By Barry Janoff
February 1, 2016: When the NFL in May 2013 awarded Super Bowl 50 to Levi's Stadium, it set in motion a series of financial, political, cultural and logistic events so that the San Francisco Bay Area could prepare for the Big Game.
Now that the week of Super Bowl 50 has arrived, the region is set to reap the rewards, and in a golden way to support the game's golden anniversary.
Thanks to the Super Bowl, direct spending by the NFL, businesses, visitors and media in the area on such specifics as lodging, transportation, food and beverage, entertainment, business services and other hospitality and tourism activities is expected to total more than $220 million.
That would be a new record for Super Bowl-related spending, according global financial, investment and consulting firm PriceWaterhouseCooper, NY.
The $220 million tops the estimated $210 million spent in the New York area related directly to Super Bowl XLVIII in 2014, when the game was played in MetLife Stadium; and the estimated $205 million spend surround Super Bowl XLIX, played in University of Phoenix Stadium in Glendale, Az., which had been the second-largest spend.
PriceWaterhouseCooper said its spending stats date back to 2003, when Super Bowl XXXVII was played in San Diego.
Based on inflation-adjusted figures, however, the projected Super Bowl 50 spend would be the second largest total behind Super Bowl XLI in South Florida i(2007), played in Sun Life Stadium, when the unadjusted spend was put at $198 million by PriceWaterhouseCooper.
The company said that in addition to the historical aspect, there were several other factors in play to drive visitor spending to a record level.
"Super Bowl City (opened) earlier than in years past to coincide with the NFL Experience, and Media Day will be held a day earlier (Monday evening, renamed as "Super Bowl Opening Night," rather than Tuesday), all of which will expand the average length of stay and overall impact," Adam Jones, director-Sports and Tourism Sector, for PwC US, said in a statement.
Super Bowl City, a free-to-the-public fan village that celebrates the NFL’s milestone game and highlights the unique culture of the Bay Area under the auspices of the Super Bowl 50 Host Committee, opened Jan. 30 and will run through the afternoon of game day on Feb. 7.
More than one million people are expected to visit Super Bowl City Presented by Verizon and the NFL Experience Driven by Hyundai, located in the Moscone Convention Center, during the course of the week and two weekends.
"In addition to the Bay Area's core destination offerings, hubs of Super Bowl programming located throughout the Bay Area will provide visitors with a bevy of activities to participate in throughout the week leading up to the game," said Jones.
According to PriceWaterhouseCooper, the lowest non-inflation adjusted visitor totals related to the Big Game was the $115 million spend during Super Bowl XL (2006) in Detroit's Ford Field; and the estimated $125 million spend during Super Bowl XXXIX (2005) in Jacksonville's (Fla.) Alltel Stadium.
The Top Five non-inflation adjusted visitor totals also include the $200 million spend during Super Bowl XLV (2011) in Cowboys (now AT&T) Stadium in Dallas; and a virtual tie at just under $200 million between Super Bowl XLVI (2007) in Sun Life Stadium and Super Bowl XLVII (2008) in the University of Phoenix Stadium.
Super Bowl LI next February will be played in Houston's NRG Stadium, Super Bowl LII in U.S. Bank Stadium in Minneapolis.
PriceWaterhouseCooper said that its estimates are based on a "proprietary analysis that considers characteristics unique to this year's event such as the participating teams, attributes of the Bay Area, national economic conditions, and scheduled corporate and other ancillary activities."
Excluded from the analysis is the so-called "multiplier effect," which 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, according to PriceWaterhouseCooper.
"The Bay Area, like New York/New Jersey which hosted Super Bowl XLVIII in 2014, is home to a high concentration of businesses that activate events and activities around the Super Bowl.," said Jones. "With the game in the Bay Area, the local economy will retain dollars that would otherwise be exported to other cities, resulting in what is projected to be the event's highest direct-spend level, on a nominal basis."
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