Super Bowl drives economic boon in the US ahead of game

The Super Bowl, the biggest event in American football, is set for Sunday with the Seattle Seahawks facing the New England Patriots at Levi’s Stadium in Santa Clara, California.

The massive sporting event is set to energise fans in both cities and will send thousands this year to the San Francisco Bay Area. Those unable to make the trip are still expected to spend heavily on food, drinks and watch parties across the United States.

Historically, the Super Bowl has been a major economic boon for host cities. For the Bay Area, the event is part of a stretch of three major sporting spectacles lifting the regional economy.

A local boost?

In 2024, the Bay Area Host Committee commissioned a report forecasting the economic impact of the 2025 NBA All-Star Game, the 2026 Super Bowl, and the FIFA World Cup, all taking place in the region. The report estimated that Sunday’s game alone would generate between $370m and $630m in economic output for the Bay Area.

Last year’s Super Bowl was hosted in New Orleans, Louisiana. State officials reported the event brought in 115,000 visitors who spent $658m in the city.

For consumers, Bank of America estimates a 77 percent jump in spending near the stadium. A study analysing spending patterns from Super Bowl games between 2017 and 2025 found that, on game day, spending surged in the postal code closest to the stadium, with the biggest surge in food and parking costs.

Hosting the game does come with its own expenses for cities.

In the case of Santa Clara, it is small compared with the forecasted output. Last year, it was projected the city would cost them $6.3m, which includes training personnel for the influx of visitors and other logistical needs. However, other games have cost municipalities much more. When Atlanta hosted the Super Bowl in 2019, it cost the city an estimated $46m.

In 2023, the day after the game, which was played in Glendale, Arizona, outside of Phoenix, was the single busiest at Phoenix Sky Harbor international airport in its history, with more than 200,000 passengers passing through the airport, which is a hub for American Airlines and where budget carriers Southwest Airlines and Frontier maintain a large presence.

Other cities have used major sporting events to kick off large-scale infrastructure projects. In 2004 – ahead of the Super Bowl in Houston, Texas – METRO, the city’s transit authority, launched its first light rail line just a month before the game. The line, now one of three in the system, runs from downtown Houston to the city’s football stadium.

Prior to its launch, Houston was the only major metropolitan city in the US without a rail system.

But not all infrastructure projects paid off. Las Vegas built Allegiant Stadium in the neighbouring suburb of Paradise when the city acquired the Raiders football team from Oakland during the 2020 season. A year later, in 2021, Las Vegas won the bid to host the 2024 Super Bowl. The stadium cost $1.9bn. Nearly $750m came from hotel taxes, but the rest was shouldered by local taxpayers.

“The economic benefits are relatively short-term, not just in duration, but also in scope. They’re limited to certain industries and specific locations,” Michael Edwards, a professor of sport management at North Carolina State University, told Al Jazeera.

“The NFL [National Football League] often uses the Super Bowl as a carrot to encourage cities to invest taxpayer money in new stadiums. You’re seeing that dynamic play out in places like Chicago and Cleveland, where officials are considering domed stadiums. Part of that push is almost certainly driven by the possibility of hosting a Super Bowl, which the league dangles as an incentive,” Edwards said.

Food spending

For those who can’t make it to the game itself, there is still a surge in Americans heading to bars and restaurants to watch the game or spending money throwing a watch party.

The National Retail Federation, which has been tracking Super Bowl spending for the last decade, expects that Americans will spend a record $20.2bn, or $94.77 per person, on the big game with 79 percent of that on food.

Spending has skyrocketed since 2021 when consumers spent $13.9bn, or $74.55 per person. However, that dropped from $17.2bn in 2020 when the Super Bowl happened about a month before the COVID-19 lockdowns in the US began.

For those hosting a Super Bowl watch party at home, it will cost more than last year to stock up on the quintessential game-day foods. Wells Fargo estimates that hosting 10 people will cost about $140 per person, up from $138 last year.

Chicken wings, a staple for football fans, are a bright spot for wallets; prices are down 2.8 percent compared with this time last year. Potato chip prices are flat, but dips like salsa have jumped 1.7 percent.

Healthier options are getting more expensive as well for those opting for a veggie platter. Cherry tomatoes are up 2 percent, celery has risen 2.6 percent, and both broccoli and cauliflower are up 4 percent. Beer prices are also climbing, up 1.3 percent from a year ago.

Advertising hits records

The Super Bowl is airing on NBC with the network getting a boost in advertising spending for the big game. NBC sold out of advertising spots for the Super Bowl in September for a record $10m on average for a 30-second spot – up from $8m on average last year when the games aired on Fox.

NBC also benefits from a collection of sporting events all taking part in February that drive up advertising revenue, including from the Winter Olympics. The opening ceremony is on Friday and will run until February 22. NBC has exclusive broadcasting rights for the Olympics in the US.

“With the resurgence of the Olympic movement, our strongest Sports Upfront in history, the early sell-out of Super Bowl LX, and the remarkable return of the NBA, NBCUniversal has solidified itself as a sports powerhouse, and brands have taken notice,” Mark Marshall, chairman of NBCUniversal’s global advertising and partnerships, said in a release.

The last time the games were in the same year, back in 2024, the two events were the most-watched events on linear television.

On Wall Street, the looming sporting events set to air on NBC have sent parent company Comcast’s stock surging up more than 4 percent over the past five days.

Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: aljazeera.com