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PALGRAVE PIVOTS IN SPORTS ECONOMICS
The Economics of
the Super Bowl
Players, Performers, and Cities
Yvan J. Kelly · David Berri
Victor A. Matheson
Palgrave Pivots in Sports Economics
Series Editors
Wladimir Andreff
Emeritus Professor
University Paris 1 Panthéon-Sorbonne
Paris, France
Andrew Zimbalist
Department of Economics
Smith College
Northampton, MA, USA
This mid-length monograph series invites contributions between 25,000–
50,000 words in length, and considers the economic analysis of
sports from all aspects, including but not limited to: the demand for
sports, broadcasting and media, sport and health, mega-events, sports
accounting, finance, betting and gambling, sponsorship, regional devel-
opment, governance, competitive balance, revenue sharing, player unions,
pricing and ticketing, regulation and anti-trust, and, globalization. Sports
Economics is a rapidly growing field and this series provides an exciting
new publication outlet enabling authors to generate reach and impact.
The Economics
of the Super Bowl
Players, Performers, and Cities
Yvan J. Kelly David Berri
Flagler College Department of Economics and
St. Augustine, FL, USA Finance
Southern Utah University
Victor A. Matheson Cedar City, UT, USA
Department of Economics and
Accounting
College of the Holy Cross
Worcester, MA, USA
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer
Nature Switzerland AG 2020
This work is subject to copyright. All rights are solely and exclusively licensed by the
Publisher, whether the whole or part of the material is concerned, specifically the rights
of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on
microfilms or in any other physical way, and transmission or information storage and
retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology
now known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc.
in this publication does not imply, even in the absence of a specific statement, that such
names are exempt from the relevant protective laws and regulations and therefore free for
general use.
The publisher, the authors and the editors are safe to assume that the advice and informa-
tion in this book are believed to be true and accurate at the date of publication. Neither
the publisher nor the authors or the editors give a warranty, expressed or implied, with
respect to the material contained herein or for any errors or omissions that may have been
made. The publisher remains neutral with regard to jurisdictional claims in published maps
and institutional affiliations.
This Palgrave Macmillan imprint is published by the registered company Springer Nature
Switzerland AG
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
To Kris and Allie, and to the teams I coached and scouted for who were
Knights, Warriors, Tigers, Saints, Lakers, Sonics, Nuggets and Rockets.
Thousands of miles and thousands of games, but never a first down.
—Yvan J. Kelly.
This book is dedicated to Jolie, Lara, and Aly for always making life worth
living. I would also like to thank my original hometown team, the Denver
Broncos, for first inspiring my interest in the Super Bowl by managing to
lose their first four trips to the big game during my formative years as a
sports fan by a combined score of 163-50. What a great preparation to
enter the “dismal science.”
—Victor A. Matheson
Acknowledgments
The authors wish to thank all those who assisted with this project. Hannah
Whipple, a Research Assistant at Flagler College, worked on this project
and did an admiral job of tracking down sources and accumulating data.
Thanks also to Carrie Grant and Kurt Sebastian from the math depart-
ment at Flagler who provided keen insights into the testing of the data. A
good amount of the data used in this book is proprietary and not gener-
ally available to the public. Despite that, there are many who provided
us this information and who wish to remain anonymous. They will go
unnamed here, but you know who you are and you know this book could
not have been written without you. A great thanks goes to Garen Vande
Beek, former Senior Executive Vice President at CBS, who helped provide
insights about the broadcast history of the Super Bowl as well as the
production of the game.
