And leakages occur when money spent on chain hotels and restaurants leak back to corporate headquarters — not the local economy.
“The local employees changing sheets or running room service, they don’t get 10 times their wage that week,” said Professor Craig Depken, an economist at the University of North Carolina.
Some economic models used to calculate economic benefits do account for leakage. But Matheson wrote that those models calculate leakage based “on the normal inter-industry relationships that exist in local economies, and during a mega-event these relationships may be anything but normal.”
PricewaterhouseCoopers has estimated the economic impact of multiple Super Bowls. According to its analysis, direct visitor spending has ranged from a low of close to $120 million in Detroit in 2006, to high of about $200 million in Dallas/Fort Worth in 2011. Dolphins spokesman Eric Jotkoff said that Book took the $463 million in the 2007 study and cited a $500 million in 2016 as a result of inflation and increased spending because “Super Bowl L promises to be the biggest Super Bowl in the game’s history.”
Lobbyist Ron Book said “Super Bowl L by everybody’s estimation is a $500 million economic impact to the state of Florida.”
First, Book uses numbers from a study commissioned by the Host Committee. The numbers take a broad measure of all spending that went on during a Super Bowl week in 2007, without accounting for usual economic activity.
But the main problem with Book’s claim is that “everybody” agrees on that number.
Economics professors argue that studies by boosters routinely inflate costs and fail to take into account net costs or fully account for the fact that some spending locally is sent to corporate chains.
We rate this claim False.