What is the Cost of Doing Super Bowl 58?

After enduring 18 weeks, 272 regular matches, and navigating through 12 playoff matches, we have finally reached the culmination of another thrilling NFL season. The Super Bowl, set to unfold in just 10 days, promises an epic showdown between the Kansas City Chiefs and the San Francisco 49ers at the Raider’s Allegiant Stadium in Las Vegas.

The NFL stands as one of the most lucrative leagues, generating roughly $20B in revenue. Hosting the season’s grand finale is considered a prestigious honor for the city. With SB extravaganza on the horizon, Las Vegas is sparing no expense, reportedly shelling out a whopping $60m to serve as the event’s host.

Two distinct categories encompass the costs associated with hosting this prestigious event: Direct operating costs and Event-related costs. Direct costs comprise various elements such as staff, sponsorship, public safety, advertising, marketing decor, media, PR, hospitality, offices, professional services, insurance, and finally contingency. The contingency alone accounts for 25% of all the direct costs, totaling around $5m. In total these direct costs are estimated to reach approximately $20m.

On the other hand, event-related costs encompass NFL expense reimbursement, stadium costs, hotels and meeting spaces, parking and transportation, Super Bowl events, tickets/suites, volunteers, permits, practice facilities, technology, accreditation center, and contingency. The aggregate for these event-related costs amounts to $40m, with$17m designated as NFL expense reimbursement.

 

Allegiant Stadium will be hosting the event for the first time. The Raiders stadium is one of the most modern and newly built stadiums and naturally, it cost a lot to build that.

How Much Did it Cost to Build the Super Bowl 58 Allegiant Stadium in Las Vegas?

The Allegiant Stadium stands as one of the most modern and state-of-the-art stadiums in the country. However, like many impressive things, its construction came at a significant cost. Despite not being the largest and exterior resembling a Roomba, the stadium carried a hefty price tag of $1.9 billion, making it the 2nd most expensive stadium, surpassing only So-Fi Stadium, which commanded a whopping $5.5b.

Funding for the stadium came from various sources with taxpayers contributing roughly $800m and $1.1b coming from the Raiders. The stadium boasts cutting-edge features like a dome and interchangeable surfaces. The field sits outside where it is continuously irrigated as the city of Vegas gets plenty of sunlight. The field sits on the tray, which takes 65 minutes to retract inside the stadium. However, despite its modern amenities, the stadium’s capacity is limited to only 65,000 people, making it just the 28th largest in the league.

The value of the Raider’s franchise has substantially increased from $2.9b to around $6.2b since they moved from Oakland to Vegas.

Despite the proponent’s belief that hosting the event brings in a lot of money, many have refuted the claims claims. So why does the city want to host the Super Bowl?

How Much Will Las Vegas Likely Earn As the Host’s?

The Super Bowl will make Las Vegas an estimated figure of $500m-$700m as per some sources, which is to be believed extraordinary given the estimated cost is only $60m. The optimistic figures are however based on the claim that Arizona generated $1.3b when the state hosted the SB. Authorities also claim that over 300k people visited Vegas when Atlanta hosted the SB in 2019 and that brought a whopping $425m in the economy. With the city itself hosting this year’s event, the figures would be much higher as per 1027.VGS.

But how are estimating such figures if the stadium can host 65k people? It is because Vegas offers a host of other activities besides the main event. Vegas is a city of spectacle and pizzazz and is bound to shine when it comes to hosting an event filled with spectacle. While not everyone can watch the action live from inside, people would have a chance to take photographs with players participating in the SB. Tickets start at $30.

The Mandalay Bay Convention Centre will host a football theme park-like experience where fans could take snaps with NFL legends, Lombardy Trophy, SB rings and play interactive games, and attend youth football clinics. The tickets for this event will cost somewhere between $25 to $50 depending upon the day.

Pearl Theater at Palms Casino Hotel will host the 25th Annual Super Bowl soulful celebration, a few days before the SB. Vegas authorities expect gambling to be also on the rise during the SB.

However, the claim that SB will generate an excess of $500m is debunked by economists such as Carl Matheson who believes that the actual number is around $30-$130m according to Business Insider.

How Much Would It Cost to Attend the Super Bowl 58?

Fans would have to shell out a few thousand quid if they want to enjoy the game at Allegiant Stadium. Super Bowl 58 is going to be one of the most expensive in NFL history. The average ticket price is expected to be higher than previous SBs, ranging from $10,527 to $12,082. The cheapest ticket costing $8000 for Allegiant Stadium will be further away from the action.

Most hotels have already been booked in advance, leaving the rest to charge higher prices due to high demand. The cheapest rooms in hotels like Circus are charging $312.50 per night. While others like Fontainebleau, listed their cheapest room at $1,660. Properties closer to the stadium are charging upwards of 2 grand. Most other hotels offering 2 nights of stay are charging somewhere between $650 and $1,700 per night as per Rochester First.

The average cost of food inside the stadium inside the stadium is expected to be $130 including alcohol.

The cost of hosting will continue to rise, but as they say, it takes money to make money. This edition promises to be a spectacle. The 49ers will be looking to win their first SB since 1994 in what happens to be a repeat of the 2019 edition. The Chiefs are however will be looking to cement their dynasty. Super Bowl 59 will take place at the Superdome in New Orleans, which will host its 11th SB.