Category: america’s cup 34

IT’S ONLY MONEY

Projected costs associated with the America’s Cup have skyrocketed to $163 million — up from the city’s 2010 estimate of $86 million. Meanwhile, doubts are growing about whether the event will be as exciting or as lucrative as initially projected.

The cost to overhaul dilapidated piers has more than doubled over the past year — from $55 million to $111 million.

Under a proposal that will go before the lawmakers this month, America’s Cup organizers, led by billionaire software mogul Larry Ellison, would pick up the tab for most of those costs in the short term, and then recover them from the city and its port through long-term leases or ownership of public waterfront land.

The San Francisco Board of Supervisors’ budget analyst, Harvey Rose, wrote in a report published Thursday evening that the city would need to spend $52 million on police, transit and other services to host the regattas this year and next — that’s up from an estimate of $31 million published in late 2010.

To partly defray those costs, Rose estimated that San Francisco would reap $22 million from additional sales and hotel taxes and other revenues generated from visitors and event-related spending.

A nonprofit group established by America’s Cup organizers to raise funds to defray city expenses aims to raise $32 million. So far, that group has told the city that it has received pledges for at least $12 million.

The supervisors’ budget and finance committee hearing into the proposed deal will be held on Wednesday. The full board will vote on the plan later this month.

Source: The Bay Citizen (http://s.tt/15Djm)
The America’s cup has been moving away from the public a little more every year. At the same time, never has the America’s Cup needed the public as much as now. I find the overtures by the AC to the public are awkward at best. San Francisco is caught in the middle without a voice. As I have written in the past “be careful what you wish for:” Imagine if this was happening in Newport.

JUST ONE OF THE PROBLEMS

Yachting: Only three challengers means rethink of America’s Cup

5:30 AM Wednesday Feb 1, 2012

America's Cup team Prada, Luna Rossa. Photo / Brett Phibbs.

America’s Cup team Prada, Luna Rossa. Photo / Brett Phibbs.

The underwhelming number of entries for the 34th America’s Cup has forced organisers to re-think the format of next year’s regatta.

Just three challengers – Emirates Team New Zealand, Luna Rossa and Artemis – have paid the US$100,000 ($121,000) entry fee for the 2013 event. With those teams already well-advanced in the design and build process of their AC72s, America’s Cup regatta director Iain Murray admits it is looking increasingly unlikely that another syndicate will enter at this late stage.

“We’re hopeful of having more teams outside of the teams that are already building, but the reality is the runway is going to run out in the not too distant future as to when they can start building and get to the startline, so it is going to become clear pretty quickly as to who the Louis Vuitton Cup competitors are going to be,” said Murray, who was in Auckland yesterday for a competitor’s forum.

The number of entries are well down on what organisers had been predicting, with the proposed format of the Louis Vuitton challenger series allowing for eight challengers and scheduled to run for two months from July 4-September 1 next year.

But with only three competitors, the regatta is likely to be scaled back significantly.

“It’s going to change what’s on the table for sure,” said Murray when asked if the length of the Louis Vuitton series will be reduced.

“In the next few weeks we’ll start planning on a bunch of potential different formats as to what the Louis Vuitton Cup will look like. We’ll have to look at the mixture of the type of racing we do and how many races we do on each day and the breaks that we give the teams.”

Murray said he was aware of the importance of maintaining the history and heritage of the America’s Cup.

One of the options discussed yesterday was making each of the matches a best-of-three series rather than just a one-off match race.

This format could also be introduced for the America’s Cup World Series regattas this year.

But it is still not apparent how that would fit into an eight-week Louis Vuitton series, much to the frustration of the competing teams who are keen for clarity around this.

Murray said a number of different agendas were emerging in the competitors’ group, with some focused on AC45 issues, with the other four teams more interested in the AC72s.

For the AC72 group their main concerns yesterday were getting the length of course sorted, the format of the racing and the way the racing would be scored.

“What we’re seeing is a number of different agendas emerging and as we go forward we have a number of different subjects we need to deal with,” said Murray.

