Report: COTA Brings Nearly $900 Million to Austin

In a report commissioned and released by the Circuit of the Americas (COTA), and prepared by the Greyhill Advisors, it would seem that hosting MotoGP and other events at the newly built track was a benefit to the local Austin economy this year, to the tune of $897 million.

The Greyhill’s analysis covers all of the events held at COTA, such as Formula One, MotoGP, and the ESPN X-Games, and it also includes all track rentals, concerts, and other events at the track as well.

Through these events, 1.1 million people attended COTA, whose operations directly account for $166 million of the $897 million brought to the area. The remaining $731 million comes from money spent by attendees outside of the track.

Of course we wouldn’t expect a report commissioned by COTA to show a detriment to the local economy, but it should surprise no one that an influx of fans, tourists, and enthusiasts to the Texan city can mean only positive things for money spent in the area.

Of greater value, the report continues the argument that COTA should be supported by local and state government agencies, one of the issues that plagued the track during its formation and construction.

With conservative legislatures pushing to reduce spending on all levels, subsidizing a race track can be an easy target for politicians, who are more immune to the notion that sometimes you have to spend money to make money.

With COTA contributing nearly a billion dollars to the Austin city economy, and the economy of the State of Texas, its continuation should be an easy proposition, political agendas aside.

“COTA has turned out to be much more than just a racetrack,” said Austin Mayor Lee Leffingwell. “It’s a job creator, a revenue generator, and a destination for quality, year-round entertainment.”

“These benefits to taxpayers result from racetrack construction that was solely funded by private investment,” Leffingwell added. “I commend COTA for its positive impact on our community and its contribution to Austin’s emergence as an international city.”

According to the report, there were 1.1 million attendees across all COTA events in FY 2014, leading to $731 million in economic impact. An additional $166 million is attributed directly to COTA operations. Other interesting tidbits include the following:

COTA hosted six major sporting events, 18 concerts, 110 track rentals, ands other events
Formula One generated $507 million in economic impact
All other major sporting events, including MotoGP, generated $161 million in economic impact
Concerts and events at Austin360 Amphitheater generated $49 million in economic impact
Track rentals and other miscellaneous events generated an additional $14 million in economic impact
COTA’s annual activities and operations combined to support 9,100 jobs in the Austin metro region,$306 million in annual payroll
Direct visitor spending injected $423 million into Austin’s restaurants, bars, hotels and retailers totaled $423 million.