THE NFL LOS ANGELES STADIUM
IN CARSON:
AN ECONOMIC IMPACT
ANALYSIS
INSTITUTE FOR APPLIED ECONOMICS
Los Angeles County Economic Development Corporation
MARCH 2015
THE NFL LOS ANGELES STADIUM
IN CARSON:
AN ECONOMIC IMPACT ANALYSIS
INSTITUTE FOR APPLIED ECONOMICS
444 S. Flower Street, 37
th
Floor Los Angeles, CA 90071
www.LAEDC.org/IAE
March 2015
This research was commissioned by San Diego Chargers and Oakland Raiders.
The LAEDC Institute for Applied Economics specializes in objective and unbiased economic and policy research in order to
foster informed decision-making and guide strategic planning. In addition to commissioned research and analysis, the Institute
conducts foundational research to ensure LAEDC’s many programs for economic development are on target. The Institute
focuses on economic impact studies, regional industry and cluster analysis and issue studies, particularly in workforce
development and labor market analysis.
Every reasonable effort has been made to ensure that the data contained herein reflect the most accurate and timely information
possible and they are believed to be reliable. This report is provided solely for informational purposes and is not to be construed
as providing advice, recommendations, endorsements, representations or warranties of any kind whatsoever.
© 2015 Los Angeles County Economic Development Corporation. All rights reserved.
Economic Impact Analysis NFL Los Angeles Stadium in Carson
Institute for Applied Economics 1
Executive Summary
FL has been absent from Los Angeles for more
than twenty years. During this time, there has
been interest in moving at least one existing NFL
franchise or an expansion team into the market—the
most recent being the announcement of the Oakland
Raiders and the San Diego Chargers (collectively, the
“Teams”) indicating their potential interest in pursuing a
shared stadium in the city of Carson.
The Los Angeles County Economic Development
Corporation (LAEDC) has quantified the total economic
impact of the development of the Los Angeles Stadium in
Carson in Los Angeles County and of its annual ongoing
operations once occupied. The findings are as follows:
One-Time Project Development Impacts
While the total cost is estimated to be in excess of $1.7
billion, the development cost of the Los Angeles Stadium
in Carson is currently estimated to be $1.6 billion
(excluding financing and other costs). The total
economic impact of this net development cost in Los
Angeles County, including direct, indirect and induced
impacts, is shown in Exhibit E-1.
16,740 annual jobs;
$1.1 billion in local labor income;
$2.6 billion in total output (business revenues);
$1.4 billion contributed to regional GDP; and
$118 million in state and local taxes, of which $32.3
million will be earned by the County and $14.8
million will be earned by cities.
Exhibit E-1
Economic Impact of Los Angeles Stadium in Carson Development
Direct Development Expenditures
($ millions)
1
$ 1,600.0
Total Economic Impact:
Output ($ millions)
$ 2,634.5
Employment (jobs)
16,740
Direct
10,080
Indirect and induced 6,660
Labor income ($ millions) $ 1,074.2
Value added ($ millions)
$ 1,351.0
Total Fiscal Impact ($ millions):
Federal tax revenues
$ 220.3
State and local tax revenues
$ 118.0
State $ 70.9
County 32.2
Cities 14.8
1
Excludes previously completed site remediation and preparation work and financing costs
Source: Estimates by LAEDC Expressed in 2015 dollars
Annual Impacts of Ongoing Activity
Once completed, the stadium may host one or two NFL
teams, and will be a regional cultural and entertainment
venue for non-NFL-related events. The total annual
economic impact in Los Angeles County of all ongoing
activity occurring at the stadium, including direct,
indirect and induced impacts, is shown in Exhibit E-2.
7,560 jobs with one team (13,380 with two teams);
$343 million ($609 million) in local labor income;
$507 million ($891 million) in total output;
$299 million ($528 million) of regional GDP; and
$33.2 million ($60 million) in state and local taxes, of
which $9.3 million ($16.7 million) will be earned by
the County each year and $4.4 million ($8.0 million)
will be earned by cities. This excludes additional
property taxes generated by the increased assessed
value of the redeveloped site.
Exhibit E-2
Annual Economic Impact of All Stadium-Related Activity
One Team
Two Teams
Direct Activity ($ millions):
$ 280.9
$ 531.3
Team and stadium operations
130.0
240.0
Net player incomes 115.0 230.0
Other on-site revenues 34.1 57.6
Off-site revenues 1.8 3.7
Total Economic Impact:
Output ($ millions)
$ 506.7
$ 890.5
Employment (jobs)
7,560
13,380
Direct 5,020 8,840
Indirect and induced 2,540 4,540
Labor income ($ millions)
$ 343.1
$ 609.4
Value added ($ millions)
$ 299.3
$ 527.5
Total Fiscal Impact ($ millions):
Federal tax revenues
$ 59.5
$ 105.4
State and local tax revenues $ 33.2 $ 59.5
State $ 19.5 $ 34.7
County 9.3 16.7
Cities
4.4
8.0
Source: Estimates by LAEDC Expressed in 2015 dollars
N
NFL Los Angeles Stadium in Carson Economic Impact Analysis
2 Institute for Applied Economics
1 Introduction
os Angeles County and its surrounding region have
been without an NFL team for more than twenty
years. There has been periodic interest in either
moving an existing NFL franchise or creating an
expansion team in Los Angeles. As the second largest
media market in the country with dual franchises in
almost every professional sport, the absence of an NFL
team has been marked.
