The Economic Impact of America's Cup

Growing up in Nebraska, I never witnessed many ocean activities due to the ocean being three states away. Surfing, scuba diving, snorkeling, and sailing were distant imaginations for me. Fast forward to today, I am living near the most important sailing competition in the world, the America’s Cup. The America’s Cup started back in 1851 when the United States beat Great Britain. This competition has evolved into a global event with countries like Australia, New Zealand, Switzerland, France, and Italy participating. The competition takes place from the end of August to the end of October. The America’s Cup involves a series of preliminary events where challengers compete to face the defending champion in head-to-head match races. The competition is governed by specific rules and emphasizes innovation in yacht design, with the first team to win a set number of races being declared the champion. Walking around the coastline of Barcelona, the sidewalks are filled with many activities and fan fest sites. With so much curiosity, I wanted to take a deeper look into the economic impact caused by this massive competition.

The top sponsors for the competition are Louis Vuitton, Omega, Emirates, Puig, Cupra, and many more. These brands are building visibility through strategic partnerships and collaborations in the realms of luxury, aviation, fashion, and automotive industries. Additionally, an interesting comparison can be made with F1 racing. These two sports share similarities in innovation, precision, and high-performance engineering, as both rely on cutting-edge technology and design to gain a competitive edge. Why is this comparison important? Well, in 2023, F1 racing brought about $3 billion to cities in the United States. Imagine how much money a sport with very similar qualities can bring to a city. In addition to the $3 billion, there is the growth of tourism, jobs, and world recognition as one of the top places to explore. F1 racing’s massive increase in popularity has been connected to the Netflix series, Drive to Survive. A possible spin-off for the sailing competition could help connect sport-loving, engineering-focused fans to a world of water and innovation.

According to the Universitat Pompeu Fabra, the America’s Cup will bring economic growth of $2.1 billion to the local Catalonian economy. The government decided to spend a reported $80 million of public money in their successful bid to host the competition. Sporting events are worth more than just the game or competition. The value of the event affects the whole community. In addition to the creation of jobs and economic revenue, Barcelona has to upgrade the infrastructure of public facilities to meet the needs of tourism and foreigners visiting. 19,000 jobs are projected to come from this multi-month event. With the high positive outlook on the economic growth of the city, the continued fight against over-tourism comes into play.

During the opening ceremony for the America’s Cup, a group called Antiga Massana lit red flares and held signs stating their fight against tourism. They believe that the working class of Barcelona is being destroyed. Antiga Massana is a key space for the organization of the working class of Raval, while Partit dels Socialistes de Catalunya and Jaume Collboni want to destroy it. These protests signify the locals’ opposition to the continued desire for high-class tourists to visit Barcelona. Esther Jorquera stated, “They promised us jobs and then asked us to work for free,” she said. “The 2,000 volunteers they’ve recruited should be 2,000 jobs.” The lack of transparency is a real issue and that is what many locals are angry about.

As the competition comes to an end, the world has seen Barcelona as a global platform for competition, just as it was in the 1992 Olympics. Barcelona’s world stage of sports will continue to grow, but will the local government listen to the voices of locals? The locals are going to push more and more to have the government restructure their approach to how money should be spent. The regatta race was held in Barcelona for the very first time, as it has been held in Valencia, Spain in past years. My recommendation would be to continue the event in Valencia if held in Spain to help boost the Spanish economy and combat the high number of tourists that visit Barcelona. Future recommendations for the America’s Cup include building a documentary series that focuses on the current teams and what goes on behind the scenes. The America’s Cup has the potential to attract many fans of similar sports but needs to add more personality and emotion. Tell a story with personality while combining innovative engineering and the competitive desire to win.