America's Cup - ACM Share (Some Of?) The Love

ACM has today posted a release concerning the distributed profits from the 32nd America's Cup.

The Afterguard has one observation. As detailed in point 7. of the release, ACM have closed the accounts of the 32nd America's Cup to expedite the payment of proceeds to the challenging teams (which may or may not provide more of the fence-sitters with the funds required to formally challenge for the 33rd America's Cup); With the 32nd America's Cup Online Auction yet to finish, wouldn't it have been better to wait until the income generated was known? Or isn't the divestment of ACM's assets a contributory factor? Closed accounts would suggest that by some calculation the income generated isn't being divided amongst the interested parties.

The release can be read on the America's Cup website, Here.

The 32nd America’s Cup competitors receive their share of EUR 66.5 million profit 15-09-2007

AC Management (ACM), organiser of the 32nd America’s Cup, distributes 90% of the EUR 66.5 millions net surplus the event generated over the past four years to participating teams. This will help teams prepare for the 33rd America’s Cup which is to take place in 2009.

By creating a single structure managing both the Challenger Selection Series and the America’s Cup Match and by developing a professional marketing strategy, the organisers of the 32nd America’s Cup succeeded in creating a net surplus to be shared with all competitors of the 32nd event.

This EUR 66.5 million surplus comes from a total revenue of EUR 240 million, generated largely through the city bid and the four year sponsorship programme, but also through TV rights, the hospitality programme and the concessions and marinas of Port America’s Cup.

“This is a significant result and by providing the funds to the teams now, we aim to help them prepare their 33rd campaign, while also giving continuity to the event,” said Michel Hodara, CEO of ACM.

Ernesto Bertarelli, syndicate head of Alinghi, Defender of the 33rd America’s Cup, commented: “The vision for the 32nd America's Cup was to create a fantastic sporting occasion, in Europe, with a viable commercial business model comparable to other major global sporting events.”

The America’s Cup delivered on both accounts with this edition being arguably the best ever with over 4 billion TV viewers and 6 million visitors, watching extremely close racing. Bertarelli now looks to the future: “Our vision for the 33rd America’s Cup is to create an even greater sporting occasion for 2009 with an exciting new class of boats and to build upon the successes of the 32nd edition.”

THE STRATEGY AND STEPS TAKEN TOWARDS THIS NET SURPLUS DISTRIBUTION:

1. AC Management SA (ACM), the event organising body, approached the America’s Cup strategically and created one property by combining the America’s Cup Match with the Challenger Selection Series, while before they were run by separate entities. ACM also created Pre-Regattas which ran the course of the four year campaign;

2. The professional marketing of the property worldwide, focusing on the brand equity of the 'America's Cup', generated €66.5m net surplus from €240m revenue. Of this surplus, 90% is to be distributed to the participating teams.

3. The value generated came mainly from the City bid process and from the integrated sponsoring rights that offered to Partners a presence that ran the course of the four year campaign.

4. ACM also controlled the television rights, the hospitality, concessions and marina mooring within Port America’s Cup.

5. The redistribution formula is 10% to ACM, 45% to the Defender, 45% to the other teams as published in the 32nd Protocol in 2003.

6. Thus, the top challenger (i.e. Emirates Team New Zealand) will receive over €9m. The minimum contribution, to teams who did not qualify for the Semi Finals, is still over €1m.

7. While the distribution date indicated in the Protocol is March 2008, ACM accelerated the closing of the accounts to allow teams to take immediate advantage of the revenue, helping them to prepare for the next campaign. The 33rd America’s Cup will take place in 2009 in Valencia.
--Ends--

Alinghi Claims 32nd America's Cup

Swiss Rule

Alinghi, the Swiss defending holder of The America's Cup have successfully defended their their crown by defeating Emirates Team New Zealand, 5 races to 2 in the best of nine series.

With strong winds approaching the maximum permissible for racing to take place, and good waves and strong sunshine, everything was set for good sailing. Past record would suggest that Alinghi's SUI100 vessel had an advantage in stronger winds, especially when downwind; the surprise of the Cup to date was how well New Zealand coped in such conditions.

The start saw the Kiwis pursuing Alinghi around the start box, with both boats crossing the start simultaneously - no delta at all as the race began. Emirates Team New Zealand might just have got the better of the upwind gusts to begin with, but ten minutes in, the advantage line was less than a boat length - all to play for. The swell kept the teams on their toes - these were conditions to punish any errors!