Momentum has been building recently in actively
recruiting teams to the region, including two franchises,
the Oakland Raiders and the San Diego Chargers
(collectively, the “Teams”). The two NFL rivals jointly
issued a statement on February 19, 2015, indicating
their interest in pursuing a shared stadium in the City of
Carson financed solely by stadium revenues. The site
proposed for the stadium is a 168-acre site at the
southwest intersection of the I-405 Freeway and Del
Amo Boulevard, which is currently unoccupied. The
project calls for an approximately 70,000-seat capacity
stadium that could expand to 75,000 seats. The project
will also accommodate a mix of on-site and off-site
parking totaling 18,000 to 20,000 spaces.
The Chargers and Raiders both have ties to Los Angeles
County. The Chargers were established in 1960 as part
of the American Football League and played their first
season in Los Angeles. In 1961, they moved to San Diego
and have been playing their home games at Qualcomm
Stadium since that time. The team joined the American
Football Conference (AFC) in 1970.
The Raiders were also established in 1960 as part of the
American Football League and joined the National
Football League in 1970 as part of the American Football
Conference (AFC). The Raiders played in the Los Angeles
Memorial Coliseum from 1982 through 1994 before
returning to Oakland, CA where they have played since.
The Los Angeles County Economic Development
Corporation (LAEDC) has been retained to quantify the
total economic impact (including direct, indirect and
induced effects) of the development of Los Angeles
Stadium in Carson and its ongoing annual operations.
The analysis is taken in three parts. First, the initial one-
time economic impact of stadium investment and
construction is reviewed and its direct, indirect and
induced economic impact is estimated. Second, ongoing
annual activity associated with NFL games is reviewed
and its direct, indirect and induced economic impact is
estimated. This includes not only the on-site activity
occurring at the stadium but also the off-site activity
related to visiting teams and visiting members of the
media and NFL organization who spend money in the
regional economy before and after the game.
The third aspect to the analysis considers that the
stadium will be a cultural center hosting events other
than NFL games. Activity associated with all other events
occurring at the stadium is reviewed and its direct,
indirect and induced economic impact estimated.
Economic Impact Analysis
Economic impact analysis is used to estimate the overall
economic activity, including spill-over and multiplier
impacts (often referred to as indirect and induced
activity), which occurs as a result of a particular
business, event or geography (direct activity).
L
Economic Impact Analysis NFL Los Angeles Stadium in Carson
Institute for Applied Economics 3
The initial economic activity related to the construction
of the Los Angeles Stadium in Carson and to its ongoing
operations as well as ancillary activities is the purchase
of goods and services from local vendors and the wages
and benefits paid to local workers.
This injection of funds into the county circulates from
the Los Angeles Stadium to the owner and employees of
establishments that help supply the goods and services
that the stadium and franchises purchase. These
suppliers in turn hire workers and buy goods and
services to facilitate their business.
The developers will spend millions of dollars for the
wages and benefits of construction employees. These
workers, as well as employees of all suppliers, spend a
portion of their incomes on groceries, rent, vehicle
expenses, healthcare, entertainment, and so on. This
recirculation of the original expenditures multiplies
their impact through these indirect and induced effects.
The extent to which the initial expenditures multiply is
estimated using economic models that depict the
relationships between industries (such as construction
and its suppliers) and among different economic agents
(such as industries and their employees).
These models are built upon actual data of expenditure
patterns reported to the U.S. Bureau of Labor Statistics,
the U.S. Census Bureau and the Bureau of Economic
Analysis of the U.S. Department of Commerce. Data is
regionalized so that it reflects and incorporates local
conditions such as prevailing wages rates, expenditure
patterns, and resource availability and costs.
The magnitude of the multiplying effect differs from one
region to another depending on the extent to which the
local region can fill the demand for all rounds of
supplying needs. For example, the automobile
manufacturing industry has high multipliers in Detroit
and Indiana since these regions have deep and wide
supplier networks, while the same industry multiplier in
Phoenix is quite small. In another example, the jobs
multiplier for the construction industry is higher in, say,
Arkansas, than in California because the same amount of
spending will purchase fewer workers in Los Angeles
than in Little Rock.
Multipliers can also differ from year to year as relative
material and labor costs change and as the production
“recipe” of industries change. For example, the IT
revolution significantly reduced the job multiplier of
many industries (such as manufacturing, accounting,
architecture and publishing) as computers replaced
administrative and production workers.
Approach and Methodology
Economic impact analysis typically begins with an
increase in final demand for an industry’s output, such
as a purchase of football game tickets, concessions, legal
services, or rent and utilities. Alternatively, analysis may
be conducted using detailed expenditures, such as the
team’s spending on employees, medical care, rent, legal
costs and so on. With complete and detailed information,
these two approaches should be comparable for most
industries.
