Costs and Details of Hosting the ToC

[DirtyWorks]

A wonky post about the costs and details associated with being a host city for Anschutz/AEG-Medalist Sports event the Tour of California.

City of Thousand Oaks, CA paid something like $200,000 for the privilege. About 10% of the cost was offset with sponsorship. In any circumstance, the city assumes all costs of hosting.

http://www.toacorn.com/news/2014-04-03/Front_Page/Hosting_race_comes_at_a_cost.html

The city is using the idea that 200 million people will watch the event. I'm not sure how that's possible. Cycling is not football.

Some of the things the host city is REQUIRED to pay for:

-Two Internet drops with a *minimum capacity* of 20mbs up/down each. We're not talking the consumer-levell service Mbps.

-Party with open bar for 500 people.

-Hotel must have ToC broadcaster on the room's tv's.

-Sell race sponsor's beer in city-provided "beer garden" with some part of proceeds benefitting a local non-profit.

-Catering for 1300 people including teams inclusive, official media, setup and teardown crews. Breakfast and dinner.

-200 rooms the night before the finish.
-700 single and double rooms the night of the finish.
-60 hotel room nights for 1 year prior to the event.

The mechanics get:
-75–150 gallons of non potable water per team, one 20A or 30A plug per team
-Water and electrical outlets within 50 ft.
Not easy to supply!

The smaller promoters will likely bristle at these costs assumed by the City:
-law enforcement,
-EMT
-street closures,
-barriers
-permit fees, permit issued normally assumed by a promoter.
-portable restrooms

http://www.toaks.org/civica/filebank/blobdload.asp?BlobID=27998

 

[benpounder]

The first year of the USAPCC, with stages finishing and starting in my home town - Steamboat Springs - I talked with a number of essential peons. Most donated their time while their jurisdictions picked up the operational expenses. I dont know how ToC works, but I suspect it is similar as long as it is outside the larger metropolitan areas. The hard work is done up front, trying to get everyone aware and onboard. Small town businesses are more than willing to suffer closures when they know that they can offer patrons front row seats. Ranchers and farmers are more than willing to suffer an hour of work stoppage for the chance that their spread graces television coverage.

ToC may be different, especially around SF and LA, but here in Colorado a fairly high percentage of people follow cycling, and as such, communities are more than willing to shoulder the costs in return for the international exposure.

 

[Ferminal]

But how much do they get in return from the "lobbyists"?

 

[DirtyWorks]

But how much do they get in return from the "lobbyists"?

This is an interesting question as to why a municipality would do this. Particular to the city of Thousand Oaks, CA I believe Amgen is a contributor to the tax base. BTW, the City's budget is $66 million. So, $250,000 out of it isn't much.

The city would have far better return on resources making it easier for event promoters to do 10K's, fun rides, and whatnot. Many, many more people would be in the city.

The claim the event generates substantial economic activity, doesn't seem true. Outside of a caterer and the porta-potty contract, not much else going on. Rooms in hotels are filled at below-market rates and the city is paying for the rooms.

 

[SKSemtex]

Very interesting info for me. Thanks a lot.

I would love to see similar contract for "hosting" in GT.

 

[Master50]

The first ToC spent close to one million dollars a day to take care of the 800 person entourage.

 

[DirtyWorks]

The first ToC spent close to one million dollars a day to take care of the 800 person entourage.

Details please!

 

[DirtyWorks]

Just caught the end of an NPR story on the Tour of California.

The writer keeping the lights on for the interns at VeloNews estimates Amgen's title sponsorship as costing $4-6 million. Maybe the beer and other sponsors add another $1 million.

Let's call AEG's revenue, conservatively, $4 million. We don't know who collects the media rights revenue. The towns are picking up the bill for the riders, and all the race infrastructure.

Some part of the $4 million goes to paying the UCI for officials and their race ranking, flying teams over, maybe some riders get appearance fees.

I can see AEG clearing $1 million per year.

http://www.scpr.org/blogs/economy/2...d:+893KpccSouthernCaliforniaNews+(KPCC:+News)

 

[red_flanders]

The race is going to die if the attendance stays like it's been this year. Pretty bad. They need to keep it closer to the coast and population centers, and they need to make some stars and hometown heroes who aren't total frauds like Armstrong and Leipheimer.

No one here gives a rat's arsenal about Brad Wiggins.

 

[Race Radio]

I can see AEG clearing $1 million per year.

The race has lost money every year.

 

[DirtyWorks]

The race is going to die if the attendance stays like it's been this year. Pretty bad. They need to keep it closer to the coast and population centers, and they need to make some stars and hometown heroes who aren't total frauds like Armstrong and Leipheimer.

No one here gives a rat's arsenal about Brad Wiggins.

As long as they are getting towns to pick up the tab for a start/finish, it looks like the event makes money, or breaks even.

I absolutely agree they need a "hometown hero." But, the way the sport is structured, continental racing is practically invisible, so nobody knows a Routley, or Craddock.

 

[red_flanders]

As long as they are getting towns to pick up the tab for a start/finish, it looks like the event makes money, or breaks even.

I absolutely agree they need a "hometown hero." But, the way the sport is structured, continental racing is practically invisible, so nobody knows a Routley, or Craddock.

I hope that's true. I really enjoy having the race here. Kind of nice to be able to do my local climbs and watch a Pro Tour race go by every spring (well, except this one due to the course).

 

[Race Radio]

ToC has lost $1-2 million per year for most of the 8 years it has been around. Tim Leiweke, the former head of AEG hated it but it was Phil's baby so it stayed alive. He is gone now so the likelihood of it surviving is greater. This year it will likely be profitable, but it will take a long time to earn back the $10+ million lost over the last 8 years. Of course there is also the value of the asset, which has increased since it was started. Maybe some race company looking to grow could buy it.....but I kinda doubt that.

I remember the 1st Big Bear finish cost around $85k, so prices have gone up.

 

[alspacka]

Fascinating, thanks.

I doubt any bike race has ever had 200m viewers(?)

 

[murali]

a doubt:

how much will the hotel bill come to?

 

[DirtyWorks]

a doubt:

how much will the hotel bill come to?

Read the contract. Price ceiling for lodging is set. My recollection is $99 or something like that.