Alinghi managed to stay in touch with the Kiwis to prevent the challengers from getting sufficient advantage to cross and keep the advantage to the mark and the downwind 2nd leg, and Alinghi rounded the mark with a 7 second advantage - approaching a boat length but not quite.

A poorly executed series of gybes by Alinghi who struggled to keep their spinnaker filled enabled Team New Zealand to sit in front and serve Alinghi plenty of dirty air. The cost to Alinghi? The loss of their 7 second advantage and to round the mark with a 14 second deficit.

Tricky seas made a spectacle of the upwind tacking duel, both boats coming to an almost dead halt several times as high crests proved an obstacle. Much as the first leg, Team New Zealand seemed unable to address a closing Alinghi.

The approach to the final mark confirmed the win for Alinghi. Team New Zealand failed to observe the rules of dial down and avoid hindering the course of the opponents; Alinghi were forced to bear away, putting a penalty on the Kiwis. Worse still, Alinghi rounded the mark 12 seconds ahead. And the Kiwis have to serve their penalty by performing a 270 degree turn before the finish (or force a cancelling penalty on Alinghi - but they'd need to be in front to have any hope of that!).

On the run to the line the winds dropped significantly. The Kiwis put their headsail up; Alinghi suffered equipment failure with the Spinnaker boom; SUI100 stalled completely while the Kiwis took the advantage; as the Swiss team fought to regain control of their hardware to set sail and get the boat travelling, Team New Zealand raced ahead, looking likely to have sufficient advantage to take their penalty and still win. In classic sporting action, Alinghi struggled to find speed, as Team New Zealand fought to accelerate to the line. In the end, Alinghi made it, with an advantage of just 1 second, perhaps only 3-5 meters, an extraordinarily small margin by which a major sporting success was achieved.


This Cup, the first acknowledged series in Europe, has been a thrilling spectacle, and has featured some excellent sailing. Alinghi have proved themselves to be consistently excellent, and clearly the 31st wasn't just luck. To their credit, Team New Zealand ably demonstrated that they've improved greatly in the last 4 years - they were white washed by Alinghi 5-0 in the final of the 31st America's Cup - but alas again their efforts weren't enough.

During the first America's Cup back on 22nd August 1851, having witnessed the Yacht 'America' cross the line to win the race, Queen Victoria asked who had come second, to which came the reply, 'Ma'am, there is no second'. So it is today for Emirates Team New Zealand, who will have to return to Europe for the 33rd challenge in order to settle the score.

The Afterguard will fill the gap to the next cup by following the progress of TeamOrigin, Britain's recently formed team attempting to win the 33rd and 34th America's Cup, so check back soon.

Wind stops play

Inconsistent wind conditions in Valencia have forced the postponement of today's 7th flight in the 32nd America's Cup.

I'm not sure I particularly favour the fact that if conditions are changeable, these races tend to be called off - whenever I've sailed, competitively or otherwise, I've never been given the option to stop if conditions got a bit tricky! Nevertheless, the organisers have disregarded my opinion, & cancelled the race for today. With tomorrow already designated a rest day, we'll have to wait for Tuesday to see the competition resume. Two days out of competition will enable Team New Zealand to regroup & hopefully come back at Alinghi, who only have to win on Tuesday to hold the Cup aloft.

America's Cup Flight 6

It's now or never for the Kiwis as Alinghi beat Emirates Team New Zealand to take a 4-2 lead in the first to 5 series

Lightish winds set the conditions under which the 6th round of the 32nd America's Cup would be fought.

Team New Zealand took the advantage out of the start box and chose to allow Alinghi to set its own strategy; ultimately, this decision, taken within the final 5 minutes prior to the start, decided who would win out - Alinghi fought a strategically stronger race, and while Team New Zealand took chunks out of the Swiss in the race to the line, Alinghi's advantage proved too great for the challenger.

Time is running out for the Kiwis - one more win and Alinghi will have successfully defended the Cup, ensuring the 33rd America's Cup will again be fought in Europe. It may all be decided tomorrow, Sunday 1st July 2007.

Team New Zealand get seasick

America's Cup flight 5 is one Team New Zealand will probably care to forget.

Sometimes things are just all against you, and there's just nothing you can do to recover. It's not a state affairs unknown to this author, and so it was with great empathy that I followed today's race, as the word 'Spinnaker' became as unpopular on board the Kiwi vessel as a careless whistle.

Spinnaker one decided to tear. Spinnaker two was hoisted without being correctly fixed - ouch! The third twisted into an hourglass and failed to fill correctly, at least until the two other sails were cut free from the boat.

