Frances Newton appeared on Newsmax on July 20, 2026, to discuss the economic impact of hosting major international sporting events and whether the benefits reach local businesses and taxpayers. Using the World Cup final in New Jersey as an example, she explained that hotels and other travel-related businesses may benefit, while restaurants, retailers, and surrounding communities may miss out if visitor spending remains concentrated inside the stadium.

The conversation also examined the importance of coordinating transportation, local commerce, public safety, and event planning to create broader economic benefits. Frances discussed the relationship among major sporting events, tourism, government spending, and international trade, while emphasizing the power of sports to bring people together despite political divisions.

Key Questions from This Segment

How do major sporting events affect local economies?

Major sporting events can increase demand for hotels, transportation, restaurants, retail, and entertainment. This happens partly through the multiplier effect: money spent by visitors gets re-spent by the workers and businesses who receive it, circulating through the local economy more than once. The overall benefit depends on how visitor spending is distributed throughout the host community.

Source: Federal Reserve Bank of St. Louis – The Economics of Subsidizing Sports Stadiums

Why might local businesses receive less revenue than expected?

Visitor spending may remain concentrated within stadiums, official venues, or designated event areas. Researchers call this "leakage," when money spent by visitors flows to event organizers, national vendors, or venues rather than staying with local businesses. Local businesses can miss opportunities when transportation and event planning do not encourage visitors to explore the surrounding communities.

Source: The Sport Journal – Upon Further Review: An Examination of Sporting Event Economic Impact Studies

What costs do taxpayers face when hosting major events?

Public costs may include security, police overtime, traffic management, transportation, infrastructure improvements, and cleanup. Cities often also cover part of a venue's construction costs, sometimes through tax-exempt municipal bonds, meaning the debt is repaid over time using public funds rather than by the team or event organizer alone. These expenses should be compared with the tax revenue and broader economic activity generated by the event.

Source: Federal Reserve Bank of St. Louis – The Economics of Subsidizing Sports Stadiums

Do hotels benefit more than other businesses from major sporting events?

Hotels often experience an immediate increase in bookings, sometimes reaching full occupancy and charging premium rates during the event. But restaurants, retailers, and other businesses may see uneven results depending on visitor behavior, venue policies, and local coordination. One study found that roughly 100 stadium visits generated around 29 visits to nearby food and accommodation businesses, but only about 6 visits to local retail stores, showing the benefit doesn't spread evenly across business types.

Source: Center for Economic Accountability – Stadium Subsidies

How can host cities increase the economic benefits of sporting events?

Cities can connect venues with local businesses through transportation planning, coordinated promotions, designated entertainment districts, and programs that encourage visitors to spend time outside the primary event site. Research on visitor spending suggests that satisfaction with public transport and the ability to access local products are both linked to higher visitor spending in the surrounding community.

Source: PMC (National Institutes of Health) – Athletes' and spectators' expenditures during a medium-sized sport event

Sources: The information above is based on publicly available resources from government agencies, research institutions, and academic publications. Links are provided for educational purposes to help readers learn more about the topics discussed during this interview. Please note that each link will send you to a different website.

The posted video is a media appearance by Frances Newton on a third-party television program. The views and opinions expressed are those of the speaker as of the date of the broadcast and are subject to change without notice.

This segment is being reposted for informational purposes only. The content was prepared for a general audience and should not be considered investment, tax, or legal advice, a recommendation to buy or sell any security, or a solicitation to engage in any investment strategy. The statements made during this broadcast reflect general market commentary and do not take into account the specific investment objectives, financial situation, or needs of any individual investor.

Any references to specific securities, sectors, or investment strategies are provided solely for illustrative or informational purposes and do not constitute recommendations. Past performance or historical market discussions referenced in the broadcast are not indicative of future results.

The media outlet, program host, and network are not affiliated with or endorsing Tuttle Wealth Partners or its advisory services. The Firm has no control over the content or editing of the original broadcast.

By clicking on certain links, you may leave our website. The external links you access may lead to content hosted on another server, which we have not independently verified. These links are provided solely for your interest and convenience. 

Join Frances Newton's Email List

Frances is a nationally recognized economic strategist, market analyst, financial advisor, educator, and frequent contributor across national financial media, including Fox Business, Bloomberg, Yahoo Finance, CBS, and Schwab Network. Subscribe to receive commentary on monetary policy, market trends, economic cycles, and the forces shaping today’s global economy.

This field is for validation purposes and should be left unchanged.
Name(Required)