The America's Cup: Economic Impacts of a Match - Bay Area Council

This analysis assumes that three additional domestic challengers participate in the Defender Series, for a total of
15 syndicates.
The assumption regarding syndicate spending during a San Francisco-based Cup is that it would be comparable to
Valencia, except in two respects. First, there was a significant investment in infrastructure in Valencia. It is not
anticipated that each syndicate will make a massive investment in individual hospitality suites in San Francisco.
In particular, there is likely to be insufficient space for such structures on the piers. Instead, smaller structures,
catering to the storage, maintenance, and repair of the sailboats would likely be constructed on the piers, the
construction of which could cost as much as $25 million − significantly less than the $257 million that was spent
in Valencia.
Second, it is unlikely that the large expenditures in the marine sector that are recorded for Valencia would occur
in San Francisco. Accordingly, $25 million in spending, rather than the $149 million spent in Valencia, has been
allocated to this sector. It is likely that most of these expenses would be sourced from outside of the Bay Area.
Nonetheless, there would be significant expenditures in the local marine sector. In particular, the maintenance
and repair of the 15 to 20 hard bottom inflatable boats, or tenders, per team would likely be undertaken by local
suppliers of marine services. In the end, syndicate spending remains significant, at $219 million, but is much less
than is estimated to have occurred in Valencia.
Sponsors. Corporate sponsors of America's Cup teams/syndicates can be expected to invite major clients to San
Francisco for a range of hosted activities, including hospitality at the syndicates' VIP centers and cruises to watch
the races, generating spending on food, transportation, and hotels. Bigger syndicates typically secure larger sponsors.
Large sponsors may invest several million dollars each, while smaller sponsors should be in the range of one
million. These funds will not be directly accounted for in the impact analysis as a significant portion is not spent
locally. The sponsorship funds spent locally are accounted for in the expenditures of individual syndicates.
In Valencia, on days with major activity, large syndicates such as Oracle hosted as many as 200 guests, while lesser
syndicates hosted smaller groups averaging approximately 40. These expenditures are implicitly included in the
analysis as a part of syndicate spending.
Cup Management. A defender-run entity will likely be created to manage commercial aspects of the race, including
vessel berths, branding, and television rights. Much of this activity will not accrue benefits directly to
the region. However, a significant amount will still be spent locally. It was estimated that 95 million euros ($145
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