks, director of Ball State's Bureau of Business Research, said increased hotel, restaurant and other activity created by the Super Bowl would result in a significant, one time increase of $365 million in local revenue, including $202 million dollars in labor compensation and the creation of roughly 5,000 jobs.
His analysis also found that state and local tax income would top $32 million under the current tax structure.
This estimate is highly consistent with other projections relying on historical data of actual economic benefits from Super Bowls dating to the 1960s. It is within 5 percent of the average impact estimates for the past five Super Bowls, which is important, since the impacts are apparently increasing with time, Hicks said.
"This study suggests, as have the vast majority that preceded it, that the Super Bowl would be a significant contribution to the economy of the host city," continued Hicks. "The Super Bowl is an internationally known, heavily watched event that typically provides a friendly showcase for a city. Pre- and post-game shows and several days of news events generally depict a community's many assets and attractions. These are valuable advertising events.
"A Super Bowl is an excellent opportunity to focus attention on a community's sporting venues, often a desired amenity to businesses and residents," he said. "Sporting events like the Super Bowl with their concomitant festival atmosphere are just plain fun and more welcomed to a community than, say, the highly sought after annual meeting of the American Economic Association."
Hicks also pointed out that the Super Bowl attracts visitors, players, performers, revelers and the media to a community, often for lengthy periods weeks or months before the game — creating an extended economic impact on a community in terms of wages, the value of goods and services sold and in tax receipts.
Indianapolis city leaders have put in a preliminary bid to host the NFL championship game in the soon-to-be completed Lucas Oil Stadium. A final bid is due May 9 with NFL owners expected to announce the winner at their meetings May 19-21.
Hick's study is available at www.bsu.edu/bbr.