The Super Bowl is a huge event in sports encompassing the United States annually. Not only did the Packers win the Super Bowl in 2010, but Sponsor Papa Johns did as well. Papa Johns expected to deliver 1 million pizzas to viewers all over the country. 110 million viewers watch the game on TV which means the Dallas Metropolex will rake in $611 million; and the NFL got a $720 million check from Fox for this season’s broadcast rights. PricewaterhouseCoopers estimates that visitors to Dallas spent 202 million dollars on everything from hot dogs to hotel rooms. If the accounting firm is right, Super Bowl XLV would beat last year’s record of $197 million. Besides from the overly expensive cost for seats at the Cowboy Stadium, hotel rooms, and parties hosted by celebrities, most fans will choose to enjoy the game from their homes. Add up the 7.5 million parties hosted by the TV audience, including dipping chips into nearly 70 million pounds of guacamole washed down by approximately 50 million cases of beer, the supply and demand needed for the Super Bowl may just be what the economy needs to end the recession. Every year the Super Bowl will continue to spend an immense amount of money, helping the economy tremendously. The products purchased for the superbowl is a result in shift in demand because so many people are interested in buying party beverages and snacks at the same time. As the quantity of supply increases the price decreases, so more people purchase items needed for the superbowl.
Even though this did bring a lot of money to the Metroplex, I wonder how this could have increased if we had not had the bad weather conditions the week before the big game. Obviously the ice hindered people traveling or arriving as early as they had planned. However I do think this event did help the local economy be adding money to the circular flow that may not usually be spent here. Even with the ice the economy of the DFW area benefited a lot from this event.
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ReplyDeleteVery interesting article! I did not know how many different things (food, objects, ect...) were used in result of the superbowl. This one event, watched by hundreds of millions of people around the world. I can't imagine what the effect would be on the economy if the NFL does go on lockout next year. Think of all the other billions of dollars spent on the regular NFL season. It still surprises me that this one event, the superbowl, has such a great effect on the beer, pizza, and hundreds of other business'. In conclusion, I have no questions. Great job writing this article and I look forward to reading more.
ReplyDeleteThe weather in Dallas definitely affected the demand of the tickets. For many people, the dangerous weather decreased their desire to attend the Superbowl, lowering the demand of tickets. It is possible that if the prices were lowered the demand would have increased. There is only so many seats in the Cowboy Stadium so the supply would not have varied. Because of this limited supply, there was an excess demand of people who wanted to attend the Super Bowl. However the weather lowered the excess demand a little bit closer to equilibrium because people did not want to travel in a dangerous snow storm.
ReplyDeleteI never really put into terms how much revenue the super bowl brings in every year. I think there is no doubt that the super bowl affects the economy in a positive way. Like Teal and Grace and Cameron suggested I also agree that the weather had an unfortunate increase in the lack of people who in the end attended the super bowl. However, despite the weather there were still millions of dollars brought into the economy. Dallas greatly benefitted from the outcome as well as the rest of the economy. Its interesting to think of how much money is used from everything to tickets to hotel rooms to food and even to the cost for gasoline. So many people either fly or drive to get to the super bowl every year; it doesn't matter where it's located. And what about the ridiculous prices people will pay to actually attend the game. People buy tickets for the already high prices and then sometimes sell them to make a profit of their own. The money is flowing through the economy when super bowl time comes around!
ReplyDeleteAlex Y
I agree that the presence of the Super Bowl brings in a lot of money to the economy. Starting at the price and demand of the tickets to the places to stay and the restaurants to eat at prove a lot of money will be spent by the thousands of people that take part in watching the Super Bowl. I agree that the parties during the Super Bowl, where many celebrities will be present, will cost a lot of money. The pressure to be a great host to these celebrities is significant to the party planners. They want to have the best location, the best food, great entertainment, etc. The people that do not go to the actual Super Bowl can watch from their home and even host their own parties at their house. This proves that the demand for snacks, pizza, beer, sodas, etc will be very high. However, I agree with everyone that the weather did cause a slight disadvantage because some people do not want to travel in that kind of weather so the excess demand could have slightly been affected. It is interesting how the Super Bowl can cause a great shift in demand in many areas and affect the prices of items to decrease due to the increase of supplies.
ReplyDeleteBri Sharp