22 Breeze Magazine
Hard realities shape the future of NZ’s America’s Cup Defence With the Covid pandemic fundamentally changing the international sport sponsorship landscape, the survival of Emirates Team New Zealand would increasingly depend on funding from the America’s Cup venue, as opposed to major corporations. This reality was spelled out during a briefing at the Royal New Zealand Yacht Squadron by Grant Dalton, Kevin Shoebridge and Russell Green as the clocked ticked down on the exclusive negotiation period between the team, the New Zealand government and the Auckland City Council. More than 400 members packed the ballroom to hear an exposition of where the team stands in terms of funding and how the future might unfold. With two days to go before the end of the exclusive negotiating period, it was clear there was still a considerable gulf between what the government and city council were offering and what the team required. Both Dalton and Commodore Aaron Young emphasised that if the exclusive period expired without a deal, it did not necessarily mean the event would go offshore. “The Cup has not left town,” said Dalton. “Everybody needs to calm down a little bit. The end of the exclusive negotiation period does not mean it leaves New Zealand, but it does open up the chance of other bids.” He revealed that following the Bermuda victory in 2017, the team was in a similar situation. Initial negotiations with the government and Auckland had failed to reach agreement and the team was less than an hour away from signing a deal to stage the defence offshore.
At the last minute, however, the government agreed terms and the Auckland defence was secured for 2021. Dalton said the negotiations with the government in the wake of the successful defence earlier this year had been conducted in good spirit. “It is not a question of pistols at dawn, not at all. That is important, because whatever happens next that relationship must stay intact going forward. We both know that.” However, the team’s survival was paramount. Dalton painted a picture of billionaire raiders circling the team as it tried to secure funding for the future in a very tough economic environment. “The world as it was of big money sports sponsorships doesn’t exist any more. It has gone,” said Dalton. Any new sponsorships came with pandemic clauses that hamstrung teams because they could not utilise all the funds in case they had to pay penalties for events that could not take place due to Covid lockdowns. “We are not in a 2003 situation,” he said in reference to the loss of the Cup to the Swiss Alinghi team led by Russell Coutts and a key group of former Team New Zealand yachtsmen. “But we are vulnerable as hell, not just from talent poaching, but from other teams trying to drive through our force field to destroy us financially.” When Covid struck last year, the team foresaw a difficult situation ahead and commissioned an offshore company to pitch for bids from venues to host the next America’s Cup regatta. If no deal was reached for an Auckland defence by the end of the
exclusive negotiation period, those bids would come into play. Chief Operating Officer, Kevin Shoebridge said all the conventional avenues of funding were being explored, but in the new economic landscape the main source of income would depend on the venue fee. “Along with sponsorship and contributions from individuals, the lion’s share will have to come from the venue,” he said. Dalton emphasised that the main mission of the team remained to win the America’s Cup for New Zealand. However, in order to achieve that, it had to survive financially. “I have heard some people say it would be better to lose the America’s Cup in Auckland than to win it offshore. I am dumbstruck how anybody could even say that,” he said to loud applause from the RNZYS members. Commodore Young said afterwards he was greatly encouraged by the enormous groundswell of support he had received from members, who understood the realities of the situation facing the Cup defenders. There was also appreciation over the announcement during the presentation of a new legacy project being worked on between ETNZ and the RNZYS. “It will be a lasting thing for the club from us,” said Dalton. “It is pretty cool.” Although the details remain to be revealed, Young said it was about supporting the future of New Zealand sailing at club and grass-roots level. It will be something for the next 150 years,” he said. By Ivor Wilkins