Spending patterns within the professional sports
business can be quite idiosyncratic. The industry
includes not only highly-compensated players, such as
star centers with the Lakers or pitching sensations with
the Dodgers, but also everyday players who are likely to
be paid less than stratospheric salaries. Professional
football is even more singular in that its players and
owners receive significant compensation that may or
may not stay in the region. These payments are made
from the revenues generated not only from ticket sales
(and premium seats) but also from sponsorships,
broadcasting rights, royalties, NFL transfers and more.
To model the impact of adding one or two NFL
franchises to the local market, a hybrid approach is used
here, as follows:
Team and stadium operations are modeled with an
expenditures approach using operational budgets
provided by the Teams for employee costs, services and
other expenses. These expenditures exclude players’
salaries, which are modeled as increases in incomes for
households earning more than $150,000 per year (the
highest household income category). This methodology
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.
Economic Impact Analysis NFL Los Angeles Stadium in Carson
Institute for Applied Economics 5
In addition to those who travel to Los Angeles, certainly
a significant intangible benefit is the exposure of Los
Angeles to a national and international audience.
Through the media and broadcasting of NFL games, the
area would be marketed to millions of people who will
be exposed to the cultural and natural amenities that Los
Angeles has to offer.
Along with the economic benefits directly attributable to
the presence of one or both NFL teams, local community
and philanthropic groups will likely benefit from the
active support that the NFL and its franchises typically
contribute. Players and staff volunteer and participate in
local community events in their home markets, often at
food banks, youth fitness programs and violence
prevention programs.
It is possible that property values will change in the
vicinity of Los Angeles Stadium in Carson. Certain
businesses and households might be attracted to the
locale while others might move out of the area.
There may be a displacement effect from the presence of
the NFL in Los Angeles County as local residents who
might have spent their entertainment dollars on other
activities might opt to attend a game instead. However,
the extent to which this may occur is not known, and it
may be just as likely that entertainment spending
previously allocated to regions outside of Los Angeles
County will be repatriated.
NFL Los Angeles Stadium in Carson Economic Impact Analysis
6 Institute for Applied Economics
2 Stadium Construction
he Los Angeles Stadium in Carson will be built on
168 acres at the southwest intersection of the 405
Freeway and Del Amo Boulevard in the city of
Carson. The stadium will signify the return of the NFL to
Los Angeles County and will have approximately 70,000
seats that can expand to 75,000 seats for in-demand
events. The project will also accommodate a mix of on-
site and off-site parking of 18,000 to 20,000 spaces.
A summary of the estimated development costs
(excluding financing costs and previously completed site
remediation and preparation work) is displayed in
Exhibit 2-1.
Exhibit 2-1
Proposed Los Angeles Stadium in Carson Development Costs
($ millions)
Hard costs $ 1,230
Soft costs 115
Land acquisition and site preparation
150
Other
105
Total Development Costs
1
$ 1,600
1
Excludes previously completed site remediation and preparation work and financing costs
Source: Teams
Total development costs are estimated to reach $1.6
billion (in 2015 dollars). Of this, land acquisition and site
preparation will be $150 million and soft costs $115
million. The category “other” in the exhibit includes
expenditures related to construction management,
insurance, and marketing. Financing and other costs that
may not contribute to local economic activity are
excluded.
Pre-construction planning is anticipated to begin in
2015, with hard construction expenditures commencing
in late 2016 or early 2017 and continuing through mid-
2019.
Economic and Fiscal Impact
The primary economic impact of the development phase
on the local economy is the expenditure of millions of
dollars towards goods and services from local vendors
and for the wages and benefits of local construction
workers. From the total estimated development budget,
expenditures for land acquisition and insurance costs
are excluded from economic impact analysis since they
are assumed to be spent outside the region and hence
will not have an impact on the region.
Exhibit 2-2 displays the total economic and fiscal impact
of the construction of Los Angeles Stadium in Carson in
Los Angeles County, including direct, indirect and
induced impacts.
Exhibit 2-2
Economic and Fiscal Impact of Stadium Construction
Direct Expenditures ($ millions):
1
$ 1,600.0
Total Economic Impact:
Output ($ millions) $ 2,634.5
Employment (jobs) 16,740
Direct 10,080
Indirect and induced
6,660
Labor income ($ millions)
$ 1,074.2
Value added ($ millions) $ 1,351.0
Total Fiscal Impact ($ millions):
Federal tax revenues
$ 220.3
State and local tax revenues
$ 118.0
State $ 70.9
County 32.3
Cities 14.8
1
Excludes financing and other costs
Source: Estimates by LAEDC
It is estimated that construction of the Los Angeles
Stadium in Carson will generate economic output of
more than $2.6 billion in Los Angeles County and
T
Economic Impact Analysis NFL Los Angeles Stadium in Carson
Institute for Applied Economics 7
support 16,740 jobs with labor income of almost $1.1
billion during the four years that the development will
take place. In addition, the development’s contribution
to regional GDP will be more than $1.35 billion over the
development period.
This economic activity is projected to generate more
than $118 million in state and local taxes and more than
$220 million in federal taxes. The majority of the state
and local taxes will be earned at the state level, while the
County will earn $32.3 million and cities (in the
aggregate) will earn $14.8 million.
Disaggregation of taxes (including direct, indirect and
induced) by type is shown in Exhibit 2-3.
