Statement on America’s Cup Sports Betting

by Yachting NZ (edited by Sail-World) on 4 May 2007 A TV3 News item on sports betting on May 2 conveyed the impression that Yachting New Zealand had with little diligence turned down the opportunity to earn an amount in the order of $100k, which could be spent on developing our sport.

The significant amounts earned by Rugby ($669k), Rugby League ($446k), Soccer ($599k) and Basketball (193k) were highlighted as being usual, adding the idea that there was upside in the $100k figure.

Omitted from the news item was the fact that Yachting New Zealand earned $22k from the 2000 America’s Cup defense in Auckland, and that potential earnings from the current campaign were considered to be around $30k. This figure was not initially disputed by the TAB, although larger sums are now being conjured. Also omitted was the fact that 20 of 30 sports involved with betting earn on average $3k each.

Yachting New Zealand is concerned that it is not misrepresented to its stakeholders and provides the following information to clarify matters:

• Yachting New Zealand declined to sanction betting on the current America’s Cup regatta following consideration of perceived risks and rewards.

• The likely earnings were estimated at circa $30k, and this sum was not considered unreasonable based upon the $22k earned when the America’s Cup was defended in Auckland in 2000. Betting was not sanctioned in 2003.

• While the TAB’s 2006 Annual Report confirms that five sports earned over $100k, there are 20 which share a total of $55k between them - an average of just under $3k each.

• The risk is one of possible litigation by America’s Cup Management (ACM), which holds the rights to various brands, images, logos and trade marks associated with the America’s Cup. Many of you will be all too aware of the Cup’s litigious history. In the past fortnight, Sandfield Associates, was served papers, alleging misuse of logos.

• With due diligence and caution, the risk of successful litigation could be minimised. However, even the initiation of a dubious action might be a distraction to Emirates Team New Zealand in its quest for the Cup, and painful for Yachting New Zealand.

• Some of the other countries participating in Valencia may have betting on the Cup operating. However their national sports organisation (NSO) may not be legally required to sanction this, and therefore the NSO is not connected with any decision to proceed. There is therefore no risk to the NSO of litigation.

• New Zealanders are not deprived of the ability to bet on the Cup. There are offshore sites available for this.

Yachting New Zealand’s decision was therefore taken in what it saw as the best interests of New Zealand yachting.

Yachting New Zealand does treat the possibility of earning funds from outside sources as a real advantage, but that when they come with inherent legal risk there is no alternative but to maintain a cautious approach and protect our member’s interests.

We will continue to look at all opportunities of value to the organisation, and any fresh commercial opportunity will be fully considered.

Des Brennan
Chief Executive