Preparations for the NCAA men's Final Four college basketball tournament at Ford Field in Detroit
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Some of this year's Final Four spending won't even stay in the country. More than half of the several thousand college basketball coaches who flock to the Final Four for their annual convention will be lodging across the river — and border — in Windsor, Ontario. Don't underestimate the financial clout of the coaches, who wander around the host city in their schools' sweat suits (Look, there goes Coach K from Duke! And over there, an assistant coach from Le Moyne!), angling for job gossip and drinking lots of beer. We're talking buckets of beer. And since both Detroit and Windsor have casinos, many coaches will end up drinking and losing their money in Canada, not in Michigan. (See the most important cars of all time.)
Perhaps the cruelest irony is that while the press has portrayed Michigan State's berth as a gift to a troubled city, from an economic point of view the Spartans' success may actually hurt Detroit. Yes, since a Michigan team is playing in the game, more fans will be crowding Detroit's bars and shops than there otherwise would have been. But since Lansing is a neighbor, a reduction in local hotel stays could offset this revenue. Fewer out-of-towners also means less spending at the airport and on transportation (cabs, rental cars, and so on). Also, it's safe to assume that a portion of the Michigan State basketball fan base would have spent money in Detroit even if the team had not made the Final Four. The event is a huge draw for hoop-heads who just want to soak in the festivities. Many Lansing residents and other Michigan State basketball fans from outside of Detroit would have made the trip and maybe even gone to the game, regardless.
From the state's perspective, the school's appearance is definitely a drawback. "Financially, the state of Michigan would have been happy if there were four teams out of state," says Jason Winfree, a University of Michigan sports economist. If, say, UCLA had made the Final Four instead of Michigan State, thousands of the school's fans would have flown to Detroit to spend money. All of that cash is a windfall to the struggling state — without the Final Four, none of those Californians and UCLA fans throughout the nation were heading to Michigan to hang out for the weekend (OK, a handful might have family or some other reason to make the trip). For the Michigan State fan who spends a couple of hundred extra dollars at the Final Four, that's money he would have spent somewhere in the state at some point anyway. He might have even spent the same amount this weekend, doing something else.
So the Final Four isn't a magic pill that will make Detroit all better. But still, it is at least a temporary boost, especially in these grim times. "This economic injection is real and important," says Rodney Fort, a University of Michigan economist who also specializes in sports. "It's just not permanent." Beyond dollars, we shouldn't discount the intangible perks a major sports event delivers to a city. Detroit families can discuss the big game instead of the plant closing, maybe catch a free concert downtown. And though Michigan State's run may cost the state some extra cash, a national championship will lift the state's spirits, and who's to say a few hours of celebratory hysteria are worth less than a few bucks from out-of-towners? "People here now have a respite," says Fort. "Detroit is a focal point for a good reason, not a bad reason. That's very, very valuable."