Consumer spending on live sporting events has demonstrated remarkable resilience and growth in the post-pandemic era, emerging as a significant driver of local economic activity. A recent analysis by the Bank of America Institute reveals a substantial increase in spending on spectator sports, not only surpassing pre-pandemic levels but also outpacing growth in other live entertainment sectors like concerts. This trend highlights the potent ripple effect live events have on surrounding businesses, particularly restaurants and bars.
According to the Bank of America Institute’s findings, consumer expenditure on live sports events has risen by an impressive 25% compared to 2019. This growth rate exceeds that observed for broader live entertainment categories, a trend corroborated by data from the Bureau of Economic Analysis. David Tinsley, a senior economist at the Bank of America Institute, noted that while high-profile music tours garnered considerable attention, spending on spectator sports has shown even stronger sustained growth.
- Consumer spending on live sports has shown remarkable post-pandemic growth and resilience.
- This expenditure has surpassed pre-pandemic levels, outperforming other live entertainment sectors like concerts.
- The Bank of America Institute reported an impressive 25% increase in consumer spending on live sports compared to 2019.
- This growth rate is a significant driver of local economic activity, benefiting surrounding businesses like restaurants and bars.
Economic Impact on Local Communities
The analysis delved into the localized economic impact of live sporting events, utilizing aggregated and anonymized credit and debit card data to track spending within specific zip codes around venues. By examining events such as the FIFA Club World Cup and Major League Baseball (MLB) games, the study contrasted the effects of one-off international tournaments with recurring seasonal fixtures.
During the FIFA Club World Cup, hosted across 12 U.S. venues, zip codes encompassing game sites experienced notable spending surges. Average spending in these areas rose by approximately 7% year-over-year during the tournament, with peaks reaching 10% at certain points. This increase was primarily driven by enhanced consumer spending on food and beverages, alongside a rise in parking expenditures. For instance, the zip code around MetLife Stadium in New Jersey, which hosted critical matches, saw spending concentrated around the event dates.
Similar economic boosts were observed around MLB stadiums. Spending in the vicinity of Yankee Stadium in the Bronx registered an approximately 25% increase compared to the offseason, while areas near Citi Field in Queens saw nearly a 29% rise. Food and beverage purchases were central to this growth, with spending up about 76% near Yankee Stadium and 66% near Citi Field. High-profile matchups, such as the “Subway Series” between the Mets and Yankees, significantly amplified this effect, with average daily spending nearly doubling near Yankee Stadium and increasing by 60% near Citi Field during the series compared to the same period in the previous year. Regions like St. Louis and Boston also reported substantial economic impacts, with spending up around 60%.
The 2026 FIFA World Cup: A Future Catalyst
Looking ahead, the economic influence of major international sporting events is poised for further expansion with the upcoming FIFA World Cup in 2026. This expanded tournament, co-hosted by the U.S., Canada, and Mexico, will feature 48 teams playing 104 games across the continent, with eleven U.S. stadiums involved. Given its scale, the 2026 World Cup is anticipated to generate a significantly larger economic impact than the Club World Cup.
The United States last hosted the World Cup in 1994. The return of this global spectacle is projected to deliver substantial economic benefits. A joint study by FIFA and the World Trade Organization estimated that the 2026 FIFA World Cup tournament will boost the economy by approximately $17 billion and support up to 185,000 jobs, underscoring the profound economic footprint of large-scale live sporting events.
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