Thursday, January 13, 2011

Super Bowl XLV comes to DFW

As Super Bowl XLV draws near there are many questions as to how the DFW area will be affected by this huge event. Will the big game bring enough revenue in to cover what is being spent by the area to hold this big game?

"The cities maintain they will receive priceless exposure from the Super Bowl spotlight, and leaders are confident the outlay for security and services be repaid with increased tax revenues." Stated in the WFAA

No one is quite sure how much revenue will be brought in, but people shouldn't be worried. As we all know there is only one Super Bowl every year. The Super Bowl is a scarcity game. Everyone wants to be at the big game and people want to profit from it. As of today it cost a thousand to a hundred thousand to attend the game and that is even without the expense of travel and stay. Although the cost for someone to attend is extremely high, many people will take the opportunistic cost. To them it is worth the money to have the experience of going to Super Bowl XLV not only to see the game, but maybe to see the famous Dallas Cowboy stadium with one of the biggest jumbotrons in the world. No matter what the reasoning is, there is no question that money will come to the area. Not only will money come from the people buying tickets, but everything else around the area. Owners of restaurants, hotels, and even homeowners renting out their houses will see revenue from the big game.


  1. I am intrigued by the quote, “…leaders are confident the outlay for security and services be repaid with increased tax revenues”. What do you think this quote means? What taxes could this quote be talking about?

  2. Who are the big economic winners with the Super Bowl? Economically, how is this type of event being hosted in our city different than the decision by General Motors to build their auto factory in our city? Tax breaks were given by Arlington for the construction of the General Motors plant and for the construction of Cowboy's Stadium. Is one decision more beneficial to the community than the other? What are the pros and cons of giving tax dollars to entice companies to relocate to a community?

  3. To Smith
    I think this quote about increased tax revenues is referring to sales taxes that would be collected from consumers. For every dollar spent in Arlington, around 8.5 cents goes to the city. For every souvenir item purchased and meal consumed, the city profits. I could not find any information online about what the taxes are on cigarettes and alcohol purchased in Arlington, but I know they are higher than 8.5 cents. These items tend to be used heavily during recreational activities like partying with other super bowl fans. These fees will help cities in the metropolitan area make profits.

  4. To James
    I think giving tax dollars to both GM and the construction of Cowboy Stadium is a good idea, but they both have different benefits. Having GM in the area is good for the economy here because it brings in jobs. When people have jobs, they spend money which boosts our economy. These benefits may not be seen quickly, but are seen over a longer time span. The benefits seen from building the stadium are that it also brings in jobs which helps the area economically. It also brings in tourists who spend their money in our cities. People who come for the super bowl may enjoy our cities enough to return and spend more money here. It is good publicity for our cities.