By Jaysum Hunter, Managing Partner, 575 Asset Management
When Chicago wins, so does Chicagoland.
For a city renowned for its iconic skyline, deep-dish pizza, and cultural landmarks, the vibrancy of Chicago’s sports culture is equally foundational to its identity. Home to six major sports teams—Chicago Bears (NFL), Chicago Bulls (NBA), Chicago Cubs (MLB), Chicago White Sox (MLB), Chicago Blackhawks (NHL), and Chicago Fire (MLS)—the city has historically thrived on its sporting legacy. But in recent years, a subpar performance climate among these teams has had far-reaching consequences, dampening not only fan morale but also the city’s economic potential and global visibility.
The Case for a Winning Sports Culture
A thriving sports ecosystem does more than create feel-good moments; it drives measurable economic impact. Consider the Chiefs’ success in Kansas City, which has generated nearly $1 billion annually in economic impact, supported 6,000 jobs, and added $28.8 million in tax revenue for Missouri.
Now imagine the scale if Chicago’s sports teams elevated their performance collectively. With historic moments like the Cubs’ 2016 World Series victory and the ongoing redevelopment initiatives around iconic venues like the United Center, the city demonstrates how a winning sports culture can drive economic prosperity and enhance its global reputation.
The 1901 Project, a $7 billion development surrounding the United Center, exemplifies how Chicago sports catalyze transformative urban investments. This initiative, backed by the Reinsdorf and Wirtz families, will add 9,463 new homes—20% of which are designated as affordable housing—1,309 hotel rooms, nearly 10 acres of green space, and a 6,000-seat music hall to the Near West Side neighborhood. With retail spaces, cafes, and elevated parks, the project seamlessly integrates residential, commercial, and recreational components.
Key Economic Drivers of a Winning Sports Culture
- Increased Tourism Spending:
Championship wins attract fans from across the country, as seen in Kansas City. Hotels, restaurants, and local attractions in Chicago would see exponential growth in tourism spending, especially during playoff runs, finals, or celebratory events like championship parades. The 2016 Cubs World Series win is a testament to this—drawing an estimated 5 million people to the parade, making it one of the largest gatherings in U.S. history.
- Restaurant and Bar Revenue Growth:
Sports events, especially during winning seasons, drive spontaneous spending. Chicago restaurants, bars, and food delivery services stand to benefit from increased foot traffic and consumer enthusiasm on game days, draft nights, and celebratory gatherings.
- Media and Digital Engagement Opportunities:
With the right partnerships, Chicago can replicate successful media models like the UK-based Arsenal Fan TV (AFTV). By capitalizing on platforms like YouTube, Instagram Live, and Facebook streams, the city could generate global fan engagement, creating new revenue streams for both sports teams and local businesses.
- Major Events Hosting Potential:
A winning reputation helps cities secure marquee events like the NFL Draft, Super Bowl parties, and other championship-level festivities. Kansas City generated $164.3 million from the 2023 NFL Draft—demonstrating how a strong sports culture can position a city as a host for global events.
- Branding and Global Visibility:
Championships elevate a city’s profile internationally. Chicago, despite its vibrant cultural and economic assets, would benefit from increased global visibility similar to Kansas City’s branding during the Chiefs’ Super Bowl wins.
The Cost of Losing: Economic and Budget Implications
A losing sports culture isn’t just a blow to morale; it can have tangible negative effects on the economy:
- Dampened Revenue Streams: Low attendance, fewer ticket sales, and reduced sponsorship deals directly hurt team earnings, which in turn limits local economic stimulation.
- Tourism Decline: Without a winning narrative to draw visitors, tourism spending stagnates. Fans are less likely to travel to Chicago for lackluster seasons.
- Missed Opportunities: Cities like Kansas City and Los Angeles outcompete Chicago in securing high-profile events due to stronger sports legacies.
Moreover, this underperformance can create ripple effects on city budgets. A weakened sports economy results in reduced tax revenue, forcing city leaders to reallocate resources away from growth initiatives to maintain essential services.
Chicago’s sports legacy also provides a foundation for hosting major events, such as NBA and NFL draft nights, which can inject millions into the local economy. The city’s rich sports culture positions it as a prime destination for marquee events, including potential Super Bowl parties or FIFA World Cup matches. These events increase tourism spending, and job creation, and enhance city branding. By fostering collaboration between city leaders and sports franchises, Chicago can cultivate a culture of winning that benefits the entire metropolitan area.
Building a Winning Culture: Collaboration is Key
To turn Chicago into a hub for sports-driven prosperity, city leaders and team owners must collaborate on strategies that prioritize long-term success both on and off the field:
- Investment in Facilities and Talent:
Public-private partnerships can help fund world-class training facilities, stadium upgrades, and youth programs. These investments not only attract top talent but also create jobs and foster community engagement. - Celebrate Local Entrepreneurship:
Like Kansas City’s embrace of local makers following the Chiefs’ success, Chicago should leverage its vibrant small business ecosystem to produce team merchandise and memorabilia. This supports local artisans and strengthens community ties. - Engage Fans Digitally:
Build fan-driven platforms where supporters can discuss games, share content, and engage with teams. Chicago could replicate AFTV’s model, creating digital fan hubs that monetize through ads and sponsorships. - Host Major Events:
Chicago’s infrastructure makes it an ideal host city for events like the NFL Draft, NBA All-Star Weekend, or even a future Super Bowl. Proactively pitching the city’s capabilities to league organizers can bring in millions in economic activity. - Inspire with a Vision:
A winning sports culture begins with leadership. By fostering a culture of excellence—both on the field and in the boardroom—team owners, coaches, and players can inspire fans and investors alike. As the saying goes: “If you are not first, then you are last.”
Conclusion: A Winning Vision for Chicago
The $7 billion 1901 Project is a shining example of how strategic investments tied to sports venues can create economic ripple effects that benefit the broader community. With initiatives like this, Chicago transforms its sports infrastructure into engines of growth, blending community-focused development with opportunities for tourism and commerce. As the city continues to build on its rich sports heritage, the economic and cultural dividends will ensure Chicago remains a global leader in urban innovation and development. By leveraging its passion for sports, Chicago has the potential to create a legacy of prosperity and civic pride that resonates for generations to come.
The city of Chicago deserves a winning, rich sports culture. Beyond the emotional lift, championships bring economic revitalization, create job opportunities, and position the city as a global destination. By fostering collaboration between city leaders, team owners, and local businesses, Chicago can transform its sports culture into an economic powerhouse—because when Chicago wins, everyone wins. “It’s time to bring the spirit of the 2016 Cubs to every team in the city. Let’s make Chicago the epicenter of sports triumphs once again.”
