SAN FRANCISCO (KCBS) — Newly released figures on Monday revealed that the City Of San Francisco lost $11.5 million hosting the 34th America’s Cup—double what was previously estimated.
Initial figures released last December stated the event cost the city’s taxpayers about $5.5 million but that did not include expenses for the Port of San Francisco, which has its own budget funded by rent revenue from its property—not taxes.
The latest analysis was requested by Supervisor John Avalos.
“The event authority for the America’s Cup has not really tried very hard to maximize the benefits of the city. Certainly they’ve been trying to maximize the benefit to themselves.”
The report by the Board of Supervisors budget and legislative analyst comes as Mayor Ed Lee and Oracle Team USA have been negotiating over whether San Francisco will host the next America’s Cup.
Lee has said he wants the 35th America’s Cup to stay in San Francisco. His spokeswoman, Christine Falvey, said the mayor thinks the events had a significant economic impact but lessons must be learned.
“He’d like to see a tighter race schedule, more teams, bigger economic impact for the city,” she said.
The analysis calls for event organizers to pay rent for venue space as well as to abide by all local hiring rules if the America’s Cup returns to San Francisco.
The Bay Area Council Economic Institute estimated in December the sailing events generated $550 million in economic activity.