According to a examine commissioned by Choose Chicago, the town’s tourism arm, the second NASCAR Chicago Street Race, held on July 4, generated a complete financial impression of $128 million, a 17 p.c improve over the inaugural occasion.
In an much more dramatic achieve, the nationally televised Cup Series race additionally generated $43.6 million in media worth for Chicago, up 85% from final yr, in line with a associated report.
From lodge reservations to the variety of out-of-town guests, most financial measures have proven an upward trajectory within the highway race’s second yr, fueling optimism for subsequent summer time’s occasion, which has already been renewed by the town.
However, rainfall, TV scores and complete attendance over the 2 days have been the three most notable declines.
“These stories present optimistic year-over-year development throughout key impression metrics that we count on would be the begin of a pattern we are going to proceed to see subsequent yr,” Rich Gamble, interim president and CEO of Choose, mentioned in a press launch Chicago. . “They additionally exhibit that, along with the numerous direct financial impression, NASCAR is bringing extremely priceless nationwide and worldwide media publicity to our metropolis by race-day tv broadcasts.”
The examine, launched Sunday, was carried out by Temple University’s Sports Industry Research Center, which launched an analogous report after final yr’s inaugural occasion.
Launched as an increasing departure from NASCAR’s conventional oval monitor, the Chicago Street Race contains a 12-turn, 2.2-mile pop-up course by Grant Park, alongside DuSable Lake Shore Drive and on Michigan Avenue, that are closed off and lined with non permanent enclosures, grandstands and hospitality suites.
The 2024 road racing weekend attracted 53,063 distinctive guests, up 12% from final yr, with greater than half of individuals touring to Chicago for the occasion. Total attendance, nonetheless, fell 5.5% to about 75,000 viewers, in line with the studio.
According to Bradley Baker, assistant professor within the Department of Sports, Tourism and Hospitality Management at Temple University, NASCAR’s introduction of single-day ticket gross sales has possible helped entice extra distinctive guests, regardless of decrease general participation for 2 days. co-author of the examine.
“Less complete attendance, extra distinctive attendees,” Baker mentioned. “This is partly because of the strategic method and the change in positioning and gross sales.”
The 27,188 non-local individuals got here from 24 international locations – 9 greater than final yr – and 46 states. However, most of the “out-of-towners” might have merely traveled from the suburbs, for the reason that examine counted anybody from outdoors Cook County as non-local, Baker mentioned.
According to the examine, out-of-town individuals spent roughly $568 per day in Chicago and booked 33,268 lodge nights. Overall, the occasion noticed greater than 38,000 lodge room nights, together with NASCAR staff and distributors, up 29 p.c from final yr.
The examine discovered that the race weekend created 865 jobs and generated $9.6 million in native and state taxes, each figures larger than final yr.
The occasion generated a direct impression of $75.5 million for Chicago, which expanded to incorporate oblique and induced results bringing the whole financial impression to $128 million. Last yr, highway racing generated a complete financial impression of $108.9 million.
In 2023, the inaugural Fourth of July weekend occasion was hit by report rains that shortened races, canceled live shows and left followers left soaked. This yr, whereas sunny skies prevailed for the Xfinity Series race on Saturday, the Cup Series race was shortened once more when rain delays compelled officers to name the race after 58 laps as darkness fell on the highway course not illuminated.
“I feel Chicago has been just a little unfortunate two years in a row, however this yr they have been much less unfortunate than final yr,” Baker mentioned.
Baker says assessing the financial impression of rain is just not a easy calculation. But the lengthy delays through the 2024 Cup Series race possible impacted tv scores.
The prolonged broadcast of Grant Park 165 on NBC, interrupted by almost two hours of programming filler because the highway course was closed throughout a gentle summer time rain, averaged 3.87 million viewers, in line with Nielsen information.
Last yr, the delayed, scaled-back however uninterrupted inaugural telecast averaged almost 4.8 million viewers, the most-watched Cup Series race on NBC since 2017.
Despite decrease TV scores, the Temple examine discovered an enormous year-over-year achieve in general media impression, which jumped from $23.6 million to $43.6 million, due largely to a rise of worldwide protection – from information to blogs – of the occasion.
“There have been simply extra worldwide shops that have been and have been giving the race just a little extra protection than the primary yr,” Baker mentioned.
According to the examine, the media worth of the Chicago highway race is equal to 6 Super Bowl commercials.
While the town may by no means afford these advertisements, Tim Calkins, a advertising professor at Northwestern University’s Kellogg School of Management who leads an annual evaluate of Super Bowl promoting, mentioned NASCAR’s media impression might be even better. valuable.
“Chicago may by no means purchase this sort of media enterprise,” Calkins mentioned. “In some methods, NASCAR protection is best than promoting as a result of it is genuine. The occasion presents Chicago at its greatest.”
Under the phrases of a three-year settlement made through the administration of former Mayor Lori Lightfoot, NASCAR agreed to pay the Chicago Park District a allowing price of $500,000 in 2023, $550,000 this yr and $605,000 in 2025, with a two-year renewal possibility. Additionally, NASCAR agreed to pay a price of $2 per admission and an escalating fee for meals, drinks and merchandise bought on the occasion.
In October 2023, Mayor Brandon Johnson dedicated to a second weekend of the Chicago Street Race, with NASCAR agreeing to allocate an extra $2 million for metropolis bills, however solely after the primary examine on the financial impression. This time, Johnson gave the inexperienced mild to yr three in August, earlier than seeing the 2024 numbers.
He took a victory lap on Sunday within the wake of the most recent report.
“This is a race like no different on the planet and I’m delighted that the occasion has generated optimistic financial impression and supported a whole lot of jobs over the previous two years,” Johnson mentioned within the press launch. “I sit up for working collaboratively with my management workforce and the neighborhood to leverage this occasion to make a fair better impression subsequent yr.”
