MONEY MATTERS THE ECONOMICS OF BOAT RACING
By JeAnne CrAig
AN AMERICAN WINDFALL?
The America’s Cup races are about to provide a major economic stimulus, not only to the American
marine industry, but to states on two coasts that are ready for action, and for their world close-ups
The high-tech fleet of Ameri- ca’s Cup boats is set to inject an estimated $1.6 billion into the American economy.
THE 34TH AMERICA’S CUP is one of the biggest international sport- ing competitions in the world. “You’d have to live under a rock to not get excited about this,” says Dennis J. Conaghan, executive director of San Francisco’s Center for Economic Development, refer- ring not only to a whole new format for the traditional race, but also
to the estimated $1.6 billion that will be flowing into American coffers as the host.
According to a recent study by the Bay Area Council Economic Institute (BACEI) and
Beacon Economics, amazingly, the America’s Cup ranks as the world’s third-largest sporting
competition. This is true whether measured by the number of spectators or by the amount
of economic activity generated by attendees and competitors. The event is third only to the
Olympics and soccer’s World Cup, and many times larger than the Super Bowl. It will also
be the only major international sporting event held in 2013, by design. Let’s take a look at
the financial benefits the U.S. will reap from the world’s most famous sailboat racing series.
The three hosting communities will enjoy the richest rewards, but areas beyond these ports
will also see spikes in travel and tourism as international sailing teams, world media, and
spectators explore the regions outside of the
CoMing To AMeriCA,
A new ForMAT
The 34th America’s Cup is comprised of
three main events, each staged in a different location: the AC World Series, already
held in 2011 in San Diego, California,
and coming to Newport, Rhode Island,
in June/July 2012; the Louis Vuitton Cup
in San Francisco in July 2013, where the
foreign challenger will be determined; and
the Finals between the challenger and the
American defender, also in San Francisco
“The Cup is coming back to the United
PHOTO: ACEA/GILLES MARTIN-RAGET
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