Posted on: Wednesday, February 4, 2004
EDITORIAL
NFL gains the edge in Pro Bowl talks
We sure wish the Hawai'i Tourism Authority had jumped on the task of calculating the value of media exposure that Hawai'i gets for hosting the Pro Bowl. Because the NFL has beaten us to it with a study that concludes Hawai'i is getting $12.1 million worth of advertising out of the annual all-star football event.
Whether the study is accurate or not, it is sure to elevate the NFL's bargaining power in negotiations to keep the Pro Bowl in Hawai'i.
Hawai'i has one year left in its five-year contract to host the Pro Bowl after Sunday's game at Aloha Stadium. It will pay $5.6 million for the privilege in 2005.
The HTA estimated that the 2003 Pro Bowl brought in 18,000 visitors to Hawai'i, which accounted for $28 million in visitor spending and $2.7 million in state taxes.
While the state has not measured the value of advertising exposure, the NFL has, and it doesn't bode well for a price reduction.
The NFL-commissioned study was conducted by TNSSPORT and based on the financial impact of the 2003 Pro Bowl. The $12.1 million is supposedly what it would cost Hawai'i to reach that number of people through various media, including TV and print, and is said to be "standard practice in the sponsorship world." Among its findings, the study estimated that projected advertising exposure through live TV games was worth $4.7 million.
Plus, TNSSPORT estimated that 1,108 text mentions of Hawai'i in articles on the 2003 Pro Bowl were worth $3.6 million in print and broadcast advertising, and Internet hits were valued at $2.2 million.
While the dollar amounts sound a tad arbitrary, we have no study to measure their numbers against. On the contrary, the HTA has adopted the NFL study and is using its findings in its latest Pro Bowl news release.
We have consistently held that the Pro Bowl is good for Hawai'i, but that we cannot invest more than we're getting back. The state is going to have to do some fancy footwork to keep the Pro Bowl without giving up the farm.
