The NFL is estimating that Super Bowl 47 will bring a $434 million boost to the New Orleans economy. But is that number grossly exaggerated? Some analysts say the game won't be the economic boom the city is anticipating.
Economics professor Victor Matheson assessed the economic impact of Super Bowls from 1973 to 1997 and discovered that, at best, the Super Bowl contributes one-quarter of what the NFL promises cities that host the event.
Speaking on HuffPost Live Friday, Matheson said the data shows that Super Bowl host cities usually see a benefit somewhere between $30 and $90 million dollars.
"That's not something a city wants to turn down," Matheson said, "but it's also a fraction of what the city claims and it's also a fraction of what New Orleans has spent over the last 5 years or so making significant upgrades to the local area and to the Super Dome at least in part to try and attract this event."
Even with the costs involved in preparing for the big event, New Orleans Mayor Mitch Landrieu recently argued that the city will experience lasting benefits since the Super Bowl was the impetus to make $1.2 billion worth of improvements to roads, the airport and hotels and restaurants.
Matheson told HuffPost Live's Alyona Minkovski that part of the problem is that money spent in New Orleans this weekend won't necessarily stay there. Even though hotels will be full and are likely inflating their room rates, local desk clerks and room cleaners on staff are unlikely to see any of that profit in their salaries.
"All this money is going back to corporate headquarters in New York City," Matheson said. "So it's being spent in New Orleans, but none of that is sticking in New Orleans."
Watch the Full Segment on HuffPost Live.