America's Cup - Kiwi Government tips initial $5million into Cup champs

by Richard Gladwell, Sail-World.com on 3 Jul 2017 The New Zealand Prime Minister, Bill English, has announced that the New Zealand Government will make an initial investment of $5million (USD 3.65million) into America's Cup champions Emirates Team New Zealand.

As with the investment of the same amount, at the same stage of the 2017 campaign, the funding is labelled as being required to 'retain key staff'.

It is believed that the contracts with the Emirates Team New Zealand sailors and shore crew ended on June 30. While the team is a very tight unit, some need some financial security to remain with the team.

While $5million was invested in the winning 2017 America's Cup team, that proved to be the final amount after the 2017 America's Cup Qualifiers were pulled from Auckland in April 2015 by a petulant America's Cup Events Authority, the event management arm of the then holder Golden Gate Yacht Club.

It is expected that this will be first round of funding from the NZ Government, with further investment coming once the shape of the 36th America's Cup is better defined and the number of teams interested in entering becomes known.

If the NZ Government through one of its arms does invest more money in the team, then that is likely to be in the form of a sponsorship package as was done for the 2013 and 2007 America's Cup Challenges.

Investment in the Event organisation and infrastructure, will again be likely to subject to development of plans for the hosting and organisation of the event, subject again to the number of teams interesting in competing and the footprint required by each team.

The principal funding arm for the event is likely to be NZ Major Events which sits sits within the Ministry of Business, Innovation and Employment and is charged with investing in major events that generate significant immediate and long-term benefits for New Zealand. It has recently invested in the Lions Rugby Tour, the World Masters Game and Rugby League World Cup.

However unlike other sports, sailing and the America's Cup does have close associations with the New Zealand Marine industry with annual revenues of $1.5billion and substantial tax revenues for the Government.

Having invested in sailing since 2000, the New Zealand Government and also the now-Auckland Council have tracked investment and payback from major sailing events, and investment risk in an event such as the America's Cup can be easily tracked.

Another rationale for today's announcement is to improve Emirates New Zealand's chances of successfully defending the America's Cup - ensuring that the payback is not just a one cycle wonder.

Future investment will also be shaped around benefits and programs that can deployed.

The APEC (Asia Pacific Economic Co-operation) conference will be held in Auckland later in 2021, and infrastructure and other spending around that major event will be linked with the America's cup planning to co-ordinate expenditure.

Today's announcement is major about-face for the NZ Government which was initially only luke-warm about investing in the 2021 America's Cup and the Auckland Council even less so.

Emirates Team New Zealand will stage a street parade in Auckland on Thursday - the event will be covered live by the two major free-to-air TV channels. America's Cup news updates featured regularly as the lead item on the prime time news on both channels during the month long regatta.

The statement issued by the NZ Government today read:

The Government will invest $5 million in Emirates Team New Zealand to ensure it can retain key staff while planning is underway for the next America’s Cup regatta, Economic Development Minister Simon Bridges and Sports and Recreation Minister Jonathan Coleman announced today.

“Emirates Team New Zealand displayed incredible talent and innovation during the 35th America’s Cup campaign,” says Mr Bridges.

“This investment of $5 million will go some way towards protecting the valuable intellectual property, experience and skills that rest with key team members.

“While the location for the 36th America’s Cup has not been decided yet, we do know that hosting a regatta in New Zealand has the potential to generate significant economic benefits.

“The America’s Cup regattas hosted in New Zealand in 2000 and 2003 had a significant impact on the New Zealand economy generating around half a billion dollars of total value added per regatta, particularly in the marine and tourism sectors.

“New Zealand Trade and Enterprise also held a successful business leverage programme at the 34th America’s Cup in San Francisco in 2013 which generated trade and investment deals for New Zealand worth $200 million and a further $120 million of new sales opportunities and investor interest.”

“It’s great to have the America’s Cup back in Kiwi hands. I would like to congratulate chief executive Grant Dalton, helmsman Peter Burling, skipper Glen Ashby and the rest of the team, both on the boat and on shore,” says Dr Coleman.

“This win is an inspirational achievement and builds on our proud sailing heritage, and I’m confident it will help to inspire our next generation of yachties.”

“It’s great to have the America’s Cup racing its way back to Auckland following the team’s compelling win in Bermuda last week.”