Detroit's economy could take a hit from an NFL lockout

Mar 3, 2011

The city of Detroit could face an economic hit this fall if the National Football League and its players don’t agree on a new contract.  How big an impact is not clear.  

The current contract between NFL owners and the players association expires at midnight.   Without a deal, Ford Field in Detroit will sit empty during the Lions scheduled pre-season and regular season home games this fall.

A study commissioned by the players association says $20 million is spent on average in NFL cities during regular season home games.  In some cities, much more is spent.  The Christian Science Monitor reports small businesses may pay a big price. 

Jesse David is a senior vice president with Edgeworth Economics, the company that did the study.  David admits people will probably spend money on some form of entertainment, whether or not they go to a game, but they may not spend it in Detroit.  

“It may be that someone else, somewhere else sees their income go up…but there’s still going to be an effect on a group of people.”

Even if they miss tonight’s deadline, NFL owners and players still have several months before games will have to be canceled or rescheduled.