San Fran planned to make a fortune from a boat race for billionaires.  The City committed tens of millions of tax dollars to promote a race that billionaires refused to pay for themselves.  This is how you get rich, you make the poor pay for your entertainment.

“The America’s Cup said last year it had a goal of raising $270 million to cover the cost of its exhibitions as well as the finals in 2013. It is not clear how close the event is to that target.

Big sponsors are critical to the America’s Cup because the event does not sell tickets to its races. The highest-profile sponsors for the America’s Cup so far include luxury goods maker Louis Vuitton and clothier Puma. Terms of those deals were not disclosed.

The America’s Cup has a broadcast deal with NBC. But unlike TV deals with leagues like the NFL or Major League Baseball, the America’s Cup is paying the network to air the events”

How good is their private fund raising?  They just fired half the staff…more to come.  Were it not for the money stolen from taxpayers, this whole event would be ended.  The taxpayers are forced to bail out billionaires—kind of like the Obama stimulus—only the very rich get the reward of tax dollars from the poor and middle class.

Stadiums, arenas, boat races—if a billionaire can not afford it, neither can I.

 

America’s Cup layoffs affect half of San Francisco staff

San Francisco Business Times by Eric Young, 3/23/12

America’s Cup officials laid off approximately half their San Francisco staff Friday in a cost cutting move.

In a press release Friday afternoon, America’s Cup officials said 14 people in San Francisco and 14 people in other offices around the world would lose their jobs.

The extent of the layoffs might lead America’s Cup officials to close their San Francisco office on Pacific Avenue and consolidate in a smaller office space along the city’s waterfront, a spokesman said.

In its press release, America’s Cup officials said the move was a response, in part, to the downsizing of the event as part of a new agreement with the city of San Francisco. The agreement is expected to be considered by the San Francisco Board of Supervisors on March 27.

“We must ensure that our expenses match revenues. We made these changes to create efficiencies necessary to ensure that we deliver an exciting and important event for both the world of competitive sailing and San Francisco,” said Stephen Barclay, who was just given the job of interim CEO of the organization earlier this week.

The layoffs come as the America’s Cup struggles to line up sponsorships ahead of its championship races in San Francisco next year.

Last February Richard Worth, then-chairman and CEO of the America’s Cup Event Authority, said attracting deals was “bloody tough… It’s hard for sports sponsorships globally.”

Worth this week was given a new role in charge of finding new venues and revenues for the World Series, a collection of races preceding the America’s Cup finals in 2013. Worth’s CEO position was taken over by Barclay, an America’s Cup board member and chief operating officer of Oracle Racing.

The America’s Cup said last year it had a goal of raising $270 million to cover the cost of its exhibitions as well as the finals in 2013. It is not clear how close the event is to that target.

Big sponsors are critical to the America’s Cup because the event does not sell tickets to its races. The highest-profile sponsors for the America’s Cup so far include luxury goods maker Louis Vuitton and clothier Puma. Terms of those deals were not disclosed.

The America’s Cup has a broadcast deal with NBC. But unlike TV deals with leagues like the NFL or Major League Baseball, the America’s Cup is paying the network to air the events.

Oracle Corp. CEO Larry Ellison, owner of America’s Cup holder Oracle Racing, is said to be fronting much of the cost of the 2013 America’s Cup, so sponsorships would essentially repay his outlay. It is unclear how much Ellison has committed. In a New York Times story last year, Ellison refuted reports that he is prepared to spend as much as $300 million.

 

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Robert

You are so right. I’m tired of the media stories pimping one more scheme for the rich to fleece the public. If Larry wants to play, let him pay, for all of it.

March 28, 2012 at 1:59 pm

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