It was this event that led New Zealand to lose their lead to the first mark and allowed Alinghi past, and the Swiss were never going to relinquish their gifted advantage.

3-2 to the Swiss, but at least the Kiwis know they just need a change of luck and an absence of errors to address the issue.

Alinghi provides some answers

The Swiss draw even at 2-2

Race 4 of the 32nd America's Cup in Valencia, Spain, took place in light winds which had previously proved favourable to the New Zealand challengers. Would Alinghi suffer a hangover from yesterday's tightly fought defeat?

After a close exit from the start box, the race was cat and mouse from start to finish, with Alinghi leading all the way, though never by more than 5 or 6 boat lengths.

Following several America's Cup challenges which resulted in whitewash, the 2-2 standings are providing some much needed excitement to this year's event. The Swiss recovered well from the disappointment of yesterday's defeat, but Team New Zealand shouldn't feel too aggrieved as any mistake from Alinghi today would have seen them gain the upper hand. With a day off tomorrow, the teams will resume a best of 5 competition on Friday in what should be a highly competitive weekend.

An America's Cup classic...

In one of the greatest America's Cup clashes in recent memory, Team New Zealand staged an unbelievable comeback to pull ahead in the series, 2-1.

Weather conditions for the 3rd America's Cup race were not favourable. Shifty light winds and choppy seas forced a delay of several hours, and when racing did get underway, required great tactics and faultless operation. As it happened, both teams suffered from errors and the lead changed 3 times over the closely fought challenge. Alinghi took an 8 second advantage at the start, but Team New Zealand immediately got the advantage of shifting winds to pull ahead with a 1 minute 31 lead at the first mark. At the second Team New Zealand's race seemed all but over when a spinnaker change went disastrously wrong, and $40,000 of Nylon had to be cut with a knife. With only a 21 second deficit, Alinghi maintained speed and by the third mark they'd taken a 1 minute 17 lead and on past performance, looked set for the finish and a second win of the cup. Some poor decision making by the Swiss and a remarkable comeback by Team New Zealand saw them crossing the finish 25 seconds ahead of the defeated and deflated defenders of the cup. It might only have been a race victory, but it will be interesting to see what longer-lasting impact such a heavy defeat has on Alinghi's psyche.

The fight for the Auld Mug heats up...

The fight for the world's oldest sporting trophy, the 32nd America's Cup is well under way in Valencia, Spain.

Background: A competition between large yachts, it represents the Formula One of sailing. The competitive edge comes via technology (with boat design & equipment within highly-defined regulations playing a large part), skill, teamwork, strength, & - what makes it such a thrilling competition - tactics & cunning.

International teams capable of raising the £100-200 million required to finance a single competitive campaign cycle (so think large corporate sponsors) fight through a number of regattas for the right to be the sole challenger to the existing holder in the final (assuming they wish to defend their title). The competitive cycle runs every 2-4 years (as determined by the holder). The location of the racing is determined by the nationality of the current title holder; this time around, the title holder is Alinghi, a Swiss team, and as Switzerland is land-locked, they've chosen Spain as a near-by location.

The 32nd Competition:
The Louis Vuitton Cup to determine the challenger to the existing holder ran during May and June 2007; Last time's beaten finalist, Team New Zealand outclassed the field and set up an intriguing rematch in the America's Cup itself, against the Swiss holders, Alinghi. Last time, Alinghi beat New Zealand 5-0 in the best of 9 final; would New Zealand have learned anything over the last 4 years?

The first race was run on 23/6/07; Alinghi - racing for the first time in true America's Cup competition since 2003 - looked a class apart from their competitor as they easily beat Team New Zealand to take a 1-0 lead.

Race 2 (24/6/07) was a highly exciting tactical battle, with Team New Zealand winning out to even the score at 1-1, ensuring that the 32nd cup will be the first since the 28th that won't end as a whitewash.

Today is a rest day, with race 3 on 26/6, the 4th on 27/6, 5th on 29/6, 6th on 30/6, and if required, the 7th on 1/7, 8th on 3/7 and (perish the thought) a deciding 9th on 4/7.

There's added interest this time around, as the British concern TeamOrigin have announced their intention to compete against this year's winner for the 33rd campaign (and beyond).

It's a fringe sport, but as such it's a remarkable spectacle, and if you've never watched yachting like this before, you won't believe the work rate of the crews - it's well worth checking out. You can watch it live on Sky Sports in Europe, with further coverage on the UK's Channel 4. The official website here has live graphical and radio coverage, as well as a wealth of background information. Enjoy!