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The Financial Impact of the Super Bowl

Andrew Richardson by Andrew Richardson
January 14, 2025
in Financial Consulting
0

PedroVazPaulo > Consulting > Financial Consulting > The Financial Impact of the Super Bowl

After a long and grueling regular season, followed by the drama of the playoffs, the Super Bowl is just around the corner. The biggest game of the 2024/25 NFL season is set to take place at the Caesars Superdome in Louisiana, New Orleans, on February 9.

The two best teams from each Conference will fight for the right to lift the Vince Lombardi trophy in a match that millions worldwide will watch. It’s a highly anticipated contest, and while it’s a grand occasion for those taking part, the Super Bowl is also a big deal for the host city.

Sporting Pinnacle

The Super Bowl is simply the biggest game in football. While the sport is played in other countries outside of America, the National Football League features the best teams and the most prominent players.

If a football player outside of the US displays exceptional talent, their target will always be to play in the NFL. There is no comparison in terms of other leagues around the world.

After a long regular season and the playoff series, the championship is decided by the Super Bowl. The two strongest teams participate, and millions will watch the contest live. Top brands will book advertising space for the match, while sportsbooks will have published Super Bowl odds months in advance, which is a big deal for associated industries.

In short, many areas are interested in the Super Bowl from an investment standpoint, but which have been the most successful?

Taking a Gamble

Not every host city cleans up on the Super Bowl. Having spent money on their bid to bring stadium facilities and other infrastructure up to standard, the local authorities have made a significant outlay.

To an extent, it’s a gamble, and some cities have experienced disappointing results in the game. Like all top investments, there is some risk involved, and a report suggests that the 2015 Super Bowl cost the city of Glendale, Arizona, up to $1.2 million.

While there is that risk, many cities have emerged as Super Bowl winners. When Arlington, Texas, hosted the big game in 2011, it was reported that some $612 million was generated for the city.

Figures relating to city-based revenue only go as far back as 1989, but most locations have turned a significant profit in the subsequent years. As a bare minimum, those who get the balance right should be looking at a minimum of $150 million in Super Bowl income.

Brand Awareness

The major brands looking to get involved in Super Bowl advertising must also consider the balance. For the big game 2024, the statistics show that it cost an average of $7 million to buy advertising space for a thirty-second TV commercial during the broadcast.

While there is that significant outlay, the advertiser will assess the number of people likely to watch the game. For that 2024 Super Bowl between the Kansas City Chiefs and the San Francisco 49ers, a new viewing record of 123 million people was set.

While it’s hard for any brand to judge the revenue earned from Super Bowl ads with 100% accuracy, it’s clear that some have been worth the investment. In 2020, Google’s ‘Loretta’ ad was the most talked about commercial from the game, and it was reported that it contributed to over 13% of brand conversation.

At such high costs, Super Bowl advertising is exclusively for brands with the highest budgets, such as Google, Amazon, and Uber. Those who benefit can consider that they’ve made a wise investment.

Individual Targets

For individual sports fans, investing can cover different areas of the game. There is, and always will be, a huge market for sports memorabilia, and many will look to stock up on souvenirs from the Super Bowl.

Match programs and used ticket stubs will be among regular items that might sell online for a few dollars. At the other end of the scale, memorabilia specific to Super Bowl players can fetch huge sums.

Players have sold their match-worn jerseys and even their Super Bowl rings to raise funds for different reasons. The current record for match-worn items is the $1.86 million raised for Joe Montana’s jersey from the 1989 Super Bowl.

While it is tough for individual traders to find items that will fetch high value, the thriving memorabilia industry means there are ways to invest productively in the Super Bowl.

Whether a city, a major brand, or an individual sports fan, the Super Bowl provides diverse ways to invest. Like all financial speculation, there are no guarantees, but the results can be highly lucrative for those who get it right.

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