The Sardinia Region has blocked the pre-regattas of the World Series in Cagliari which should have been held from 12 to 15 October 2023, agreed with Ace, the operational arm of the America’s Cup organization, which is headed by the Cup holder, Emirates Team New Zealand. Stiffening, exhausting lists of questions, bureaucracy, unbelievably lengthened times and then the stoppage, with a letter dated April 6th, written by the Tourism councilor of the Sardinia Region, Giovanni Chessa. “The interest has disappeared…”. Thus, Italian fans must say goodbye to the Cup advance, which would have been played at home, where, moreover, Luna Rossa is based. But even Cagliari has to say goodbye to a sporting spectacle of excellence and an opportunity for international promotion. And the whole region to a significant economic impact.
How much has he lost in terms of economic impact?
La Stampa was able to see the valuation analysis commissioned (and paid for) by Ace to the independent company Nielsen Sports, which examined the media impact that the Cagliari pre-regattas for Sardinia would have generated from the events and platforms of communication and the economic one, linked to the expenditure that would have been made by the actors of the regattas in Sardinia (team, insiders, visitors, media, etc.).
The media impact was valued at 7.14 million euros. It would have been generated for over 60% by the visibility generated and the activities carried out during the competition period. There is then the economic impact, quantified at 7.68 million, 78% of which would have been generated by the direct expense of visitors and of the budget that will be invested by the America’ Cup and by the teams for organizing the event. The total is 14.82 million euros, equal to three times the investment of the Region of Sardinia (6.1 million).
How was the media impact calculated?
There are 50,000 euros of working hours used by the America’s Cup for the drafting, presentation, adaptation and finalization of the promotion project, aimed at positively impacting the knowledge and perception of the Sardinia Region. Another million and a half it is the value of the association of the logo of the Region of Sardinia as an institutional partner and in its inclusion in the official denomination of the event. 566 thousand 750 euros must be added, which is the value of a stand of at least 50 square meters of the Region in the villages of the other pre-events and in that of the America’s Cup 2024 in Barcelona.
It’s still, another 462 thousand euros are the value of the announcement of the partnership and of the Cagliari event, pre-event promotion and additional visibility in partnership with Cup teams. Therefore, 4,559,200 euros, as the equivalent of the visibility of the Region’s logo through the eventthe dedicated communication activity and the entertainment programme.
How was the economic impact calculated?
The first item is that of visitor spending, estimated at 2,080,000 euros (280 euros on average per person, including food and beverage, accommodation, transport and shopping, for a two-day stay). Then, those of the organizers and participants, estimated at 1,663,000 euros and, finally, the budget of the organization of the event, quoted at 3,937,500 (America’s Cup: catering 1,500,000, 75% spent in Sardinia; tv and average 1,750,000 – 30%; public village 800,000 – 75%; technical costs 450,000 – 30%. Team: same items, respectively 150,000 – 50%; 50,000 – 50%; 100,000 – 50%; 150 thousand – 50%).
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