Exhibit 2-3
Detailed Fiscal Impact of Los Angeles Stadium in Carson
Construction
By Type of Tax ($ millions):
Personal income taxes $ 111.6
Social insurance 118.4
Sales and excise taxes
42.9
Property taxes
30.9
Corporate profits taxes
17.2
Other 16.5
Total $ 338.3
By Type of Government ($ millions):
Federal
$ 220.3
State 70.9
County 32.3
Property taxes
1
$ 25.4
Sales taxes 6.9
Cities
14.8
Property taxes
1
$ 5.6
Sales taxes 3.7
Other taxes and fees 5.5
Total
$ 338.3
1
Excludes property taxes levied on redeveloped site
Source: Estimates by LAEDC
Personal income taxes paid by all employees of direct,
indirect and induced activity will account for $111.6
million. Social insurance payments are made to both
state and federal governments and will be $118.4
million. Other sources of tax revenues include sales and
excise taxes (including transient occupancy taxes), taxes
on corporate profits and other taxes and fees paid by
businesses and households, including utility taxes.
The federal government will collect almost two-thirds of
all tax revenues in Los Angeles County attributed to
stadium construction, earning $220.3 million consisting
mainly of social insurance taxes, personal income taxes
and corporate profits taxes. The state of California will
collect $70.9 million, which includes sales tax revenues,
personal income taxes, corporate profits taxes, and other
fees and royalties. Los Angeles County will collect $32.3
million, largely from property taxes and its share of sales
tax revenues. Cities will receive $14.8 million from a
share of sales taxes, transient occupancy taxes, property
taxes and licenses and fees, most of which will accrue to
the City of Carson.
The total economic impacts will spill across industries
through indirect and induced effects. The complete list of
estimated impacts by industry sector is shown in Exhibit
2-4 for Los Angeles County.
Exhibit 2-4
Distribution of Impacts of Stadium Construction by Industry Sector
Jobs
Labor
Income
($ millions)
Output
($ millions)
Natural resources
25
$ 3.5
$ 8.6
Utilities
7
1.1
5.8
Construction
9,162
597.6
1,384.5
Manufacturing 230 16.2 145.1
Wholesale trade 417 31.5 98.1
Retail trade
731
28.7
66.1
Transportation and warehousing
360
22.8
57.6
Information
122
15.7
66.2
Finance and insurance 425 31.7 81.1
Real estate and rental 429 13.7 161.7
Professional and technical services
1,655
164.0
285.9
Management of companies
69
7.9
16.2
Administrative and waste services
550
20.0
35.6
Educational services 178 8.8 14.4
Health and social services 924 52.8 88.8
Arts, entertainment and recreation
173
6.4
14.1
Accommodation and food services
712
21.4
48.6
Other services
498
22.5
38.2
Government and non-NAICS 68 7.9 17.8
Total
16,740
$ 1,074.2
$ 2,634.5
Source: Estimates by LAEDC
Of the 16,740 jobs generated, 9,162 will be in the
construction sector as this is the industry that is
responsible for most of the direct activity. However, all
industry sectors will experience a positive economic
impact from the stadium construction spending,
especially professional and technical services, health and
social services, retail trade, finance and insurance and
accommodation and food services.
The values in the exhibit should be interpreted as
illustrative of industry effects rather than precise given
model and data limitations.
NFL Los Angeles Stadium in Carson Economic Impact Analysis
8 Institute for Applied Economics
3 NFL-Related Activity at the Los Angeles Stadium in Carson
he Los Angeles Stadium in Carson is expected to
host at least ten games per season (two pre-season
and eight regular season games) for each NFL team.
It is proposed that the stadium host two teams, resulting
in 20 home games per season and almost twice the
overall economic activity associated with the stadium.
The direct economic impact of ongoing operations of the
stadium includes on-site game day revenues such as
ticket sales, concessions and parking revenues, and off-
site revenues such as visiting team and media
expenditures on accommodations and food. Potential
post-season home playoff games played at the stadium
are not included in the analysis.
Team and Stadium Revenues
Revenues are derived from ticket sales, sponsorships
and premium inventory (suites and club seats),
merchandise (such as souvenirs), concessions and
parking. These revenues are substantial and would not
be accrued in the region without the presence of the
stadium and the NFL franchise(s).
Stadium revenues will depend on the number of home
games played. While many revenues may nearly double
by having two resident teams, not all will. To gauge the
magnitude of these revenues, Exhibit 3-1 presents data
from the 2014 Fan Cost Index (FCI) published by the
Team Marketing Report for the Raiders (playing in
Oakland) and the Chargers (playing in San Diego).
Exhibit 3-1
NFL Fan Cost Index
Raiders
Chargers
Average ticket
$ 64.80
$ 84.55
Average premium ticket
138.93
170.00
Beverages 39.50 41.00
Food 27.00 24.00
Parking
35.00
25.00
Souvenirs (program, caps, etc.)
60.00
50.00
Fan Cost Index (FCI)
$ 420.70
$ 478.30
Per capita
$ 105.18
$ 119.55
Per capita merchandise, concessions, parking
$ 40.38
$ 35.00
Source: Team Marketing Report
The FCI reflects the average cost for a family of four to
attend a sporting event and includes four season tickets,
two beers, four soft drinks, four hot dogs, parking, two
programs and two adult caps.
