NFL Draft Expected to Have Huge Economic Impact for Detroit

The NFL Draft is about to land in Detroit, with 300,000-plus fans expected to flood the city from April 25-27.

With an estimated economic impact of some $160 million or more, the draft will be one of the most significant events in the city this year in terms of financial impact, especially for small businesses. Stakeholders have spent the better part of two years preparing for the event with significant collaboration from the public and private sectors.

With the sheer size of the NFL Draft, there may be some last-minute challenges, but Visit Detroit President and CEO Claude Molinari assures that if so, the city and all interested stakeholders will be prepared.

From working with the city of Detroit and Mayor Mike Duggan to the Downtown Detroit Partnership, Bedrock Detroit, the Detroit Police Department, and local businesses, he believes that the city is ready.

“This is the start,” Molinari said. “Our goal is to go after even more events. We’ve built a collaborative group that is organizing an event that is safe, equitable and inclusive to our residents and guests.”

While many of those additional events are non-sports related, Molinari acknowledges that major sporting events can produce some of the highest numbers of visitors possible.

And, after the success of the Detroit Lions this past season – they went 12-5 and were within 30 minutes of a trip to the Super Bowl – the draft is likely to spark even more interest. That’s what sports does for people if you listen to Mike Tirico.

Popular sports broadcaster Mike Tirico (right), taking part in a discussion about Detroit at the recent Downtown Detroit Partnership annual meeting with automotive giant Roger Penske (left) and Blue Cross Blue Shield of Michigan CEO Dan Loepp, said, “Sports brings a community together in a unique way.”

The popular sports broadcaster, who has adopted Michigan as his home state, told an audience at the Downtown Detroit Partnership’s annual meeting in February that sports play a pivotal role in life, and that the Lions’ success this past season will heighten the excitement for fans.

“Sports matter … look at our city,” Tirico said. “Look at what the Lions did for (Detroit). Sports brings a community together in a unique way … You come down here now and you think about what it was and what (the city) has turned out to be.”

With the help of Visit Detroit and countless other interested parties, Detroit has expressed its interest in hosting future NBA and NHL All-Star games and may hear soon whether the city may host one or more Big Ten Conference college football championship games in the near future.

It has already secured the 2027 NCCA Basketball Men’s Final Four at Ford Field, hosted by Michigan State University. Detroit’s Little Caesars Arena was the site of this year’s NCAA Men’s Regional March 29-31, hosted by University of Detroit Mercy and Oakland University.

More than 115 locally owned and diverse businesses participated in the NFL’s Supplier Diversity Program leading up to the NFL Draft. The NFL makes this program available to businesses in cities where large league events like the Super Bowl and draft are held. Business owners who complete the program are certified by the NFL, allowing them to benefit financially and with added brand recognition.

Additionally, Molinari and other organizers have met with many entrepreneurs to provide them with information on how they can financially benefit from the draft’s weekend activities and influx of an estimated 300,000 visitors to downtown Detroit.

With that many visitors expected, obviously, security has been in the forefront of issues for draft organizers in Detroit. It became even more of an issue after one person was killed and two dozen others injured when shooting broke out during the Super Bowl parade in Kansas City in February.

Eric Larson, CEO of the Downtown Detroit Partnership, said organizers, led by Detroit Police Chief James White, have been in “really strong planning mode” to make sure security is “top of mind.”

“The Detroit Police Department and (White) have been incredible, not only proactive in putting together a very comprehensive plan, but then adjusting to that plan as new things come up,” Larson said. “As horrific events like what happened in Kansas City take place, they don’t change our plans because our plans are well in place and well thought out.

“But we learn from that, and we make adjustments if there are adjustments that seem to make sense and are necessary,” he added. “Let’s make sure people understand … that Detroit takes this seriously, that we’re prepared, that we’ve had a plan.”

The main draft activities will be centered near Campus Martius (recently voted the nation’s #1 public square by USA Today), Cadillac Square, Hart Plaza, and Monroe Street but businesses can highlight their own draft-themed events throughout the area. Draft activities centered near downtown will feature an array of free activities such as the Punt, Pass and Kick display and other pop-ups.

Preparations for the NFL Draft have further expanded the city’s repertoire of business owners that can be tapped for future events as well, further expanding the community’s network for annual and one-off events, Molinari said.

State support shows a level of commitment
The NFL Draft provides Detroit with a chance to showcase not just downtown but its neighborhoods, said Michigan Economic Development Corporation (MEDC) Chief Executive & Economic Competitiveness Officer Quentin Messer, Jr. The Michigan State Legislature provided $10 million as part of a special events fund to promote Michigan as a destination for special events and national conventions in summer 2023. The MEDC has provided $2 million specifically to the NFL Draft host committee to support various costs.