vii
Contents
1 Introduction 1
3 The Cities 21
How Much Does the NFL make on the Super Bowl? 26
Economic Impact of the Super Bowl 28
The Costs of Hosting the Game 30
Challenges in Measuring the Benefits of Hosting the Game 33
Empirical Studies of the Super Bowl 38
Nonmonetary Benefits 44
Conclusion 48
References 49
4 The Players 53
The Value of the Super Bowl to the Team 55
The Value of Winning the Super Bowl to the Quarterback 60
Is Tom Brady the Best? Depends on Your Universe! 70
Who Are the Best Quarterbacks? 73
ix
x CONTENTS
5 The Performers 95
Halftime Show History 96
Costs of the Halftime Show 97
Benefits of Performing and Song Consumption 99
Results 105
Benefits of Performing at Halftime and Future Concerts 105
Methodology and Significance 109
The Halftime Show and Additional Income Sources 111
The NFL as a Mercantilist 111
Bargaining Power and the Halftime Performer 114
Saying No to Halftime 115
A Brief History of NFL Cheerleaders 116
What Is an NFL Cheerleader Worth? 120
Conclusion 125
References 127
Index 137
Abbreviations
xi
List of Figures
xiii
List of Tables
xv
xvi LIST OF TABLES
Introduction
Abstract The 1966 merger of the NFL and the AFL led to the playing of
a championship game, initially titled the NFL–AFL World Championship.
That bulky name was soon dropped and the game is now commonly
referred to as the Super Bowl. The game has grown in societal importance
and become part of the cultural fabric of the United States. This chapter
provides an overview of the economics of the three major components of
the game that are covered in this book: the football players, the cities that
host the games, and the halftime artists.
Chapter 3 will explore the economic impact for cities that host the
Super Bowl. A historical background of cities who have hosted the game
will be presented. The cities selected to host the Super Bowl, host the
game expecting to receive an economic benefit. There are ex ante esti-
mates that have been made about just how much a city will benefit from
hosting all those fans arriving for the game. Problems occur within these
ex ante economic impact studies that tend to overstate the benefits the
city will receive. The sources of the problems and the reasons for the
overstatement of benefits will be explored. An examination of the costs of
hosting the game will also be presented. Ex post economic impact studies
will be used to compare the differences between what cities hoped to have
happened as a result of hosting the game with what actually happened as
a result. There are also non-monetary benefits for the host city which are
explored.
Chapter 4 explores the team and players in the game. This chapter
begins with a discussion of how winning the Super Bowl impacts team
revenues. It will then move on to a discussion of the most important
player on the field. The quarterback—or the “face of the franchise”—is
often given credit when his team wins. We will also see, there is some
evidence that the winning quarterback sees his future pay increase from
winning this game. What may be surprising is the winning quarterback
isn’t often the “best” quarterback.
Chapter 5 will explore the benefits to the other performers (i.e., not
the teams!) at the Super Bowl. We will begin with a discussion of halftime
performers. That discussion will begin with the history of the halftime
show and the mostly forgotten reason this spectacle expanded in the early
1990s. The benefits for halftime artists will be examined and estimates
will be made for the value of the song consumption of their music prior
to and following the game. The estimates point to a very large bump for
the artists in the consumption of their music through the means of down-
loads, audio streaming, and video streaming. Musical artists also generate
substantial revenues from concerts. The impact that being the halftime
performer at the Super Bowl has on future concert revenues will be exam-
ined. By measuring the average gross concert revenues for artists the year
prior to and the year following their Super Bowl appearance, an analysis
is made concerning whether a benefit is present from being the featured
artist at the game. This area of study is unique to the sports economics
literature.
4 Y. J. KELLY ET AL.
From its humble and financially tenuous beginnings in 1920, the National
Football League has grown to become the premier spectator sport of
the United States (Crepeau 2014). Likewise, its championship game, the
Super Bowl, has become North America’s most watched sporting event
(Stewart 2002). The NFL’s growth in popularity is demonstrated by the
size of its weekly television viewership and the national interest generated
in the championship game. This chapter will examine the history of the
NFL, its rise in popularity, and the emergence of the Super Bowl as both a
financial juggernaut and cultural icon of American society. Later chapters
will examine the economic impact that participating in the game brings
to players, halftime performers, and the cities which host the game.
