Cary tournament losses over HB2 could have ripple effect

This year, Cary hosted the USA Rugby Collegiate National Championships for the first time, a 60-team rugby tournament that generated millions of dollars and drew 20,000 people to WakeMed Soccer Park over three days.

Attendees praised the venue and the experience, said Hill Carrow, CEO of the Triangle Sports Commission, a nonprofit aimed at promoting Olympic and amateur sports in the Triangle.

But the tournament may not return anytime soon because of concerns over House Bill 2. Now, some area leaders are worried that the venues they’ve invested millions of dollars in will no longer be able to attract similar national athletic events until the law is repealed.

If USA Rugby forgoes future North Carolina events because of HB2, the group would be joining the National Collegiate Athletic Association and Atlantic Coast Conference, which last week canceled 17 championship tournaments across the state. Seven of those events, which officials say would have brought in at least $2.5 million, were to be held in Cary this academic year.

Many of these events have been held in the town for years and attract thousands of visitors. Cary has hosted 24 NCAA championships and 33 ACC championships in various sports over the years. They represent some of the largest events held at these venues.

The ACC also decided to relocate a baseball championship that would have been held at the Durham Bulls Athletic Park in May.

“My fear is that it would have kind of rippling implications that would exceed even what we have seen so far,” Cary councilwoman Jennifer Robinson said. “The facilities are going to be used by our citizens, but that doesn’t negate the fact that we derive tremendous value from having the venues used for these tournaments.”

Carrow echoed this fear, calling the recent cancellations North Carolina’s “ 9/11 for sports tourism.” He added that the impact to Cary and the region could get even worse.

His concerns about USA Rugby not returning stem from a statement the organization issued opposing HB2 in April, shortly after the law was passed.

HB2 was enacted in response to a Charlotte ordinance that expanded anti-discrimination protections for LGBT people. Among other provisions, the state law prevented municipalities from adopting LGBT protections and required that transgender people use restrooms in government facilities that correspond to the gender on their birth certificates.

USA Rugby objected to laws that “effectively warrant discrimination against certain individuals.” The NCAA and ACC offered similar reasons.

The rugby organization called for the North Carolina legislature to repeal the controversial law.

“Without such action, we will be forced to reconsider North Carolina as a future viable location for our playoff competitions and our national championships,” the USA Rugby statement said.

Other sports organizations also have backed off, Carrow said. Carrow said his talks with USA Track and Field abruptly ended after the NCAA and ACC announcements.

“Our state has not only caused self-inflicted wounds, we have blown our leg off and maybe a lot more,” he said.

Evolution for amateur sports

The Triangle first realized its potential as an amateur sports destination after hosting the 1987 Olympic Festival, a former amateur multisport event that drew nearly 500,000 people to the region, Carrow said.

After the event, leaders of the Olympic Festival, some of whom later became leaders of the Triangle Sports Commission, worked to create more venues throughout nearby communities to offer more opportunities for tournaments. That led to the development of the $16.4 million WakeMedSoccer Park and $11 million USA Baseball National Training Complex 10-15 years ago.

Cary caught on to these efforts quickly, Carrow said, by helping with the location of WakeMed Soccer Park, by constructing the $7 million Cary Tennis Park, taking over operations at the soccer park and baseball complex and investing in improvements at those facilities.

“It’s been kind of a long journey, and it didn’t necessarily start with a strategical plan in Cary at all,” Carrow said. “But the town has really gotten on board, because it’s been a big success.”

The town has since appropriated $21.7 million into the three venues for improvements, according to town staff, including adding seating, upgrading lighting and transitioning the fields to artificial turf, which allow for more events to be held. Most of these funds came from the town, with some provided by the county.

There also are plans for $2 million in upgrades to WakeMed Soccer Park, including public Wi-Fi and cross country course enhancements like restroom facilities, an awards pavilion/shelter and a sound system. The design or construction of some projects, including adding seven covered courts at Cary Tennis Park and a clubhouse at the USA Baseball National Training Complex, already are underway.

Wake County has a significant investment in these facilities. The $14.7 million contributed by the county when WakeMed Soccer Park was built paid off when Cary was designated an NCAA Championship City in 2008. The county also has contributed $9.1 million in occupancy and prepared food and beverage tax revenue to the three venues, according to the town.

But Wake Commissioner Jessica Holmes, who represents Cary, said the loss of tournaments could affect the town’s ability to secure the tax revenue in the future.

“If the purpose of these funds is to bring revenue to the town in terms of hotel, motel money ... then I don’t see how we can continue to justify that funding,” she said.

The venues host several other events on local and regional scales nearly every weekend, but national tournaments like the NCAA championships generate the most revenue for the town, according to the town.

“It’s time for the legislature to step up and do the right thing,” Mayor Harold Weinbrecht said in an interview.

Other consequences

Fewer tournaments also could mean less tax revenue generated. This could hurt a plan by Triangle Aquatic Center in Cary to build a USA Diving training center. The center would be for training divers, including those at the Olympic level, as well as hosting local, regional, national and international diving competitions.

TAC officials already have spent months developing preliminary renderings and floor plans for the building, hosting a site visit with officials from USA Diving.

Mike Curran, TAC’s president, said USA Diving officials have expressed concerns about HB2, but he does not believe they will back out. However, he said, occupancy and prepared food and beverage taxes would be crucial to the development of the training center.

“If that funding is less because of all the events pulling out, that obviously could have an impact on the diving facility,” he said. “Without that funding, it will not happen.”

Besides an economic hit, the lost tournaments also could diminish exposure of the Triangle and “good word-of-mouth marketing, which, of course, is the most powerful there is,” Carrow said. He said it has become more difficult since HB2 was passed to market North Carolina as a desirable place to hold a tournament or other event because of the state’s reputation.

“Because it’s turned into essentially a boycott of North Carolina, it’s very, very challenging to get folks to want to come here,” he said.

Even if the law is repealed, Carrow said, it still will be a challenge to attract new tournaments because of potential lingering negative perceptions of the state.

“We still are going to have years and years of work to do to mend fences and repair reputations,” he said.

This story was originally published September 17, 2016 at 3:56 PM with the headline "Cary tournament losses over HB2 could have ripple effect."