The second NASCAR Chicago Avenue Race, held July Fourth weekend, generated $128 million in complete financial impression, a 17% improve over the inaugural occasion, based on a research commissioned by Select Chicago, the town’s tourism arm.
In an much more dramatic acquire, the nationally televised Cup Collection race additionally generated $43.6 million in media worth for Chicago, up 85% over final yr, based on a companion report.
From lodge bookings to the variety of out-of-town guests, most financial measures confirmed an upward trajectory in 12 months 2 of the road race, fueling optimism for subsequent summer time’s occasion, which has already been renewed by the town.
Rainfall, TV scores and complete two-day attendance have been the three most notable declines, nonetheless.
“These studies present constructive year-over-year progress throughout key impression metrics that we anticipate would be the starting of a development we’ll proceed to look at subsequent yr,” Wealthy Gamble, interim president and CEO of Select Chicago, stated in a information launch. “In addition they present that, along with vital direct financial impression, NASCAR is bringing extremely helpful nationwide and worldwide media publicity to our metropolis via the televised broadcasts of race days.”
The research, launched Sunday, was performed by Temple College’s Sport Trade Analysis Middle, which issued an analogous report following the inaugural occasion final yr.
Launched as a fan-base-expanding departure from the standard NASCAR oval monitor, the Chicago Avenue Race encompasses a 12-turn, 2.2-mile pop-up course via Grant Park, down DuSable Lake Shore Drive and up Michigan Avenue, that are closed off and lined with momentary fences, grandstands and hospitality suites.
The 2024 road race weekend drew 53,063 distinctive guests, up 12% over final yr, with greater than half of attendees touring to Chicago for the occasion. Complete attendance, nonetheless, fell 5.5% to about 75,000 racegoers, the research discovered.
The introduction of single-day ticket gross sales by NASCAR probably contributed to attracting extra distinctive guests, regardless of a decrease total two-day attendance, based on Bradley Baker, an assistant professor within the division of sport, tourism and hospitality administration at Temple College and a co-author of the research.
“Fewer complete attendance, extra distinctive attendees,” Baker stated. “That’s pushed partially by the strategic strategy and the shift in find out how to place and find out how to promote for it.”
The 27,188 nonlocal attendees got here from 24 international locations — 9 greater than final yr — and 46 states. Nonetheless, a lot of “out-of-towners” could have merely traveled from the suburbs, because the research thought-about anybody outdoors of Prepare dinner County as nonlocal, Baker stated.
The out-of-town attendees spent about $568 per day in Chicago and booked 33,268 lodge room nights, based on the research. General, the occasion accounted for greater than 38,000 lodge room nights, together with NASCAR staff and distributors, up 29% from final yr.
The race weekend supported 865 jobs and generated $9.6 million in native and state taxes, each numbers topping final yr, the research discovered.
The occasion generated $75.5 million in direct impression for Chicago, which expanded to incorporate oblique and induced results introduced the overall financial impression to $128 million. Final yr, the road race generated $108.9 million in complete financial impression.
In 2023, the inaugural Fourth of July weekend occasion navigated report rainfall that curtailed races, canceled concert events and left remaining followers soaked. This yr, whereas sunny skies prevailed for the Xfinity Collection race on Saturday, the Cup Collection race was as soon as once more shortened when rain delays compelled officers to name the race after 58 laps as darkness fell on the unlit road course.
“I believe Chicago’s gotten a bit unfortunate with that two years in a row now, however obtained much less unfortunate with it this yr than they did final yr,” Baker stated.
Baker stated assessing the financial impression of the rain will not be a easy calculation. However the prolonged delays in the course of the 2024 Cup Collection race probably impacted the TV scores.
The prolonged broadcast of the Grant Park 165 on NBC, damaged up by practically two hours of programming filler as the road course shut down throughout a gentle summer time rain, averaged 3.87 million viewers, based on Nielsen information.
Final yr, the delayed, shortened however uninterrupted inaugural TV broadcast averaged practically 4.8 million viewers, probably the most watched Cup Collection race on NBC since 2017.
Regardless of decrease TV scores, the Temple research discovered an enormous year-over-year acquire within the total media impression, which jumped from $23.6 million to $43.6 million, due largely to a rise in worldwide protection — from information tales to blogs — of the occasion.
“There have been simply extra worldwide shops that have been and have been giving the race a bit extra protection than they’d the primary yr,” Baker stated.
The media worth of the road race for Chicago is equal to 6 Tremendous Bowl adverts, based on the research.
Whereas the town may by no means afford these adverts, Tim Calkins, a advertising and marketing professor at Northwestern College’s Kellogg Faculty of Administration who heads up an annual Tremendous Bowl promoting evaluation, stated the NASCAR media impression could also be much more helpful.
“Chicago may by no means purchase this kind of media exercise,” Calkins stated. “In some methods, the NASCAR protection is best than promoting as a result of it’s genuine. The occasion options Chicago at its greatest.”
Beneath the phrases of a three-year deal struck throughout former Mayor Lori Lightfoot’s administration, NASCAR agreed to pay the Chicago Park District a $500,000 allow charge in 2023, $550,000 this yr and $605,000 in 2025, with an choice to renew for 2 years. As well as, NASCAR agreed to pay a $2 charge per admission ticket, and an escalating fee for meals, beverage and merchandise offered on the occasion.
In October 2023, Mayor Brandon Johnson dedicated to the second Chicago Avenue Race weekend, with NASCAR agreeing to pony up a further $2 million for metropolis bills, however solely after publication of the primary financial impression research. This time round, Johnson gave the inexperienced gentle to a 3rd yr in August — earlier than seeing the 2024 numbers.
On Sunday, he took a victory lap within the wake of the newest report.
“It is a race with out parallel on the earth and I’m happy that the occasion has generated constructive financial impression and supported a whole lot of jobs during the last two years,” Johnson stated within the information launch. “I look ahead to working collaboratively with my management workforce and the group to leverage this occasion to drive even higher impression subsequent yr.”
rchannick@chicagotribune.com
