EXECUTIVE SUMMARY

NASCAR CHICAGO STREET RACE

OVE R VI E W O F E S T I M AT E D E CO N O M I C & F I S CA L I M PA C T S
JULY 1-2, 2023

NET NEW IMPACTS TO

KEY ASSUMPTIONS OTHER KEY HIGHLIGHTS
CITY OF CHICAGO

100,000 Attendees $113.8M $50M+

TOTAL OUTPUT [1] NASCAR INVESTMENT
4,000+ Event Personnel in Market

Attendee Origin [1] EXAMPLE EVENT EXPENSES

4,000+
• 35% Locals [2] EVENT PERSONNEL IN MARKET

• 26% Day Trippers

850
• 39% Overnighters FTE JOBS CONSTRUCTION RACE SERVICES ADMINISTRATIVE

Out-of-Facility Spending [3]

• Locals - $75.00 $31.4M
PERSONAL EARNINGS [2]
• Day Tripper - $155.00 LABOR F&B/MERCH

• Overnighters - $330.00
$3.2M $8.9M
[1] Attendee origin based on NASCAR ticket buyer zip code TAX REVENUE TOTAL TAX REVENUE TO CITY OF CHICAGO,
data from past races. COOK COUNTY & STATE OF ILLINOIS
[2] Locals are those residing within a 90-minute drive of down-
[1] Represents total direct, indirect, and induced spending
town Chicago.
[2] Earnings generated from new FTE jobs 24,000
[3] Based on data from Choose Chicago and CSL
HOTEL ROOM NIGHTS IN CITY OF CHICAGO

STU DY M E T HODOLOG Y
GROSS DIRECT SPENDING SPENDING ADJUSTMENTS NET NEW DIRECT SPENDING ECONOMIC MULTIPLIERS
CONSTRUCTION
Materials, Supplies, Labor, Professional LEAKAGE
Fees, Other Spending that occurs outside of the TOTAL OUTPUT
measured economy
The portion of gross direct spending that is new
EVENT SPENDING to the area and would not have occurred without
Tickets, Concessions, Catering, EMPLOYMENT
the presence of the Street Race
Merchandise, etc. DISPLACEMENT
OUT-OF-FACILITY SPENDING
$ Spending that likely would have
occurred anyway PERSONAL EARNINGS
Lodging, Food & Beverage, Retail,
Entertainment, Transportation

The Chicago Street Race economic and fiscal impact analysis was conducted by Frisco, Texas-based CSL International.
STUDY METHODOLOGY
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STUDY METHODOLOGY
For Discussion Purposes Only

GROSS DIRECT SPENDING

The construction and operation of the proposed CSR will provide quantifiable benefits to the local
economy. Quantifiable measurements of the effects that the event could have on the local economy
include economic and fiscal impacts, as summarized over the following pages.
CONSTRUCTION EVENT SPENDING OUT-OF-FACILITY
Materials, Supplies, Tickets, Concessions, SPENDING
Labor, Professional Catering, Lodging, Food &
DIRECT SPENDING Fees, Other Merchandise, etc. Beverage, Retail,
Entertainment,
Direct spending represents the initial primary spending that would occur as a result of the construction Transportation,
and operations of the CSR event. As shown in the graphic to the right, direct spending is generated
primarily through three ways: construction, event spending, and out-of-facility spending.

Gross direct spending will flow to various economic entities, including the event, service providers,
restaurants, hotel operators, retail businesses, and other such entities. However, some of the spending SPENDING ADJUSTMENTS
that occurs in connection with the construction and ongoing operations of the venue will not fully
impact the local economy. As such, reductions must be made to gross direct spending to reflect the LEAKAGE DISPLACEMENT
amount of direct spending associated with the venue that is considered “net new” to the economy. Spending that occurs Spending that likely
outside of the would have
These spending adjustments include adjusting for leakage, the portion of gross direct spending that is measured economy occurred anyway
likely to occur outside of the measured economy (i.e., City, County), and displacement, the spending
that would have likely occurred anyway in the local market without the presence of the event
(displacement is often referred to as the substitution effect).

