A cautionary tale: Sacramento lost $300,000 on hosting worlds
In 2007, Sacramento won the right to host 2011 worlds. All was right in the world (except for a war here and there). Then in 2008, the economy collapsed, and with it a lot of retiree investments. That’s why 6,000 athletes didn’t show for the WMA championships as hoped. And that’s why the LOC took a bath. Only 4,100 athletes competed. Now we’re finally learning details of the Sacramento losses. Said the Sacramento Biz Journal: “The World Masters event lost $300,000. … The Sacramento Region Sports Education Foundation is in default and can’t repay a $400,000 loan to the city for the World Masters event, according to a staff report for Tuesday’s council meeting. The loan was supposed to be repaid last October. The organization also couldn’t repay a $150,000 loan Sacramento County supplied for the same event.”
John McCasey of the Sacramento Sports Commission got slammed by economy.
Here’s Kelly Johnson’s story, should the link go south:
The 2011 World Masters Athletics Championships — partially supported by the city of Sacramento — was supposed to help boost the economy and make money.
The event did pump money into the local economy, but it didn’t make money, and the organization that put on the event now can’t afford to repay a city loan.
The Sacramento city staff will ask the City Council on Tuesday to audit and limit city financial support to the organization known for attracting and orchestrating such large-scale sporting events as the 2000 and 2004 U.S. Olympic Trials for track and field.
The Sacramento Region Sports Education Foundation, which is the nonprofit support organization for the Sacramento Sports Commission, is in default and can’t repay a $400,000 loan to the city for the World Masters event, according to a staff report for Tuesday’s council meeting. The loan was supposed to be repaid last October. The organization also couldn’t repay a $150,000 loan Sacramento County supplied for the same event.
The city staff is asking the city’s elected leaders to temporarily postpone the loan due date until the city can craft a payback plan and conduct an audit. The council also will be asked to limit the city’s support of SRSEF “to only specific event-related costs and exclude general operating costs,” the report says.
The World Masters event lost $300,000. The 12-day event attracted 10,000 visitors and generated $7.9 million for the local economy, including producing $2.9 million in hotel revenue and $70,000 in sales tax revenue to the city, according to the staff report.
Formed in 1988, the Sacramento Sports Commission is a joint city-county commission. SRSEF formed a decade later. It is funded by private contributions, event revenue and allocations from the commission.
5 Responses
Somewhat confusing TV report (see the video) on the “mess” as well:
http://sacramento.cbslocal.com/2012/05/04/nonprofit-audited-for-not-paying-400k-city-loan-back/
Hard to imagine Brazil pullng it off with their economy and travel distance involved?
I’d suggest it wasn’t primarily economic difficulties which kept people away. Your homeland is a bit too secure. Brazil doesn’t have that problem.
Quick Silver
Hong Kong
Ah hem – Quick Silver – that is a bit of a cheap shot. There are many visa exempt countries and I dare say the majority of competitors came from such countries. They do not have to apply for a visa and one does not take off one’s shoes while entering the US – just upon departure. I have experienced more thorough security screening outside the US than within the US.
Brazil has serious domestic crime problems, it is NOT SAFE to walk around the streets in the major cities. And they have expensive and difficult visa requirements for those coming from a number of countries – not directly relating to security issues but rather tit for tat – countries that make is difficult and expensive for Brazilians to gain visas to visit those countries – including the US. I will not be surprised if the number of non-South American athletes in Brazil for the 2013 meet will be fairly small.
The fiscal problems facing the Sacramento LOC have little to nothing to do with US security concerns.
I know some folks that never got there medals from the World Champs in Sacramento which is not a good situation.
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