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NFL Draft Host Cities Trade Branding Bang for Big Taxpayer Bucks https://news.bloombergtax.com/daily-tax-report-state/nfl-draft-host-cities-trade-branding-bang-for-big-taxpayer-bucks
The final costs to Cleveland for the @NFLDraft are yet unknown, City Council President Kevin Kelley said, but organizers anticipate about $5.5 million combined private and public cost. The city has already spent $1 million knocking down a warehouse for the draft stage.
The event is also back-stopped by a $2 million grant provided by the Ohio Development Services Agency, which can be used to reimburse local organizers' private spending on the event, documents received in a public records request show.
The @Browns pushed to change state law in 2018 to get this expanded public grant, which an executive said would strengthen Cleveland's changes of landing the draft. That incentive helps defray the costs of the local organizers.
Cost to cities and organizers comes in the form of free "in-kind" services pledged to the @NFL. Examples include free venues, insurance, EMS and police. Nashville even paid for the production costs of free @TheTimMcGraw and @DierksBentley concerts.
Incentives are commonplace in event tourism--Ohio paid more than $10 million to host the 2016 Republican National Convention. So what the NFL is requiring isn't novel--but our story gives a peek behind the curtain as to how cities view the cost-benefit.
In return host cities get a temporary vistor spending bonanza that the league estimated higher than $130 million in Nashville's 2019 event. Here are the figures the league claims.
Covid-19 may have dampened Cleveland's chances of attracting massive crowds to the free event. But marketing experts and organizers say the publicity alone is worth it. The draft commands sky-high viewership. See how last year's event compared to recent must-watch TV.
Sports economists believe pro sports events, like all-star games and the draft, don't have lasting impact on host-cities' revenue. Other critics point to the league's massive revenue and question whether cities should pay for costs the league could easily cover.
The @NFL says the business of the draft is "symbiotic" with host cities. NFL connects with fans in an exciting off-season event attracting college & pro football watchers that scores big TV ratings. Cities get to host a huge event, reaping the local spending and publicity.