Gross direct spending is adjusted in order to estimate the incremental economic impact benefits
generated to the local economy. “Net New” direct spending is calculated by applying these NET NEW DIRECT SPENDING
adjustments for leakage and displacement, which represents the portion of gross direct spending that
The portion of gross direct spending that is new to
is new to the area and would not have occurred without the presence of the event.
the area and would not have occurred without the
presence of the new event

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STUDY METHODOLOGY
For Discussion Purposes Only

MULTIPLIER EFFECT

Economic impacts are further increased through re-spending of direct spending. The
total impact is estimated by applying an economic multiplier to initial direct spending to
account for the total economic impact. The total output multiplier is used to estimate the
aggregate total spending that takes place beginning with direct spending and continuing
New Net Direct Spending
through each successive round of re-spending. Successive rounds of re-spending are
generally discussed in terms of their indirect and induced effects on the area economy, as Indirect Spending Total
follows:
Output
• Indirect effects consist of the re-spending of the initial or direct expenditures. These Induced Spending
indirect impacts extend further as the dollars constituting the direct expenditures
continue to change hands. This process, in principle, could continue indefinitely.
However, recipients of these expenditures may spend all or part of it on goods and
services outside the market area, put part of these earnings into savings, or pay taxes. • Construction
This spending halts the process of subsequent expenditure flows and does not Spending
• Food & Merchandise
generate additional spending or impact within the community after a period of time. • Event Revenues Wholesaler
• Out-of-Event • Transport Company • Business Services
• Induced effects consist of the positive changes in spending, employment, earnings and Spending
• Manufacturers • Household Spending
tax collections generated by personal income associated with the operations of the
• Energy/Utilities • Governmental Spending
event. Specifically, as the economic impact process continues, wages and salaries are
earned, increased employment is generated, and spending occurs in virtually all • Numerous Other • All Other Economic
Industries Sectors
business sectors.

The graphic to the right illustrates the flow of direct spending through the successive
rounds of re-spending, including the indirect and induced effects.

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STUDY METHODOLOGY
For Discussion Purposes Only

ECONOMIC MULTIPLIERS (COOK COUNTY)

Employment Personal
MULTIPLIER EFFECT (Cont’d) Total Output
(FTE) Earnings
Admissions 1.94 14.71 0.50
Indirect and induced effects are calculated by applying the appropriate multipliers to the net
Construction 1.86 9.10 0.53
new direct spending estimates. The appropriate multipliers to be used are dependent upon
Entertainment 1.94 14.71 0.50
certain regional characteristics and also the nature of the expenditure. Generally, an area
Food and Beverage 1.99 20.14 0.64
which is capable of producing a wide range of goods and services within its borders will have
Lodging 1.83 10.72 0.45
high multipliers, a positive correlation existing between the self-sufficiency of an area’s
Office 2.05 12.76 0.62
economy and the higher probability of re-spending occurring within the region. If a high
Other 2.00 19.35 0.65
proportion of the expenditures must be imported from another geographical region, lower
multipliers will result. Parking 1.92 19.60 0.43
Retail 1.89 13.91 0.52

The multiplier estimates used in this analysis are based on the RIMS II system, which is a Transportation 1.92 19.60 0.43
regional economic model developed by the U.S. Bureau of Economic Analysis that is used by Note: Total Output and Personal Earnings multipliers are applied one-to-one to dollars,
whereas Employment multipliers are applied one-to-one to millions of dollars.
investors, planners, and elected officials across the country to accurately assess economic Source: RIMS II.
impact, and are specific to Cook County, IL. The specific multipliers used in this analysis are
show in the chart to the right.
Total
Multipliers are applied to direct spending to calculate the following measures of economic
Output
impact, as shown in the graphic to the right:

• Total Output represents the total direct, indirect, and induced spending effects generated
by the CSR. NET NEW
ECONOMIC
DIRECT + MULTIPLIERS
Employment
• Employment is expressed in terms of total full-time equivalent (FTE) jobs and includes both SPENDING
full- and part-time jobs.

• Personal Earnings represent the wages and salaries earned by employees of businesses Personal
impacted by the CSR. Earnings

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