“The teams that are well-organised and strong are digging deeper into the detail of what we’re going to do.”

Controller: America’s Cup needs “significant additional fundraising”

Buell: “I get zero salary for this, and I’m busting my ass raising (money) for it.” (Photo by Lance Iversen / The Chronicle

The plan was to have $12 million raised a week ago to help cover the city’s costs for hosting the upcoming America’s Cup regatta.

It’s not quite there.

A committee of philanthropic and community leaders raising donations to help offset San Francisco’s projected costs for hosting the renowned sailing race so far has only $8.8 million raised to cover costs for the current fiscal year, and $8 million of that came from a single source: race organizers, according to a new memo from the city controller.

The fundraising group, the America’s Cup Organizing Committee, does have written pledges or agreements totaling $12 million – the target amount listed in the initial agreement with race organizers to have on hand by Jan. 31, Controller Ben Rosenfield wrote.

But $3.2 million of that is pledged for 2012, 2013 or 2014, the memo indicates. The fundraising committee has only $800,000 cash on hand plus an $8 million agreement with the America’s Cup Event Authority for expenses in the fiscal year that ends June 30, the memo says.

Under that agreement, the organizing committee sold its rights to solicit sponsors within the local market to the event authority, the business arm of the Cup racing group headed by billionaire Oracle CEO Larry Ellison, which had access to national and international sponsors. The two have now agreed to combine those efforts into a single outreach campaign to advertisers. That agreement also includes unspecified future revenue sharing beyond the $8 million, according to the controller’s memo.

But the committee needs to ramp it up to meet the target of $32 million over three years outlined in the initial December 2010 deal between the city, the then-newly formed organizing committee and the event authority led by Ellison, who agreed to hold the regatta here.

“Given the ACOC’s expenses and fundraising payout schedules, significant additional fundraising beyond those achieved to date will be required to honor the $32 million fundraising goals,” Rosenfield wrote.

Exhibition races are scheduled to kick off in August, followed by the finals in September 2013.

The committee’s operating expenses were $492,000 last year and are expected to jump to $844,000 this year plus $520,000 in other costs for a total of $1.3 million, the memo says. The total committee costs are projected to jump to $2.1 million in 2013, according to the controller.

Mark Buell, a philanthropist and Democratic Party fundraiser who volunteered to chair the organizing committee, said his group has “absolutely, without question” complied with its part in the agreement to bring the Cup to San Francisco.

The language in that agreement is less than declarative, stating that Buell’s committee “will endeavor” to raise up to $32 million over a three year period, with “targets” of $12 million in the first year and $10 million in each of the next two years.

“The issue at the time when this was written was: Is there the will out there to fund this?” Buell said. “If anything, I see this as a major accomplishment given that we were able to do it.”
Buell also said the controller’s memo doesn’t include $500,000 pledged Monday.

Local Democratic Party chair Aaron Peskin, who has been critical of the current terms of the America’s Cup deal, said Buell’s committee had “broken its commitment” to the taxpayers.
“Contracts are to be read in their simple English language, which leads everyone to believe that Mark Buell was on the hook to deliver $12 million to the city last week,” Peskin said. “As it stands, they raised $800,000 and spent $400,000 on their salaries.”

Rosenfield’s memo notes that the original agreement actually gives “no stated deadline … for payment of the $12 million by the ACOC to the city.”

The original benchmarks were set to give the Board of Supervisors a sense of how feasible funding would be before the city commits to a binding deal on hosting the races that includes turning over to Ellison’s group ownership of one waterfront parcel and long-term development rights on others in exchange for at least $55 million in waterfront upgrades.

Rosenfield’s memo comes as the board is preparing to receive today the binding deal. Plenty of wrangling over several points is expected before a vote on approval later this month.

Buell said his main concern was ensuring that there was money in place to pay the city’s bills at the end of the current fiscal year, which he maintains there is.

“I’ve got close to nine (million),” he said. “I think they’ll only need about eight (million) come June 30.”

