The Super Bowl isn’t just the biggest event in US sports- it’s a massive financial machine. Whether your favored team won or lost this past weekend, all participants in this great sporting competition stand to benefit.
The Winners
Winning the Super Bowl not only enshrines a franchise in history, but it provides a huge financial boost that serves to strengthen the organization in the future. Super Bowl wins leverage a team’s brand, and as a result produce an increase in value. For instance, the value of the New England Patriots rose from $1.4 billion in 2010 to more than $5 billion in 2023. Sales of merchandise increase dramatically following a Super Bowl victory- fans love having a memento to remember the glory of the win. Furthermore, sales of season tickets and sponsorship agreements increase, so that teams can obtain yearly sponsorships in the tens of millions. Even at a local level, a champion team can boost the economy through higher tourist visits, larger crowds at the stadium, and spending in sports bars and other leisure spots. It’s no surprise that we often see sports “dynasties” span for several years. Almost as a reflection of our capitalist society, a winner is more likely to continue winning.
Super Bowl champions don’t just get a ring—they get paid. Every player on the winning side gets a Super Bowl cash bonus of $171,000. However, some organizations offer bonuses above and beyond this number. Star players from winning teams often land major endorsement deals. For instance, Super Bowl MVPs such as Patrick Mahomes and Tom Brady have signed endorsement deals in the range of $10 to 50 million US dollars. Much like receiving a new workplace certification, winning a Super Bowl increases a player’s earning power considerably. For instance, players who shine in the Super Bowl can see their contracts increase by the millions. Even after retirement, Super Bowl-winning athletes may capitalize on speaking engagements, media deals, and post-retirement endorsements. The effects can extend for long after the sweet feeling of victory fades.
The Losers
It may not be fun to lose the big game, but the losing organization can still stand to benefit. They gain significant exposure, which translates into increased revenue through merchandise sales, TV deals, and sponsorship agreements. The team benefits from heightened fan engagement and a boost in season ticket renewals, though not at the same rate as a championship team. Sponsorship deals may not reach the peak levels of the winner, but they still bring in substantial revenue. Despite missing out on the prestige of a Super Bowl victory, the runner-up team can still experience a notable increase in franchise valuation, as seen with teams like the San Francisco 49ers and Los Angeles Rams after their Super Bowl appearances.
The players on the losing side still see financial benefits, albeit on a slightly smaller scale. Each player on the losing team earns a bonus, which is currently at $96,000 per player- a respectable sum but significantly less than the winner’s payout. Star players who perform well in the Super Bowl can still attract major endorsement deals and contract extensions. For example, despite losing Super Bowl LIV, Jimmy Garoppolo secured a $137.5 million 5-year contract extension with the 49ers. Players on the losing team remain highly marketable, and those with standout performances often receive lucrative offers in free agency, with some seeing contract increases of $5 million to $15 million per year. While a loss may sting, it does not necessarily harm long-term career earnings or endorsement opportunities for key players.
The Host City
The NFL and the players and organizations of the Super Bowl surely benefit the most, but we often see the host city reap financial benefits. Super Bowl week attracts hundreds of thousands of visitors, boosting local businesses, hotels, restaurants, and entertainment venues. The event generates thousands of temporary jobs in hospitality, security, and transportation sectors. Local governments benefit from sales tax revenue generated by tourists and event-related spending. The total economic impact of hosting the Super Bowl varies but has been estimated to be in the hundreds of millions for recent host cities. The benefits can go further than an economic boost. Hosting a Super Bowl can lead to improved public transportation, stadium renovations, and funding of urban development projects. The average New Orleans resident may not have seen a direct financial benefit, but they may benefit from investment in the city.
Despite potential benefits, hosting the Super Bowl can come with financial challenges. Cities often spend upwards of $50 million to $100 million on security, infrastructure, and promotional events, which may not always yield a positive return. Although there is an immediate financial impact to local businesses, it is debated whether the long-term effect of having a Super Bowl is overhyped. Some critics argue that the resources spent on hosting could be better allocated to other city projects with lasting economic benefits, making it a contentious investment.
Final Thoughts
The financial impact of the Super Bowl reaches far beyond game day. It’s no argument that the NFL benefits the most, followed by the winner, but the runners-up benefit much more from a Super bowl loss than from missing the game entirely. Host cities see a temporary economic boom and often benefit from improved infrastructure, but the cost doesn’t always result in a long-term benefit. Whatever the result, the Super Bowl continues to be one of the most financially powerful sporting events for all those involved.