NFL Economics: 2011

Sunday, May 15, 2011

Introduction

NFL teams have a tremendous effect on their local economies and they are the backbone of some cities economies. NFL teams generate hundreds of millions of dollars for local restaurants, businesses, and even their local government and for some towns if there wasn’t going to be an upcoming NFL season many businesses would suffer greatly. The NFL is currently in a lockout and unless something changes there won’t be a 2011-2012 NFL season. So bottom-line is that without a NFL season local economies would suffer greatly.
Teams affect on local economies

"Economic and Jobs Impact of Metrodome Next Multipurpose Facility." 23 Feb. 2009. Web. 11 May 2011.

NFL Logo. Digital image. The Sports Bank. Web. 15 May 2011. <http://www.thesportsbank.net/core/wp-content/uploads/2010/08/nfl-logo.gif>.

Packers Stimulate Local Ecomomy

Anduuzzi's sports bar near Lambeau Field

The city of Green Bay’s economy relies heavily on the shoulders of the Green Bay Packers organization. No NFL franchises can say that they are more tied to the local community than the Green Bay Packers organization because they are publically owned. The community relies heavily on the Packers organization to stimulate the local and to a smaller effect the state’s economy.

The Packers organization supplies the city of Green Bay and the surrounding communities with 2,560 jobs making the Packers one of the largest employers in the state of Wisconsin. Those 2,560 employees made a total of $124 million and that money is being spent in local stores, bars, and restaurants and bolstering the local economy. The community also receives $15.2 million in tax dollars to the city of Green Bay which helps with city projects and helps cover other expenses.
Packers

"Packers, Redeveloped Lambeau Field Annual Economic Impact Estimated at $282 Million." Www.Packers.com. Green Bay Packers, 29 Sept. 2010. Web. 10 May 2011. <• http://www.packers.com/news-and-events/article-1/Packers-Redeveloped-Lambeau-Field-Annual-Economic-Impact-Estimated-at-282-Million/4c6f9d73-b0ba-444c-a245-236438fcd439>.

Anduzzi's Sports Bar. Digital image. Brew City Review. Web. 15 May 2011. <http://brewcityreview.com/mke.bars/green.bay.bars/anduzzis.jpg>.

Lambeau Field Renovation Has Huge Economic Imapct

Newly added atrium provides hundreds of new jobs

According to a study by AECOM the Packers and Lambeau Field had an economic impact of $282 million dollar impact on the local community. That number is a sharp spike from the total in 2000 and inflation has a little bit to do with that but the main reason is the renovation to Lambeau Field that took place in 2003 and the added jobs and attractions that the renovation included. The study conducted by AECOM also produced statistics that can be taken into consideration when planning future events and improvements that can be held at the stadium in years to come.

The AECOM study concluded that with the renovations made t o Lambeau field an additional $106,555,000 million impact was created. Along with that $106,555,000 million impact an additional 940 jobs were created and $16,331,000 million in wages were given out and nearly a $5.6 million fiscal impact to the community.

Lambeau Renovations

Lambeau Field Atrium. Digital image. The Meglomanic Mommy. Web. 15 May 2011. <http://themegalomaniacmommy.com/wp-content/uploads/2010/07/800px-LambeauFieldAtriumInside.jpg>.

Packer Training Camp Has Significant Impact on Community

Packers training camp

Green Bay Packer home games aren’t the only thing that puts millions into the community. The Green Bay Packer training camp has an impact of $7,441,000 and generates 90 jobs and about $2.3 million in wages and off site visitors spend an estimated $5,146,000 million. In addition to the money that off site visitors generate the Packers training camp has an estimated fiscal impact of $517,000 thousand in state sales tax, stadium district tax, room tax and state income tax.

Packers training camp

"GREEN BAY BROWN/COUNTY PROFESSIONAL FOOTBALL STADIUM DISTRICT ECONOMIC IMPACT STUDY QUESTIONS AND SUMMARY FINDINGS." Green Bay Packers. Web. 15 May 2011. <http://www.packers.com/assets/docs/2010economic_impact_findings.pdf>.

