Thursday, April 2, 2009

Michigan State Basketball and Detroit, is it really the impact it's proclaimed to be?

So many (ESPN, Detroit News, THE HUGE SHOW, etc.) have proclaimed the amazingly great economic impact having the Spartans of Michigan State play in the Final Four at Detroit's Ford Field. I must disagree. First, the implication made is that so many fans in the state will flock down to Detroit to watch the game in the venue that will set a record for number of spectators for a NCAA tournament. Fact, the tickets were sold via lottery and such (except for some withheld for the schools, a paltry sum) over a year ago! Some fans may spring for the higher asking prices via Stub Hub and such, but one must realize that this payment made by Spartan fans in Michigan will be dollars leaving the state, not being spent in the state... Secondly, an implication that so many more fans will pack Detroit 'watering holes' to see the game (see fact above on fans getting into the game) will boost sales significantly. Fact, this denies that this occurance is independent with respect to the Spartan faithfull and the location of the game(s). The sports bars will be packed regardless of where the Spartans play, across the street or across the country. Fact, the hotel rooms that may have been reserved by fans of out-of-state teams will be reduced by a quarter or more. Most fans (given the doom-and-gloom prognostications) are denizens of this great state, and are assumed to be in poorer financial situations, hence they cannot afford to splurge on a room in a hotel in Detroit when these same people could just drive an hour or three to Detroit, catch the activity then head back home. So, don't believe everything you hear/read. Like this blog...

2 comments:

  1. I was reading something somewhere about this, and more or less rolled my eyes at it.

    Yeah, sure, some of the fans might litter local watering holes and raid nearby liquor stores and gas-stations for beer for tailgating parties- but I don't exactly foresee a whole lot in the way of financial 'splurging' (like you said, for hotel stays), because quite simply? Nobody's willing to shell out the extra money. Not with most people sitting on tenterhooks at their jobs, waiting for the next set of lay-offs or worse, word that their jobs are going away for good.

    Hell- I don't even foresee too many locals driving out to the game. Most of them will likely be doing the same thing I am- which is, sitting on my couch with some buddies, some booze, and some nachos, watching the game (for free, depending on which station it's playing on). It's easier on the wallet (especially since I live approximately 2000 miles away), and doesn't cost me more than the groceries to feed the company I've invited over and the electricity to run my television.

    ReplyDelete
  2. Who actually has money to spend nowadays.Right?

    ReplyDelete

Share your unique economics experiences. What did you have to give up to gain that which at the moment seemed so necessary to you? Imperfect information spanked you and now diminishing marginal utility smacks you upside the head, eh?