We look at the benefits and costs of hosting big events like the Super Bowl.
SEASON 4: EPISODE 31| Airdate: 2/11/2022
Las Vegas has long been known as the ‘Entertainment Capital of the World,’ but now, it could be called the ‘Event Capital of the World.’
Recently, the city hosted the Pro Bowl and the NHL All-Star Game and in April the music industry will hold its biggest night – the Grammys – in Las Vegas.
John Katsilometes, entertainment columnist with the Las Vegas Review-Journal, explained that the Grammys were supposed to be held in Los Angeles in January but because of COVID-19 concerns organizers moved the event from the Cryto.com Arena to the MGM Grand Garden Arena.
Katsilometes said it is unlikely that the big show will come back to Las Vegas until after its two-year contract with the Crypto.com Arena is up; however, he said the city should have hope that the show will move here after the contract is over.
He said that the Grand Garden Arena is very flexible but it lacks the lucrative VIP suites that places like the T-Mobile and the Cryto.com Arenas have.
“What to look for is how the show plays out in Las Vegas this year and maybe set the stage for some long-term planning after it’s finished its commitment in LA,” Katsilometes said.
If it does come back, it might be at T-Mobile Arena, but the Vegas Golden Knights schedule might cause a problem.
“My best information, from the people who really know this stuff, is that this is going to be a test, the Grammy show in April 3rd for Las Vegas civically to see how it plays on TV and how the recording academy likes the show here,” he said.
Las Vegas is obviously not the recording industry mecca like Los Angeles but it is the mecca of live entertainment and a lot of people from the music industry are familiar with putting on live shows in Southern Nevada. Katsilometes said the Grammy show would be like an audition for the city.
While the Grammys will be great for Las Vegas, the Super Bowl in 2024 is expected to be even bigger. Jeremy Aguero is with the Las Vegas Raiders, but before that, he had his own economics firm Applied Analysis. He now sits on the Super Bowl host committee.
Aguero said the Big Game will bring all kinds of benefits to the city from jobs and business engagement but he noted that perhaps the biggest boost to the city from the Super Bowl will be the exposure.
He said Las Vegas is a unique city in that it is designed specifically around hosting people and being the host city of the Super Bowl is, perhaps, the biggest hosting opportunity of all. Aguero said just talking about having the Super Bowl in Las Vegas has tremendous value.
As far as specific economic impact, Aguero put the number at between half a billion and a billion dollars. That includes more than just the game but also the events leading up to it like the fan festivals, concerts and opening night festivities.
“I’m willing to bet you, as we sit here right now, that it will be the single largest economic event that we have ever had in Southern Nevada,” he told Nevada Week.
There are costs involved. The host committee has said it needs $60 million to meet the expectations of the NFL. The Las Vegas Convention and Visitors Authority, which is funded through taxes on hotel rooms, said it will kick in $40 million but the other $20 million will come through fundraising.
The money goes towards security, public transportation, media centers and fan experiences. Aguero said that, unlike other cities that might have lost money on hosting the Super Bowl, Las Vegas will come out ahead because of how it is funded and how it is already set up to take on large events.