SOMETHING LOGICAL

I hope everyone had as nice a Christmas as I did, which was in Venice.

 

At last a move that seems so logical, we wonder what took them so long to act on the thought. Valencia has an infrastructure like no other place for the America’s Cup. Additionally, the America’s Cup belongs in Europe from a sailing audience point of view.

The HR Constitution – the cargo ship that has served as the main mode of transport between America’s Cup World Series venues – has arrived in Valencia where it will discharge its cargo.

All of the ‘materiel’ on the ship will be offloaded in Valencia before the HR Constitution is returned to its owners in time for Christmas.

“We took the decision to land the equipment in Valencia, after considering several factors,” explained Regatta Director Iain Murray. “There is a possibility for a number of teams to train together in Valencia, given the local infrastructure from the previous America’s Cups there.

“And for ACRM, Valencia is also an ideal place for us to undertake remedial maintenance work on our fleet of support boats and equipment. Several of our employees live in Valencia, making it even more convenient.”

The America’s Cup has secured some 2,500 square meters of space in the Port to store all the cargo and to complete the work on the support boats.

According to Andy Hindley, the Chief Operating Officer for America’s Cup Race Management, the use of the HR Constitution to ship the America’s Cup World Series fleet from Portugal, to the UK, to San Diego and back to Europe this year has been a winning formula.

“The chartered vessel has been a great success and delivered the logistics needed better than we hoped,” Hindley said.

Following a three month stop in Valencia, all the equipment will be shipped out from Valencia in the middle of March, in time for the start of the World Series event in Naples, Italy on April 7, 2012.

Banque Populaire V is holding a 1,000 mile lead over the ghost ship Groupama sailing in day 36.

THE AMERICA’S CUP HEADING BACK TO COURT?

Cory Friedman has written, as always, a fine provocative article concerning the possibility of the America’s Cup heading back to court: click here.

Briefly, the African Diaspora Maritime Corporation has filed a complaint in the New York Supreme Court alleging the the Golden Gate Yacht Club improperly prevented them from participating in the America’s Cup series.

I think we have all had the feeling that the America’s Cup had gone astray from it’s sailing roots. It has had a checkered past; if one look’s closely at the history of the event.

The New York Yacht Club, in the 12 meter years, despite the criticism, they received, had tried to be good custodians and preserve the event as set out in the deed of gift.

While it remains to be seen what the court will say about this latest challenge, Larry Ellison’s behavior, if we care, has been one of a spoiled child. He is after all used to getting his way.

 

GAG ORDER?

Does someone have a thin skin? What a good way to create a happy work environment. If you are truly worried about what people are saying perhaps you are doing something wrong.

I think the America’s Cup as we see it is still struggling for an identity. Since is has become a for profit event it will have trouble. I still think the best place for the America’s Cup would be in Europe.

 

60 PROTECTING THE REPUTATION OF THE AMERICA’S CUP

60.1 The favourable reputation of the America’s Cup, its regattas, events, selected venues, Officials, sponsors, commercial partners and its Competitors is a valuable asset and creates financial and other tangible and intangible benefits for all. Accordingly, each Competitor shall not (and shall use its best efforts to ensure that any team member, owner, officer, employee, contractor, affiliate, agent or representative of the Competitor shall not) and each Official shall not make or cause to be made, or authorize or endorse, any public statement, or engage in any other act or conduct or any activity, in each case, on or off the water, that is prejudicial or detrimental to or against the welfare or the best interests of the America’s Cup, or the sport of sailing, or that may impair public confidence in the honest and orderly conduct of the America’s Cup, any Event, or in the integrity and good character of any Competitor, Official, selected venue, sponsor or other commercial partner of the America’s Cup. Conduct contrary to the welfare or the best interests of the America’s Cup includes, but is not limited to, public statements that unreasonably attack or disparage a regatta related to the America’s Cup, an Event, a selected venue, a funder, a sponsor, a commercial partner of the Event or a Competitor, another Competitor, an Official, or the commercial viability or integrity of the America’s Cup or any of its regattas or events, but responsible expressions of legitimate disagreement are not prohibited.

