15.11.2020
21:08

The three regular season games that have been held at the Azteca Stadium have meant a total economic impact of USD 171 million, according to data from Ernst & Young

By Yesme Cortés November 15, 2020 Share on FacebookShare Share on TwitterTweet Share on WhatsAppShare

The presence of the NFL in Mexico, with three regular season games, has meant a total economic spill of USD 171 million , according to data reported by the study carried out by the firm Ernst & Young. Matches were mostly scheduled in the third week of November.

The 2019 duel was played by the Kansas City Chiefs and the Los Angeles Chargers , according to the data obtained via transparency, which meant an economic impact of USD 67 million , that is, an increase of 13% compared to the game that was played. in 2017 (USD 8 million more). It should be remembered that the 2018 game was not played due to the poor conditions of the Azteca Stadium field.

Meanwhile, the 2016 game, between Houston Texans and Oakland Raiders, was the first Monday Night Football to be played outside of the United States, it meant USD 45 million .

But not all items have positive balances. There were 76,252 fans who witnessed the victory led by Patrick Mahomes and company from 24 to 17 over the Chargers. Of which 27,900 traveled to Mexico City from other entities or came from abroad for the game. They were tourists who on average stayed in the country for five days, a longer stay than those who traveled for the Grand Prix of Mexico (three days).

In the case of people who came from the interior of the Mexican Republic, there were 22,500 national visitors , an item that also registered a decrease, although it was 4.2 percent.

Of the people who gathered at the Azteca Stadium for the NFL regular season game that took place on November 18, 2019, 5,400 were foreign fans, mostly from the United States. This means a reduction of 39% or 3,500 fewer visitors compared to the duel between Oakland Raiders vs New England Patriots (November 19, 2017).

The average spending of national visitors per night was USD 1,600 and in the case of foreigners it was USD 342 . Although the number of fans who traveled to watch the NFL game in Mexico decreased, however, spending in this sector has practically remained during the three editions, at USD 44 million.

They are tourists who also visit other places in the country, so the economic impact was estimated at USD 600,000 (12 million pesos) and two years ago the figure rose to USD 1 million.

The visitors attracted to Mexico as a result of the NFL game brought broad economic benefits to the tourism sector and the economy in general. This was driven by the activities these visitors participated in, from shopping in and around the stadium, spending for lodging, retail and travel. These benefits apply not only to Mexico City, but also flow to the rest of Mexico, particularly when international visitors travel through the country ”, indicated in the study carried out by the consultancy.

One of the strategies implemented by Enrique Peña’s administration, through the now-defunct Tourist Promotion Council (CPTM), was to promote the Mexico brand and Visit Mexico through sporting events such as the NFL or Formula 1.

(Photo: Kirby Lee-USA TODAY Sports)

In the case of American football, the annuities are USD 14.5 million , an amount that is covered in five payments, resources that were covered with what was captured from the right of visitors without permission to perform remunerated activities (DNR), a tax that is charged to foreigners when they enter the country by air, not having exchange coverage to make these types of payments, this quota increased.

Six out of ten foreign visitors who traveled to see the game in Mexico responded that after their visit for the game they were likely to return , while the proportion in 2016 was 72% and 90% indicated that they would recommend it as destination.

The visitors attracted to Mexico as a result of the NFL game brought broad economic benefits to the tourism sector and the economy in general. This was driven by the activities these visitors participated in, from shopping in and around the stadium, spending for lodging, retail and travel. These benefits apply not only to Mexico City, but also flow to the rest of Mexico, particularly when international visitors travel through the country ”, indicated in the study carried out by the consultancy.

(Photo: File)

The 2019 game was broadcast on ESPN and had an average US audience of 13 million.

Meanwhile, Mexico is the most important market for the American football league, it is estimated that in our country they have approximately 21 million fans . The 54th edition of the Super Bowl was watched by 12.01 million Mexican viewers, in which Kansas City defeated the San Francisco 49ers 31-20, according to information from Nielsen Ibope.

How were the negotiations in 2018, after the cancellation of the game?

It was in January of this year that the league announced that the country was scheduled for a regular season game for 2020 and 2021, but due to the health contingency, the regular phase games that were agreed outside the United States were canceled.

That league announcement was already stipulated since 2018, it should be noted that the game between Kansas City Chiefs and Los Angeles Rams is not played that year due to the poor conditions of the Azteca Stadium field. In this case, the NFL is the one that provides a service, in this case it is the game, and for this reason it had to hire a third party to carry it out. The government only makes an agreement for this event to take place that would allow the promotion of the Mexico brand.

The NFL will remain in Mexico City for three more years. (Photo: Twitter)

The poor conditions of the grass of the Azteca Stadium, facilities that the NFL hired, in order to carry out the third game of the first contract (which was signed in February 2016), in view of this situation, the CPTM and the NFL agreed to terminate the agreement in a anticipated , which is indicated in an official letter dated November 15, 2018 and the match was to be held on 19.

It should be noted that the annuities were made three payments, prior to the holding of said meeting (Kansas City vs. Rams), the Mexican government had disbursed USD 10.8 million out of a total of USD 14.5 million.

The document indicates that it was on November 13, 2018 that the “provider”, in this case NFL, formally informed the “Council”, the CPTM, arguing that it was impossible to hold the Event due to circumstances not attributable to the ” provider”. The closing and settlement act between both parties was issued on November 28, 2018.

In that same year, a new contract was agreed for three games: 2019, 2020 and 2021 . Situation for which the NFL announced in January of this year that it would “return” with regular season games, which was already stipulated by contract.

MORE ON OTHER TOPICS:

Source

Leave a Reply

Your email address will not be published. Required fields are marked *