According to a newsletter published by the Arlington Chamber of Commerce http://arlingtontx.com/newsletter/shownewsletter/1015, Arlington gained a huge economical impact from the World Series alone.
"Well, Arlington hit the jackpot this year!"
Through studies and calculations, it was determined that 23 million dollars would be the direct economic impact throughout the World Series. Not including each game played and the previous games in the playoffs. All of this income to the city of Arlington could be linked to scarcity and opportunity cost. Each year, there is only one World Series; and baseball fans out there would know that the team you root for going to the World Series is kind of a big deal. Therefore, one could come to the conclusion that there are a scarcity of World Series, or a limited amount. In the beginning studies of economics, we learn that everything in this world revolves around scarcity and that factor causes people to pay more money for the limited resources. In this case, the World Series is a very limited resource. Opportunity cost is another in which, economically, plays a huge role in the course of things. People who choose to come to the World Series could be missing out on something important since there are only a maximum of seven games each year. For example, jobs, school, homework, family time, or even dinner. These are all examples of what people could lose in the case of wanting to go to one of those seven very important games in the year. In conclusion, all of these factors contributed to the millions of dollars in which Arlington could make during the World Series; and how it could turn our economy aroundfor the better. Now just think of what the Super Bowl could do.
11 comments:
I am curious of how the 23 million dollars in World Series revenue is broken down? What percentage went to lodging, restaurants etc...? You discussed opportunity costs of attending a game in terms of family, jobs, schooling. However, I think the scarcity of a Ranger's World Series appearance completely out weighed the opportunity costs to most people. Several people I knew chose to attend games no matter what the cost was, money, sleep, time at work. Therefore,I can only image what the Super Bowl will bring. It would be interesting to know how much labor (both mental and physical) labor go into the preparations for the "Big Game".
Do you think there will be a higher impact from the Super Bowl than the World Series?
Will the fact that the Cowboys will not be in the Super Bowl help or hurt the economic impact?
In response to Kern,
The fact the Cowboys are not in the super bowl should actually help the economic impact. If the Cowboys were in the Super Bowl the beneficial impact caused by Cowboy fans attending the game will be lower in terms of lodging and restaurants being a majority or a large group of Cowboy fans live in the area and will not be looking for hotels and being that this large amount of fans will be staying at their houses the percentage of patrons remaining at their houses to dine because it is simpler and more cost effective for them.
With both teams being non-local teams the economic boost will be larger because not only will there be ticket sales, increased traffic on toll roads and staying in hotels. Being that these out of town guests will be mostly in hotels the chance they have brought food or have a in room kitchen is very low, there will also be a large gross increase in the amount of revenue for local restaurants. Thus with the Cowboys not in the Super Bowl we will have a larger economic boost.
Also because the world series was hosted here with a local team with the tickets mostly purchased from local patrons the boost due to that will not be as large as the world series yet the entire MLB playoffs did generate more income for the area then the single Super Bowl will generate. The fan hype and ticket sales from the 5 events was larger then one.
I completely agree with Matthew on the fact that not having the Cowboys in the Super Bowl will increase the economic impact. But on an opposing note, will the fans of the two teams that make the Super Bowl be able to afford the trip to Jerry's World? The prices will rise in the stadium, and parking for the game alone is anywhere between $10 and $1000. There is also the option that non-followers of these two pro teams may come to the Super Bowl just to be there and are willing to spend an unlimited amount just for the experience. Since this will most likely be the case, surrounding parking lots, restaurants, hotels and other facilities will obtain a lot of business.
As for what Mr. Smith said, there will be many questions involving the mental and physical labor put into the preparation of the "Big Game." What are the opportunity costs put in by stadium volunteers to work the Super Bowl or even the World Series? These volunteers will give up many hours to prepare things, such as the food, drinks, seats, field, parking lots, and even the trash cans, when they could have been benefitting their time to accomplish something for themself.
Another aspect to consider of what will increase the economic impact is stores, such as Academy, that increase their stock with t-shirts, hats, pennants, and many others with certain logos. During the World Series, many of these types of stores were loaded with Rangers and their opponent shirts throughout the playoffs. This will also bring a certain revenue for the DFW area.
I strongly believe we will not see a scarce amount of people during the Super Bowl.
I agree with what both Matthew and Taylor said. With that said, I believe that the Super Bowl in the Dallas/Forth Worth area will bring millions to the economy and only help it rise. I am not sure that it will have more of an impact than the World Series only because the Rangers essentially won over America's hearts. Sure, there were a few bandwagoners that jumped on, but the hype of the Rangers in the World Series for the first time is what brought most of the attention and economic improvement to the area.
I too agree with what Matthew mentioned in his comment regarding the amount of revenue the hotels and restaurants in the area of the stadium will see. There will be a lot of folks from out of town needing food and a place to stay. In agreement with what Taylor said about the marketing done by sporting goods stores bringing in revenue for the DFW area, it also boosted morale for the whole area. Many avid Cowboy fans will most likely be watching the super bowl from their living rooms this year because the cowboys won't be in it.
I completely agree with Matthew. I never thought about how much money will come in from the increase in people driving on the toll roads. I feel like the all the revenue that the super bowl will generate for stores, restaurants, hotels, and just the city in general will more than cover the costs of using the stadium. The fact that the cowboys aren't playing is definitely a positive from an economic standpoint.
I agree with Matthew that its better for the DFW area that the Cowboys won't be playing in the Super Bowl. Like everyone has said more revenue will come from having two outside teams rather than just having one. In response to Taylor's post she asks if people will spend the money to go to the big game. I definately think that there will be people who will spend whatever they need to get to the big game. Having parents from both Illinois and Wisconsin, I know how crazy and dedicated these fans are that they will do and spend anything to be at the game.
I think that while having both teams not being local could be a good thing economy wise, it could also be just about the same as if one of the teams was local. If you think about it almost no one who lives in the area is going to venture further than their front step the entire week or so the "Super Bowl-ers" will be here, for fear of the ridiculous traffic both on the roads and in the stores. This renders the normal amount of money spent by locals almost uncountable which could drastically reduce the number of sales overall. I'm not saying that businesses won't be utterly overwhelmed by demand I'm just saying that it shouldn't be much worse than the world series was this past year.
Do you think that since the World Series is played on each teams home field and not at a neutral site in a different city, that less people traveled to see the game than if the two teams played somewhere else. Where if fans from each city had to travel to the game and had to spend for travel and somewhere to stay, where if they where at home they could just stay at their homes. Do you think that if it was palyed in another city that there would be that much of a increase in revenue to that city than if it were played at each teams home field? Where here only the fans from the other team and some from the home team were traveling in for the game and it would be much less in revenue earned than if each fan had to travel to see the game being palyed. Would it be that much more worth it?
I think that it made more of an impact than less. People who are Rangers' or even Giants' fans who are not in the area could have just as easily traveled to Arlington for the series. In other words, not everyone of the fans live in San Fransisco or Arlington so they could have come from anywhere. Yes I think less people traveled but I do not think that less revenue and profit from this world wide event actually happened.
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