Since the NHL playoffs starting a few days ago, I wanted to see if the cities/states with playoff teams saw any economic boost from their team making the playoffs. This article focuses around the New Jersey Devils and the economic impact they had on the city of Newark during last years playoff run.
The New Jersey Devils' resurgence in the NHL playoffs is not just a win for hockey fans but also for the economy, particularly in Newark and beyond. After years of underperformance, the team's success has revitalized local businesses and generated excitement in the community. Partnerships with New Jersey-based businesses have further boosted economic activity, with increased spending at restaurants, bars, and hotels during game nights.
The Devils' deep playoff run is expected to bring significant revenue through merchandise sales, sponsorship, and ticket sales. With a young roster and a strategic vision for sustainability, the team's success is seen as a long-term opportunity for economic growth in the region.
Aside from the Devils playoff run last year, the 2017 Nashville Predators generated an additional $50M in economic activity during their 11 additional home games during the playoffs that year. Although no economy should rely on a sports team to generate additional economic activity, its interesting to see the value of short term investment associated with the playoffs.
Source: https://www.njspotlightnews.org/2023/04/nj-devils-playoffs-brings-economic-boost-to-newark-region/
6 comments:
One question that I have about this topic is, do the companies that sponsor these teams see a boost in revenue when the team is doing well?
What types of companies and sectors benefit the most from local teams making the playoffs?
It's interesting how a specific athlete or a deep playoff run can have a tremendous impact on the team's local economy. Hopefully, the revenue will be reinvested to continue to build a winning organization.
Could the same also be said for other sports teams when they have success? It'd be interesting to see the results if someone did a study on this concerning the correlation between local economies and their professional sports team's success.
If post-season success can be correlated to local economic boosting, I wonder if that will raise the willingness of local tax payers to fund city sponsored athletics expansions. Expansions of a city's athletic district or facilities could make the destination more attractive to free-agents which could further increase post-season success.
It makes sense that economies of playoff teams are boosted during playoff runs. I do find it surprising of the very significant increases we see outlined. I wonder if those economies see some revenue affect during regular season too, being higher then offseason.
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