This is the John Sweeney's response to the many
forums that have had folks ask questions, why eBay?
"I really enjoy reading the different forums and
everyone's take on our America's Cup project. I would
like to submit two points for everyone to talk about.
First off, we know of almost a dozen companies that
will sponsor a Cup team. We also know that most have
not made a decision on what team to sponsor. So it was
logical to create a global marketing idea that got us
in front of these decision makers before we missed out.
Ebay was the only choice because we would be there largest
auction they have ever had. The size of the auction
would generate needed global marketing and awareness.
We believe that any company looking at the Cup will
have to take a strong look at our package. Why would
you want to pay $25 million to be one of five sponsors
when you can be the sole sponsor for $30 and have your
own team? That's the theory at least, we will have to
see if it works.
The second point that many don't understand is that
eBay actually does have the kind of folks who can make
a decision to buy such a large item.
Let me give you an example from a few months ago. I
was looking to buy a Ferrari, and saw that eBay had
almost 120 Ferraris for sale daily. After following
the auctions, I realized that hundreds of Ferraris were
being sold each week on eBay. I then saw an Enzo Ferrari
being auctioned off. To my amazement there were 45 bidders
at or around $1 million dollars.
Now if you know eBay, you then realize that these folks
are all pre qualified to bid at this level. So you can
see that at one time 45 millionaires were trying to
buy this Enzo and all were surfing within an hour of
each other. If your buying an Enzo, you most likely
have a ton of disposable income and also would likely
be a high level CEO or business owner who makes key
decisions. So the idea stemmed from this auction and
ever since I have seen all sorts of exotics cars, yachts
and watches sell on eBay for millions of dollars.
We have had companies contact us this week from many
different sectors. Airlines, Tech, Auto, F1, Fashion,
Tourism Boards and several wealthy individuals (B's).
If you look at what we offer, and what a regular America's
Cup team sponsorship usually offers, there simply is
no comparison. Yes, we are thinking of the sponsor first,
but that doesn't mean you cant also have the best group
of sailors/team.
There are only two teams with funding right now, so
we have just as good of a chance as the others to make
it to the big show. Plus, we already have the facilities
to start training, three America's Cup yachts and a
healthy $10 million to get us started.
Log onto eBay motors April 2-9 and watch for yourself."
John Sweeney's San Francisco Cup Class, LLC ("SFCC")
has been formally designated by the Sausalito Yacht
Club as its representative for a proposed challenge
for the 2007 America’s Cup.
A first time ever online auction via eBay will be
organized (April 2 - 9) to sell the rights
and benefits of the exclusive team sponsorship to
challenge for the 2007 America’s Cup (the winning
bidder will also become the exclusive sponsor of both
the 2004 and 2005 "Challenge Series").
"An eBay auction was selected as the vehicle
for the sale of the Exclusive Sponsorship to allow
all interested companies and individuals to see what
is being offered at the same time", explained
the Sausalito Challenge's press release.
"Typically, sponsors of teams challenging for
the America’s Cup have to commit to fund budgets three
or four times as large as the minimum bid amount required
in this auction", it's said. "The Sausalito
Challenge proposes to enter the competition relying
on a comparably small budget, by building one new
yacht and giving a group of very smart individuals
a chance to perform as a team using cost effective
strategies"
The auction will be conducted through a private bidding
process, with the requirement that bids start at Thirty
Million Dollars ($30,000,000).
The Sausalito Challenge will be based for training
and operations at Treasure Island in San Francisco
Bay, as well as in Valencia, Spain.
The team will be participating in all regattas organized
by ACM for all of the challengers for the 2007 America’s
Cup, leading up to and including the Louis Vuitton
Challenger Series in 2007.
"The core team assembled will have a chance of
winning the America’s Cup", the press release
concluded. "But the overall strategy is to create
a global image for one company for a fraction of the
cost of the usual America’s Cup team".
"Big
news" from the Sausalito Challenge
(02/28/04) (source
: John
Sweeney)
John Sweeney published
a message whose title is "Big news from Sausalito
Challenge" and in which he said "the
Sausalito Challenge will have a major announcement
Monday March 1st".
A first clue was the fact that the ebay logo was added
in the Sausalito Challenge page of the Challenge Series
website. Founded in September 1995 by Pierre Omidyar,
eBay is the world's leading internet market place.
San Francisco Bay sailor
and advertising ace John Sweeney is drawing up plans
to lead a second local challenge for the 2007 America's
Cup. If things come together, Sweeney's syndicate will
be sponsored by the Sausalito Yacht Club.
