Congrats to the LA Rams on their Super Bowl LVI win at SoFi Stadium against the Cincinnati Bengals! LA has the recent pride of being 2020 NBA and MLB champions, and now adds the title of 2022 NFL champions. While these wins feel good in the moment and make us proud to be Angelenos, do big events like the Super Bowl really bring any lasting benefits to the local economy?
Economists are conflicted on the answer. Some say that this year’s Super Bowl created between 2,200 and 4,700 jobs and raised $12 to $22 million in tax revenues. Obviously bringing tourists and fans into the area brought much needed revenue to the pandemic-stricken hotel industry, but some argue that increased ticket revenues and hotel reservations have little impact on the wages of workers, who don’t capture the profits earned by corporate headquarters and shareholders.
The NFL claims that the event can result in 300 to 500 million dollars in new spending to the host city. As a historical example, Florida’s Super Bowl LIV brought $572 million in new spending to South Florida. Hotels and AirBnB’s raked in 368,011 visitor night stays, while restaurants, transportation companies, and others felt the stimulus created by the big event. Tax revenues spiked, and Mayor Carlos Giménez said the $14 million subsidy for the event was well worth the investment.
Skeptics say that the amount of “new spending” created by the Super Bowl is simply a substitute for normal economic activity that would have occurred otherwise. However, we know, as real estate professionals, that a win like yesterday is certain to inspire new real estate digs. It wouldn’t surprise us if MVP, Cooper Kupp, upgraded his modest Westlake Village home to one alongside Matthew Stafford’s 19.6M Hidden Hills estate.
LA is and always will be a city of champions. Top talent around the world want the exposure and dynamism that pumps through the veins of LA. These big wins can only improve LA’s position as the top place to live in the world. Buyers are on the hunt for a show-stopping piece of real estate.
While we have to sit back and watch to see the long term effects the event will have on the city’s economy, it definitely brought a massive amount of entertainment along with it. Some are calling this year’s epic Halftime Show the best show ever, featuring Dr. Dre, Snoop Dog, Eminem, Mary J Blige, and Kendrick Lamar. What did you think of that Halftime Show? Who had the best performance? Let me know in the comments below.