Packers Training Camp. Digital image. ESPN. Web. 15 May 2011. <http://a.espncdn.com/photo/2008/0701/travel_packers_camp_800.jpg>.

Property Values Near Lambeau Field Skyrocket

Commercial property near Lambeau Field

Property owners near the newly developed Lambeau Field have the Packers to thank for the raising value of their commercial properties. Studies show that the average value per acre for commercial land is significantly higher closer to the stadium. The average value per acre for commercial land within one fourth of a mile is $325,000 thousand versus commercial property within one half a mile at 248,000. The actual market values of properties surrounding Lambeau are significantly higher than that of their assessed value. So the Packers are positively affecting a lot more than just employees and local businesses.
Property near Lambeau

Commercial Property Near Lambeau. Digital image. Web. 15 May 2011. <http://activerain.com/image_store/uploads/8/2/8/2/8/ar122333132982828.JPG>.

Local Businesses in Trouble if Lockout Continues

The current NFL lockout could have a huge affect on some NFL cities but few would be more affected than the city of Green Bay. “It’s an important company here in the city, it’s our identity, we use the Packers for marketing, but at the end of the day they need to work that out internally,” says Green Bay Mayor Jim Schmitt. If there were to be no season for the Green Bay Packers many local business would take a huge hit in business and no industry may take a bigger hit than the hotel industry and local bars.


Hilton Garden Inn

Local hotels and bars thrive on the Packers and depend on them for business. The local hotels depend on out of town visitors to come the weekend of Packer home games to generate business and without that they would most likely have to close. Marci Johnson, Sales Director for the Hilton Garden Inn Green Bay had this to say,” Not having those games will have a major impact on the hotels in this area,". Other business such as Packer apparel shops need traffic that game days generate, “"That's our business...that's when we bring in all our money that gets us through the off season is the football games," says store manager Heidi Tanner. So if the NFL lockout continues and there is no season a good amount of local businesses would be financially devastated.

Green Bay businesses

"Potential NFL Lockout Could Have Big Impact On Local Businesses." NBC 26. NBC News 26, 24 Nov. 2010. Web. 15 May 2011. <• http://www.nbc26.com/story/13560442/potential-nfl-lockout-could-have-big-impact-on-local-businesses?redirected=true>.

Hilton Garden Inn. Digital image. HiltonGardenInn.com. Web. 15 May 2011. <http://i1.bookcdn.com/data/Photos/LargePhoto2/13/1365/1365013/Hilton-Garden-Inn-Green-Bay-photos-Hotel.JPEG>.

Browns Generate $79 million for Greater Cleveland Area

Browns have a huge affect on local economy

NFL teams have a tremendous effect on their cities local economies and the city of Cleveland is no different. A survey that consists of 437 Cleveland Browns fans during the last three Browns home games revels that the Browns organization has a $70 million annual economic impact to the greater Cleveland area. The $79 million figure consists of spending for hotels, pre and post game activities, tickets, and concessions during eight home games. Carole F. Hoover the president and chief executive officer of the Greater Cleland Growth Association, says, “"This new figure reveals just how important the Cleveland Browns are to our local economy -- even more so than was originally estimated during the sin tax extension campaign,"

The survey mainly analyzes money that was spent by out of town fans that live outside the eight-county CMSA region of Ashtabula, Cuyahoga, Geauga, Lake, Lorain, Medina, Portage, and Summit counties. The survey says that ninety-seven percent of the out of town fans (38,150) are there to see the game and eight percent of those fans say they stop for food on their way to and from the games. Local Merchants also see a large amount of money at $8.3 million annually for pre and post game spending. For each home game about 15,500 hotel rooms are rented by non-local fans and at around $85 per room the hotel industry sees an impact of $21.8 million annually.

Browns impact on Cleveland economy

"CLEVELAND BROWNS HAVE A $79 MILLION ECONOMIC IMPACT ON LOCAL ECONOMY." The Free Library. Web. 11 May 2011. <http://www.thefreelibrary.com/CLEVELAND+BROWNS+HAVE+A+$79+MILLION+ECONOMIC+IMPACT+ON+LOCAL+ECONOMY-a017770705>.

