Explain how a sports event – MLB World Series, FIFA World Cup, local college volleyball tournament, etc – has a direct economic impact on the city that hosts the event. Provide a specific example (include date and location) of one such event that you have either been to or followed closely. What type of impact did the event have?
Direct Economic Impact of sporting events
Because marketing decisions are based upon industry standards, norms, and trends (Kaser and Oelkers, 2008) that the company must keep up with to please the consumers, sports events have been a hit to everyone nowadays, without regards to one’s state in life. It is somehow considered to be the most generalized interest among men as it chooses no gender or status. People watch sports for entertainment and lax but little did they know they are also contributing a radical help to their country’s economy. Sports is not only a form of amusement but it is also a form of national economic diversion that keeps that keeps not only the pulse rates of the die-hard fans alive and beating, but also the country’s economic pulse rate itself.
Here are the three (3) cherries on top of the legendary sports events that have caused a great uplift to the economy of the country that hosted it:
- Rugby World Cup (2015) – With 466,000 visits all throughout the tournament, the 2015 Rugby World Cup has earned a total of £85 million that provided lasting benefits to the United Kingdom.
- British Open Golf Championships (2014) – In the case of host region Liverpool and the Wirral, the 2014 Open Golf Championships contributed up to £75 million worth of help to its homeland.
- European Soccer Championship (2004) – One of the biggest sports event that collected a lot of funds was the 2004 European Soccer Championship standing third on the list with a fund worth $732 million all in all.
There are a lot of other sporting events that gained a good number of pounds but a famous football event that takes place every year in different places with regards to the teams that are about to play has the attention of many. This football event is called the “Super Bowl”, and during the year 2013, Super Bowl XLVII produced a total of $480 million net impact for the New Orleans. During this season, the Baltimore Ravens won over the San Francisco 49ers causing the Ravens to earn almost $172 000 each. The Super Bowl XLVII was an undeniable boon to the country – its small pebble thrown on the river had finally created a strong ripple.
The Super Bowl XLVII comprised 5,672 full- and part-time jobs for the unemployed in the New Orleans that created over $154.0 million. The event had also generated nearly $21.0 million of state tax revenue, including sales, hotel, gambling, and income tax. Included in the tax is $13.1 million in direct state taxes from entering the country. The money earned in visiting produced another set of funds worth $7.9 million from media and other contributors.
During a sports event, the teams are not the only ones with responsibility to the economic condition of the nation, but also the locality (Noll and Zimbalist, 1997). Large adjustments may be required through the way but these are only there to set the proper objectives (Andreff and Szymanski, 2006).