June 19, 2015

The All-Star Game is an annual MLB game played between the year’s best players from the National and American Leagues. However, the All-Star Game is much more than just a game. MLB has selected San Diego and Petco Park to serve as the host city for the 2016 All-Star Game. The All-Star Game will be played on Tuesday, July 12 th, with related events occurring from July 6 th through July 13 th. The All-Star Game and related events draw fans of other teams who are likely to return to San Diego.

FanFest is a five day convention that will be held at the San Diego Convention Center. FanFest provides fans with an opportunity to meet current and former baseball players and engage in All-Star Game and baseball-related activities. MLB estimates that over 100,000 people attend FanFest each year, and MLB has plans to increase the scope and attendance of FanFest beginning with the All-Star Game in San Diego.

In 2014, the All-Star Game and Home Run Derby had a combined U.S. audience of over 42.5 million viewers and was broadcast in 223 countries. Total national primetime broadcast time was over 12 hours. The broadcasts of the 2016 Home Run Derby and All-Star Game, along with an entire week of shoulder programming, will include numerous and repeated still photographs and video of San Diego’s iconic tourism attractions. The Padres received extremely positive feedback regarding San Diego as a host city for the 2014 Winter Meetings, which generated approximately 13,000 December room nights and valuable media exposure.

The total marketing and advertising value that the SDTA and SDTMD will receive as a result of this media exposure will be tremendous. – For example, in 2014, it cost SDTA in excess of $500,000 to run a 30-second advertisement during the Chargers vs. Broncos playoff game. The value of the 2016 All-Star Game media exposure will far exceed a single 30-second advertisement, and it will generate increased tourism and additional room nights in excess of the 47,000 direct room nights generated by the All-Star Game.

In 2014, the All-Star Game and Home Run Derby was broadcast in 13 different languages to 223 countries. The international broadcast included ten stations in China (estimated to reach a total of 225 million people), stations in each of Japan (on TBS and NHK, which reach a combined total of 88 million households), Korea and Taiwan and Fox Sports Asia, which is broadcast in 29 countries, including Hong Kong, Thailand, the Philippines and Singapore. The All-Star Game is also broadcast in Spanish by Fox Sports and ESPN in Mexico, Central and South America and the Caribbean.

The SDTA has estimated that the 2016 All-Star Game will draw 160,000 people to San Diego (100,000 out of town visitors). This will translate into approximately 47,000 room nights, which we believe is a conservative estimate, placing the All- Star Game as the largest “convention” in San Diego based on total attendance and the second largest based on room nights in The majority of rooms booked for the All-Star Game would be direct consumer sales. Demand for hotels during the All-Star Game week will lead to greater compression over a period of time and increase the quality of occupants, enabling TMD hotels to yield their rates during this period.

In addition, the Padres, in a collaborative effort with the Mayor’s Office, SDTA, Convention Center and TMD hotel community, have successfully rescheduled several conflicting conventions and events to retain these conventions and events and the associated room nights for San Diego.

The Padres will incur significant costs related to the rescheduling of conflicting conventions and events in order to make the 2016 All-Star Game possible for San Diego and to retain and increase the number of room nights in TMD hotels in San Diego. It is important to note that the Padres do not receive any direct revenue from the All-Star Game and related events.

The Padres and MLB expect to incur costs of approximately $453,000 in connection with the expansion of the scope and attendance of FanFest at the San Diego Convention Center. The Padres request $400,000 in TMD funding in the form of a sponsorship of FanFest, which will make FanFest possible and invest in the growth of FanFest and the potential to drive additional incremental room nights. In connection with this sponsorship, it is anticipated that MLB will make FanFest tickets available for use by TMD hotels in special room night packages that include tickets to attend FanFest on Friday or Saturday and the All-Star concert on Saturday.

The Padres conservatively estimate an ROI of 19:1 on the $400,000 request. The Padres believe, given the value of the tremendous media exposure from the All-Star Game, the increased quality of the occupants during this time and the likelihood that they will become repeat visitors to San Diego, the actual ROI will be significantly higher. Funding$400,000 Nights47,000 ADR$ Revenue$7,520,470 ROI19:1