Please select your home edition
Edition
InSunSport - International - RG

America's Cup- NZ Govt looks to sponsors to come to Team NZ party

by Richard Gladwell Sail-World.com/nz on 14 Jun 2014
Emirates Team New Zealand welcome home event in Auckland. Minister of Economic development Steven Joyce announces the governments support for the team to continue on to AC35. 4/10/2013 Chris Cameron/ETNZ© http://www.chriscameron.co.nz
After the Friday media conference was held by Emirates team New Zealand to explain their financial position, and put their reaction to the 35th America's Cup Protocol, the NZ Minister of Economic Development, Steven Joyce, held a separate media conference in Wellington, NZ.

Joyce gave a limited rejection of a proposal by the team for further funding investment by NZ Trade and Enterprise, saying that there would be no more money from the Government until team sponsors came to the party. But he did make the offer of some more immediate money from the Government.

The Minister was clearly of the view that it should be possible for sponsors to inject money into the team, ahead of decisions by America's cup organisers on America's Cup specifics, when these are broadly known.

'I think there is a limit to how far taxpayers should go and my preference is that they get some actual cash from their other commercial sponsors because this cannot be a Government funded challenge,' the Minister said.

The Minister made it clear in subsequent comment that 'I haven't ruled out any cash injection. What i did say was that e put the $5million in last October, which was getting them through to June. The expectation was that they would come up with some other funding in the meantime, and then that we would go forward.

'To be fair to them, they have had some trouble securing the information they need, but we feel at this point they should turn up with some sponsors money as well as taxpayers money.

'I have actually said, without going to my colleagues, is that we would put in an extra couple or so.'

Joyce told Newstalk ZB's Larry Williams that the team had initially come to him looking for another five million, and were told 'to go away and try again'.

'Then Team NZ came back saying they actually need another 12million dollars and we've managed to find private individuals would contribute five of six million, but they still needed another five million from the Government.'

When asked where the sponsor commitment was coming from, the Minister said he had been told the sponsors were not prepared to commit without dates and venues.

'This cannot be a Government funded challenge,' Joyce added. 'But we can be part of it.'

The Minister said that there was an expectation that the taxpayer should be turning up on one basis, and the sponsors on another. 'You talking about well known international brands, in fact world wide brands, who know what the likely venues are going to be. I assume that Team New Zealand have been working hard with these people for seven months. What they need now is a contribution from the sponsors, not the whole thing. That is the way we have approached it with taxpayers. We've put in five and will put a little more in,' he added.

'For the life of me, I can't see why they can't get some sort of contribution from these big international sponsors', Joyce said.

The proposal for additional funding was lodged with NZ Trade and Enterprise a couple of weeks ago.

The Team NZ Board meets in a regular weekly meeting on Monday. It would seem that the high entry fee and performance bond required to be paid by December 1, 2014 are proving to be a significant barrier to the entry of some teams during a period when they are staved for cash and yet to have sponsor funding come online.

In the 34th Cup, the same requirements for high entry fees and bonds were slashed from over $5 million to $100,000, but the move came too late, and only Luna Rossa entered under the reduced entry deal.

By rough calculations, based on the information above from the Minster the team seems to be short by about $3million, or the amount of the Entry Fee and Performance Bonds, which are clearly becoming a barrier to entry - even for strong commercially based teams.
upffront 660x82Newport Boat Show 2016 660x82Naiad/Oracle Supplier