Revenue estimates for the Los Angeles Stadium in
Carson are presented in Exhibit 3-2.
Exhibit 3-2
Projected Team and Stadium Revenues
One Team
Two Teams
Projected annual attendance
680,000
1,360,000
Team and stadium operations ($ millions)
$ 130.0
$ 240.0
Net player costs ($ millions) 115.0 230.0
Other On-Site Revenues ($ millions):
Ticket sales / premium seats / sponsorships
$ 185.0
$ 340.0
Concessions / merchandise / parking
23.6
47.1
Total $ 208.6 $ 387.1
Per capita on-site revenues
$ 307
$ 285
Per capita ticket / premium / sponsorships
$ 272
$ 250
Per capita merchandise, concessions, parking
$ 34.65
$ 34.65
Source: Teams
These revenues are consistent with comparable studies
conducted of stadium and professional sports
operations, as discussed above. While economic activity
is expected to be greater with two teams compared to a
single team, it may not precisely double in all categories
T
Economic Impact Analysis NFL Los Angeles Stadium in Carson
Institute for Applied Economics 9
of revenues due to operational efficiencies at the
stadium and the type of activity, such as sponsorships.
The franchises expect near full attendance at each of
eight regular season home games and two pre-season
games. During 2014, the Chargers averaged 65,432 in
football attendance for home games and the Raiders
averaged 57,416. Given the size of the Los Angeles
market with more than 21 million people, it seems
reasonable that attendance at home games after
relocation will exceed those in their current markets.
Team and stadium operations spending are estimated at
$245.0 million for a single team and $470.0 million for
two teams. Players’ costs are analyzed separately from
operational expenditures. Approximately 75 percent of
the players and 95 percent of other team personnel are
reported to live in the local region year round. Net
overall player costs included above have been adjusted
to account for those living elsewhere during the off-
season, and are discounted by an additional 25 percent
to accommodate immediate expatriation.
Of other on-site revenues, the per capita ticket, premium
inventory (suites and club seats) and sponsorship
revenues are $272 for a single team and $250 for two
teams at the stadium, both of which are above that
shown for both the Raiders and the Chargers. However,
it may be reasonable to assume a significant premium
given the larger market and the newer facility with more
premium suites and seats. Also, the FCI Index does not
reflect sponsorship revenues, which will be significant
and which we are unable to isolate with the confidential
data received from the client.
However, because premium inventory sales and
sponsorships are dependent on the strength of the local
market and are highly variable, it may be more relevant
to compare the per capita spend on other items between
the FCI and the data provided by client. This comparison
shows that the FCI index on concessions, parking and
merchandise is $40.38 per capita for Raiders games and
$35.00 per capita for Chargers games. The client’s data
shows this per capita spend to be $34.65, well within
range of the FCI index for these items.
Accordingly, operational expenditures and increased
household incomes due to players’ salaries along with
the on-site revenues from concessions, merchandise and
parking will form the basis of the on-site direct revenues
of the stadium in estimating the total economic impact.
Not included in this analysis are other sources of
revenue that may have an economic impact in the region
including local and national broadcasting rights, NFL
royalties, local advertising revenues, signage,
promotions and NFL transfers. Playoff games,
SuperBowls and other NFL-related events which may
occur are also not included.
Off-Site NFL-Related Spending
In addition to the thousands of fans that attend each NFL
game, there are associated NFL personnel who travel to
away games. These include the visiting team members
and their staff, out-of-town media, local media,
officiating crews and other game staff, and NFL officials.
The spending patterns of these groups of visitors may
vary, but for the purpose of aggregation here, we assume
that the daily expenditure estimates for domestic
business travelers provided by the Los Angeles
Convention and Tourism Board are a representative
estimate for these visitors.
The number of non-spectator visitors and their average
daily spend are shown in Exhibit 3-3. This is certainly an
underestimate since it is assumed that each of the
visiting personnel spends only one day in the Los
Angeles region, which is highly unlikely. Visiting team
expenditures are estimated using client data from
historical records. This data suggests that visiting teams
will spend approximately $1.5 million annually in travel
costs for ten away games. These expenditures are a
combination of accommodations and food and
beverages.
Exhibit 3-3
Total NFL-Related Visitors Per Season
One Team
Two Teams
Visiting national media
1,000
2,000
Visiting local media
60
120
NFL game staff 350 700
NFL officials
100
200
Total Each Season
1,510
3,020
Per capita spend
$ 255
$ 255
Total expenditures
$ 1,230,090
$ 2,460,180
Visiting team expenditures
$ 1,500,000
$ 3,000,000
Total off site revenues ($millions)
$ 1.8
$ 3.7
Sources: Los Angeles Convention and Tourism Board; Teams; LAEDC Estimates
Of course, the largest number of game-related visitors
will be the fans coming to games. Those coming from
further afield, such as loyal Chargers fans driving from
San Diego or loyal Raiders fans coming from Oakland,
NFL Los Angeles Stadium in Carson Economic Impact Analysis
10 Institute for Applied Economics
may stay in local hotels and incur expenditures at local
stores and restaurants outside of the stadium. However,
the Los Angeles market is capable of filling the stadium
at all home games with local residents. Estimation of
out-of-town attendance prospectively is left to future
empirical work and hence that potential spending,
whatever its magnitude (which may indeed be large), is
excluded from this analysis.