During its growth, the popularity of the NFL surpassed that of base-
ball, which had formerly captivated the interest of Americans and which
was once known as America’s pastime (Surdam 2013). The NFL was
founded at a time when collegiate football was widely popular but base-
ball was the leading professional sport. In its infancy, the league was
hardly even considered a substitute good for the college game, and it
undoubtedly lagged behind both horse racing and boxing in terms of
popularity among the masses. The likelihood that the NFL would survive,
much less rise in prominence was improbable. Its financing was dubious,
and its chances for survival seemed scant (MacCambridge 2005). In fact,
between 1920 and 1935, over 50 teams played at least one season in the
NFL, 43 of which had folded or relocated by the end of that era (Leeds
et al. 2018). But from those modest beginnings, the league survived the
Depression and World War II before exploding in popularity after the war.
From a sociological perspective, it is difficult to pinpoint why the NFL
grew in popularity. In the 1920s and 1930s, fans, especially males, seemed
to be attracted to the brute force of the professional game (Crepeau
2014). The contact between players was harder, and the players were
faster, larger, and in general, meaner than college players. It appears that
the violence of the game was a major attraction in the early years of profes-
sional football. Following World War II, the game was seen as a “training
and moral vehicle for the young men of the nation” (Crepeau 2014,
p. 32). In the 1950s and 1960s, rivalries both between teams and between
leagues had developed which helped fuel the popularity of professional
football (MacCambridge 2005).
The league especially enjoyed a tremendous growth in popularity with
the increase of the number of televisions in homes during the 1960s
(Crepeau 2014). The dawn of television brought the game into the
homes of Americans looking for Sunday afternoon entertainment. This
served to further increase the number of NFL fans, developing a demand
for the product that stretched beyond the cities where the games were
played and creating loyal fans located across the country (Surdam 2013).
Fan interest in the championship game continued to grow along with the
increasing popularity of the NFL. Indeed, the size and scope of the Super
Bowl has now become an important part of the fabric of American society
each February. It is a singular event unmatched by any other in American
sport.
2 THE ORIGINS OF THE NFL AND THE SUPER BOWL 7
March 9, 1862.
The most remarkable naval battle which has ever taken place in
the history of the world was the encounter between the two iron-clad
steam batteries, Merrimac and Monitor, in Hampton Roads, Va.
The Merrimac was one of five war-steamers authorized to be
constructed by an act of Congress, passed at the session of 1844–5,
and was built at Charlestown, Mass. The spar deck was 281 feet long,
and 52 broad, in her original condition. The vessel was completed
and launched in 1856. She was soon put in commission, and
continued in the service until April, 1861, when she was lying at
Norfolk Navy Yard for repairs.
When the Government property at the Navy Yard and in the
neighborhood of Norfolk was destroyed or rendered unserviceable,
to secure it from seizure by the Confederates, the Merrimac was
scuttled.
Not long after the rebels had taken possession of the Navy Yard the
Merrimac was raised, and placed in the floating-dock. Here she was
remodeled, and covered by a sloping roof of iron plates, four inches
thick, which bore her down so heavily, that it became almost
impossible to launch her. When launched she drew four feet of water
over the calculated draught, and was again placed upon the dry-dock,
and underwent material changes in her construction. Her bow and
stern were steel-clad, and the bow furnished with a projecting ram
for the purpose of piercing an antagonist. The armament consisted of
four eleven-inch navy guns, broadside, and two one hundred-
pounder rifled guns, at the bow and at the stern.
The Monitor was built by contract, under the act of Congress of
July, 1861, appropriating $1,500,000 for iron-clad vessels. Captain
Ericsson presented proposals for a battery to be launched within one
hundred working days from the date of the contract. The contract
was awarded to him in October, and on the one hundred and first
working day the Monitor was launched from the Continental Iron
Works at Greenpoint, New York.
