Daraius Irani, executive director of the Towson University Regional Economic Studies Institute, analyzes the economic implications of the Baltimore Ravens’ playoff victories and Super Bowl berth in a post on TU’s Division of Innovation and Applied Research blog.
Surprisingly, most of the benefits to be received by the home town of a perennial postseason contender relate more to productivity and philanthropy than increased income. In his post, Irani writes:
While it is great that a city’s team is in postseason play, are there any additional economic impacts associated with winning the Super Bowl? Arguably, the spending by fans on home team sports paraphernalia related to postseason play would have been money spent in the region anyway. And the increase in income by those vendors is probably matched by decreases in other vendors. However, according to a study by Dr. Coates and Dr. Humphreys at UMBC, there is a one-time gain in per capita personal income of about $140.
While the economic benefits are not driven by increased hotel activity, restaurants, and paraphernalia as Baltimore is not hosting the Super Bowl, Baltimoreans will be more productive, less prone to workplace accidents, give more to charities and have spent more money over the holidays as a result of the Ravens postseason play. When the Ravens win the Super Bowl, Baltimoreans may even see an increase in personal income.
To read the story, visit the TU Innovates website.