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Casino authority agreed to more money for Miss America but didn't track spending, audit says

The pageant’s three-year contract with the CRDA ended with this month’s pageant. (So did its contract with ABC, which broadcasted the last six pageants from Atlantic City.) Miss America, which was  down again in the ratings this year, has undergone a  rough period of transition as Gretchen Carlson, chairwoman of the Miss America board, oversaw an effort to modernize the pageant in the wake of a scandal that ousted the former CEO and jeopardized the pageant’s contract with the CRDA.  Controversy was never far behind, though, surging again at the pageant when Miss America dropped its traditional swimsuit competition . Miss America 2018, Cara Mund , had also accused Carlson and pageant leaders of bullying and disregarding her — a claim both Carlson and an independent internal review denied.  The pageant, founded on the Atlantic City Boardwalk in 1921, returned to New Jersey from Las Vegas in 2013 after nine years, financially unstable and lured home by significant state subsidies.  Under a three-year deal with the CRDA, the authority said it would pay 50 percent of Miss America production costs and 50 percent of building operations costs not to exceed $2,267,000 for each year. The deal also covered Boardwalk Hall security, the cost of meals and transportation for contestants and chaperones and a Miss America arrival ceremony. The CRDA paid a total of $6,801,000 for those first three years.  “The CRDA was unable to provide documentation to support any efforts on their part to monitor the actual costs related to the Miss America Competition,” the audit says. The pageant organization was actually supposed to submit reports every 90 days that accounted for the production costs, but the CRDA never provided any reports.  In 2016, the authority  greenlit a second three-year contract with the nonprofit Miss America Organization without an economic impact study, the audit says. Under that contract, the CRDA agreed to pay $12,536,000, 80 percent more than the first contract.  Read the whole state audit of the CRDA here While an economic impact study was performed in 2013 that estimated the pageant’s return could result in $60.4 million in economic benefit through spending, jobs and tax revenue, before it approved a second contract with the pageant, the CRDA did not commission a follow-up study to see if how much the pageant actually benefited Atlantic City.  A 2016 Bloomberg analysis of data from the state treasury and New Jersey Casino Control Commission spanning 2012 to 2015 showed that revenue from luxury tax and casino parking dropped  in the year of Miss America’s return and continued to drop for two years.  A second study was performed for the CRDA after the pageant in September 2016, showing just $23.2 million in economic benefits, but that figure included the value of the TV exposure of Atlantic City, something not factored into the previous study.  The pageant previously had a partnership with Dick Clark Productions, which produces “New Year’s Rockin’ Eve.” As part of the pageant’s second contract, Dick Clark was supposed to promote Atlantic City in its other productions, including the New Year’s Eve telecast. It was also supposed to air a live performance in Atlantic City as part of the broadcast each year. The CRDA was supposed to plan and pay for the performance but it never did, failing to book an act for 2017.

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