Super Bowls Affect on the Economy: May 2012

Thursday, May 10, 2012

Economy Affecting Super Bowl

Many bets are made for the Super Bowl, most end up losing a lot of money but some come away with a large profit. Nearly 80% of winners say that they had lost a large amount of money on a bet before winning any. Either way wether the economy is up or down it wont affect the amounts of bets made for this game. Also the economy isnt going to affect the amount of food, drinks, and other necessities needed for a good time the weekend of the Super Bowl. People treat it like a Holiday and it does only come once a year so people will spend money wether they are financially stable or not.

Work Cited:

O'Donnel, Dan. "TODAY'S TMJ4." Economy Doesn't Affect Super Bowl Betting -. TMJ, 4 Feb. 2011. Web. 10 May 2012. http://www.todaystmj4.com/news/local/45358392.html.

Food Profits

Super Bowl weekend consists of a lot of food, drinks, and parties. For all these people need to go out and buy supplies wether it be sandwhiches, chips, beer, cups, plates etc. People will want and need these things to accomodate their weekend plans. That means nationally there is going to be a big increase in demand for these products. Dominos Pizza will deliver 9 million pieces of pizza, 11.2 million pounds of chips will be consumed, 8 millions lbs of quacamole will be made, and 51.7 million cases of beer will be sold all on game day. This means huge profits for all food products during the time of the Super Bowl.

Work cited:

"Fun Facts about Super Bowl Sunday({function::countEm} Images)." FOX Sports. Fox, 12 Mar. 2011. Web. 10 May 2012. http://msn.foxsports.com/nfl/gallery/msn-super-bowl-sunday-fun-facts-trivia-020112.

http://www.business-opportunities.biz/2012/02/02/super-bowl-sunday-its-about-the-food/

Small Scale

Which ever city the Super Bowl is being hosted will most likely boost its economy. The affect of bringing in hundreds of thousands of fans for this game and having them all spend money locally will definitely boost the economy in that region at least for a little while. These fans coming in are going to have to buy a plane ticket or some sort of transportation to and from the stadium which will bring in lots of customers for at least the weekend. All fans are going to want to eat/drink; whether it be a nice 5 star restaurant or fast food drive through they are going to have to eat and drink sometime which will bring in big business for local restaurants. Many will be packed full the night before and the night of the big game. Local Hotels are always booked as soon as the Super Bowl city destination is announced, some even waiting until the week of to offer hotel rooms and then jacking up the price from $100 or less to well over $500 per night. The small scale boom for the local economy is huge and many profit off of it for awhile.

Work Cited:

Simon, Matt. "Indianapolis Colts." Bleacher Report. Bleacher Report, 26 Jan. 2012. Web. 10 May 2012. http://bleacherreport.com/articles/1039803-americas-super-bowl-footprint-stats-info-and-thoughts-on-our-national-holiday.

http://www.khaama.com/economic-growth-and-consumption

NFL Profit

The NFL generates millions of dollars every year from regular season games and the big games like playoffs and especially the Super Bowl. Depending on which teams make it to the Super Bowl the profit for that year can be anywhere between 11.5 billion dollars to 14.7 billion dollars. That's including tickets, merchandise/apparel, advertisement on TVs and radio broadcasting. Nearly all profit is shared equally amongst the teams and licensing deals. This pays for the players outrageous income/contracts, gear, facilities, etc. The NFL is one of the most profitbale organizations and will continue to remain at the top for years to come.

Works Cited:

Zegers, Charlie. "Revenue Sharing and North America's Major Pro Sports Leagues." About.com Basketball. About.com. Web. 10 May 2012. http://basketball.about.com/od/nba-vs-nbapa/ss/Revenue-Sharing-And-North-Americas-Major-Pro-Sports-Leagues_2.htm.

http://basketball.about.com/od/nba-vs-nbapa/ss/Revenue-Sharing-And-North-Americas-Major-Pro-Sports-Leagues_2.htm.

http://www.mediabistro.com/tvnewser/nfl-network-carriage-nctc_b86078

Sponsors/Advertisement

Advertisement for the Super Bowl has and always will be a huge part of its tradition. Many people that aren't all that crazy for the actual game its self watch it just for the clever and funny commercials that come with it. In many cases there is just as much hype for the advertisements as there is for the game. The income and expense for these advertisements is staggering; with the average cost of a 30 second Super Bowl advertisement costing $3.5 million and from 2002 to 2011 there has been $1.72 Billion worth of advertisement sales with Anheuser-Busch spending the most at $239.1 million spent and PepsiCo comes in second with $174.0 million. That means a lot of time, effort, and skill go into each of these ads creating many jobs for workers in this field.

"A Decade of Super Bowl Ad Stats: Ad Spend Reaches $1.72 Billion." - MediaBuyerPlanner. Watershed Publishing, 20 Jan. 2012. Web. 10 May 2012. http://www.mediabuyerplanner.com/entry/109678/a-decade-of-super-bowl-ad-stats/.

