Football fans, eager to move past the paltry pandemic Super Bowl last winter, are expected to spend millions of dollars when the big game rolls into town in February, a phenomenon one Southland official calls “revenge spending.”
Amid lingering COVID-19 restrictions and with the delta variant still in play, it’s tough to accurately predict a winning turnout for Super Bowl LVI.
One study predicts Los Angeles County stands to gain as much as $477.5 million in economic benefits, according to Micronomics Economic Research and Consulting. Local coffers could see as much as $22 million in tax revenue from the Feb. 13 game at Inglewood’s SoFi Stadium.
The firm based its estimates on potential visitor turnout to the region, average hotel rates and daytime spending per person, per day. It also estimates thousands of visitors who will converge on the region’s hotels and restaurants could generate 2,200 to 4,700 annual jobs.
Micronomics acknowledged some of the added tax revenue will be offset by increased costs for city services, logistics, transportation, community engagement and other obligations.
LA County’s hotel industry also stands to gain. The report predicts 150,000 to 225,000 total room nights will be booked for the Super Bowl, which is LA’s eighth, the last being in 1993 at the Rose Bowl.
“The short- and long-term benefits of previous Super Bowls are well-documented,” the study said. “These include lasting recognition that comes with unparalleled exposure, community service events leading up to and during Super Bowl week and a significant boost to the regional economy.”
A wait-and-see approach
Inglewood Mayor James Butts is optimistic but guarded regarding the predictions.
“This is an economic study and projection,” he said. “Cities do the same thing every year. The revenues and expenses always turn out to be somewhat different in reality and normally fall short of expectations.”
Butts, who freely describes SoFi as “the most magnificent stadium in the world,” acknowledged the economic activity surrounding the Super Bowl will be big. Still, he’s taking a wait-and-see approach.
“This will definitely be positive for the county and region, although who gets what in terms of jobs and sales tax revenues will have to be sorted out,” he said. “It should be spread pretty evenly … but we believe the proof is in the pudding.”
The report predicts Inglewood will see a positive economic impact of $23 million to $52 million, with $900,000 to $1.8 million in added tax revenue and an annual employment gain of 350 to 800 jobs.
Super Bowl LVI is expected to draw 100,000 to 150,000 out-of-town visitors to the region, and those who stay in hotels, Airbnb units and other lodging will spend $318.24 to $348.75 per night with average stays being four days and three nights, the analysis said.
Of that number, an estimated 9,000 to 10,000 visitors are expected to stay in Inglewood, spending an average of $190 a day.
COVID-19 impacts
Kathryn Schloessman, president of the Los Angeles Super Bowl Host Committee, figures the region will see a massive turnout, in part because of this year’s dismal showing at Super Bowl LV in Tampa, which was heavily muted because of pandemic restrictions and mandates.
“About a month and a half before the game, everyone was nervous about being out in public,” she said. “Businesses started shutting down and big sponsors started pulling out. Basically, all of the events that were supposed to happen before the Super Bowl didn’t happen.”
Schloessman said all of the momentum that was supposed to happen in Tampa has shifted to L.A.
“We call it revenge spending,” she said. “The Super Bowl hasn’t been to L.A. in a long time and we have this brand new stadium. The sponsors have said, ‘We’re rolling our money to Los Angeles.’”
Still, the report notes that some fans may be hesitant to travel because of the lingering effects of the COVID-19 pandemic. That, combined with city, state and county guidelines and mandates, could impact the projections, the report said.
Micronomics also examined the benefits of media exposure, as well as the philanthropic and community service impacts.
The event’s global stage will prompt thousands of viewers to book future vacations to the region, the report found, and communities will benefit from Super Bowl-related support from the NFL and its regional partners — impacts that have already begun to take shape in recent months.
