MAIMI GARDENS, Fla. – Now that South Florida has been awarded a Super Bowl, the money will start pouring in, right?
Well, that answer can be murky.
Despite claims of host cities making millions when holding the big game, it may be time to throw a penalty flag on what some economists argue are inflated promises of a revenue gain. However, there may be lessons to learn in how one host city had the NFL foot the game day expenses.
SUPER BOWL COMING TO TOWN:
Conversations about Super Bowl revenue flared up in South Florida last month when the NFL awarded Super Bowl 2020 to Miami Gardens. The announcement marked the 11th time South Florida would host the big game. Some economists, however, argue that the economic impact of the Super Bowl is controversial.
In 2010, the last time South Florida hosted a Super Bowl, PricewaterhouseCoopers estimated the impact at $153 million. In 2007, their estimate was that Super Bowl XLI would generate approximately $195 million in direct spending for Miami-Dade, Broward, and Palm Beach counties.
During a March 2013 Senate Appropriations Subcommittee on Finance and Tax, at a time when the Miami Dolphins were lobbying for public funding for stadium improvements, Florida Senator Oscar Braynon told lawmakers that a single Super Bowl generates more than "$300 million in economic benefits to South Florida and its businesses."
Prominent lobbyist Ron Book stated it could be more like a $500 million economic impact.
Numbers like those tend to be exaggerated, argues sports economist Andrew Zimbalist.
"The empirical studies who have done by economists who don't have an ax to grind, who are not being paid by one side or another to produce a hype about the Super Bowl, have found that there is no reliable [economic] impact," said Zimbalist.
That is especially the case, he said, when a Super Bowl is held in a warmer climate like South Florida, where tourists are already expected.
"The Super Bowl fans displace the normal tourists and the normal business travelers," Zimbalist said. "There are those noneconomic benefits that a city can enjoy; just don't expect that it is going to be an economic surplus."
Those noneconomic benefits, argue supporters, include civic pride and millions in free advertising to a worldwide audience.
"If you look at a 30-second spot at the Super Bowl, it is $4 million dollars," said Rodney Barreto, chairman for the South Florida Super Bowl Bid Committee. "We estimate we get $100 million of free advertising. More and more cities are competing for Super Bowls than ever before because they realize what we have known all along, they are great for the community."
Miami Gardens Mayor Oliver Gilbert III said there are some benefits to the Super Bowl that cannot be measured in numbers.
"A lot of times, we miss the amount of attention and advertisement that comes with the Super Bowl that you really can't pay for," Gilbert said. "When you are sitting in Pittsburgh and it is snowing and you look at TV and they are playing a game in Miami Gardens, we just ran a commercial for South Florida and we ran it for free. And if God grants us his grace and mercy, it is going to be a sunny beautiful day and they are going to be snowed in and they are going to look and say 'South Florida is beautiful.'"
TAXPAYER COSTS:
Hosting a Super Bowl does come at a price, and typically it's taxpayers who end up footing the bill for police presence at the game and other factors that go into hosting the event.
In 2010, Miami-Dade County's contribution to hosting the Super Bowl was more than $4.7 million. Another cost for most communities can include stadium improvements.
When Miami Dolphins owner Stephen Ross lobbied for public funding and failed to get it back in 2013, the billionaire decided to invest millions of his own cash in the stadium.
"He wrote a $500 million dollar check to improve the stadium," Barreto said. "No tax dollars. He did this on his own. It is a legacy he is leaving to our community."
Miami-Dade County decided to still throw him a winning pass in 2014, when commissioners approved a resolution that authorized public money for bonus pay for big events. Ross will get $4 million for securing a Super Bowl.
At the time Miami-Dade County Mayor Carlos Gimenez stressed, “Let me be clear, no general fund monies will ever be at risk.”
The $4 million from Convention Development Taxes for the 2020 Super Bowl would be paid out in 2024. The commission can defer payout based on the availability of funds.
THE SANTA CLARA MODEL:
The amount a hosting city or county is on the hook for can vary, but when Santa Clara hosted the game, the city negotiated a deal with the NFL Host Committee to cover costs, saving taxpayers $3.5 million.
According to a report published by Harvey M. Rose Associates, the agreement was "to reimburse all city expenses associated with hosting Super Bowl 50, including public safety services, fire and emergency medical services."
"We are proud of the exceptional partnership that we had with the Host Committee, which culminated into successfully hosting Super Bowl 50 at Levi's Stadium in Santa Clara earlier this year," Santa Clara Mayor Lisa M. Gillmor said. “It was of the upmost importance to the Council that the general fund be protected from the costs of hosting such a significant event. Through a first-of-its-kind agreement with the Host Committee, the City was fully reimbursed $3.5 million for planning, training and deployment costs for police, fire and emergency medical, and other governmental services.”
Barreto and Gilbert were presented the Santa Clara model by Local 10 News, and asked if South Florida would be able to replicate that sort of agreement.
"It is a great idea," Gilbert said. "I think it is something we definitely will look at as we start to quantify the costs."
Barreto agreed.
"What we will do moving forward, not only with Miami-Dade County, Miami Gardens, Broward County, Fort Lauderdale, Miami Beach, we will go and meet with them and negotiate certain things. That is all part of the process," he said.