Who's Making Money on the Super Bowl?
We all know the NFL has a big payday coming this Sunday when Super Bowl XLVIII officially goes down in the books. The league isn't the only one who will see its wallet fatten after the weekend, however.
First, there's the New York/New Jersey region. The Super Bowl is being touted as capable of producing a $550 million to $600 million economic impact for the area, but who's actually making that money?
A place to stay
Hotels are one obvious answer.
Kimpton Hotels, a boutique hotel chain, expects to see rates 200%-300% higher Thursday through Sunday. It comes at a good time of the year for Kimpton, too.
"January is the softest month of the year for New York City," says Shannon Spillett, city director of marketing at Kimpton Hotels, New York City.
Although hotels in New York City aren't experiencing the same sellouts that hotels closer to MetLife Stadium are, Spillett says occupancies for her hotels are very high.
Hotels aren't the only option for accommodations, however. Homeowners are cashing in on the Super Bowl as well. According to vacation home rental site HomeAway, listings in the Gateway Region are up 260% over last year, with inquiries up 152%. The average going rate? A whopping $1,568 per night. With 142 listings in the region, HomeAway estimates homeowners will rake in a total of $222,656 per night or $667,968 for the three-day weekend.
Abel Rodd is one of those homeowners. He'll be depositing $16,000 for a 36-day rental to a group of graphic designers from the NFL. Rodd originally listed his property at $3,500 per night and received several inquiries from groups of 15 to 20 fans. He acknowledges he could have made closer to $30,000 if he'd rented to one of those groups, but he felt his house would be safer in the hands of the NFL employees.
Dr. Peter Tichy also rented out his New Jersey house. His base rate through most of the year is $380, but he was able to secure a 9-night rental for $6,300, an 84% increase over his base nightly rate.
Everything else you need
Plenty of local small business owners are gearing up to cash in on the next few days as well. Limo service Luxor Limo told the New York Daily News that it's projecting $210,000 in revenue, and the United Restaurant and Tavern Owners Association of New York expects a 30% increase in business.
It turns out that you don't have to be in New Jersey or New York to profit off of the Super Bowl, however. National pizza chain Domino's says it expects to deliver more than 11 million slices of pizza and 3 million chicken wings nationwide, an 80% increase over a typical Sunday.
It's not just your everyday retailers getting in on the action, either. Private jet providers arranging for travel from Denver and Seattle to Teterboro in New Jersey are cashing in too. A mid-size jet that seats seven to eight people started at $36,000 if you were traveling from Denver and $64,000 if you flew in from Seattle.
Twenty-five hundred miles away, Vegas will be getting rich too. Last year, sports fans bet $98.9 million at Nevada casinos on the big game, according to the American Gaming Association, netting Nevada sports books $7.2 million. Mint.com estimated in 2012 that $8.6 billion was bet on the Super Bowl worldwide.
Advertisers will attempt to cash in on their average $4 million outlay for a 30-second commercial. Go Daddy, the company synonymous with building its brand off of sexy Super Bowl commercials over the years, had its biggest sales day in company history the day after the Super Bowl last year, with 10,000 new customers added in just one day.
And on the field
Last but not least, some of the players will cash in on their moment in the sun (or snow, as the case may be this year). Players on the winning team will receive $92,000, and players on the losing team will get $46,000. That's in addition to payments to players on each team totaling $91,000 for other postseason games played this year. Players might also have bonuses in their individual player contracts for playing in the Super Bowl or being selected MVP.
A big day on sports' biggest stage can mean big bucks for a player in endorsements as well, especially if you're the Most Valuable Player. Joe Flacco, who led the Ravens to a Super Bowl victory last year, signed a deal with gummy bear company Haribo just before the big game. Since becoming the Super Bowl MVP, he's also appeared in an ad for McDonald's . Flacco isn't much for endorsements, but a look at Drew Brees' $11 million in endorsements in 2012-2013 or Aaron Rodgers $6 million gives you a good idea of where an MVP quarterback might fall on the earnings scale.
The next step
Want to figure out how to profit on business analysis like this? The key is to learn how to turn business insights into portfolio gold by taking your first steps as an investor. Those who wait on the sidelines are missing out on huge gains and putting their financial futures in jeopardy. In our brand-new special report, "Your Essential Guide to Start Investing Today," The Motley Fool's personal-finance experts show you what you need to get started, and even gives you access to some stocks to buy first. Click here to get your copy today -- it's absolutely free.
The article Who's Making Money on the Super Bowl? originally appeared on Fool.com.
Kristi Dosh has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.