The America’s Cup will pump approximately $780 million into the Bay Area economy, generate about 5,500 jobs and lead to about $14 million in revenue for San Francisco, according to a soon-to-be-published report.
“This is a good news story,” said Stephen Barclay, CEO of the America’s Cup Event Authority, who has seen a copy of the Beacon Economics study expected to be released Tuesday.
The numbers are smaller than those first touted by many city leaders when they sought to bring the America’s Cup to San Francisco.
A 2010 study by Beacon Economics predicted the event could pump as much as $1.4 billion into the Bay Area economy and generate some 8,800 jobs. That previous study also assumed more than a dozen teams would participate in the America’s Cup.
But a number of teams have either pulled out of the America’s Cup or did not enter at all. Four teams are expected to compete in the America’s Cup that starts on San Francisco Bay on July 4 and concludes Sept. 21.
The current economic impact numbers may color the discussion of an upcoming hearing called for by San Francisco SupervisorJohn Avalos. Avalos said he is concerned that the city may be on the hook for about $18 million in expenses if a private, nonprofit group does not raise more money to offset the city’s costs. So far that group, the America’s Cup Organizing Committee, said it has raised $14 million and its goal is about $32 million.
Barclay said that while the impact of the America’s Cup may not be as high as originally thought, it still represents a positive turn for the regional economy.
Moreover, he said, the city likely will not have to spend any money on the event.
“It will be a wash” to the city’s coffers, he said, when the $14 million raised through private means is added to the approximately $14 million that the event will generate in additional San Francisco tax revenue.
I will be very interested to see the numbers after the fact. While Newport was very satisfied with the AC tour it hosted in July 2012, the economic numbers were far lower than projected.
