That depends on what else the city or the stadium could have been doing that weekend. Would, say, holding a rock concert have brought in more money or cost less? The cost of an alternative not chosen is called the opportunity cost.
The top ten teams each year spend fortunes on their players and staff. Individual players can earn more than $43 million for salary plus bonuses a year.
There is only one U.S. professional football league, with one Super Bowl. The NFL is the entire U.S. professional football market, which makes it a monopoly. As long as the demand for consuming professional football holds, the NFL can ask whatever price it wants to increase its profits. Of course, if consumers start to think that it’s too expensive to consume professional football, they can turn to college football, substitute another sport, or pursue another interest.
Historically, Super Bowl games have been among the most watched programs on TV.
So networks are willing to pay billions of dollars to broadcast the game. But of course they want to make a profit, too. The networks turn around and sell commercial or ad spots to other companies, with a mark-up on the price of advertising airtime. The Super Bowl broadcast is profitable for them.
So is hosting the Super Bowl worth it? Photo Gallery
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