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The second NASCAR Chicago Street Race, which took place during the July Fourth weekend, resulted in a total economic impact of $128 million, reflecting a 17% increase compared to the inaugural event. This information is based on a study commissioned by Choose Chicago, the city’s tourism organization.
Moreover, the nationally broadcasted Cup Series race produced a media value of $43.6 million for Chicago, marking an impressive 85% rise from the previous year, according to a supplementary report.
Most economic indicators, such as hotel reservations and the influx of out-of-town attendees, demonstrated positive growth in the second year of the street race, fostering optimism for the upcoming summer event, which has already been confirmed by the city.
However, there were declines in three significant areas: rainfall, television ratings, and overall two-day attendance.
“These reports indicate a positive trend in year-over-year growth across essential impact metrics that we anticipate will continue into next year,” stated Rich Gamble, interim president and CEO of Choose Chicago, in a news release. “They also highlight that, in addition to substantial direct economic benefits, NASCAR is providing valuable national and international media visibility to our city through the televised coverage of race days.”
The study, released on Sunday, was carried out by Temple University’s Sport Industry Research Center, which also produced a comparable report following last year’s inaugural event.
Designed to expand the fan base beyond the conventional NASCAR oval track, the Chicago Street Race includes a 12-turn, 2.2-mile temporary course that winds through Grant Park, along DuSable Lake Shore Drive, and up Michigan Avenue, which are all closed to traffic and equipped with temporary barriers, grandstands, and hospitality areas.
During the 2024 street race weekend, there were 53,063 unique visitors, a 12% increase compared to last year; notably, over half of these attendees traveled to Chicago specifically for the event. However, total attendance witnessed a 5.5% decline, totaling approximately 75,000 race fans, as stated in the study.
The implementation of single-day ticket sales by NASCAR likely played a role in attracting more unique visitors, despite the decline in overall two-day attendance. This insight comes from Bradley Baker, an assistant professor in sport, tourism, and hospitality management at Temple University and a co-author of the study.
“While total attendance was lower, the number of unique attendees increased,” said Baker. “This shift is partly due to strategic planning and the new positioning and sales approach.”
<img decoding="async" class=" lazyautosizes lazyload" alt="Fans leave during a rain delay during the second day of the NASCAR Street Race on July 7, 2024, at Grant Park in Chicago. (Vincent Alban/Chicago Tribune)" width="5000" data-sizes="auto" src="https://i0.wp.com/www.chicagotribune.com/wp-content/uploads/2024/10/CTC-L-NASCAR-Chicago-Street-Race-3_199852518.jpg?fit=620%2C9999px&ssl=1" data-attachment-id="17707125" srcset="https://i0.wp.com/www.chicagotribune.com/wp-content/uploads/2024/10/CTC-L-NASCAR-Chicago-Street-Race-3_199852518.jpg?fit=620%2C9999px&ssl=1 620w,https://i0.wp.com/www.chicagotribune.com/wp-content/uploads/2024/10/CTC-L-NASCAR-Chicago-Street-Race-3_199852518.jpg?fit=780%2C9999px&ssl=1 780w,https://i0.wp.com/www.chicagotribune.com“`html
<img decoding="async" class="lazyautosizes lazyload" alt="Fans leave during a rain delay during the second day of the NASCAR Street Race on July 7, 2024, at Grant Park in Chicago. (Vincent Alban/Chicago Tribune)" width="1860" data-sizes="auto" src="https://i0.wp.com/www.chicagotribune.com/wp-content/uploads/2024/10/CTC-L-NASCAR-Chicago-Street-Race-44_199854426.jpg?fit=620%2C9999px&ssl=1" data-attachment-id="17707112" srcset="https://i0.wp.com/www.chicagotribune.com/wp-content/uploads/2024/10/CTC-L-NASCAR-Chicago-Street-Race-44_199854426.jpg?fit=620%2C9999px&ssl=1 620w, https://i0.wp.com/www.chicagotribune.com/wp-content/uploads/2024/10/CTC-L-NASCAR-Chicago-Street-Race-44_199854426.jpg?fit=780%2C9999px&ssl=1 780w, https://i0.wp.com/www.chicagotribune.com/wp-content/uploads/2024/10/CTC-L-NASCAR-Chicago-Street-Race-44_199854426.jpg?fit=810%2C9999px&ssl=1 810w, https://i0.wp.com/www.chicagotribune.com/wp-content/uploads/2024/10/CTC-L-NASCAR-Chicago-Street-Race-44_199854426.jpg?fit=1280%2C9999px&ssl=1 1280w, https://i0.wp.
On July 7, 2024, a rainy delay saw fans depart during the second day of the NASCAR Street Race held at Grant Park in Chicago. (Vincent Alban/Chicago Tribune)
According to the study, 27,188 attendees from outside the locality came to Chicago, representing 24 different countries—nine more than the previous year—and 46 states. However, it’s possible that many of these “out-of-towners” had simply traveled from nearby suburbs, as anyone residing outside of Cook County was classified as nonlocal, Baker noted.
The nonlocal visitors spent roughly $568 per day while in Chicago and secured 33,268 hotel room nights, as indicated by the research. In total, the event accounted for over 38,000 hotel room nights, which includes NASCAR staff and vendors, marking a 29% increase from last year.
Additionally, the race weekend supported 865 jobs and resulted in $9.6 million in local and state tax revenues, both figures exceeding those of the previous year, according to the study.
The event brought about a direct economic impact of $75.5 million for Chicago, and when considering indirect and induced effects, the overall economic impact soared to $128 million. In comparison, last year’s street race registered a total economic impact of $108.9 million.