Related Articles

Gladwell's Line - Does the America's Cup really need a Star Chamber?
The first meeting of the three-man America's Cup Arbitration Panel is believed to have taken place in London The first meeting of the three-man America's Cup Arbitration Panel is believed to have taken place in London in the past week or so. Officially the date hasn't been publicly announced. The venue hasn't been publicly named, and the parties have appeared before a Panel that is publicly nameless.
Posted on 23 Jul
America's Cup - Glenn Ashby on Emirates Team NZ's road to Bermuda
Part 2 of the interview with Emirates Team NZ skipper Glenn Ashby. In this part of the interview we look at what is going to happen once Emirates Team NZ get their 'AC49.5' sailing in Auckland, and how the campaign may shape up before they leave for Bermuda. Ashby wouldn’t be drawn on whether Team New Zealand had started their AC50 build, with July being the usual start of what is usually a five-month build and commissioning period for an end of December launch.
Posted on 10 Jul
America's Cup - Glenn Ashby on Emirates Team NZ's new AC49.5
Sail-World talks with Emirates Team NZ skipper, Glenn Ashby on what is different about the team's new test boat Just under 11 months out from the 35th America’s Cup, Team New Zealand does not seem to be in its customary place at the front of the starting grid to be the first to launch their Challenger, or are they? Although they will be one of the last of the six teams to launch an AC45 Surrogate, Emirates Team New Zealand may have stolen a march with a boat that is as close as you can get to an AC50.
Posted on 9 Jul
Gladwell's Line - Emirates Team NZ launches shadow AC50
Emirates Team NZ took a late but significant step along the road to the 35th America's Cup, with the launch of their AC4 Emirates Team NZ took a late but significant step along the road to the 35th America's Cup, with the launch of their AC45S - as the test boats are called in the Protocol which governs the 2017 event. The bloated Protocol, which now runs to 83 pages of legalese, is restrictive on the size of boat that can be built as a test platform but doesn't restrict the number that can be built.
Posted on 22 Jun
Platino recovery - Family confirms that tug has made rendezvous
Reports in social media say a salvage tug has made a rendezvous with the Platino earlier than expected. Reports in social media by family and friends of Nick Saull, the crew member killed during a catastrophic incident abroad the 66ft yacht Platino say the salvage tug which left on Tuesday night has made the rendezvous earlier than expected. The Facebook report says the tug, Sea Pelican, arrived on Friday morning, the weather in the area has eased and with a more favorable outlook.
Posted on 16 Jun
Rio 2016 - Double Olympic medallist on the delights of Guanabara Bay
Olympic Gold and Bronze medallist Bruce Kendall updates on the 2016 Olympic venue at Guanabara Bay. Olympic Gold and Bronze medallist, and now a windsurfer coach, Bruce Kendall has made several trips to the 2016 Olympic venue at Guanabara Bay. He updates on the pollution issue which is clearly not going to be resolved in a couple of months, and also shares his views on the venue from a sailing competition perspective.
Posted on 14 Jun
America's Cup - Artemis win Chicago as Team Japan wins two races
Louis Vuitton America's Cup World Series got three races away on Super Sunday. After losing the first official day of racing due to light winds and the non-arrival of the onshore breeze, Louis Vuitton America's Cup World Series got three races away on Super Sunday. From a racing perspective this was probably the best day of racing yet in the series which counts for points in the Qualifying Series of the America's Cup in 11 months time.
Posted on 12 Jun
America's Cup - Emirates TNZ NZ and Oracle capsize in Chicago Practice
Emirates Team New Zealand and Oracle Team USA capsized in Practice Racing at the Louis Vuitton ACWS Chicago There was action aplenty on Practice Day at Louis Vuitton America's Cup World Series Chicago, after Emirates Team New Zealand capsized in their match with Oracle Team USA, and then Oracle Team USA capsized later in the day. Team NZ's skipper skipper Glenn Ashby performed some impressive acrobatics ejecting from the AC45 capsize, without injury.
Posted on 11 Jun
America's Cup - Changes proposed to control future Cup options
Changes are being mooted to put the America's Cup on a longer-term footing according to the Daily Telegraph (UK) News that changes are being mooted to put the America's Cup on a longer-term footing is being floated in the Daily Telegraph (UK) by the British Challenger, Land Rover BAR. According to the Telegraph, some of the teams in the 2017 America's Cup are keen to lock-in parameters which would bind successive holders of the a style and frequency for the next America's Cup Match.
Posted on 8 Jun
America's Cup - AC50 construction uncovered - Part 2 - Wings and Costs
Second part of a two-part series looking at the AC50 construction progress at Core Builders Composites Second part of a two-part series looking at the construction progress at Core Builders Composites, and features of the AC50 class which will be used in the 35th America's Cup in Bermuda. Tim Smyth takes us on a tour of the CBC facility in Warkworth, and hour's drive north of Auckland. Where several AC50's, components and wingsails are under construction or have already been shipped to the teams.
Posted on 5 Jun