gregg
11-21-2005, 10:52 AM
FOR IMMEDIATE RELEASE
SAN FRANCISCO (November 20, 2005) - San Francisco Cycling, LLC, founder and organizer of the San Francisco Grand Prix professional cycling event, today announced that it is canceling the 2006 race scheduled for September 10.
Since its inception in 2001, the San Francisco Grand Prix has become one of the world’s top professional bike races and highest ranked events on the UCI world cycling calendar. Economic impact surveys commissioned by the City of San Francisco and performed by Economics Research Associates on the 2004 and 2005 events indicates that the race has annually provided an average of $11.7 million in economic output, $9.3 million in direct spending and $429,500 in new tax revenues to the City. This is in addition to the approximately 40 million worldwide media impressions the event has generated each year. This September’s race attracted top cyclists from a dozen countries including Tour de France runner-up, Ivan Basso, and virtually all of the USA’s Tour de France finishers.
Despite the positive things the event brings to the city, San Francisco Cycling LLC in its five years of operating the race has been unable to resolve issues surrounding billing amounts and procedures for city services related to the annual event. “There is considerable uncertainty regarding the amounts we will be billed after each year’s race, making it impossible to accurately forecast budgets or question charges beforehand,” said SFC director, David Chauner. “On top of that, the periodic, emotionally charged Board of Supervisors’ debates over the value of the event make potential sponsors very nervous. Few companies will sponsor a politically charged event and, when sponsors back out or can’t be replaced, we have to cut important elements of the race, like eliminating the very popular women’s event this year.”
According to organizers, the ability to meet the annual costs to produce the event are entirely dependent on contributions from corporate sponsors, ideally Bay Area companies that want to support beneficial community events. Chauner says the Grand Prix provides opportunity for companies to give something back to the community and entertain customers, employees and their families at a popular citywide event but, he adds, “The most outspoken Supervisor calls this ‘corporate welfare’ and ignores the value the event brings to the city and to the many restaurants, hotels and businesses that benefit from race-related events”.
Since 2001, San Francisco Cycling has paid City of San Francisco agencies and police a total $1,564,634 to stage the race. “This is a staggering amount, but we paid it in order to make this a world class event in a world class city.” said Jerry Casale, Operations Director of the event. According to Casale, the most recent charges leveled by Supervisors and Daly and Peskin at the November 14 Audit and Oversight Committee that San Francisco Cycling LLC failed to pay its bills for the 2004 event were misleading. “We were faxed the final and adjusted SFPD bill for $89,924 for the first time on November 10, 2005, just one working day prior to that meeting, all other city charges had been paid before we got our ISCOTT permit for the 2005 race, it wouldn’t have been issued otherwise”, said Casale “And then they said we were late and purposely avoiding payment. That’s simply not true.”
According to Chauner, the decision to discontinue the race was not an easy one “Despite the overwhelming popularity of the San Francisco Grand Prix, we have had to evaluate its financial viability in terms of the market conditions, potential for revenue and cost of running a world class race in order to determine if it makes sense to continue let alone ever turn a profit. Sadly it’s a no-win situation and we simply cannot go forward.”
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Contact: San Francisco Cycling LLC
Public Relations, C. Worthington
610 676-0390
SAN FRANCISCO (November 20, 2005) - San Francisco Cycling, LLC, founder and organizer of the San Francisco Grand Prix professional cycling event, today announced that it is canceling the 2006 race scheduled for September 10.
Since its inception in 2001, the San Francisco Grand Prix has become one of the world’s top professional bike races and highest ranked events on the UCI world cycling calendar. Economic impact surveys commissioned by the City of San Francisco and performed by Economics Research Associates on the 2004 and 2005 events indicates that the race has annually provided an average of $11.7 million in economic output, $9.3 million in direct spending and $429,500 in new tax revenues to the City. This is in addition to the approximately 40 million worldwide media impressions the event has generated each year. This September’s race attracted top cyclists from a dozen countries including Tour de France runner-up, Ivan Basso, and virtually all of the USA’s Tour de France finishers.
Despite the positive things the event brings to the city, San Francisco Cycling LLC in its five years of operating the race has been unable to resolve issues surrounding billing amounts and procedures for city services related to the annual event. “There is considerable uncertainty regarding the amounts we will be billed after each year’s race, making it impossible to accurately forecast budgets or question charges beforehand,” said SFC director, David Chauner. “On top of that, the periodic, emotionally charged Board of Supervisors’ debates over the value of the event make potential sponsors very nervous. Few companies will sponsor a politically charged event and, when sponsors back out or can’t be replaced, we have to cut important elements of the race, like eliminating the very popular women’s event this year.”
According to organizers, the ability to meet the annual costs to produce the event are entirely dependent on contributions from corporate sponsors, ideally Bay Area companies that want to support beneficial community events. Chauner says the Grand Prix provides opportunity for companies to give something back to the community and entertain customers, employees and their families at a popular citywide event but, he adds, “The most outspoken Supervisor calls this ‘corporate welfare’ and ignores the value the event brings to the city and to the many restaurants, hotels and businesses that benefit from race-related events”.
Since 2001, San Francisco Cycling has paid City of San Francisco agencies and police a total $1,564,634 to stage the race. “This is a staggering amount, but we paid it in order to make this a world class event in a world class city.” said Jerry Casale, Operations Director of the event. According to Casale, the most recent charges leveled by Supervisors and Daly and Peskin at the November 14 Audit and Oversight Committee that San Francisco Cycling LLC failed to pay its bills for the 2004 event were misleading. “We were faxed the final and adjusted SFPD bill for $89,924 for the first time on November 10, 2005, just one working day prior to that meeting, all other city charges had been paid before we got our ISCOTT permit for the 2005 race, it wouldn’t have been issued otherwise”, said Casale “And then they said we were late and purposely avoiding payment. That’s simply not true.”
According to Chauner, the decision to discontinue the race was not an easy one “Despite the overwhelming popularity of the San Francisco Grand Prix, we have had to evaluate its financial viability in terms of the market conditions, potential for revenue and cost of running a world class race in order to determine if it makes sense to continue let alone ever turn a profit. Sadly it’s a no-win situation and we simply cannot go forward.”
###
Contact: San Francisco Cycling LLC
Public Relations, C. Worthington
610 676-0390