The Big Game Economy
There are only a few days that can rival the Big Game in America. Everyone spends the whole day gathering supplies and setting up for the party they are about to host, and the captivating game of American football commences at 5:30, lasting into the night. Yesterday’s game ended with the Kansas City Chiefs beating the Philadelphia Eagles 38-35 in a controversial ending, but one thing that might be more interesting is the economics regarding the Big Game, and the day following it.
Data from the National Retail Federation showed that 103.5 million people planned to host a party, with another 17.8 million going to a restaurant or bar. Overall, total spending for food, drinks, decorations and many other purchases for the Big Game adds up to nearly $16.5 billion, an insane amount going towards one day. The average American consumes about 2,400 calories during the game alone, which is the recommended caloric intake for a whole day. This metric simply reflects the consumer aspect; for businesses, they look to attract new consumers through attractive Big Game ads that many viewers religiously look forward to. Although the rates vary based on when a company bought an ad spot, it is estimated that a 30 second ad spot cost between $6 million and $7 million, a record number. Ads can be very successful, like Coinbase’s ad from the previous Big Game, or unsuccessful like many of E*TRADE’s commercials. Businesses also have to deal with the lack of productivity from workers the day after the Big Game, along with countless researchers finding that 17 million workers miss work the day after. This has prompted some lawmakers around the country to propose making the day after the Big Game a holiday, which many would appreciate.
Looking back at the previous story, sin stocks tend to have a good day when it comes to the Big Game. Beer and alcohol consumption is generally higher on Big Game Day, whether at a party or the stadium. Countless bets are wagered on the two teams playing, and there are a lot of losers and few winners as usual. If there’s one impressive takeaway, it’s that rapper Drake ended up winning his bet on the Chiefs!
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.