Browns. Photograph. Allsportslogos.com. Web. 15 May 2011. <http://www.sportslogos.net/images/logos/7/155/full/2ioheczrkmc2ibc42c9r.gif>.

Looming NFL Lockout Could Devastate Greater Cleveland Area

Greater Cleveland area

With the future of the 2011-12 Cleveland Brown season hanging by a thread the Greater Cleveland Area is nervously awaiting the news of if there will be a Brown’s season next year. President and CEO of the Greater Cleveland Sports Commission David Gilbert had this to say,” Browns weekends are very good weekends downtown, there’s no doubt about it, but the economic impact from sports teams and sporting events is driven by out-of-town visitors, people who come in from out of market and spend their money in market. The vast majority of fans at games are locals. So, from that standpoint, I’d say [a lockout] hurts, but is not devastating.” Most local business managers and owners don’t agree with Gilbert.

The general manager of the doubletree by Hilton Leonard Clifton predicts a $250,000 loss and another $100,000 loss for food and beverage sales if the Browns weren’t to play their upcoming season. The Owner of Karl’s Inn of the Barristers had this to say about the possibility of there not being a season, “We’ll be dead without the Browns”. So there is more to the NFL lockout than just games not being played, and the reality of that could hit the greater Cleveland area hard.

Impact on community

Greater Cleveland Area. Photograph. Clevland. All Clean. Web. 15 May 2011. <http://www.allcleanltd.com/>.

The Saints Have an Economic Impact of $600 Million

Saints Organization pumps over $600 million into local economy

In 2002 Economist Timothy Ryan conducted a study of the economic impact that the New Orleans Saints had on the New Orleans economy and Ryan found that in 2007 the Saints organization puts more than $600 million into the city of New Orleans. The study found that the Saints organization generated $27.8 million alone in state and local parish taxes and that figure increases each year by two million. In the past 25 years the Saints have generated an estimated $172 million but those figures are just a small portion of what they mean economically to the city of New Orleans.

The study suggests that over a course of 25 years (2002-2026) if you take into account inflation, the Saints are expected to generate $12.02 billion in direct spending in local businesses and restaurants. Ryan also expects the Saints to have a total economic impact of $26.4 billion and $1.23 billion in state tax revenues in the same 25 year time period. All of this money that is generated by the Saints for local businesses it would be tough for business owners to stay open if the Saints weren’t to play an upcoming season.
Saints affect local economy

Miller, Doug. "Saints Powere Local Economy." Saints. New Orleans Saints, 14 Feb. 2008. Web. 12 May 2011. <• http://www.neworleanssaints.com/news-and-events/article-1/Saints-Power-Local-Economies/61C1F51B-B628-44F1-8318-DB1C69564212>.

Saints. 2011. Photograph. New Orleans Saints Logo. Web. 15 May 2011. <http://kids-accessories-by- kidcessory-haven.blogspot.com/2010/01/new-orleans-saints-logo.html>.

Conclusion

The fact of the matter is that if there were to be no upcoming NFL season areas such as New Orleans, Minneapolis, The Greater Cleveland Area, and Green Bay would suffer greatly economically. The hotel industry would feel the greatest impact out of all others simply because there won’t be thousands of people coming up every weekend to see their favorite team play. Of the three teams that I wrote about and their economic effect on their local cities the Green Bay Packers generated the least amount of revenue but the city of Green Bay would feel the most negative effect. So in closing if there were to be an NFL lockout almost every cities local economy would be devastated.

Lockout has big affect on economy

"Economy Could Take Hit With NFL Lockout « CBS Chicago." CBS Chicago - Chicago News, Sports, Weather, Traffic, and the Best of Chicago – CBS 2 TV | WBBM Newsradio 780 | 670 The Score. 9 Mar. 2011. Web. 15 May 2011. <http://chicago.cbslocal.com/2011/03/09/economy-could-take-hit-with-nfl-lockout/>.

Conclusion NFL Lockout. 2011. Photograph. Broncotalk. Web. 15 May 2011. <Broncotalk.net>.