Blog Entry

All-Star Game = $100 million? Impossible

Posted on: June 7, 2009 8:26 pm
 
LOS ANGELES -- At first when I heard Commissioner David Stern and the mayor of Los Angeles, Antonio Villaraigosa, both say that the 2011 All-Star game would bring in $100 million in economic impact to the city, I thought they had misspoken. Or I didn't hear them correctly.

But they said it again. And again.

"Well, as I said," Stern remarked, "it means $100 million in economic impact."

That number just cannot be right.

It's impossible.

I'd sure like to know how the NBA and the city of Los Angeles are coming up with that figure and my guess is that if a few indepedent ecomonists closely examined that claim they'd find it questionable.

The reason why is Super Bowls don't even bring in that kind of money.

Yes, Super Bowls. So how is an NBA All-Star game going to bring in $100 million?

Consider this paragraph from ESPN.com about the Houston Super Bowl in 2004: "...the Houston Super Bowl Host Committee estimated that its game would generate more than $330 million in economic impact. But when the controller's office tallied the numbers, it came up with only $129 million in direct spending, and that was over the two-week period surrounding the game. The event generated $3.2 million in sales taxes for the city, and the net profit was a measly $913,397."

I'll get into this topic a little more in the near future.
 




Category: NBA
Tags: Lakers
 
Comments

Since: Mar 17, 2008
Posted on: June 9, 2009 1:42 am
 

All-Star Game = $100 million? Impossible

I don't usually nitpick, but as of 6/9/2009 there are over 6 billion people on Earth. 1 out of every 3 people...



Since: Apr 20, 2009
Posted on: June 9, 2009 1:11 am
 

All-Star Game = $100 million? Impossible

Not impossible at all I think...

Hotels, dining, merchandise, trendy bars, strip clubs, escorts, massage parlors just to name a few places that close to 50 NBA players and coaches (count the skills contest/3-point shooting contest/dunk contest participants) not to mention dozens more NBA officials, photographers, journalists (international mostly), and retired NBA superstars will all be in LA.  This is an entire weekend event with the LA Convention Center next door which hosts an NBA fan extravaganza.  Numbers cannot be exact but I would guess over 100,000 fans from all over the west coast will congregate just to be part of the action.  Think how many international fans will be there, Yao Ming ring a bell?  And they spend dough when on vacation.  And add their hotels, dining, merchandes and bar tabs at any bar/club on the Sunset Strip just to party with their favorite NBA Superstar.  I was their in '04 and there were a lot more people than I ever expected.

NBA players roll deep.  There's family, entourage, agents/publicists/assistants, bodyguards, mistresses thay they need to take care of.  

Freeman compares the cost of living in Houton to LA, are you kidding?  Hotel suites and restaurants/bars in LA cost 10 times more $$ that of Houston 5 years ago.  Who the hell goes to Houston to party.  We're in LA trick.  The best strippers from around the country will fly in that weekend.

A lot of coin will be spent in areas that cannot be accounted for like strip clubs and $100 million ain't what it used to be anyways. 




Since: Aug 9, 2008
Posted on: June 8, 2009 11:48 pm
 

All-Star Game = $100 million? Impossible

You mentioned 25 star players but you left out the entourages...........that's at least 450 people.....



Since: May 24, 2008
Posted on: June 8, 2009 10:42 pm
 

All-Star Game = $100 million? Impossible

I think it's completely possible to have a 100 million dollar impact.  Most of these NBA stars have posses, and most of them have guns.  You have to almost guarantee that some of them will do something stupid and get put in jail.  Most jail time comes with fines.  Just bleed the thugs.  LOL



Since: Sep 13, 2006
Posted on: June 8, 2009 10:17 pm
 

All-Star Game = $100 million? Impossible

I dont even think Vegas got 100 Million in economic impact from the All Star game being here...and I also know that they said they dont want it EVER again because of all the BS....Let LA have the All Star Game EVERY year in my opinion



Since: Jan 10, 2008
Posted on: June 8, 2009 8:32 pm
 

All-Star Game = $100 million? Impossible

Warped gets my reward for best post of the day.  You forgot bail and hush money also.  I think that might take us to where we need to be.



Since: Jan 10, 2008
Posted on: June 8, 2009 7:57 pm
 

All-Star Game = $100 million? Impossible

LeBron (Witness What?) James will not be winning the Dunk Contest. i hope we see some stars go out this year and put him in his place. A great individual talent and amazing player yes infact I beleive he is a prodegy and a helluva player. But he may not be called one of the greatest till he wins that ring. Then he can go up with the Kobe. But they are below all the great legends such as Kareem, Bill Russel, Magic, Larry Legend, Jordan and Wilt (not trying to snub anyone just naming a few) that they dont have the right to be mentioned with these guys. My top 4 to ever play the game, Russel, Jordan, Bird and Magic. Thats that and I hope Lebron losses to Nasty Nate. That kids a real talent!

-Jabar




Since: Nov 22, 2006
Posted on: June 8, 2009 4:36 pm
 

All-Star Game = $100 million? Impossible


HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA
Warped, this is one of the all-time most hilarious posts!!!



Since: Oct 3, 2006
Posted on: June 8, 2009 4:12 pm
 

All-Star Game = $100 million? Impossible

I don't see that number as being accurate either. Usually an event has economic impact to a city because it is bringing in out of town dollars to that city that would normally be spent elsewhere. If Los Angelinos spend money at the all star gala then it is money that is at the expense of another beneficiary in the area such as other entertainment options, shops, etc. So the impact of that local money from the all-star event is negated.

As far as the outsiders are concerned, hypothetically estimate that 30, 000 people come in from out of town for the various game events (I am assuming that tickets to the slam dunk contest, all-star game and any other related Staples Center all-star events are independent of one another). To generate the $100M figure each one of them must then spend $3,333 in the greater LA region. I am sure that hotels, restaurants, game tickets and shops are pricey in LA but I don't think that the prices are high enough to generate the estimate of Stern. $1000 per head is more likely. So depending on the number of out of town attendees my guess at economic impact would be anywhere from $15M to $30M impact.



Since: Dec 5, 2006
Posted on: June 8, 2009 1:51 pm
 

All-Star Game = $100 million? Impossible

One simple reason. Lebron will be reigning DUNK CHAMP lol.. that should create 100 million on its own.. But if he loses I hope he doesn't shake hands HAHAHA


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