Committee continues PGA tournament funding and agreement with RPD for further negotiation

The San Francisco Board of Supervisors’ Budget and Finance Committee on Dec. 10 continued consideration of two items that would authorize Recreation and Park Department (RPD) contracts and a supplemental appropriation connected to PGA Tour events at Harding Park.

RPD senior staff asked the committee to approve a supplemental appropriation ordinance for $1,300,000 to cover costs of staging a match-play tournament at Harding Park and to authorize a Fourth Amendment to the city’s master tournament agreement with the PGA Tour. "Under the master tournament agreement, the PGA Tour will reimburse the city up to $1,300,000 to host these costs," RPD presenter Katie Patriccione said, outlining estimated hosting costs of about $800,000 (including $540,000 in salary and fringe and $260,000 in materials) and an expected revenue loss of roughly $500,000 while Harding Park is closed for about three weeks.

Tom Hart of the Recreation and Park Department described the amendment’s event guarantees and potential future events, saying the department could receive site fees and reimbursements across multiple events over the life of the agreement. "The amendment calls for a guarantee of the 2015 WGC Cadillac match play and the 2025 Presidents Cup," Hart said.

Budget analyst Harvey Rose recommended treating approval as a policy matter: the city historically has received reimbursements for RPD costs and lost revenues but has not collected meaningful percentage shares of PGA event gross operating revenues because prior revenue thresholds were too high. Rose told supervisors the golf fund runs a structural deficit — he said the city’s golf fund required a roughly $4.96 million general-fund subsidy in FY14–15, including an estimated $2.4 million Harding Park shortfall — and recommended amending the resolution to require RPD to submit invoices to the PGA Tour within 60 days of an event.

Supervisor John Avalos pressed that the proposed threshold for sharing percentage revenues should be lowered so the city receives a portion of event upside; he said he was “not likely to support” the amendment without a stronger revenue-sharing agreement. Deputy City Attorney John Givner advised that the board could reject, continue for renegotiation, or approve the contract as presented.

After discussion, Supervisor Avalos moved to continue the items to allow additional negotiation on revenue thresholds and related protections; the motion was seconded and adopted by unanimous consent to the call of the chair. RPD noted staff and tour-side preparations are under way for an April event and that any delay puts scheduling and logistics under time pressure.

Next steps: the committee continued the items to a future date so staff and sponsors can pursue further talks on revenue-sharing thresholds, invoice timing and other contract safeguards.