Grammys, Oscars, Emmys: When Los Angeles Plays Host, It Wins Big
Tonight's 59th Annual Grammy Awards are the formal peak of the year in music, but the night is valuable to more than just the music industry - the city of Los Angeles also gains huge benefits from the award show.
According to the Pasadena Star News, a 2015 report by the consulting firm Micronomics concluded that the music award show draws in "at least $82 million in immediate, identifiable benefits to Los Angeles County, including $26 million in incremental spending by out-of-town visitors, $4 million from limousine rentals and wardrobe, $15 million from production and staff, and $37 million in multiplier effects, including $2.7 million in state tax revenue and $2.7 million in local tax revenue."
“The music industry is an integral thread in L.A.’s economic fabric,” Eric Garcetti, mayor of Los Angeles, wrote in a statement, notes the Star News. “But the biggest winner is never a single individual — it’s our local economy, which benefits from the year-round activity of L.A.’s booming record industry.”
And the Grammys are not alone. Adding in the Oscars and Emmys, Los Angeles benefits some $500 million a year in direct and indirect spending.
“The award shows are iconic for Southern California,” Roy Weinstein, founder of Micronomics and author of the 2015 report, said. “The Oscars. The Grammys. The Rose Parade. The rest of the nation identifies (the region) with those events — happy, celebratory, where people look beautiful ... the economic benefits are huge.”
Beyond awards shows, a recent study of the potential impact of hosting the 2024 Olympic games found that the Los Angeles metropolitan region could stand to gain $11.2 billion in economic output should the city be selected.
A report studying the 2014-2015 season of Los Angeles's sports industry found that local sporting events (Dodgers games, Kings games, USC's teams, UCLA's teams, etc.) generate $4 billion in economic activity for the region, notes the Los Angeles Sports Council. And that was before the addition of the the L.A. Rams (or Chargers).
However, some economists are still unsold on the idea that Los Angeles will benefit economically from the NFL's re-arrival.
“Professional sports are really good at moving economic opportunity around, but it’s just existing economic opportunity that already would have occurred somewhere else in the greater Los Angeles area,” Brad Humphreys, an economics professor at West Virginia University, told the Washington Post. “There’s no evidence that one team, two teams, or any number of teams will provide tangible new benefits in the local economy.”
“We cannot wait to welcome the Rams, and perhaps others soon, as they join a storied lineup of professional franchises, collegiate powerhouses, and sports media companies,” Mayor Garcetti said in a 2016 statement, following the announcement of the Rams' return to LA. “With the return of the NFL, there is yet another reason for visitors to come to Los Angeles, and for Angelenos to love calling this city home. I look forward to seeing the players out on the field."