A Gridiron Goldmine?

Mark Yost had a piece in yesterday Wall Street Journal on the economic impact of hosting the Super Bowl that asks Will Detroit Be the Loser?:

Indeed, Detroit natives are watching in amazement as their city, long the poster child for urban decay, has undertaken a massive effort to clean itself up for the 100,000 out-of-town guests expected for Super Bowl XL. Major highways have been repaved, long-abandoned buildings have been demolished, and there's a plan to get the homeless off the streets for Super Bowl weekend, Feb. 3-5 -- all at a cost of about $100 million in public and private money.

The NFL and the Detroit Super Bowl XL Host Committee put the projected payoff at about $300 million, which would make the investment seem reasonable. But that's a fiscal Hail Mary that's never likely to result in a touchdown. Or so say a bevy of sports economists who argue that the economic impact of the Super Bowl is as hyped as the halftime show.

"The NFL says $300 million, but I'd say it's closer to $50 million," says Allen Sanderson, a University of Chicago economist.

What's a couple of hundred million dollars between friends? Another problem with measuring the true economic impact of the Bowl is figuring out how much money actually stays in the local economy.

"The athletes, the chain hotels and restaurants receive money from the Super Bowl and take the money out of the area," notes King Banaian, economics chairman at St. Cloud State University in Minnesota. "This reduces the impact on the local economy."

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I know that dude.
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"They swipe the credit card in Detroit, but that's about all Detroit will see of that money," says Prof. Porter. Furthermore, he argues that higher hotel rates and occupancy have more of an impact on hotel investors in Riyadh than on taxpayers in Detroit.

Let's at least hope that visitors to Detroit will patronize the local working girls. Those of us in Minneapolis know all too well what a blow to civic pride it can be when out of town talent is imported for such pursuits. Yes, I'm looking at you Fred Smoot.

UPDATE--James from Folsom e-mails to report that while the Super Bowl may not help Detroit economically, the sex trade in Windsor, Ontario is primed for a surge in business:

Apparently, nearby Windsor, Ontario, has some of the finest strip clubs in North America, and they are bringing in "out-of-town talent" to supplement their, um, talent. With Windsor just a short drive over the Ambassador Bridge or through the tunnel, I can see a lot of Super Bowl money boosting the economy of our friendly neighbors to the north. Not sure that seems right.

James was also kind enough to send along some links as well.

Super Bowl, meet Super Sin City:

According to the Windsor police, the city could see more than 100,000 visitors over Super Bowl weekend. And no sector is more prepared than its vice peddlers: its casinos, its escort services and, in particular, its renowned strip clubs, collectively known as The Windsor Ballet. It's a bounty of riches that has led newspapers south of the border to dub the town "Sin City."

Windsor hopes Super Bowl can show it's more than just sin:

Prostitution and gambling are legal, naked ladies dance in strip clubs and Cuban cigars are for sale in shops along the main street.

It's hard to dispute that many of the 100,000 Super Bowl fans expected in Detroit next month will visit this border city for some sinful delight.

'Detroit News' Report on Border Town as 'Sin City' Upsets Mayor:

Windsor, Ontario's mayor and downtown business officials are upset with a Detroit News article that pointed out something well-known to many male visitors with an expense account: The Canadian border town permits sex-for-money escort services, sells Cuban cigars, and is home to some acclaimed strip clubs.

The object of their ire is a Jan. 1 report by News business writer Louis Aguilar headlined, "Is Windsor the Super Sin City?/Canadian town's sex trade may lure game revelers to cross border."

"The testosterone-charged throngs of Super Bowl XL may temporarily turn this pleasant border town into Sin City North," Aguilar wrote. "There are things you can get in Windsor that you cannot legally get in Metro Detroit. Cuban cigars. All-nude strip clubs. Sex for money."

In anticipation of Super Bowl crowds, the story reported, Havana Heaven and other retailers are stocking hundreds of extra Cuban cigars.

The News said the all-nude clubs known in the region as the "Windsor Ballet" are also gearing up for a big week: "Clubs like Cheetah's of Windsor say women from around the world have been applying in droves to bare it all and dance during Super Bowl week."

Escort services reported that they received requests for reservations beginning more than a year ago, according to the News.

While street solicitation of prostitution is illegal, sex-for-money arrangements through "escort services" is legal in Windsor.

The article quoted the owner of four all-nude clubs as saying Super Bowl week is "like a dream" for his and similar vice businesses.

Windsor super for sin, U.S. fans told

American sports fans are beginning to talk up the perfect weekend in a foreign city--football, Cuban cigars and sex for money.

Hell, why not just cut to the chase (and save the tunnel ride) and have the Super Bowl in Windsor?