Super Bowl LIX: The $500 Million Game

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Welcome to the Sports Economist, the podcast where we dive deep into sports economics. I'm your host, Dr. Shirin Mollah, and we're diving deep into a fascinating concept of mega events, specifically Super Bowl economics. Today, we're talking about Super Bowl LIX, which took place on February 9th, 2025 at the Caesars Superdome in New Orleans. The Super Bowl is far more than just a football game. It's an economic juggernaut.

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generating billions in revenue, attracting millions of viewers, and creating a financial ripple effect across industries from advertising to sports betting. Today we'll break down the impact of Super Bowl LIX on a host city, the revenue streams that make the NFL and its partners billions, the booming sports betting industry surrounding the game, the way fans drive the economy through ticket sales, merchandise, and travel, and finally what's next for the Super Bowl economy.

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Let's dive in. New Orleans is no stranger to hosting the Super Bowl. This will be their 11th time tying with Miami for the most Super Bowls ever hosted by a single city. It's a city built for big events with a world famous party scene, top tier hotels, and a stadium right in the heart of downtown. But here's a question. Does hosting the Super Bowl actually boost a city's economy? The NFL estimates the hosting

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A Super Bowl generates $300 to $500 million for the local economy. Economists suggest that the actual impact is much lower, closer to $100 to $150 million once hidden costs are factored in. The reality is nuanced. For example, there's something called the displacement effect, where regular tourists avoid the city due to the rising hotel prices and congestion. There's also the leakage effect, where much of the money spent on hotels, food, and entertainment ends up

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benefiting national chains rather than local businesses. And don't forget the infrastructure costs with the city spending millions on security, public services and transportation improvements with no share of profits. While local businesses like bars, restaurants and hotels may see a short-term boost, the long-term benefits are less clear. The real winners of Super Bowl LIX are the NFL, TV networks and advertisers. Let's break it down. First up, media rights.

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Fox had broadcasted the Super Bowl this year as part of the NFL's $110 billion deal for media rights through 2033. With streaming services on the rise, networks are now monetizing not just traditional TV but also online viewership. Then there's advertising. A 30-second Super Bowl ad cost a staggering $7 million this year, which translates to about $233,000 per second.

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Companies like Budweiser, Apple, and Verizon are all paying top dollar for airtime, and they're spending millions more on production and celebrity endorsements to ensure their ads make an impact. The NFL also cashes in on sponsorships. Brands like Pepsi, Visa, and Gatorade sign multimillion dollar deals to become official Super Bowl sponsors, gaining exclusive exposure during the event. Ticket prices for the Super Bowl LIX range from about $47.50

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to over $20,000 on resale markets, but it's just not about the tickets. The VIP suites, luxury experiences, and corporate hospitality packages bring in massive profits for the league. So while the host city may see economic gains, it's clear that the NFL and its media and corporate partners are the big winners financially. One of the biggest changes in the Super Bowl's economic landscape is a rise of legal sports betting. In 2024,

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A record $16 billion was wagered on Super Bowl bets, and this year's numbers were expected to be even higher. The legalization of sports betting in 38 states has allowed the NFL to profit from a whole new stream of revenue, including official partnerships with sportsbooks like DraftKings, FanDuel, and BetMGM. The impact of prop bets is also enormous. As fans don't just bet on final score,

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They're placing wagers on everything from the coin toss to how long the national anthem will last. Gambling has become a central part of the fan experience, and it's a major revenue driver for the NFL. So let's not forget about the fans. The Super Bowl economy is powered by the fans who spend billions of dollars each year on a variety of items. Super Bowl parties are a big business, with Americans expected to spend an estimated $15 billion on food, drinks, and party supplies to enjoy the game at home or in local venues.

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On top of that, merchandise sales add hundreds of millions of dollars to that total economic impact. Fans traveling to New Orleans from the game are expected to spend more than $3,000 per person on tickets, lodging, and entertainment, with hotels in the area charging very high prices during the Super Bowl weekend. Looking ahead, the Super Bowl economy is evolving, and there are several exciting developments on the horizon. First, streaming will dominate as younger viewers move away from traditional cable

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Streaming platforms like YouTube TV and Amazon Prime are becoming more integral in media rights deals. The sports betting industry will continue to grow, with even more states legalizing sports betting, allowing the NFL to further capitalize on this booming market. Additionally, the NFL may eventually experiment with international Super Bowls as the league continues to expand its presence in London, Mexico, and Germany, and a global Super Bowl could be on the horizon.

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Super Bowl LIX isn't just a game. It's a multi-billion dollar business. While the host city, New Orleans, may not see the long-term benefits that the NFL and major corporate sponsors receive, the event remains a massive economic driver in terms of media rights, advertising, sports betting, fan spending, and more. As NFL continues to grow, both domestically and internationally, the economic landscape of the Super Bowl will continue to evolve.

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bringing in new opportunities for revenue generation. Until next time teammates, I'm Dr. Shirin Mollah and this is a sports economist. If you enjoyed today's discussion, be sure to subscribe and leave us a review. And don't forget to follow us on social media for more insights into the fascinating world of sports economics. Thanks for tuning in and we'll see you next time.