Please select your home edition
Edition
T Clewring One Design

America's Cup- NZ Govt backs Team NZ with limited funding

by Richard Gladwell on 21 Oct 2013
Emirates Team NZ, Leg 1, Race 1 34th America’s Cup September 7, 2013 © Richard Gladwell www.photosport.co.nz

The NZ Government has announced that it will provide Team New Zealand with $5million of interim funding to allow the team to retain key members ahead of the 35th America's Cup.

The funding comes before the team has made a decision whether or not to Challenge for the trophy it failed to win by an 8-9 margin last month in San Francisco.

The amount provided is half that provided in 2010 - but that was covered by an agreement signed between the Team and the previous Labour government.

The announcement was made by the Economic Development Minister Steven Joyce, who is the Minister responsible for New Zealand Trade and Enterprise, who were a key sponsor of the team in the 32nd and 34th America's Cups, and use the opportunity to leverage trade opportunities for New Zealand industry into key markets.

A study of the benefits of the investment for the previous America's Cup is expected to reveal a tenfold return on the investment of $36million plus a further $4million (all NZD) investment to leverage business opportunities in North America.

Joyce has previously said that any investment by the Government on behalf of NZTE would be on the basis that the Team could raise a similar amount, ahead of any Challenge being lodged.

In the previous cycle $10million was given on a similar basis to the $5million announced today. The balance was tagged on the basis that it had to be matched on a 2:1 basis with other sponsorship arranged by the Team. If the team does not challenge, in the past there there is no payback requirement - other than unspent money from the Government contribution.

Joyce said planning was now underway for the next challenge. 'However it will not be possible for them to finalise their involvement until such time as they know key elements of the regatta, including where and when it will be held,' he said.

'The Government will assess its further involvement based on a strong business case from the team, and the benefits our involvement would bring for New Zealand exporters and our New Zealand brand.'

The deadline for a decision whether or not to Challenge is believed to be May 2014, with the Government study into the economic return being completed by March 2014. The amount of the America's Cup investment in the 2010-2013 campaign, is relatively small compared to the incentives given to the film industry for the making of the Lord of the Rings and The Hobbitt movies in New Zealand.

Key criteria hedging the decision whether or not to Challenge are believed to be a nationality clause on sailing crew composition; realistic cost of a Challenge; a logistically more feasible boat; as well as venue and dates.

Steven Joyce confirmed that the team had initially asked for $6.5million with the additional sum being for technology research. The team had agreed to try and fund that amount from other sources. Joyce confirmed that if the Team decided not to proceed with a Challenge in May, then the investment will be written off.

First time challenger, Hamilton Island Yacht Club, Australia, was accepted as the Challenger of Record by the Defender Golden Gate Yacht Club.

The Protocol negotiated between the two Clubs is expected to be announced in February 2014, after which entries will open to other Clubs to lodge a Click here for the TVNZ news report of the funding injection. And click here for the TV3 report on the announcement.

Team New Zealand first Challenged for the America's Cup in 1987, reaching the Finals of the Louis Vuitton Cup. It won and Defended the 160 year old trophy in 1995 and 2000. Each America's Cup cycle the team has reached the Louis Vuitton Cup Finals, and has been the Challenger in 1988, 2007 and 2013. In 2011/12 the Team entered the Volvo Ocean Race, placing second overall in Camper. In 1987 and since 1995 the Team has represented the Royal New Zealand Yacht Squadron.

