An enormous amount of money is riding on the Super Bowl between the Philadelphia Eagles and Kansas City Chiefs in Arizona.
Millions of dollars trade hands before, during, and after every Super Bowl, in some ways obvious and in some ways not. America’s biggest game is also big for the NFL, the Eagles and the Chiefs, TV ratings, sports wagering, the city of Phoenix (near where the game is being played), and more.
The Eagles of the NFC are hoping to win their second Lombardi Trophy after cinching their first Super Bowl win following the 2017 season, and the Chiefs of the AFC are gunning for their third Super Bowl victory in franchise history, their last being won just three years ago. Vegas odds indicate the game will be very close, further driving interest as the two teams, both 14-3, square off for the first time this season.
Host city
The location for this year’s matchup is State Farm Stadium in Glendale, Arizona, which is part of the greater Phoenix area. It is the third game to take place in the stadium and the fourth in the Phoenix area since 1996.
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This year’s game is expected to be a cash cow for the city and its local economy.
The last time Arizona welcomed football fans to its capital for the NFL’s most-watched night was in 2015, when the New England Patriots bested the Seattle Seahawks in a close game that ended up being the most-watched TV broadcast in U.S. history. The Super Bowl brought a staggering 121,000 visitors to the area and an estimated $720 million into the economy of the state.
This year’s game is set to be a bit more muted, although still a huge windfall, according to the nonprofit marketing group Visit Phoenix. The group estimates the economic footprint of the Eagles-Chiefs game will add up to some $600 million.
Hotels in the city will rake in cash during the Super Bowl as demand for rooms explodes.
Rates have already risen in response, with places charging hundreds of dollars more than usual. As of Tuesday, a Holiday Inn Express near the stadium was charging more than $1,300 a room with two queen beds the night of the game. A nearby budget Motel 6 where rooms typically go for $145 per night is charging $666 for the night of the Super Bowl.
The NFL and its teams
No matter who wins the Super Bowl, the Eagles, the Chiefs, and the NFL itself are all set to come out on top of the economics game.
The NFL itself has several avenues that it will use to generate profits from the game. In the lead-up to the game, merchandise sales of the two teams involved spikes. For instance, the official pro shops of the Eagles and Chiefs are now offering special gray NFC and AFC championship jerseys with the names of star players like Philadelphia quarterback Jalen Hurts emblazoned on them. Those are selling for about $150 apiece.
Ticket sales are also a boon for the NFL. The average face value of a ticket to this year’s Super Bowl is estimated to be about $1,000. Still, those tickets often end up selling for much more as third parties hike prices to meet demand.
Gametime said on Tuesday that the cheapest tickets to even get in the door, basically the nosebleed seats for the big game, are now available for $6,176, up from $5,992 per seat the day before. A top-priced seat at the Super Bowl will cost you more than $22,000 — about the same cost as a brand-new 2023 Hyundai Sonata.
TV
Just one major network gets the rights to air the Super Bowl each year. The privilege is alternated among CBS, Fox, and NBC, with ABC joining the rotation starting in 2027. This year, Fox has the broadcasting rights.
Being able to broadcast the game is a big deal for a network because, in addition to further tying the network’s name to America’s most popular sporting event, it provides a platform for that network to advertise its own offerings, according to Rodney Paul, director of the sports analytics program at Syracuse University.
“You can see them taking the time to promote their own shows [in order] to try to raise ratings later to be able to make more money in the long run,” he told the Washington Examiner.
Viewership also spikes during the Super Bowl. Last year’s Super Bowl on NBC featured 112 million viewers across all platforms, more than 99 million of which came directly from the main broadcast. For reference, that is nearly equivalent to a third of the entire U.S. population.
Advertising
While the Super Bowl is most well known for the sport itself, a notable contingent of those watching is tuned in for the commercials and halftime show. Super Bowl commercials are notorious for being the cream of the crop when it comes to advertising, featuring humorous or even emotional TV slots.
Part of the reason why those commercials are so refined is because of the amount of money it costs a company to get a few seconds in front of the eyes of tens of millions of potential consumers.
For this year’s Eagles-Chiefs matchup, Fox is reportedly selling 30-second ad spots for a whopping $7 million — or more than $233,000 per second. A decade ago, 30-second ad spots were selling for $3.5 million.
“In many cases, people watch it for the commercials too, so you get lots of different people who are interested that might not be interested on any given Sunday [to] tune in,” said Paul.
Sports betting
The newest economic factor tied to the Super Bowl is legalized sports betting.
The transition toward legal sports betting began in 2018 when the Supreme Court ruled that a 1992 law prohibiting the activity was unconstitutional. That landmark decision paved the way for states to legalize sports betting, and each year, more and more states have begun offering residents the opportunity to put some skin in the game.
Massachusetts is the most recent state to legalize the practice and joined more than 30 other states that allow wagers of some kind.
Johnny Avello, director of race and sportsbook operations for betting giant DraftKings, told the Washington Examiner he thinks this year will once again be the biggest Super Bowl for sports betting in the history that it has been legal, owing in large part to more states coming on board.
“I say that every year and it has been true so far,” he said.
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There are also some factors that set this year’s Super Bowl apart from others to Avello. For one, it is being held in Arizona, where people in the state can actually place bets. In the previous four Super Bowls, the host states had not yet legalized the practice. Additionally, the Eagles are the hometown team of Philadelphia, which is notable because Pennsylvania is one of the biggest states that allows online wagering. DraftKings also operates a sportsbook in Kansas.
“You always love to have your home state in the mix,” Avello said. “Now we have not only a state where you’ll be able to bet your home team, plus the venue is in a place where you’ll be able to bet. So two real positives going for us.”
