The impact of the America's Cup on the economy of the city of San Francisco was worth 364 million US dollars. This is according to a report from the Bay Area Council Economic Institute to the city's mayor. If you add the impact of the new cruise terminal, the completion of which was greatly accelerated by the Cup, the figure would be as much as 550 million dollars. In addition, 3,800 new jobs were created.
The reactions to the report were not long in coming. Russell Coutts, team boss of the defender and architect of the new Cup format, who has been heavily criticised in the past for his highly exaggerated promises, took the opportunity to make a liberating statement: "These figures show that the America's Cup can deliver," said the New Zealander.
"Our investment has generated significant revenue for the city," said Mayor Ed Lee, whose renewed bid to host the event is expected by 22 December.
Critics of the event, however, make a different calculation. According to the San Francisco Chronicle, the direct costs for the city to organise the regatta would have amounted to 20.7 million dollars. In order to finance this tax money, 32 million dollars in private funds were expected, of which only 8.6 million have been raised to date. If the increased net income of 6.6 million dollars from taxpayers' money during the event were added to this, there would still be a hole of 5.5 million dollars.
"A 5.5 million deficit for a regatta of billionaires?" asks the Chronicle.
The Chronicle also recalls the many broken promises. When the new format was presented, 15 teams, almost 9,000 new jobs, 2.7 million visitors and an economic impact of 1.4 billion dollars were expected.
It remains to be seen whether San Francisco will be awarded the bid again. The protocol for the upcoming event, which among other things regulates the venue and the mode and is being negotiated between the defending Oracle Team USA and the first challenger from Australia, is expected at the end of January.
According to rumours, there will once again be a kind of world series with the venues located in the nations of the challenging teams. These would then also be responsible for the organisation. The future Cup class will be sailed and not, as previously, in a scaled-down version. In addition, this world series is to be included in the ranking of the challengers.
In addition to Oracle Team USA and the challenge from Australia, the teams Artemis from Sweden and Luna Rossa from Italy are considered safe contenders. The future of Team New Zealand also seems secure following positive sponsorship talks and a financial injection from the government. Most recently, Team France with Franck Cammas, Michel Desyojeaux and Olivier de Kersauson also announced serious intentions to start.
Lars Bolle
Chief Editor Digital