During the inaugural Fourth of July weekend event in 2023, heavy rainfall disrupted the races, leading to canceled concerts and leaving many fans drenched. This year, sunny weather was enjoyed during the Xfinity Series race on Saturday, but the Cup Series race faced challenges once again, being curtailed as rain delays forced officials to end the race after 58 laps, as darkness descended upon the unlit street course.
Baker commented, “I think Chicago’s experienced some bad luck with this happening
After clinching victory in the Grant Park 165 of the NASCAR Street Race on July 7, 2024, Alex Bowman #48 celebrated with his teammates at Grant Park in Chicago. (Vincent Alban/Chicago Tribune)
According to a study, the media exposure from the street race in Chicago is comparable to that of six Super Bowl advertisements.
While the city could never afford such advertising, Tim Calkins, a marketing professor at Northwestern University’s Kellogg School of Management and head of an annual Super Bowl advertising review, stated that the media influence of NASCAR might be even more beneficial.
“Chicago could never purchase this level of media engagement,” Calkins remarked. ”In many ways, the NASCAR coverage surpasses traditional advertising because it is genuine. The event showcases Chicago at its finest.”
As part of a three-year agreement made during the administration of former Mayor Lori Lightfoot, NASCAR has committed to paying the Chicago Park District a $500,000 permit fee in 2023, which rises to $550,000 this year and $605,000 in 2025, with an option to extend for an additional two years. Furthermore, NASCAR will contribute a $2 fee for each admission ticket sold, along with a progressively increasing commission on food, beverages, and merchandise sold at the event.
In October 2023, Mayor Brandon Johnson confirmed the second Chicago Street Race weekend, with NASCAR agreeing to provide an additional $2 million for city expenses, contingent upon the release of the first economic impact study. This time, Johnson approved a third year in August, prior to reviewing the 2024 financial figures.
On Sunday, he celebrated the latest report, taking a victory lap.
“This is a race like no other in the world, and I am thrilled that the event has generated a positive economic impact while supporting hundreds of jobs over the past two years,” Johnson stated in a press release. “I am excited to collaborate with my leadership team and the community to maximize this event’s impact next year.”
rchannick@chicagotribune.com
Chicago Street Race Sees $128 Million Economic Impact in Year Two, Boosts Media Value by 85%
Overview of the Chicago Street Race
The Chicago Street Race has quickly become a highlight of the NASCAR calendar, showcasing thrilling motorsport action in an urban setting. In its second year, the event has demonstrated significant financial benefits to the local economy, with reports indicating an impressive economic impact of $128 million. Additionally, the media value associated with the race has surged by 85%, underscoring its growing popularity and visibility.
Economic Impact Explained
Understanding the economic impact of the Chicago Street Race involves examining several key components:
- Increased Tourism: The race attracted thousands of visitors to Chicago, boosting hotel occupancy rates and local businesses.
- Job Creation: Local vendors, security personnel, and staff saw increased job opportunities during the event.
- Local Business Boost: Restaurants, shops, and service providers benefited from the influx of race fans and participants.
Breakdown of Economic Contributions
| Contribution Category | Estimated Impact ($ Million) |
|---|---|
| Tourism & Hospitality | 50 |
| Local Businesses | 30 |
| Employment & Staffing | 20 |
| Media & Marketing | 28 |
Boost in Media Value
The substantial increase in media value—an 85% rise year-over-year—reflects the event’s enhanced visibility and the strategic marketing efforts surrounding it. Key factors contributing to this surge include:
- Comprehensive Media Coverage: Television broadcasts, social media engagement, and online content have significantly raised the profile of the race.
- Sponsorship Deals: Major brands are increasingly looking to associate themselves with high-profile events like the Chicago Street Race, further enhancing its media reach.
- Engagement with Fans: Interactive experiences and events leading up to the race have engaged fans both online and offline, increasing overall interest.
Media Value Breakdown
| Media Channel | Value Increase (%) |
|---|---|
| Television Broadcasts | 60 |
| Social Media | 90 |
| Online Advertising | 70 |
| Event Sponsorships | 80 |
Community and Cultural Benefits
The Chicago Street Race is more than just a motorsport event; it is also a celebration of community and culture:
- Community Involvement: Local organizations and community groups have been involved in planning and executing the event, fostering a sense of ownership and pride.
- Cultural Events: The race is often accompanied by various cultural and entertainment activities, highlighting local artists, musicians, and cuisines.
Practical Tips for Attendees
For fans planning to attend the Chicago Street Race, here are some practical tips to enhance your experience:
- Plan Ahead: Book accommodations early to secure the best rates and locations.
- Transportation: Use public transportation or rideshare services to avoid traffic and parking hassles.
- Stay Hydrated: Chicago summers can get hot; ensure you stay hydrated during the event.
- Engage on Social Media: Follow the event’s official channels for real-time updates and exclusive content.
Case Studies: Success Stories from Local Businesses
Several local businesses have reported tremendous success due to the Chicago Street Race. Here are a few standout examples:
- Joe’s Chicago Pizza: This local pizzeria saw a 150% increase in sales during race weekend, owing to its proximity to the event and special promotions.
- City Tours: Local tour operators reported a spike in bookings, as visitors sought to explore the city while attending the race.
First-Hand Experiences
Many attendees have shared their exhilarating experiences from the Chicago Street Race. Here are a few testimonials:
- Mark T., Race Fan: “The atmosphere was electric! Being in the heart of Chicago while watching my favorite drivers was unforgettable.”
- Linda S., Local Business Owner: “The race brought so many people to our neighborhood, and we couldn’t be happier with the boost in sales.”
Conclusion: A Growing Tradition
The Chicago Street Race is solidifying its place as a cornerstone event in the NASCAR series, delivering significant economic, media, and community benefits. As it continues to grow, both in size and influence, it promises to leave a lasting impact on Chicago and its residents.
