In less than two weeks, the Hard Rock Stadium in Miami Gardens, Florida will be filled with as many as 65,326 football fans. The hype surrounding Super Bowl LIV (Super Bowl 54) will bring thousands of tourists and has the potential to bring significant economic impact for the city. Leading up to the coin toss on February 2nd, plenty of expenses have been in play.
History of Hard Rock Stadium
Joe Robbie had owned the Miami Dolphins for about two decades before deciding to lobby for a new stadium. Previously, the team played at the Orange Bowl, a 72,000 seat stadium that was also used by the Miami Hurricanes. When Robbie’s request for a new stadium was turned down multiple times by taxpayers who weren’t interested in footing the bill, he built it anyway. The project was paid for by private funds, long-term deals with season ticket holders, and club and luxury seat sales.
The original layout of the stadium, initially named the Joe Robbie Stadium, hosted 75,000 seats, escalators, ramps, and two video scoreboards. Robbie had also designed the stadium with the unique ability to transform into a baseball stadium, as he knew that baseball would one day come to Miami. On the north side of the stadium, the lower level seats were retractable, allowing the field to be restructured for baseball. Robbie’s forethought for the stadium design was a huge benefit for the Florida Marlins who played there for a little over two decades.
After the Marlins left the stadium, the new owner of the Miami Dolphins, Stephen Ross, announced a complete renovation project. The team financed the $550 million project, which restructured the lower deck and ultimately resulted in a new seat count of 65,326 seats. Other changes included an open-air canopy and four HD video boards on the upper deck. The project was completed in 2016, the same year that Hard Rock Cafe bought the naming rights for $250 million. Super Bowl LIV will be the 6th Super Bowl played in the Hard Rock Stadium.
Expenses Involved in Super Bowl LIV
This year will mark a total of 11 times for the Miami area to host a Super Bowl, which is more than any other city. And many are expecting a significant economic boost from the event. Thanks to the sudden up-tick in tourism, restaurant, travel, hotel, and retail, profits all see an increase with this kind of major event.
But hosting a Super Bowl is also very costly. The host communities subsidize millions of dollars’ worth of expenses. According to the Miami Herald, Super Bowl LIV will cost three Miami-Dade municipal governments $20 million over time. Local governments have planned to spend over $15 million, which will go to the host committee, park improvements, and municipal fee waivers. Governmental agencies and the NFL will also divide the cost of football fields and lighting improvements.
Beginning in 2024, Miami-Dade County will also be paying $4 million to the Miami Dolphins for drawing this kind of sporting event. Additionally, local cities are paying firefighters and police officers for extra security measures for both the Super Bowl and related events. And some cities are temporarily omitting regular fees for off-shoot events.
However, the investment these local areas are putting in will pay off over time. The community improvements and events leading up to the Super Bowl are sure to bring a windfall of tourism dollars into the area. Because of the capacity of the Hard Rock Stadium to host such a massive event, the surrounding area will greatly benefit. This is a great example of how one commercial property can substantially impact an entire local economy.
If you are interested in learning more about investing in commercial real estate, or if you have questions about buying, selling, or leasing a commercial property, please contact an HBRE advisor. Our team of experienced CRE professionals have the skills and insight to assist with all property transactions. To reach out to us directly, email [email protected] or call 615-564-4133.
