Fri, Dec 05, 2008

Arizona / West

Glendale lost money hosting Super Bowl

The Associated Press
Tucson, Arizona | Published: 05.13.2008
PHOENIX — Playing host to the last Super Bowl turned out to be an expensive proposition for Glendale.
According to a new study, Glendale shelled out $3.4 million preparing for and hosting the Feb. 3 game, while losing an estimated $2.2 million in the process.
The study by Scottsdale-based Elliott D. Pollack & Co. estimated that out-of-towners added only $1.2 million to the city's tax coffers around the time of the Super Bowl.
The Pollack study showed surrounding cities raked in $11.3 million in taxes during the same time.
The study found that just 5 percent of an estimated 123,500 out-of-town visitors stayed in Glendale.
In a memo accompanying the study, Pollack said future Super Bowls could bring greater gain to the city. "As the number of hotel rooms and retail space surrounding the stadium increases over the years, the Glendale benefit could increase significantly," he said.
Glendale officials have said they did not anticipate that the city would immediately recoup its expenditures. "You can look at it from getting the actual dollar back," Councilman David Goulet said. "But I think there is a bigger picture to look at than just the pure law of numbers."
Goulet said he figures the city will see a return on the investment over time because the game bolstered the city's image as a destination.
City Councilman Phil Lieberman is more skeptical saying he wants short-term relief in the form of money from the Super Bowl Host Committee or the Cardinals to offset Glendale's costs. "Or I'll tell them to go fly a kite, as I did on the 2012 bid," he said.
Lieberman said he also questions whether the game would spur enough interest that businesses would consider relocating to Glendale.
Glendale is also waiting to hear whether it beat out Indianapolis and Houston for the right to host the Super Bowl in 2012.