60.2 The Jury is authorized to discipline or otherwise penalize any Competitor (including any team member, owner, officer, employee, contractor, affiliate, agent or representative of the Competitor) or Official found by the Jury to have breached or violated Article 60.1 of this Protocol. The Jury may initiate its own enquiry into any breach or violation of Article 60.1, or may act upon receiving a report or complaint by or on behalf of any Competitor or an Official. The Jury may impose such penalties or orders as it believes to be just and equitable in

accordance with this Protocol, including but not limited to those penalties set forth in Article 15.4(d). Any fines imposed by the Jury for breach of Article 60.1 shall be paid as may be directed by the Jury as it determines to be just and equitable.

60.3 All defined terms used in this Article 60 shall have the meanings given to them in this Protocol, with the addition, for the purposes of this Article 60 only, of the following:

(a) the definition of “Competitor” in Article 1.1(p) includes the yacht club holding the America’s Cup; and

(b) the definition of “Officials” in Article 1.1(mm) includes the Event Authority and ACRM and their respective officers, employees, contractors, representatives and agents.”

SO YOU WANT TO BE A SPECTATOR

Here are the published instructions for spectator boats wishing to watch the America’s Cup in San Diego.

America’s Cup World Series San Diego Course Marshal Instructions for Spectator Boats

Spectator boats are welcome to join and watch the racing from the water. The extreme nature of the AC45 catamarans requires exclusion zones. Please obey these instructions and enjoy the race.

Race Area

The area indicated in the diagram is the area where racing can take place. In reality the entire area will never be used and the length and location of the race course depends on wind direction and strength.

Stake Boats

35-­?50ft Sailing Boats displaying a big grey America’s Cup flag in their mast will mark the outline of the restricted area. As a default the Stake Boats will outline and restrict the full area 1 hour before the start. When the Race Committee feels confident in wind direction and course configuration the Stake Boats will move in closer to actual race course. The area and passage close the Navy Base will be closed at all times.

Marshal Boats and Restrictions

A number of Marshal Boats displaying official America’s Cup flags will operate along the lines created by the Stake Boats. Please obey their instructions. To avoid wake at the race area the speed limit is 5 knots. To be able to move quickly if requested spectator boats can not anchor.

Official Boats

A number and team and official boats such as Media, TV, Rescue, VIP and others will operate within the race area. They will all display official America’s Cup flags.

Race Schedule

The complete race schedule and format can be found at americascup.com.

Race Communications

Start sequence count down, VIP boat communication and Course Marshal information will be broadcasted on VHF 68. Live broadcast and commentary can be found at americascup.com.

Safety and Emergencies

The Captain is responsible for the safety and control of his/her boat and all person on board; and the conduct of his vessel in accordance with maritime law and good seamanship. Always obey the instructions of local maritime authorities and law enforcement.

The coloured area indicates where racing can take place. The actual race area will be smaller and depends on the strength and direction of the wind.

NEWPORT, BE CAREFUL WHAT YOU WISH FOR

Here is the diagram of the America’s Cup course for the upcoming San Diego series. It will shut down the port entirely during the event. Granted it is only for a few hours each day and only the days of the event. But no other boats will be moving. In San Francisco it will shut down the commercial port and all commercial traffic.

In Newport, next June it will be no different. For anyone not consumed by the America’s Cup, it is liable to be a nightmare.

LUNA ROSSA IS IN

Finally, there will be some style and likely good parties, good food as part of the America’s Cup. In sharp contrast, the freeze dried food is being loaded on the  6 Volvo 70’s which leave on the sixth for the first leg of the round the world race.