Kia Advertisment. 2011. Photograph.

http://www.mediabuyerplanner.com/entry/109678/a-decade-of-super-bowl-ad-stats/

Apparel/Merchandise

NFL apparel and merchandise are always a big thing during the football season and brings in millions of dollars for the organization but during the Super Bowl there profit increases dramatically. Because they are down to only 2 final teams many people feel the need to go out and buy some sort of apparel or merchandise to support the team they will be cheering for and for those who's favorite team or teams are actually playing in the game they must go out and add to there collection of merchandise. Once the game is over and the championship team has been decided demand for that specific team goes up again for all those who want to show off their team with pride. The NFL makes on average about 3.2 million dollars in merchandise consisting of jerseys, hats, coozies, and much more. Whatever you are looking for i'm sure there is a product that will have your NFL team logo on it. They have an increase in sales between 10% - 25% at times leading up to and after the big event.

Dooley, Tara. "How Does the NFL Make So Much Money?" EHow. Demand Media, 04 Feb. 2009. Web. 10 May 2012. <http://www.ehow.com/how-does_4759275_nfl-much-money.html>.

Wordpress. NFL Jerseys. Photograph

http://www.ehow.com/how-does_4759275_nfl-much-money.html

Bad for Economy?

You would think having people spend millions of dollars for the Super Bowl would help the economy and especially help that local region/city that it is hosted in; but that's not always what happens. Big sporting events like the Super Bowl are suppose to increase spending and the increase of spending should in theory boost the economy but at the same time most of that spending is just going to the big companies. Nearly 40 % of Americas wealth is in only 2% of the population so these big companies hosting, sponsoring, and putting ads for the super bowl are increasing their profit immensely while the others aren't. This only increases the wealth gap and can lead to a recession. The overall impact probably isn't huge but in times like our economy has been we need every bit we can. Also ever since the first Super Bowl in 1967 depending on which league (NFC) or (AFC) wins the Super Bowl there is a good chance it will let you know how the outcome of what our economy will be like the following year. Its called the Super Bowl Theory and it has been right about 80% of the time. When an original NFC team (pre-1970) such as the Colts, Steelers, etc. win the Super Bowl the next years economy will most likely be a bullish year and when an AFC team wins the following year is most likely to be a bearish year for the economy.

Alder, James. "Super Bull or Bear?" About.com Football. New York Times, 15 Feb. 2011. Web. 09 May 2012. <http://football.about.com/od/histo2/a/SBtheory.htm>.

\Bull vs. Bear. Photograph. New York.

http://football.about.com/od/histo2/a/SBtheory.htm

Wednesday, May 9, 2012

Monday after Super Bowl a Holiday?

The Monday after the Sunday Night Super Bowl is considered a Holiday by most. After their big party the night before consisting of football, food, alcohol and various other things; nearly 17% or 2 out of every 10 call in "sick" or have planned ahead and used Monday as a vacation day. That's an estimated 6 million people not working the following Monday after the Super Bowl. Also 22% of the employees that do attend work note that it is a less productive day then most due to people talking about the game, thinking about the previous night/game, and or being hungover. With all this discussion and slower work environment you would think companies are losing money right? For every employee, companies will lose $3.16 for every 10 minutes spent on discussions about it and people spacing off thinking about it. So with all these people skipping out on work and others not focusing while at work it means big losses for both the companies and the employees. And we all know that with the loss of money, means less spending which in the big picture affects and hurts the economy in one way or another.

Works Cited

Schepp, David. "After Super Bowl Sunday, Lost-Productivity Monday?" AOL Jobs. AOL, 06 Feb. 2012. Web. 09 May 2012. <http://jobs.aol.com/articles/2012/02/06/game-day-hangover-how-the-super-bowl-saps-worker-productivity/>.

"Should Monday After The Super Bowl Be A National Holiday?" Glassdoor. Glassdoor Team, 3 Feb. 2012. Web. 9 May 2012. <http://www.glassdoor.com/blog/monday-super-bowl-national-holiday/>.

Holiday Super Bowl Calendar. 2004. Photograph.

http://www.glassdoor.com/blog/monday-super-bowl-national-holiday/

http://jobs.aol.com/articles/2012/02/06/game-day-hangover-how-the-super-bowl-saps-worker-productivity/

Beginning of the Super Bowl

The Super Bowl has been around for many years, the first one taking place on January 16, 1967. It was a way of seeing which league had the better team and who really was the champion. The best team from the National Football League (NFL) and the American Football League (AFL) faced off in a game that would soon become one of Americas most popular and watched event ever. This championship was not originally named the Super Bowl, it first started as the NFL-AFL World Championship Game until Lamar Hunt, architect of the AFL, saw his daughter playing with a toy called "Super Ball" and from there he thought why not call this championship game the Super Bowl.

http://www.theatlantic.com/entertainment/archive/2011/01/how-the-super-bowl-got-its-name-the-real-story/70287/

http://static.ddmcdn.com/gif/super-bowl-one.jpg