SailGP: Kiwi Government spurns hosting of another major sailing event.

by Richard Gladwell - Sail-World.com/nz 24 Apr 17:57 PDT

The Wellington-based administrative arm of the New Zealand Government has once again pulled their signature move, withdrawing from support of a major sailing regatta in Auckland.

On Thursday, the word was out from Wellington that the NZ Government's Major Events arm (part of the super Ministry of Business, Innovation, Employment and Innovation) had decided, on "economic" grounds, not to make its contribution to the Hosting of the 2027 SailGP event in Auckland. It is the third instance of Major Events backing away from hosting premier events in world sailing. Having previously decided not to pay the event hosting fee for the 2024 and 2027 America's Cups, and now for an extended period for SailGP.

The deliberate fumble attracted the ire of Auckland's feisty Mayor Wayne Brown, now in his second term after taking over a City that had been poorly led for many years. A long-time sailor and Royal NZ Yacht Squadron member, Mayor Brown was elected on the basis of being a "Mr Fixit".

Writing a letter addressed to the three National Government Ministers of Sport, Auckland, and Tourism, Brown typically didn't mince his words.

"You have missed the core problem.

"I signed the Auckland Deal to work in partnership with Government.

"Auckland Council was not advised that MBIE would be declining funding before the decision was made. That is despite our role as a co-funder and despite the commitments set out in the Auckland Deal. That is not a partnership approach. It is not acceptable, and we expect better.

"On the specifics in your letter, I will correct the record.

"There was no unresolved disagreement on dates. Auckland, through Tataki Auckland Unlimited, had worked constructively with SailGP to agree dates of 13–14 February 2027."

"We were also actively working with SailGP and The Ocean Race to manage scheduling, including identifying practical wharf infrastructure solutions to accommodate both events. Your statement that dates could not be agreed is simply wrong."

"Auckland has now lost SailGP for 2027, along with a significant amount of goodwill built up over the last four years of New Zealand hosting the event. Another city has recognised the value of the event and secured a longer-term arrangement. That is the nature of these global circuits - once you are out, you are out. That makes this a clear strategic miss.

"It also reinforces the point: decisions of this scale, particularly where Auckland is expected to co-invest, must involve direct and ongoing engagement before decisions are made. Being informed after the fact is not good enough and undermines confidence in the very partnership model the Auckland Deal is supposed to support."

"We will discuss this on the agenda at our first Auckland Deal meeting, which Minister Watts’ office and mine are arranging."

The latest decision is difficult to understand on several grounds, beyond what Mayor Brown has outlined.

Firstly, the economic impact report from the 2026 SailGP, completed just over two months ago, has not been published. So it is difficult to see how the necessary tests of International Visitation and Direct Event Expenditure could have been applied, before making an informed decision, in consultation with the hosting partner Tataki Auckland Unlimited.

Secondly, the SailGP event is the forerunner to the Moana Auckland Festival, an initiative of Tataki Auckland Unlimited, which also incorporates the Auckland Boat Show and the bi-annual Wooden Boat Festival, all staged with staggered dates to create a month-long festival on Auckland's waterfront. Its major supporting pillar is now removed.

Thirdly, it is hard to see any credibility in Tourism and Hospitality Minister Upston's earlier note to Mayor Brown, which stated, "Going forward, I would note that the Government remains open to considering investment in the 2028 and 2029 SailGP events, and remains open to discussing the 2027 event if timing allows."

It is baffling to try to follow Wellington's decision logic, which says that having already made a decline decision on the basis of the economic performance of the 2025-26 events, arguably the most successful in the SailGP circuit, Wellington could subsequently make a favourable decision following the inclusion of economic data from a year in which there was no event at all.

Mayor Brown is not quite correct in his claim that SailGP events do not return to a venue that has been dropped. In fact, six venues have lost hosting and then recovered. However, the difference is that all the others in the USA, Italy, Bermuda, Halifax, Saint-Tropez, and the UK are in regions where it is easy to switch venues and remain within the same region, which usually improves the logistics of the expanding SailGP circuit, currently at 14 venues.

In the last two years, SailGP has certainly got off to a flying start, with the highly successful 2025 event in Auckland, followed at the start of 2026 by iconic events in Fremantle and again in Auckland. SailGP Sydney, which has been in place since the League's inception six years ago, looked set to be dropped for 2027 due to a combination of circumstances at the venue. Several Australian locations could take the place of Sydney to follow on from Fremantle. Melbourne was the most likely, with SailGP slotting in nicely between the Australian Open in January and F1 in March.

The inevitable outcome for Auckland is that a Circuit of Australia will be established, as has been done in the Americas, Europe, and the Middle East.

Australia has a well-earned reputation for stealing sporting events from New Zealand, and this decision from Wellington will almost certainly see history repeat.

The belief that because New Zealand has a team in the event, it makes it a strong candidate to be a future venue doesn't hold water on a couple of counts.

Firstly, there have been several instances where a team hasn't been allocated a home game on the SailGP circuit.

Secondly, New Zealand is the only team left in the now 14-team event that is still owned by the SailGP League. The Black Foils are for sale. The League says there is strong buyer interest in a well-performing team with some high-profile sailors. The League also makes no secret of the queue of host cities for its expanding calendar, which Australian skipper and part-owner, Tom Slingsby, says is expected to grow to a 20-team, 20-venue circuit, similar to F1.

A buyer is unlikely to emerge from New Zealand prepared to pony up USD60 million (NZD106 million) for a team of this calibre.

Recently, the Danish team Rockwool Denmark was acquired by US billionaire Doug DeVos for an undisclosed sum. SailGP CEO Russell Coutts said in a media conference in Auckland in 2025 that the League, which owned at least three teams at that point, would not sell for under USD50million. Two have since been sold to private investor groups, and a third was purchased directly to become part of the DeVos-owned American Magic.

Mayor Brown has long advocated that Auckland should not be run by Wellington, which gave rise to the "Auckland Deal," signed by the Mayor and the Prime Minister on April 10, 2026, between the Auckland Council and the New Zealand Government (the Crown).

The foreword to that Deal, below which both Prime Minister and Mayor signed, says in part, "The Deal supports a range of major projects, including ....initiatives that focus on boosting tourism, attracting large-scale events to enhance Auckland's role as a national and international destination."

In this context of Auckland having greater autonomy from Wellington, Mayor Brown has long advocated that a Bed Levy be paid on accommodation used by visitors, collected by the regional government, and, in Auckland's case, used to attract Major Events. According to the Mayor's Office, that tax of just 2.5-3% would raise $ 27 million per year and enable a proper event-hosting strategy to be put in place. The Prime Minister, when pressed on the subject, goes out of his way to call the Bed Levy a Bed Tax, and his standard response is always to "look at it next year".

Wellington, of course, believes all taxes should be collected centrally and distributed by Wellington.

The immediate issue is that the "Auckland Deal", just two weeks old, has been proven to be just a worthless political exercise, and there is no intention on Wellington's part to operate any differently than previously.

That attitude has resulted in Auckland not hosting two America's Cups, despite having a clear first option on the Hosting, and now SailGP hosting has been thrown on the same bonfire, without consultation, stifling a successful Auckland-led initiative to inject vibrancy into the Auckland waterfront and region.

What does Wellington have against sailing events being held in what used to be called the "City of Sails".

Auckland deserves much, much better than this.

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