A summary of all game day revenues directly
attributable to the presence of one or two NFL teams is
presented in Exhibit 3-4.
Exhibit 3-4
Estimated NFL Game Day Direct Activity per Season
One Team Two Teams
Team and Stadium Operations ($ millions)
$ 130.0
$ 240.0
Net Player Incomes ($ millions)
115.0
230.0
Other On-Site Revenues ($ millions):
Concessions / merchandise / parking $ 23.6 $ 47.1
Total
$ 23.6
$ 47.1
Off-Site Revenues ($ millions):
Accommodations $ 1.2 $ 2.4
Food and beverages 0.6 1.3
Total
$ 1.8
$ 3.7
Source: Teams; Estimates by LAEDC
Economic and Fiscal Impact
The annual incremental economic and fiscal impact of
NFL games at the Los Angeles Stadium in Carson as well
as off-site spending of NFL-related activity, including
direct, indirect and induced impacts, is shown in Exhibit
3-5.
Using economic models as described above, it is
estimated that the NFL games with one team at the Los
Angeles Stadium in Carson will generate total economic
output of $433.9 million annually in Los Angeles County
and support 6,700 jobs with a labor income of $306.4
million. With two teams operating at the stadium, the
overall economic impact will be $817.9 million in
economic output, 12,530 jobs with $572.8 million in
labor income annually.
The annual contribution of NFL-related activity to
regional GDP will be almost $258 million with one team
and $486 million with two teams.
Note that while the total economic impact is greater with
two teams compared to a single team, it is not expected
to be twice as large due to operational efficiencies at the
stadium and the type of revenues.
Exhibit 3-5
Economic and Fiscal Impact of NFL Games
One Team
Two Teams
Direct Activity ($ millions):
$ 270.5
$ 518.1
Team and stadium operations
130.0
240.0
Net player incomes 115.0 230.0
Other on-site revenues 23.6 47.1
Off-site revenues 1.8 3.7
Total Economic Impact:
Output ($ millions) $ 433.9 $ 817.9
Employment (jobs) 6,700 12,530
Direct 4,440 8,270
Indirect and induced
2,260
4,260
Labor income ($ millions)
$ 306.4
$ 572.8
Value added ($ millions) $ 257.8 $ 486.0
Total Fiscal Impact ($ millions):
Federal tax revenues
$ 52.5
$ 98.4
State and local tax revenues
$ 29.7
$ 55.9
Source: Estimates by LAEDC
The total economic activity generated by one team is
projected to generate over $29.7 million in state and
local taxes and $52.5 million in federal taxes annually.
These tax revenues would be $55.9 million and $98.4
million, respectively, if two franchises were playing at
the stadium.
Disaggregation of state and local taxes (including direct,
indirect and induced) by type is shown in Exhibit 3-6.
Economic Impact Analysis NFL Los Angeles Stadium in Carson
Institute for Applied Economics 11
Sales taxes (including transient occupancy taxes) will be
$11.2 million from the presence of one team and $21.1
million from two teams. Property taxes will add $8.1
million or $15.2 million, respectively (excluding
property taxes from the site). The state of California will
earn $17.3 million or $32.5 million, while the county and
local governments will collect $12.4 million or $23.4
million.
Exhibit 3-6
Detailed Fiscal Impact of NFL Games at Los Angeles Stadium
(Including Direct, Indirect and Induced Impacts)
By Type of Tax ($ millions):
One Team Two Teams
Income taxes
$ 26.0
$ 49.0
Social insurance 32.2 60.1
Sales and excise taxes 11.2 21.1
Property taxes
8.1
15.2
Other
4.7
8.8
Total
$ 82.1
$ 154.3
By Type of Government ($ millions):
Federal
$ 52.4
$ 98.4
State
17.3
32.5
County
8.4
15.8
Property taxes
1
6.6 12.5
Sales taxes 1.8 3.3
Cities
4.0
7.6
Property taxes
1
1.5 2.7
Sales taxes
1.1
2.1
Other taxes and fees 1.4 2.7
Total $ 82.1 $ 154.3
1
Excludes property taxes levied on redeveloped site
Source: Estimates by LAEDC
In addition to the taxes shown above, the redevelopment
will impact the assessed value of the site’s property and
hence generate an additional annual increase in
property taxes, which is not included in Exhibit 3-6.
The total economic impacts from having one or two NFL
teams housed at the Los Angeles Stadium in Carson will
be spread across industries through indirect and
induced effects. The complete list of estimated impacts
by industry sector is shown in Exhibit 3-7 for two teams
(estimates for a single team is available on request).
Most of the new jobs generated will be in the arts,
entertainment and recreation industry because this
industry includes professional sports. However, all
industry sectors will experience a positive economic
impact from the activities associated with an NFL
stadium—in particular, retail trade, accommodation and
food services and health and social services industry
sectors will benefit.
The values in the exhibit should be interpreted as
illustrative of industry effects rather than precise given
model and data limitations.
