NBA All-Star Game Coming to New York

NEW YORK (TheStreet) --The NBA All-Star Weekend is coming to New York City in 2015 and it won't just bring buckets of balls, it will also bring buckets of money. When Florida hosted the game in 2012, Orange County enjoyed more than $95 million in economic impact, according to a study by Strategic Marketing Services and SportsEconomics, LLC. The event also created more than 2,000 jobs and $2.4 million in new tax revenue.

Scott Minto, San Diego State University Sports MBA Director, points out that the timing is good for New York City. "It's a quiet time of the year, tourist-wise," says Minto. "The holidays are over, but it's still winter, so it's a good boost to the city."

Talk about a boost. Visitors are expected to bounce-pass millions of dollars for hotels, car services, food and drinks. Plus, don't forget about the parties. Houston hosted the 2013 NBA All-Star Game and counted 94 separate events and parties connected to it.

"We called it blood money," said Jennifer Mishriky of CTI Ground Transportation in Houston. "Because it was blood, sweat and tears to pull it off. We did a months' worth of work in four days." She also noted that they had to raise their prices during that time, due to the demand for cars. "There are only so many cars to go around, so if you wanted an airport transfer, you had to book the car for a 10-hour day."

Some may be offended thinking the fans are getting ripped off, but don't kid yourself -- this is a corporate event. "These are corporations coming in, entertaining clients and throwing parties," said Minto. Plus, he added, "There is an entertainment crossover with the NBA. Actors who wish they were athletes, rappers. It's the hottest ticket in town."

Mishriky agrees. "The NBA is the biggest party in town because the rap industry piggybacks the event." Her corporate drivers that normally deliver CEO's to board meetings were unaccustomed to staying out all night waiting for their party-going customers to finish. That shouldn't be a problem in NYC, which thrives on the late-night party.

The Major League Baseball All-Star Game was projected to generate $191.5 million in economic spending according to a study by the New York City Economic Development Corp. New York hosted the game in 2008 and received $148 million in positive economic impact. However, most cities only see about $57 million from the Midsummer Classic (another name for the MLB event). The NYEDC had no figures yet for the actual spending amounts for the game.

The NFL regularly inflates the amount of positive economic impact a city will experience. They typically suggest a gain of $300 million-$400 million, whereas it's normally much lower. Houston's comptroller only found $129 million after hosting the 2004 Super Bowl.

It also isn't too much of a surprise that New York snagged the game. All of the professional sports organizations prefer new and renovated arenas or stadiums for their events. The MLB 2013 game held in New York was at Citi Field, which was just completed in 2009. Similarly, Brooklyn's Barclay Center will host some of the NBA All-Star events and it was completed in 2012, so it too will be three years old when it hosts the Friday and Saturday night events. Madison Square Garden ( MSG) will host the Sunday game and it is undergoing a $1 billion transformation.

The 2014 Super Bowl was awarded to the Meadowlands in New Jersey after $300 million was spent on a new stadium. So not only do they like new venues, it's also seen as a thank you to the cities and taxpayers that ultimately foot the bill for these structures.

So even though all the hotel workers, cater waiters and for-hire drivers probably won't ever see any of these big games, they will at least get to earn some extra coin that week. After all, they built these places with their taxes, they deserve something -- even if it is just an extra shift.

--Written by Debra Borchardt in New York.

>To contact the writer of this article, click here: Debra Borchardt.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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