As the NFL prepares to announce by Thursday whether Hawaii will retain the 2017 Pro Bowl there is increased debate over how much the game is really worth to the state.
Under the terms of a 2014 contract with the Hawaii Tourism Authority to bring the game here in 2016 and ’17, the NFL has until “no later than March 31, 2016” to opt out of the agreement and move the annual all-star game away from Aloha Stadium.
HTA RETURN ON INVESTMENT
Event |
Subsidy |
Return per $1 |
Pro Bowl |
$5.25 mil. |
$6.30 |
PGA Tour |
$1.99 mil. |
$32.42 |
Xterra events |
$132,000 |
$63.66-$69.04 |
LPGA |
$250,000 |
$66.66 |
Ironman |
$250,000 |
$98.88 |
Kauai Marathon |
$25,000 |
$116.00 |
Source: HTA
Pending the announcement, an NFL spokesman has said that Sydney, Australia, and Houston, “among others, have expressed interest” in the 2017 game, “but we are not going to comment on bids.”
Recent hearings at the state capitol have questioned the amount of the Pro Bowl’s worth to the state as the single most subsidized sports event. By contract, the NFL receives $5 million plus $152,250 in operational costs, a total that is more than the other 18 sports events the state supports combined.
Overall the HTA said it spends $9 million in support of sports events “for an economic impact value of $144 million.”
The HTA this month listed the Pro Bowl as having produced $26.2 million in “impact” and drawn “15,000 plus” visitors.
But state Rep. Matthew LoPresti (D, Ewa) has questioned whether some of the figures, including a $6.30 per $1 return on investment, were exclusive to visitors or also included local residents.
In an announcement after the 2014 Pro Bowl, which was the last one held at Aloha Stadium prior to this year, the HTA said the game “contributed an estimated $71.9 million in direct visitor spending in the state, not inclusive of of the production costs of the game and events surrounding Pro Bowl week …”
It said the figure included “expenditures by travel companions of Pro Bowl attendees.”
The Grassroot Institute of Hawaii, which describes itself as an “independent think tank,” said, “a survey of flight arrivals during the (2014) period reveals that only about 6,726 non-residents arrived for the Pro Bowl, a fraction of those claimed. Therefore, the revenue supposedly coming into the state from the Pro Bowl is largely local money being transferred from elsewhere in the economy.”
In commenting this month on a bill that would provide task force oversight for the Pro Bowl and other events, Grassroot said, “… numbers provided by the state and NFL have been accepted without question, even though there is substantial research that throws such claims into question. Therefore, the assertion that the Pro Bowl creates significant revenue, worthy of further state subsidies, requires deeper appraisal.”
The HTA also said it spends $1,996,364 to support four PGA Tour events for which the ROI is $32.42 per $1. Two Xterra events each produce returns in excess of $60 per $1 spent.
Meanwhile, despite steadily declining TV ratings for the annual all-star game, Hawaii faces increased competition from other areas seeking the event. Arizona Cardinals President Michael Bidwill, who helped secure the 2015 game for Glendale, Ariz., has characterized the Pro Bowl as “a soft infomercial for Hawaii tourism.”
Houston Mayor Sylvester Turner told a press conference last month coupling the Pro Bowl with the 2017 Super Bowl “would be a shot in the arm” for the economically hard hit area.