Exhibit 3-7
Distribution of Impacts of Two NFL Teams at Los Angeles Stadium
Jobs
Labor
Income
($ millions)
Output
($ millions)
Natural resources
4
$ 0.5
$ 1.2
Utilities
3
0.5
2.7
Construction 30 2.0 5.6
Manufacturing 32 2.2 23.8
Wholesale trade
79
6.0
18.6
Retail trade
646
23.4
48.4
Transportation and warehousing
116
6.8
17.7
Information 64 8.2 34.8
Finance and insurance 257 19.0 50.0
Real estate and rental
212
5.1
95.0
Professional and technical services
188
15.5
30.8
Management of companies
34
3.9
8.0
Administrative and waste services 269 9.8 18.1
Educational services 154 7.6 12.4
Health and social services
658
37.1
62.4
Arts, entertainment and recreation
8,689
383.5
298.5
Accommodation and food services
726
23.0
55.0
Other services 332 14.3 24.8
Government and non-NAICS 37 4.4 10.0
Total
12,530
$ 572.8
$ 817.9
Source: Estimates by LAEDC
NFL Los Angeles Stadium in Carson Economic Impact Analysis
12 Institute for Applied Economics
4 Other Stadium Events
n addition to NFL games, the new Los Angeles Stadium
in Carson will host numerous non-NFL events
throughout the course of the year. It is estimated that
every year, there will be between eight and sixteen
additional events held at the Los Angeles Stadium in
Carson such as concerts, non-NFL sporting events and
other entertainment and cultural events.
These events will draw audiences from around the
region and generate additional economic impact in Los
Angeles County.
While not known with certainty, projections for the
types and number of events occurring at the stadium
with estimated attendance are shown in Exhibit 4-1.
Exhibit 4-1
Other Stadium Events
Events
Per Year
Average
Attendance
Per Event
Estimated
Annual
Attendance
1
Concerts and related events
5 to 9
40,000
280,000
Sporting events
2 to 4
40,000
120,000
Other events
1 to 3
45,000
90,000
Total
8 to 16
490,000
1
Using midpoint estimate number of annual events
Source: Leading event management consultant
It is likely that Los Angeles Stadium in Carson will host
almost half-a-million people during the course of an
average year. These audiences will pay for admissions,
parking, concessions and other merchandise while
attending these events, estimated revenues for which
are shown in Exhibit 4-2.
Exhibit 4-2
Estimated Other Stadium Event Revenues
Average
Per Capita
Total
($ millions)
Ticket sales
$ 50.00
$ 24.5
Concessions / merchandise / parking
21.45
10.5
Total
$ 71.45
$ 35.0
Source: Leading event management consultant
Across all events, it is estimated that the per capita
spend would be $71.45 per attendee, of which the cost of
admission will average $50 per person. Annual revenues
from non-NFL events at the stadium will reach $35.0
million.
Economic and Fiscal Impact
The annual economic and fiscal impacts generated by
non-NFL events at the stadium, including direct, indirect
and induced impacts, are shown in Exhibit 4-3.
Exhibit 4-3
Economic and Fiscal Impact of Other Stadium Events
(Including Direct, Indirect and Induced Impacts)
Direct Expenditures ($ millions):
$ 35.0
Total Economic Impact:
Output ($ millions) $ 72.6
Employment (jobs)
850
Direct 580
Indirect and induced
270
Labor Income ($ millions) $ 36.7
Value added ($ millions) $ 41.5
Total Fiscal Impact ($ millions):
Federal tax revenues
$ 7.0
State and local tax revenues $ 3.6
Source: Estimates by LAEDC
I
Economic Impact Analysis NFL Los Angeles Stadium in Carson
Institute for Applied Economics 13
It is estimated that non-NFL events at the Los Angeles
Stadium in Carson will generate economic output of
$72.6 million annually in Los Angeles County and
support 850 jobs with a labor income of $36.7 million.
The annual contribution of non-NFL-related activity to
regional GDP will be almost $41.5 million per year.
This economic activity is projected to generate over $3.6
million in state and local taxes and $7.0 million in federal
taxes annually.
Disaggregation of taxes (including direct, indirect and
induced) by type is shown in Exhibit 4-4.
Exhibit 4-4
Detailed Fiscal Impact of Non-NFL Events at Los Angeles Stadium
(Including Direct, Indirect and Induced Impacts)
By Type of Tax ($ millions):
Income taxes
$ 4.1
Social insurance
3.8
Sales and excise taxes 1.2
Property taxes 0.9
Other
0.5
Total
$ 10.6
By Type of Government ($ millions):
Federal $ 7.0
State
2.2
County
0.9
Property taxes
0.7
Sales taxes 0.2
Cities 0.4
Property taxes 0.2
Sales taxes 0.1
Other taxes and fees
0.1
Total $ 10.6
Source: Estimates by LAEDC
Non-NFL events held at the Los Angeles Stadium in
Carson will generate more than $10 million in tax
revenues, the majority of which will be earned at the
federal level. The state of California will earn $2.2
million annually, while the county and local
governments will earn $0.9 million and $0.4 million
annually from non-NFL events occurring at the stadium.
The total economic impacts from hosting non-NFL
events will also spread across industries through
induced and indirect effects. The complete list of
estimated impacts by disaggregated industry sector is
shown in Exhibit 4-4.