The Monitor is low, wide, and flat-bottomed, with vertical sides,
and pointed ends, requiring but shallow water to float in. The sides
of the vessel are formed of plate iron, half an inch thick, outside of
which is attached solid white oak twenty-six inches thick: outside
this again is rolled iron armor five inches thick. The inclination of the
lower hull is such that a ball to strike it in any part must pass through
at least twenty-five feet of water, and then strike an inclined iron
surface at an angle of about ten degrees. In the event of an enemy
boarding the battery they can do no harm, as the only entrance is at
the top of the turret or citadel, which cannot easily be scaled, and
even then only one man at a time can descend into the hull.
BIRDS-EYE VIEW OF
HAMPTON ROADS, VA.,
MARCH 8, 1862.
March 3, 1862.
One of the most brilliant events of the war west of the Mississippi,
was the battle of Pea Ridge, which lasted from the 6th to the 8th of
March, and crowned the national army with a splendid victory, after
a long and toilsome pursuit of the rebels.
After the removal of General Fremont from the command in
Missouri, the army which he had led from Jefferson City to
Springfield, made a retrograde movement, falling back on Rolla, St.
Louis and the towns on the line of the Missouri river. As was to be
anticipated, the consequence of this retreat was the return of General
Price, with his forces, and the reoccupation of the whole of Southern
Missouri by the insurgents. They remained in possession of the field
until February, when a new national force, under Generals Curtis,
Sigel and Ashboth entered the field and advanced rapidly in pursuit
of the retreating enemy. The rebels fell back, to avoid a general
engagement, and evacuated Springfield, on the 12th of February,
near which, in a brief skirmish, General Curtis’ army encountered
and defeated them. On the morning of the 13th General Curtis
entered the town, and restored the national flag to its place. Price left
about six hundred sick men behind him, and large quantities of
forage and wagons. He expected that the Federal army would remain
several days at least in Springfield, to give the troops rest, satisfied
with the reoccupation of this valuable position.
But General Curtis was not a man to sleep upon his arms. On the
morning of the 14th, he resumed his pursuit, and continued his
march to Crane’s Creek, about twenty-two miles from Springfield. He
pressed closely upon the enemy, and on the 17th had another
encounter with them at Sugar Creek. This protracted pursuit of three
weeks, at an average rate of twenty miles a day, is remarkable in the
history of warfare. But like most western men, General Curtis had
learned the art of war, and the expediency of energetic action to
some purpose. He had given up his seat in Congress when the war
broke out, and took the field, forgetting politics and every thing else
in a burning love of his country. With such men long marches and
hard fighting is the business of war. They shrink from nothing but
inaction.
Both armies had now reached the soil of Arkansas. The rebels
being rapidly reinforced by regiments which had been stationed in
that State and the Indian Territory, General Price was in a better
position to give battle. Upon mature deliberation, General Curtis
selected Sugar Creek as the best position he could take to withstand
any attack which might be made upon him. The enemy had, in the
mean time, taken up his position in the locality of Cross Hollow,
which was peculiarly adapted to his mode of warfare. But this was
not long permitted, for on learning that the Union troops were
turning their flank by way of Osage Spring, Price’s followers again
decamped in hot haste, leaving behind a considerable quantity of
supplies and munitions of war. By this time the lines of the Union
army extended nearly ten miles. The right was under General Sigel,
resting at the Osage Springs, and the left under Colonel Carr,
extending to Cape Benjamin. Colonel Carr’s headquarters were at
Cross Hollows.
Having abandoned Cross Hollows, General Price took up a fresh
position in the Boston Mountains, a high range that divides the
waters of the White Mountains and Arkansas, where every effort was
made to rally the dispirited rebels and augment the ranks of his
command. Here it was that he was reinforced by Generals
McCullough, Pike and Van Dorn. These combined armies were
estimated at thirty-five thousand men.
Matters remained comparatively quiet until the 5th of March,
when General Curtis received information that the rebels were
advancing to give battle. The information proved correct, and the
6th, 7th and 8th will long be held in remembrance as the anniversary
of one of the bloodiest conflicts of the war.