T Clewring - Genericupffront 660x82Southern Spars - 100

Related Articles

Rio 2016 - America's Cup champ says Paralympic racing is closest ever
Twice America’s Cup champion, Rick Dodson is extremely impressed with the standard of racing in the three man Sonar Twice America’s Cup champion, Rick Dodson is extremely impressed with the standard of racing in the three man Sonar keelboat class at the 2016 Paralympics in Rio de Janeiro. The regatta is being held in Guanabara Bay on three of the courses used for the Olympic Sailing Regatta in August.
Posted on 13 Sep
A Q&A with Peter Bresnan ONE Palma’s founder and director
Sail-World interviewed ONE Palma’s founder Peter Bresnan to learn about the company’s partnership with McConaghy Boats For the past eight years, ONE Palma (formerly OneSails Spain) has been building a strong name, first as a sailmaker and later with refit work. Recently, ONE Palma and McConaghy Boats-legendary boatbuilders who have crafted some of the planet’s fastest sailboats-entered a business partnership. I caught up with Peter Bresnan, ONE Palma’s founder and director, to learn more about this new direction.
Posted on 2 Sep
America's Cup - Emirates Team NZ train late on the Waitemata Harbour
Emirates Team NZ were out for a training session that ran into the early Thursday evening. Emirates Team NZ were out for a training session that ran into the early Thursday evening. The team were sailing their recently launched AC45 Surrogate test boat which features an articulated rudder gantry - taking the AC45 close to the geometry of the AC50 to be used in the 2017 America's Cup.
Posted on 1 Sep
Dateline Rio - Sailing Olympics review - as good as it gets?
The Rio Sailing Olympics was widely judged to have been the best of recent times. The Rio Sailing Olympics was widely judged to have been the best of recent times. The weather was better than Weymouth and Qingdao, the courses more varied, but from a working media perspective, it was the people running the Rio regatta who really made the difference.
Posted on 26 Aug
Rio 2016 - Plain speaking by triple-medalist on Olympic sailing moves
Triple Olympic medalist, Santiago Lange has been on the sharp end of changes made to Olympic classes and formats Santiago Lange, a six-time Olympian and Bronze medallist in the 2004 and 2008 Olympics, won his third medal – Gold sailing in the Nacra 17 class. With that length of experience at an Olympic level, having sailed the Laser, Tornado and now Nacra 17 classes his comments on the future shape of the Olympic regatta was one of the highlights of the Medallists Media Conferences.
Posted on 25 Aug
Rio 2016 - Images of the penultimate race in the Finns - Scott wins
Sail-World's Richard Gladwell was on the water for the final race of the Qualifying Series of the Mens Finn Sail-World's Richard Gladwell was on the water for the final race of the Qualifying Series of the Mens Finn, in what potentially could have been Giles Scott's (GBR) Gold medal winning race. In the end, the current world champion won in style.
Posted on 15 Aug
Rio 2016 - Images from the Mens RS:X Medal Race
Sail-World's NZ Editor, Richard Gladwell, was on the water at the Medal Race for the RS:X class Sail-World's NZ Editor, Richard Gladwell, was on the water at the Medal Race for the RS:X class won before the race by Dorian van Rijsselberghe (NED) without needing points from the Medal Race. Nick Dempsey (GBR) was second on a similar basis.
Posted on 15 Aug
Rio 2016 - Sailors talk of Life at the Extreme on the Atlantic Ocean
Certainly the Volvo Ocean Race catchcry of Life at the Extreme is not a phrase associated with the Sailing Olympics. The 470 crews were suffering the mixed emotions of survival of an extreme test by nature, the cold, and for some elation at their placings, after Thursday's battle for survival. In conditions that looked more out of the Volvo Ocean Race, than an Olympic sailing regatta, crews battled 20kt plus winds and Atlantic Ocean rollers that towered up to four metres.
Posted on 13 Aug
An Q&A with regatta chair Sara Filbee about Canada's Chester Race Week
Sail-World.com recently talked with regatta chair Sara Filbee about Chester Race Week, Canada’s largest keelboat regatta Chester Race Week (CRW) traces it roots back to 1856, when an Annual Fishermen’s Regatta was created and sailors competed for bragging rights. WWI, the Great Depression and WWII took their toll, but by 1955 the regatta was again on the rise. Today CRW draws more keelboats than any other Canadian regatta. I caught up with Sara Filbee, CRW’s Regatta Chair, to learn more about this historical event.
Posted on 12 Aug
Rio Olympics - Fourth gallery of images the fearsome Niteroi course
Fourth image gallery from racing on Day 4 in the Mens and Womens 470 class on the Niteroi course in the Atlantic Ocean Fourth image gallery from racing on Day 4 in the Mens and Womens 470 class on the Niteroi course in the Atlantic Ocean - sailing in 3-4 metre swells and 20kt plus winds. believe it or not the sea conditions were worse inshore as the fleet encountered the backwashed Atlantic rollers
Posted on 12 Aug