: www.americascupmedia.com

Luna Rossa and the Circolo della Vela Sicilia challenge for the 34th America’s Cup

Milan, Italy, 02/11/2011

***The following press release is being distributed on behalf of Luna Rossa Challenge 2013:

Luna Rossa and the Circolo della Vela Sicilia challenge for the 34th America’s Cup

Technical and sporting cooperation with Emirates Team New Zealand

The Circolo della Vela Sicilia of Palermo and the team Luna Rossa Challenge 2013 announce that their Notice of Challenge for the 34th America’s Cup, which will be held at San Francisco in September 2013, has been accepted by the Golden Gate Yacht Club.

Luna Rossa Challenge 2013 and Emirates Team New Zealand have signed a cooperation agreement until 31st December 2012 which includes full access to all ETNZ design and performance data for this period. The hulls for the Luna Rossa AC72’ will be built in Italy and all other elements will be built in New Zealand in close cooperation with Emirates Team New Zealand.

Luna Rossa’s 2012 programme includes the opening of a base in Auckland (New Zealand) for the joint training, the participation in all events of the America’s Cup World Series (ACWS) with the AC 45’ wing catamarans and the launch of the AC 72’ wing catamaran for the America’s Cup.

From March 2013 the team Luna Rossa will continue its sporting preparation and technical development of the AC 72’ in San Francisco and will participate to all events scheduled for the 34th America’s Cup.

PATRIZIO BERTELLI, Team Principal of Luna Rossa Challenge 2013, declared: “I am certain that the co-operation of Luna Rossa with Emirates Team New Zealand will produce excellent results, giving to both teams a faster and more effective development both in the technical and in the sporting fields. The choice of the Circolo della Vela Sicilia as challenging yacht club is also significant: I think it is important, in a moment like this, to underline the unity of our country also in the field of culture and sports”.

AGOSTINO RANDAZZO, President of the Circolo della Vela Sicilia, declared: “It is a true honour for the Circolo della Vela Sicilia to challenge for the America’s Cup with a prestigious and beloved team like Luna Rossa. I therefore thank Patrizio Bertelli both for having selected us and also for the reasons behind his choice. I am sure that our challenge will contribute to create a strong spirit of emulation and will attract many young Sicilians to the sport of sailing”.

MATTEO de NORA, Team Principal of Emirates Team New Zealand, declared:
“I am very happy of this co-operation: since 2000, when they won the Louis Vuitton Cup, Luna Rossa is certainly the most loved and respected foreign sailing team in New Zealand. This partnership will increase the technical value of the teams. We look forward to close co-operation on land and intense rivalry on the water.”

GRANT DALTON, managing director of Emirates Team New Zealand, said: “The cooperation with Luna Rossa is another step towards the long-term objective of establishing our team as a provider of technology and services that highlight New Zealand’s marine industry expertise. We look forward to sharing our design office resources and cooperating with two such well-respected names in top-level sailing.”
______________________

The team Luna Rossa was established in 1997 by Patrizio Bertelli with the original name of “Prada Challenge for the America’s Cup 2000”. At its first attempt the team wins the Louis Vuitton Cup – the challengers’ selection series – in 2000, with a record of 38 victories over 49 races. Luna Rossa has participated also in 2003 and in 2007 it reached the Louis Vuitton Cup final. Luna Rossa is currently participating in the Extreme Sailing Series, the Extreme 40’ catamarans circuit, where it is leading the overall standings.

Emirates Team New Zealand is the current holder of the Louis Vuitton Cup and is leading the America’s Cup World Series. Established in 1985 as the New Zealand Challenge, Emirates Team New Zealand has won both the America’s Cup twice and the Louis Vuitton Cup twice. It also participates in the Audi Med Cup and Extreme Sailing Series international racing circuits and will be at the start of the 2011/2012 Volvo Ocean Race with the yacht CAMPER.

The Circolo della Vela Sicilia, founded in 1933, is one of the oldest and most prestigious yacht clubs of the Mediterranean. Its club house is in Mondello, a few kilometres from the centre of Palermo. Throughout the years the Circolo della Vela Sicilia hosted many prestigious national and international regattas, including the J 24 and Star Class European Championships, the Italian Olympic classes Championship and the “Palermo – Monte Carlo” offshore race.