“Most states pivot off their largest city for these types of events,” Messer said. “It’s an opportunity for us to leverage Detroit in a way so that it is in the conscience of (NFL fans).” Messer added that the record viewership of 123.7 million viewers for CBS’ broadcast of Super Bowl LVII between the Kansas City Chiefs and the San Francisco 49ers shows just how strong the NFL brand is. “It’s an opportunity to reintroduce Detroit and this great comeback story we have.”

The entire weekend is expected to have an economic impact of well over $150 million, Messer said, adding that estimates are tricky because it takes several months before a reliable figure can be estimated from such a large event. He compared it to the impact of the region hosting a Super Bowl both in terms of financial and branding impact. While television viewership isn’t expected to reach 123 million like this year’s Super Bowl, earned media will be significant.

The crowds are likely to be unlike anything Detroit has seen since the 2006 Super Bowl. The 2023 NFL Draft in Kansas City generated an estimated $160 million for that region, according to media reports, and more than 300,000 fans.

Messer believes other factors could help those numbers soar even higher for Detroit. Overall economic impact includes money spent on hospitality costs like lodging and restaurants, sales and city taxes on purchased items and more.

“We expect a lot of fans from (nearby) NFL cities,” Messer said, noting that the convenience of Detroit Metro Airport to where the draft will be held should help to increase visitor numbers as well. “Plus, I think a lot of (national) fans like the Detroit story. It’s an opportunity for us to connect and amplify our reputation as a great sports town.”

Centered downtown unlike many other drafts
The draft’s location in the middle of downtown gives the city a more urban feel to the weekend compared to many other cities that have recently hosted the draft, such as Kansas City and Cleveland. For example, when Kansas City hosted the draft in 2023, it was primarily held at National WWI Museum and Memorial and Union Station, which is outside of the city’s downtown area.

While the influx of visitors helped many businesses in and around Kansas City, the hospitality benefits were somewhat localized for vendors that were approved to move operations to the park.

Detroit’s draft is being held “right in the heart of the city,” Molinari says. There are several benefits to that, including fan access to hotels, restaurants and bars and the ability to “show off” downtown Detroit in a positive light. The challenges of such a setup are largely logistical.

“Not every (fan) may be able to fit into that footprint (close to the NFL Draft stage),” Molinari said, particularly on Thursday night when the first round is held. “That’s the day media coverage and fan interest is at its apex,” he said.

Some small businesses will benefit during draft week
Bailey Isgro and her team from Detroit History Tours has been completely booked for the three-day period of the NFL Draft for six months and has several media clients utilizing her business’ services earlier that week. The NFL included the touring company on a preferred vendor list that was sent to all NFL teams and media partners, and at least four NFL teams and multiple team members from ABC and ESPN television will be using the company’s services as a result.

Isgro compares the level of advanced interest and booking for her business to the two-week period around the North American International Detroit Auto Show.

The difference is with the draft, the bookings are condensed into fewer days. All 28 of her employees, comprised of guides and drivers, have been scheduled for that week. Isgro also expects a high number of self-guided tours will be booked that week from the company’s app, providing an additional source of revenue.
“Those are three jampacked days,” Isgro said. “The cadence is in such a tight timeframe that it will have a big impact on our business.”

Bailey Isgro said Detroit History Tours has been completely booked for the three-day period of the NFL Draft for six months.

Most of the additional revenue booked for the NFL Draft week is coming through private tours, Isgro said. To compare, Detroit History Tours booked 17 private tours during the entire month of April in 2023. During the three-day NFL Draft period alone this year, the company has booked 28 separate private tours and events. During a typical long weekend in April, Isgro estimates that the company is 70 percent booked.

“It’s going to rank as a big weekend for us, no doubt,” Isgro said. That’s because tourists are looking for things to do before and after the times when they plan to stay near the stage where the live draft is taking place. However, those guests working at the event, such as league and team personnel and media members are more likely to use the company’s services in preparation for the draft itself.

Jeanette Pierce and her team from City Institute will be busy before most tourists and NFL Draft fans arrive, hosting NFL employees and media members for tours and informational sessions about the city of Detroit. Pierce, who is founder and president of the organization charged with providing guests and local stakeholders a deeper understanding of Detroit’s assets, history and challenges in support of residents, said her team will be active providing a more comprehensive view of the city for visitors.

The hope is those guests who work with City Institute will communicate their experiences with Detroit to an international audience, providing a positive and more comprehensive view of the area. One example of how City Institute does this is by leading an art and architecture tour of the city.