Exhibit 4-5
Distribution of Impacts of Non-NFL Events at Los Angeles Stadium
Jobs
Labor
Income
($ millions)
Output
($ millions)
Natural resources $ 0.1 $ 0.1
Utilities
0.0
0.2
Construction
2
0.1
0.4
Manufacturing
2
0.1
1.9
Wholesale trade 5 0.4 1.1
Retail trade 24 0.9 2.0
Transportation and warehousing
16
0.8
1.7
Information
5
0.7
2.7
Finance and insurance
21
1.6
3.9
Real estate and rental 20 0.5 6.7
Professional and technical services 17 1.4 2.8
Management of companies
3
0.3
0.7
Administrative and waste services
28
1.1
1.9
Educational services
14
0.6
0.9
Health and social services 32 1.8 3.1
Arts, entertainment and recreation 570 22.8 34.4
Accommodation and food services
71
2.3
5.8
Other services
18
0.8
1.3
Government and non-NAICS
5
0.5
1.0
Total 850 $ 36.7 $ 72.6
Source: Estimates by LAEDC
The values in this exhibit should be interpreted as
illustrative of industry effects rather than precise given
model and data limitations.
NFL Los Angeles Stadium in Carson Economic Impact Analysis
14 Institute for Applied Economics
Economic Impact Analysis NFL Los Angeles Stadium in Carson
Institute for Applied Economics 15
Study Authors
Christine Cooper, Ph.D.
Vice President
Dr. Cooper leads the Institute for Applied Economics whose
work involves research in regional issues such as economic
impact studies, regional industry analysis and forecasts,
workforce development analysis, and issue studies related to
the L.A. County Strategic Plan for Economic Development. Her
fields of expertise include development economics,
environmental economics, regional analysis and urban
sustainability.
Prior to joining the LAEDC, Dr. Cooper was a co-founder of a
start-up company in Hong Kong concentrating on equity
transactions software and computer accessories
manufacturing, which expanded production into the special
economic zone of Shenzhen, China, and distributed products
throughout the United States and Asia. With her business
partner, she also established the first authorized Apple
Computer retailer in China. She has been a lecturer at
California State University, Long Beach and at the Pepperdine
Graziadio School of Business and Management.
Dr. Cooper is a citizen of the United States and Canada. She
earned a Bachelor of Arts in Economics from Carleton
University in Ottawa, Canada, and a Ph.D. in Economics from
the University of Southern California. With funding from the
National Science Foundation, she earned a Graduate Certificate
in Environmental Sciences, Policy and Engineering. Her current
research includes industry cluster determination and
performance in the regional economy, commuting and job
allocation patterns, and workforce development issues.
Shannon M. Sedgwick
Economist
Ms. Sedgwick joined the LAEDC team in June of 2008 as an
Economic Research Assistant for the Kyser Center for
Economic Research. In that role she assisted both Economic
Research and the Consulting Practice of the LAEDC with data
collection and research, managing multiple data sets covering
the State of California, Southern California, its counties and
their sub-regions. In addition to writing sections of LAEDC’s
Economic Forecasts, she was responsible for the monthly
Business Scan containing a collection of Los Angeles County
economic indicators, the annual L.A. Stats containing the most
frequently requested statistics for Los Angeles and its
surrounding counties, and was a regular contributor to the
weekly economic newsletter, e-Edge.
In her current capacity as Economist, Ms. Sedgwick develops
subject-specific information and data interpretation for
economic impact, demographic, transportation, industry and
issue studies. She performs research, data collection and
organization, analysis and report preparation. Her work
focuses on demographics, industry clusters and workforce
development. Ms. Sedgwick is also proficient at conducting
geospatial analysis.
Before joining the LAEDC, Ms. Sedgwick managed an industrial
and steel supply company located in the Inland Empire. There
she identified and targeted a diverse customer base, and
analyzed product and customer patterns in the local industrial
market to successfully increase revenues.
A Southern California native, Ms. Sedgwick received her
Bachelor of Arts in Economics from the University of Southern
California (USC) with a minor in Architecture. She has been a
member of the national and the Los Angeles Chapter of the
National Association for Business Economics (NABE) since
2008.
Somjita Mitra, Ph.D.
Economist
Somjita Mitra joined the LAEDC as an Economist in June 2013.
She is involved in planning, designing and conducting research
and analysis for consulting clients and local businesses and
governments, as well as for LAEDC’s internal departments. Her
focus is in regional analysis, economic impact studies and the
industrial and occupational structure of local economies.
Before joining the LAEDC, Dr. Mitra was an Economist for a
local economic research and litigation consulting company
evaluating economic damages, estimating lost profits,
identifying key economic issues and developing necessary
analytical and empirical frameworks. Prior to this, Dr. Mitra
was a Project Director for a consumer research firm in Los
Angeles where she managed projects that identified and
analyzed key market issues for small, local firms as well as
multinational corporations.
Dr. Mitra received her Bachelor of Arts in Economics and
Political Science from the University of California, Los Angeles
and her Master of Arts in Politics, Economics and Business as
well as her Ph.D. in Economics from Claremont Graduate
University. Dr. Mitra enjoys volunteering in the local
community and is actively involved in both women’s welfare
and animal rescue organizations.
INSTITUTE FOR APPLIED ECONOMICS
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Floor
Los Angeles, CA 90071
