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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">https://news.bloombergtax.com/daily-tax...
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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& #39; 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& #39;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& #39;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& #39;s 2019 event. Here are the figures the league claims.
Covid-19 may have dampened Cleveland& #39;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& #39;s event compared to recent must-watch TV.
Sports economists believe pro sports events, like all-star games and the draft, don& #39;t have lasting impact on host-cities& #39; revenue. Other critics point to the league& #39;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.
