The second NASCAR Chicago Street Race, held over the July 4 weekend, generated a total economic impact of $128 million, a 17% increase from the inaugural event, according to a study commissioned by Choose Chicago, the tourist branch of the city.
In an even more dramatic gain, the televised Cup Series race also generated $43.6 million in media value for Chicago, up 85 percent from last year, according to a supplemental report.
From hotel reservations to the number of out-of-town visitors, most economic metrics showed an upward trajectory in the street race’s second year, fueling optimism for the event. next summer, already renewed by the city.
Rainfall, TV audiences and two-day total attendance, however, were the three most notable declines.
“These reports show positive year-over-year growth on key impact metrics that we believe will mark the start of a trend we will continue to see next year,” said Rich Gamble , Interim President and CEO of Choose Chicago, in a press release. . “They also show that in addition to significant direct economic impact, NASCAR brings incredibly valuable national and international media exposure to our city through race day television broadcasts.”
The study, released Sunday, was conducted by Temple University’s Sports Industry Research Center, which released a similar report after last year’s inaugural event.
Launched as a departure from NASCAR’s traditional oval track to expand the fan base, the Chicago Street Race features a 12-turn, 2.2-mile pop-up course through Grant Park, on DuSable Lake Shore Drive and on Michigan Avenue, which are closed. and lined with temporary fencing, grandstands and hospitality suites.
The 2024 Street Racing Weekend attracted 53,063 unique visitors, up 12% from last year, with more than half of participants traveling to Chicago for the event. Total attendance, however, fell 5.5% to around 75,000 spectators, according to the study.
NASCAR’s introduction of single-day ticket sales likely helped attract more unique visitors, despite lower overall two-day attendance, according to Bradley Baker, assistant professor in the department of sports management, tourism and of Hospitality at Temple University and co-author of the study.
“Less total attendance, more unique attendees,” Baker said. “This is partly due to the strategic approach and the change in the way of positioning and selling.”
The 27,188 non-local participants came from 24 countries – nine more than last year – and 46 states. However, many “outsiders” might simply have traveled from the suburbs, since the study considered anyone outside of Cook County non-local, Baker said.
Out-of-town participants spent about $568 per day in Chicago and booked 33,268 hotel nights, according to the study. Overall, the event accounted for more than 38,000 hotel room nights, including NASCAR employees and vendors, an increase of 29% from last year.
The race weekend supported 865 jobs and generated $9.6 million in local and state taxes, both numbers surpassing last year, according to the study.
The event generated a direct impact of $75.5 million for Chicago, which expanded to include indirect and induced effects, bringing the total economic impact to $128 million. Last year, street racing generated a total economic impact of $108.9 million.
In 2023, the inaugural July 4 weekend event experienced record rainfall that reduced races, canceled concerts and left remaining fans soaked. This year, while skies were sunny for the Xfinity Series race on Saturday, the Cup Series race was once again shortened when rain delays forced officials to call the race after 58 laps as darkness fell on the unlit urban route.
“I think Chicago has been a little unlucky with these two years in a row now, but has been less unlucky this year than last year,” Baker said.
Baker said assessing the economic impact of rain is not a simple calculation. But the long delays during the 2024 Cup Series race likely had an impact on TV ratings.
NBC’s extended broadcast of Grant Park 165, interrupted by nearly two hours of programming as the street course ground to a halt during a steady summer rain, averaged 3.87 million viewers, according to Nielsen data.
Last year’s delayed, shortened but uninterrupted inaugural telecast averaged nearly 4.8 million viewers, the most-watched Cup Series race on NBC since 2017.
Despite the decline in television audiences, the Temple study found a huge year-over-year gain in overall media impact, from $23.6 million to $43.6 million, in largely due to an increase in international coverage – from news stories to blogs – of the event.
“There was simply more international media interested and giving the race a little more coverage than the first year,” Baker said.
The media value of street racing for Chicago is equivalent to six Super Bowl commercials, the study found.
Although the city could never afford such ads, Tim Calkins, a marketing professor at Northwestern University’s Kellogg School of Management who leads an annual review of Super Bowl advertising, said the media impact of NASCAR could be even more valuable.
“Chicago could never buy this kind of media business,” Calkins said. “In some ways, NASCAR coverage is better than advertising because it’s authentic. The event showcases Chicago at its best.
Under a three-year deal reached under former Mayor Lori Lightfoot’s administration, NASCAR agreed to pay the Chicago Park District permit fees of $500,000 in 2023, $550,000 this year and $605,000 $ in 2025, with an option to renew for two years. Additionally, NASCAR agreed to pay a $2 fee per entry ticket and an escalating commission for food, beverages and merchandise sold at the event.
In October 2023, Mayor Brandon Johnson committed to hosting the second weekend of Chicago Street Race, with NASCAR agreeing to contribute an additional $2 million toward city expenses, but only after the first study was released. economic impact. This time around, Johnson gave the green light for a third year in August – before seeing the 2024 figures.
On Sunday, he took a victory lap on the heels of the last report.
“This is an unprecedented race in the world and I am pleased that the event has generated a positive economic impact and supported hundreds of jobs over the past two years,” Johnson said in the press release. press. “I look forward to working collaboratively with my leadership team and the community to build on this event and make an even greater impact next year.” »
rchannick@chicagotribune.com
