How Sports Are Being Used to Drive Major Economic Success in Cleveland

Five years ago, downtown resident Pete Marek moved from Brunswick to the Halle Building, a high-rise on Euclid Avenue that offers a pristine view of Progressive Field. While Guardians games bring a certain level of activity to his beloved city, it’s the prestigious national sporting events that really excite Marek.

Marek competed in April’s NCAA Women’s Final Four, an “amazing” experience that brought about $30 million to Cleveland’s coffers, according to the nonprofit Greater Cleveland Sports Commission.

“(In April) the weather is not the best, the streets are not crowded, but (the Final Four) filled the city for a week,” said Marek, co-owner of a chemical distribution company based in Mayfield Heights. “There’s a certain joy that comes when you see the sidewalks filled with people. It’s nice to see the restaurants filled because you know they’re making money. It raises everyone’s level of joy when these events come.”

That enthusiasm hasn’t gone unnoticed by athletic commission CEO David Gilbert. The packed hotels, packed restaurants and bustling shops are the result of Cleveland’s successful marketing as a destination for amateur sports and activities. Sporting events inject millions into the local economy while also raising Cleveland’s profile among tourists and locals, Gilbert said.

“Cleveland has been struggling with perception issues for generations, not just decades,” Gilbert said.

“It’s important for the community to have a huge number of these very large events, so we get selected time and time again. It’s a big competition to win these things, and Cleveland beats cities very often.”

The civic organization has organized 20 national events through 2024, including the recently concluded Pan-American Masters Games, as well as SummerSlam, a World Wrestling Entertainment pay-per-view event scheduled for early August. With the athletic commission as a major driver, Cleveland is also set to host the first weekend of next year’s NCAA men’s basketball tournament.

Since its inception in 2000, the organization has attracted more than 240 sporting events, generating a local economic impact of $1 billion, Gilbert said. That includes hotel stays, transportation and dining, as well as sponsorship money directly related to the event.

Gilbert, appointed to head the sports commission in 2000 after serving in a variety of nonprofit leadership roles, serves dually as president and CEO of Destination Cleveland, a tourism board that was once the Bureau of Convention and Tourism, responsible for driving the community’s economic impact and vitality through conference, business and leisure travel.

The two organizations share similar missions – the commission and Destination Cleveland also share an office in the old Woolworth building on Euclid Avenue – This, he noted, redoubled Gilbert’s enthusiasm for making big deals.

“In the beginning, when we were competing with other cities, we felt like we were starting out half a step behind,” said Gilbert, whose previous nonprofit affiliations include developing the nonprofit North Coast Harbor Inc. and The Cleveland Play House. “I don’t think that will continue. In our relationships with the mayor, the county executive and the civic organizations that we work with, I think they have a strong understanding of what it means to put on these events and are willing to step in and help where needed.”

Cleaning the house

Cleveland brewery entrepreneur Sam McNulty owns six Ohio City restaurants and brewpubs, which means tourists have to cross the Hope Memorial Bridge to visit them. But McNulty’s beer and food sales tend to increase when events sponsored by the sports commission come to town, he said.

Overall sales at McNulty’s locations, including Market Garden Brewery, increased by 35% during the 2022 NBA All Star Game alone. McNulty also measures success by the positive word-of-mouth the event generates across the city, whether it’s through celebrity social media posts or general praise for the region.

McNulty said the 2014 Gay Games stood out in particular because they represented a “paradigm shift” in how Cleveland was viewed around the world.

“It wasn’t just about sports, it was about showing the world that Cleveland is a city that’s forward-thinking,” McNulty said. “It was just a lot of enthusiasm, and a lot more Clevelanders showed up than they expected because there was a lot more activity in Ohio City.”

McNulty’s social spots are tied to the menu and various events, whether sporting or otherwise — for example, The Brothers Russo Marvel-ous Lager is named after Cleveland-born filmmakers Joe and Anthony Russo, who shot portions of various Marvel Cinematic Universe movies on the North Shore.

McNulty added that one of the most important benefits of hosting national events is difficult to measure.

“We’re all motivated to clean the house, freshen it up, maybe paint the bathroom walls,” McNulty said. “Just like when you have a house party and all your friends and family come over. You’re improving your house because you have guests coming over.”

It lives

Landing events often last for years — Rio De Janeiro beat Cleveland in the 2020 Pan-American Masters Games, which were canceled because of the pandemic. Although Cleveland doesn’t always have the facilities or hotel accommodations, the athletic commission will combine youth programming with the activity, adding a little more juice to the offering, Gilbert said.

Local partnerships have their advantages, the organization’s CEO added. Cyclists in this year’s Pan-American Masters Games raced on the trails of Cleveland MetroParks, and Edgewater Park served as the backdrop for the triathlon. Even Cleveland’s comparatively small size is an advantage for some event leaders, Gilbert said.

“Our market size can be a disadvantage if someone wants a six- or seven-strong market, and we’re not,” Gilbert said. “On the other hand, there are certain big events that can dominate that market. If the Women’s Final Four or the NCAA wrestling championships are in New York or Chicago, those events can get swallowed up. When those events are in Cleveland, they feel like they can dominate that community.”

The Pan-American Masters Games is expected to bring $8 million to $10 million to the Cleveland economy, and a more detailed economic analysis is currently underway by the commission. But there is more to the story beyond the immediate economic impact, Gilbert said.

“One thing we know is that this will lead to other opportunities for Cleveland to host other international events,” Gilbert said. “It was also the largest international meet in Cleveland’s history and we combined a good program with the Cleveland Cultural Gardens. Finally, we had some great international media that came here to focus on their athletes.”

Downtown resident Pete Marek always enjoys seeing activity on the streets of Cleveland. He said the lively atmosphere wouldn’t be possible without the commission’s work.

“If I go out on a Thursday night, there are people in the streets, but it can go from 15 to 20 people to a few hundred (at a big event),” Marek said. “It’s just a different energy and makes the city feel more alive.”