“A big focus of the week will be downtown, but we want to show other ways that the city has changed over the years,” Pierce said She started her role at City Institute weeks before the 2006 Super Bowl in Detroit and said there have been many positive changes and a few negative ones impacting the city since then.
A lifelong Detroiter, Pierce can converse about everything that is Detroit from policy to sports history. City Institute attempts to serve as a one-stop-shop for on-the-ground expertise. Yet the organization is also an advocate for intentional efforts to help the entire city experience a positive economic and branding impact from the NFL Draft and other events held in Detroit.

One way City Institute is doing this is by producing a comprehensive checklist of hundreds of bars and restaurants located not just in downtown Detroit, but other parts of the city as well. The goal is to uncover opportunities for business owners in different neighborhoods to benefit.

“We want to show that you can come downtown for the event but spend time in interesting neighborhoods where you might not have to wait three hours for a table (at a restaurant),” Pierce said.

City Institute is also working with business owners and entrepreneurs to help them understand the opportunities they have to take advantage of any large event hosted by Detroit. ‘We have a lot happening throughout the year but the (NFL) draft is icing on the cake,” she added.

Overcoming potential challenges
Molinari says to help offset foot traffic, there will be “activations” around the city in such areas as Greektown, Corktown, Monroe Street, Grand Circus Park and more. Detroit’s location may actually draw in even more fans than other cities, given that there are six NFL cities located within a four-hour drive of Detroit. The activations include NFL branding, ways for fans to view draft activities even while not adjacent to the stage, and an effort to ensure hospitality businesses are ready for the influx.

“We need businesses to be open for extended hours and ready to serve customers,” Molinari said. “I can’t imagine we will have less than 300,000 people.” The Detroit Tigers also have a three-game homestand that weekend with the Kansas City Royals.

It’s the general flow of logistics that keeps Molinari up at night. Even with 8,000 paid “volunteers” having signed up with the NFL to support the draft, 4,000 more than the minimum required, and streamlined cooperation with Chief James White and the Detroit Police Department, there are some things that Molinari and his team can’t control, such as the number of hotel rooms, traffic and parking challenges and more.

“I think about ensuring we have available public restrooms and those types of details,” Molinari said. He estimated there are 45,000 hotel rooms in Southeastern Michigan, and that “all will have to staff up” for the weekend. National-chain hotels are preparing to send staff from nearby communities and metro areas as needed.

Molinari said that not having enough hotel rooms would be a major issue for the region and could make it difficult to get future events. Fortunately, more than 1,000 new hotel rooms are either under construction or about to come online in Detroit.

Parking could be a challenge, but that also gives hospitality businesses not located along the Woodward/Jefferson corridor to attract fans with shuttles to and from the center of the draft’s activities, food and drink specials and more. Molinari’s team is meeting with business owners and leaders that operate from adjacent office spaces about logistical challenges that week. Some may choose to offer added flexibility in remote working for employes.

“I think (all downtown businesses) understand the opportunity here and are more than willing to be flexible so that we can have a great event here in Detroit,” Molinari said. “We need to be good stewards of the region.”

One example of being a good steward is the $1 million that the city of Detroit plans to donate to its youth for literacy and active play programs like Beyond Basics and Project Play that encourages exercise.

Giving visitors, media and television viewers a different view of Detroit
Isgro estimates that about 80 percent of Detroit History Tours’ booked business that week is from media outlets and team personnel. Many of those are reserving the tour company for its services through a media package where guides from Detroit History Tours provide information and help to secure preferred B-roll video for media outlets to use during draft programming. Some bits of information dug up by Isgro and her team will make it to a broadcast, similar to past large events in Detroit like Lions home playoff games in January or hydroplane and auto racing events held in the city or the Detroit Free Press Marathon.

Isgro admits to being surprised at how much international media interest there is in the NFL draft with outlets from Canada and the BBC already contracted for tours.

“The (media outlet or client) will give us a list of B-roll (video) they want to capture, and we’ll take them there,” Isgro said. “We’ll help get images of freighters going up and down the (Detroit) River.”

Messer said he hopes that attending fans and those watching the draft on television or attending in person remember three things about Detroit and the state. The first is that Detroit knows how to throw a party. “We’re hard-working people with great character. You don’t need to go to the (East or West) coast to have a great event,” he said.

The second is that Detroit and Michigan benefit from rich diversity that includes diverse and unique restaurants and cuisine. Lastly, he hopes the draft serves as motivation for non-residents to explore Michigan as a destination not just for events but family vacations and other trips. Additionally, he feels the draft could highlight a high quality of life for aspiring residents.

“We have a diverse economy with freshwater shorelines and many opportunities,” Messer said. “It’s a great place to live, play and work. Especially if you’re a sports fan.”

Managing editor Brad Kadrich contributed to this report.