NFL Los Angeles Stadium in Carson Economic Impact Analysis
4 Institute for Applied Economics
will allow for leakage from the region for non-local
spending, and will also take into account the higher
savings rates of upper-income households. These
incomes are subject to usual taxation. The overall player
salary budget is reduced to account for approximately
25 percent of team personnel living elsewhere during
the off-season. The remaining player costs are reduced
by an additional 25 percent to account for immediate
expatriation.
Other on-site operations such as concessions,
merchandise and parking are modeled with a revenue
approach using estimates provided by the client.
Increases in final demand for off-site goods and services
by visiting teams and NFL officials such as
accommodations and food and beverages are estimated
using industry averages and survey data as described in
the narrative.
While this analysis includes spending as a result of
activities at the stadium and team business activities,
spending that may occur elsewhere in the region by
game attendees before or after the game is not
considered.
NFL-related revenues that are not included in the
analysis are: local and national broadcasting rights, NFL
royalties, local advertising revenues, signage,
promotions and NFL transfers. These revenues are
typically significant but the extent to which they remain
locally is not known.
The impacts of non-NFL events are estimated using
projected attendance and ticket sales, and on-site
concession and merchandise estimates. Not included in
the analysis is off-site regional spending of event-goers
such as restaurant meals or gas.
Where data has been provided by the client,
reasonableness of estimates is assessed using
comparable data published in economic analysis
conducted in numerous studies of stadium construction
and renovation, stadium operations and professional
sports team operations, including those of NFL teams, as
well as other data as appropriate.
The metrics used to determine the value of the economic
impact include employment, labor income and the value
of output. Employment includes full-time, part-time,
permanent and seasonal employees and the self-
employed, and is measured on a job-count basis
regardless of the number of hours worked. Labor income
includes all income received by both payroll employees
and the self-employed, including wages and benefits
such as health insurance and pension plan contributions.
Output is the value of the goods and services produced.
For most industries, this is simply the revenues
generated through sales; for others, in particular retail
industries, output is the value of the services supplied.
Value added is the contribution to regional GDP of the
investment or ongoing activity.
Estimates are developed using software and data from
the IMPLAN Group, LLC, which traces inter-industry
transactions resulting from an increase in demand in a
given region. The economic region of interest is Los
Angeles County.
The total estimated economic impact includes direct,
indirect and induced effects. Direct activity includes the
materials purchased and the employees hired by the
developer itself, and in the case of the operations, by
each hiring onsite entity. Indirect effects are those which
stem from the employment and business revenues
motivated by the purchases made by the developer or
hiring entity and any of its suppliers. Induced effects are
those generated by the spending of employees whose
wages are sustained by both direct and indirect
spending.
All values are expressed in 2015 dollars.
Other Benefits and Considerations
In addition to quantifiable economic and fiscal impacts
described in this analysis, there is additional activity
related to having one or two NFL franchises in the local
area which has not been considered here.
As part of the NFL organization, it is a possibility that the
Los Angeles Stadium in Carson will host one, if not more,
Super Bowls in the first decade of its operations. As a
marquee sporting event, the Super Bowl attracts
hundreds of thousands of visitors from around the
nation and the globe—most of whom will be out-of-town
visitors. These fans often stay for several days to enjoy
Super Bowl festivities and frequent local establishments,
including not only hotels and restaurants but also taking
the opportunity to visit the numerous tourist
destinations that make Los Angeles a premier vacation
spot for millions of people around the world. The
spending of these fans and visitors will likely add
millions to local government coffers and generate a
significant economic impact, which is not included in
this study.