December 10, 2013
San Francisco's America's Cup Accounting And Projected Deficit
Preliminary accounting for the 34th America's Cup in San Francisco pegs the economic impact of the event at $364 million versus original projections of $1.4 billion, with roughly 700,000 spectators versus a projected 2.7 million, and a deficit of at least $5.5 million to be covered by the City.
If the construction of San Francisco’s new cruise ship terminal at Pier 27 is included in the numbers, the total economic impact is closer to $550 million with 3,800 jobs created including 900 jobs related to the terminal work. While construction of the terminal was fast-tracked because of the America's Cup, its development was planned and approved prior to the event.
First Published: December 10, 2013 7:45 AM
Comments from "Plugged In" Readers
Creative accounting and embarrassingly below projections but could have been worse.
Posted by: Michael at December 10, 2013 10:49 AM
Ellis Act the America's Cup!
Posted by: jimmy at December 10, 2013 11:15 AM
re: Michael's point...same can be said for the Central Subway.
Posted by: Mark at December 10, 2013 11:15 AM
Given how much future tourism the event will create over the new few years , the cost of $5.5 M was a bargain !
Posted by: Joseph A at December 10, 2013 11:39 AM
Not an awful result, given the ridiculousness of the promises made at the beginning and the potential exposure of the City. The City very wisely pulled back from throwing more money in (or giving away the store to Ellison in terms of future development rights) mid-course.
I NEVER believe the "economic impact" numbers estimated for events like this, but they were doubtless positive, and benefitted hotels and restaurants and retailers. So a bit of a sigh of relief, and hopes that these results will allow the City to make a more realistic and informed "bid" for the next America's Cup. If not, let another sucker take it.
Posted by: curmudgeon at December 10, 2013 11:40 AM
Yeah could have been worse. Hopefully the organizers learned enough and are willing to put on another cup in a few years that attracts more teams, which would likely increase the attendance.
Posted by: Rillion at December 10, 2013 12:12 PM
Ellison Act the America's Cup!
Posted by: Debtpocalypse at December 10, 2013 12:38 PM
I think it was a great event, and with planning tweaks (including a more competitive Louis Vuitton cup), the next experience will be even better. I hope the Cup stays here, and the NIMBYs don't use this news to can it.
Posted by: Sierrajeff at December 10, 2013 12:49 PM
Could have been a lot worse. SF could have thrown a billion down the drain known as "keep the 49ers".
Posted by: formidable doer of the nasty at December 10, 2013 1:32 PM
The numbers would have been much better, if there were more competitors. Ellison is to blame for the low number of competitors due to his expensive and dangerous boat design.
Posted by: MoneyMan at December 10, 2013 1:51 PM
Formidable, you are so right. Oakland, which can scant afford it, keeps pouring money into efforts to keep the A's. So far only planning money but still millions more than this effort, which actually produced real benefits to the City. So in the grand scheme of civic boondoggles this wasn't so bad.
Posted by: curmudgeon at December 10, 2013 1:53 PM
The city will probably benefit more than $5.5 million in increased tourism and related spending from people going on and ending their cruises at the new cruise ship facilities during the time frame saved by fast tracking the dock.
Posted by: gribble at December 10, 2013 2:05 PM
This is how you steal tax dollars for private benefit, with city people pushing the lies as much and as willingly as Larry. Hope those VIP comps had comfy seats and the shrimp were fresh.
Posted by: EH at December 10, 2013 4:33 PM
Posted by: SocketSite at February 10, 2014 7:03 PM