New Zealand has always had a special connection with the America's Cup. The team has always lacked a single powerful sponsor, such as Larry Ellison at Oracle Team, Ernesto Bertarelli at Alinghi or Patrizio Bertelli at Prada. The New Zealand sailors have had to be creative in financing their America's Cup activities. Sir Peter Blake once financed a challenge by selling red socks to the public.
Later, the government, i.e. the taxpayer, made a considerable contribution. This was also the case with the 34th defence off San Francisco. But unlike a private financier, who at most has to answer to his taxman, the use of taxpayers' money is more likely to be scrutinised for its benefits.
New Zealand's Economics Minister Steven Joyce presented the answer today. With impressive figures from two supposedly independent studies, he wants to prove that the state's participation in the America's Cup team was also a huge gain from an economic point of view.
According to the report, the New Zealand government has invested the equivalent of around 22 million euros of taxpayers' money in its own America's Cup team. According to Joyce, this investment alone has returned an estimated 54 million euros to the New Zealand economy through participation in the Cup.
But that's not all. Of the campaign's total budget of 112 million euros, 66 per cent, around 74 million euros, was acquired from international sources.
In addition, the government's target of generating at least two dollars for every dollar of taxpayers' money was far exceeded at 3.68 dollars.
In the end, 85 per cent of the campaign budget, i.e. around 95 million euros, was invested in New Zealand.
New Zealand's reputation as a business location also benefited from the positive image of the New Zealand team and its high media presence over 55 days of racing. The boating industry was able to present itself in a special way. This has led to trade and investment agreements worth around 125 million euros and potential new connections worth around 75 million euros.
Without Team New Zealand's participation in the America's Cup, these effects would not have happened, according to Joyce.
The protocol for the 35th defence and the rules for the new AC-Cat are expected to be published next weekend. The framework conditions for the next campaign will then be finalised.
However, Joyce did not yet want to commit himself as to whether there would be another large contribution from the state. After the last Cup, around three million euros of taxpayers' money had already been channelled into retaining the most important team members. However, Joyce makes an increase in this budget dependent on a coherent business plan, which the team must develop. So creativity is still required.
Lars Bolle
Chief Editor Digital
