Was the US Open Worth It for San Diego?

Airing in two parts over the next two episodes of Golf News Net's 19th Hole Golf Show, Ryan Ballengee speaks with San Diego Union-Tribune reporter Brent Schrotenboer about his and Eleanor Yang Su's analysis of the cost of the 2008 US Open at Torrey Pines.

Schrotenboer joined Ballengee to discuss the bottom line for the city of San Diego, the United States Golf Association, and the Friends of Torrey Pines - a 3rd party organization created to be the middleman between the city and the USGA.

The interview and the article's findings indicate that the value to the city of San Diego is not entirely clear. Though the city's economy was boosted by nearly $100 million, the city itself lost approximately $2 million in the deal while the USGA made somewhere between $50 and $100 million.

Schrotenboer also discussed the controversial Jay Rains and his involvement with the Friends of Torrey Pines, as well as his future appointment to the USGA Executive Committee.

The interview is approximately 15 minutes and is available in full on the GNN Media Player.

11 months ago Ryan Ballengee 9 comments 0 recs |

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I always wonder about these figures...

…$100 million ??? They sell, what, 50,000 tickets ? If a week’s entry averages $200 – that’s $10 million. MOST of those tickets are going to be sold to locals – but if a quarter of that number fly in and get a hotel and car and eat out – they might spend two grand apiece. That’s another $25 million – generously speaking. That total is $35 million. Coming up with another $65 million is pretty tough – and then to say that the city of San Diego LOST $2 million ? – come on.

Day one of Econ 101 – there is no such thing as a one handed economist – they will ALWAYS say “on the other hand…” These economist types live in a world of statistics – and we all know that statistics can be turned and twisted in a variety of directions. (one of the best classes I took in college because it was taught by a prof who spent a lot of years in the real world)

"this ball will fit in that fairway"

by courtgolf on Dec 2, 2008 10:57 AM EST reply actions 0 recs

The $100 million

Yes, tickets are a big component. I forget how many are sold, but I think it is much higher than 50000. One day tickets are pretty expensive versus a package, etc. But also hospitality tents that they were renting for six figure sums. Also merchandising is HUGE at an Open. The USGA has some good stuff in their huge tents.

Sounds like you mean for San Diego, though. The city pulled in around $9 million in taxes during the time of the event that they are directly attributing to US Open traffic. They spent about $11 million to get the facility ready. They come in at -$2 million. Then again, the increased amount of traffic that Torrey may see may amount to a windfall for them in the long haul. Hard to tell. Hence the gray area.

Microecon is such a bogus science to me because it makes too many ridiculous assumptions to be legitimate. Perfect information, rational actors, etc. That’s just not possible. Macroecon is different, though, and I love that.

by Ryan Ballengee on Dec 2, 2008 11:36 AM EST up reply actions 0 recs

short sighted

if that’s the $2 million, then these edjamakated economics “experts” overlooked the fact that Torrey pulls in a lot more than $2 million in profits from regular play in a year. They charge some pretty steep greens fees if you don’t live in the area. Plus, that $11 million they spent on the course is money they don’t have to spend over the next year or two in changes and upkeep. I’m sure they’ve gotten that money back a time or two over since June.

"this ball will fit in that fairway"

by courtgolf on Dec 2, 2008 11:56 AM EST up reply actions 0 recs

Some of it

Was deferred maintenance to the course, which had to be done. Some of it – like a $3 million park lot – was required for the Open. The greens fees are actually set to increase next year (IIRC) but are fairly reasonable now. The USGA put a freeze on that as a condition.

In the end, I think Torrey will be better off and make up the outlays. The argument, though, is that the USGA could make between $50-100M and San Diego will make decidedly less – even in the long run.

by Ryan Ballengee on Dec 2, 2008 12:25 PM EST up reply actions 0 recs

"reasonable" ?

these blogging gigs must pay really well !! :-)

Torrey Pines South greens fees are $219 M-Thurs and $259 F-Sun. The north course is $149/$179. That’s for non-locals. If you live in the area, you get to pay only $87/$94 for the South and $79/$88 for the north.

and they are going up in ’09.

"this ball will fit in that fairway"

by courtgolf on Dec 2, 2008 12:39 PM EST up reply actions 0 recs

hidden costs

If all you consider is the direct financial impact AT THE GOLF COURSE during the Open week you’ll be missing some issues, for example overtime paid to police and firefighters because the city staffs for normal plus a little, not a week long extravaganza. I know little about city government, but I’d bet there are lots of costs that don’t get mentioned unless you check the city’s books, line by line.

I look forward to listening to the interview during the 19th Hole.

Truth has a well-known liberal bias.

by dianemarie on Dec 2, 2008 12:32 PM EST up reply actions 0 recs