The Munich-based car manufacturers have been through thick and thin with their BMW Oracle Racing team since 2002, most recently through a deep valley of legal disputes. Yacht online spoke to Ralf Hussmann, Head of Sports Marketing, about BMW's future in the Cup after the 1:0 and before the possible Cup triumph.
Congratulations on the first point for your team in the 33rd Americas Cup duel, Mr Hussmann. It's been a long, often rocky road to get here. Can you remember your beginnings as a team partner?
Hussmann:
What was your realisation at the time - how did you envisage the path to the 33rd Americas Cup?
Hussmann: At some point, we realised that the legal dispute had to be fought for a better future for the Americas Cup. We adjusted our commitment accordingly, because we have to be able to represent this to the company and our customers. Our engineers were once again involved in the construction of the boat and the wing sail, and we also supplied the necessary engine at very short notice.
Now your team is impressively dominating the defending champions Alinghi on the water...
Hussmann: ... Nevertheless, not much has changed since the first victory. Of course, as a technology partner, we are a little proud that we were able to contribute to this success. We have come a little closer to the big goal.
You yourself have also described the Cup as being in a "disastrous state" in recent weeks. Will you continue the partnership if your team wins the 33rd Americas Cup?
Hussmann:We can only decide whether to continue our involvement once the stability of the Cup has been restored. On the other hand, the fact that the Americas Cup has always been more difficult than motorsport or golf has always been part of its magic. We will give the team time to create a sensible basis.
What problems does the Americas Cup have from your point of view?
Hussmann: What was initiated for the 32nd Americas Cup between 2004 and 2007 had many interesting and correct components. The main problem is that the Cup has recently often been compared to the Formula 1 of motor racing. This is possibly a mistake. Many of those involved thought they were on a par with Formula 1, but Formula 1 is still far superior to the Cup in terms of reach and value creation. When the Cup went to Europe in 2003, there was a kind of gold-rush atmosphere. Perhaps a few things were overlooked, and the decision in favour of live broadcasts was certainly not ideal. We pointed this out before the slump cancelled many plans. The TWI rights holders at the time went to the broadcasters, demanded millions for the rights and largely failed. We had pointed out in advance that the value of such television rights should be built up first. You can't ask broadcasters for so much money if they also have to dig deep into their own pockets for transmissions, personnel and the provision of broadcasting slots: You can only sell rights if the offer is right. And I would go even further: in my opinion, television time should have been bought between 2004 and 2007.
Who should have paid for it?
Hussmann: The management at the time, ACM, made a profit in the high double-digit millions in the 32nd Americas Cup and shared this sum with the teams according to a previously agreed formula. A third of the money would have been enough. The rest could have been invested more profitably in the future.
How does the Cup need to change in order to appeal to a wider public?
Hussmann: The Cup has a chance as a major event if it gets out of the pure sports corner. DTM races, for example, are watched by up to 1.8 million people on television at peak times. Formula 1 races are watched by five to seven million people. The Americas Cup is still a little more exclusive than Formula 1, but it needs to open up better to the general public with its exciting characters, good ideas and "out of the box" thinking. Exciting highlight formats, personality and lifestyle stories need to be produced.
What would you like to see from the Americas Cup in the future?
Hussmann: Stability in organisation and event. Fair rules and basic values. A regular and reliable calendar of events. Pre-regattas in the right places. Regular television coverage so that people know when they can switch on. A better alignment of the regatta courses with the needs of television. So much can be made of the Americas Cup. But there is still the question of whether the people involved are prepared to accept a significantly lower level than in the past? Without commercial partners, this sport has no chance. Without them, none of this would be financially viable. So we need to start thinking more realistically. A look at the figures is enough: The coverage of the 2007 Americas Cup did not even reach ten per cent of the coverage of Formula 1. All you have to do is master the simple rule of three to calculate the resulting opportunities. In the current situation, we are focussing on operating sustainably and profitably. Accordingly, all commitments must fit in with this.
Have you survived the last two and a half years of the Cup in court unscathed?
Hussmann: The last two and a half years certainly play a role in our considerations. The Cup has endured one or two bumps in the road. Of course, from the BMW Oracle Racing team's point of view, we want to put this time behind us now and concentrate on the future. But we have to remember this and make sure that such a situation doesn't happen again tomorrow. That will be the task of the winner: to establish stable conditions as quickly as possible.
Would BMW also be approachable as a potential sponsor for other teams, for example a resurgent Team Germany?
Hussmann: You should never say never. But we are now in our third campaign with Oracle. If we were a pure sponsor, it would perhaps be easier to say: OK, then I'll just stick my logo on another boat tomorrow. But it's not like that. How credible would we be as a technology partner if we changed teams tomorrow? It's also possible that our team will win this Americas Cup. As a defender, you have clear advantages ... And then, from our point of view, we have also successfully managed to establish a good sports brand with BMW Oracle Racing in seven years.
But you haven't decided yet?
Hussmann: No. We can only prepare the decision paper for the Board of Directors once we know the key figures for the future.