His "low budget" campaign will cost about $40 million.
His sailing operations will be based at Treasure Island.
He plans to build one new 80-foot racing yacht and to
purchase two yachts from the 2003 America's Cup. He
hopes to have two boats training on the bay by late
summer.
The syndicate's name will reflect its corporate sponsor,
which has yet to be determined. It could be Oracle's
rival, PeopleSoft, or whoever is willing to ante.
In a twist, Sweeney plans to auction off the exclusive
sponsorship rights to his racing syndicate. The bidding
would start at $20 million for a corporate-branding
opportunity that Sweeney likens to Formula One auto
racing.
In the meantime, two unnamed Sausalito residents have
given his fledgling campaign a $10 million donation.
"It's the dream. I've always been a racing sailor. I've
always wanted a chance to put my ideas into the mix,"
said Sweeney, a former crewmember for Ellison's Oracle
BMW Racing. "There's a lot of ways to took at the America's
Cup, but first it's got to be a business -- and pay
back the sponsors. Then you try to get the best sailors
and have the best chance of winning it."
Sweeney hopes to spend less than one-third of the more
than $120 million that Ellison's syndicate is likely
to pour into its campaign to wrest the silver cup from
the Swiss Alinghi team.
"It would be foolish to say that you're going to Valencia
to beat Oracle and Alinghi, but you can have a very
competitive team," Sweeney said. "Basically, there will
be a lot of guys racing for the advertising."
Sweeney, 34, of Tiburon, began sailing when he was 8.
He and his business partner, Tina Kleinjan, created
Sailing Billboards Outdoor Media. The ad firm, which
used sailing to target high-end consumers, was sold
in 2001 for roughly $30 million.
Kleinjan, 32, of Sausalito, will run the syndicate's
business operations. Sweeney will head the sailing team.
The partners, who own three vintage America's Cup yachts,
have organized the Challenge Series of regattas on San
Francisco Bay for retired America's Cup boats. Running
an America's Cup campaign is a proven money drain, with
roughly 55 percent of the budget going into the payroll
and $10 million or so to build a swift racing boat.
"In the next three months, we'll either have a sponsor
or we won't," Sweeney said. "I think the chances are
very high that a Bay Area company or an international
company that's been involved in sailing will say, 'Hey,
I can own this team."
Sausalito
YC Challenge is underway (02/01/04) (source
: 2007ac.com
forum)
"We have set out
to obtain a modest budget of 40-50 Million Euros from
one or two individuals and a sole sponsor", John
Sweeney wrote recently to the 2007ac.com forumers. "Our
base will be Treasure Island were the Challenge Series
is currently set up".
"We are working on securing two new generation
yachts and plan to build one new AC yacht for the 2007
America's Cup", he added. "We hope to have
two yachts training in San Francisco by late summer
2004".
Sausalito
YC Challenge "to the next level" (01/24/04) (source
:2007ac.com
forum)
"I've just returned from
meetings in New Zealand and Australia with some top
sailors and designers", John Sweeney wrote recently
to the 2007ac.com forumers. "The trip yielded a
healthy dose of reality of what teams are facing this
time to compete".
"It's clear that other than the big two (Oracle
and Alinghi), there maybe only one or two other mega
teams possible if at all. After looking at the options
of what we already have in place in San Francisco, it
seems logical to take the Sausalito Yacht Club America's
Cup Challenge to the next level."
"Next level"?? .
More
about the Sausalito YC Challenge (01/04/04) (source
: 2007ac.com
forum)
John Sweeney said his
first priority (with Tina Kleinjan, his business partner
in the Challenge Series) is to make sure that the Challenge
Series has solid backing for their 2004 season in San
Francisco Bay, again in close association with the Sausalito
Yacht Club.
Though nothing is nailed-down yet, there have been meetings
with potential backers, with more such meetings scheduled
"down under" over the next few weeks. One hint that
negotiations are looking good is that the boats are
now in the process of being readied at their Treasure
Island base for the upcoming season.
Once that priority has been solidified, the next part
of the plan is to continue the relationships that Sweeney,
Kleinjan and the SYC have built with their Challenge
Series, and carry them on to a team to represent the
SYC in Valencia in 2007.
Sausalito
YC not denies the 2007 rumours (12/29/03) (source
: Scuttlebutt)
From Tim Prouty, Race
Director, Sausalito Yacht Club :
It is too early to confirm any plans that the Sausalito
Yacht Club may have for a new San Francisco based
America's Cup challenge. We can confirm our ongoing
relationship with the Challenge Series and that we
have three regattas featuring IACC boats on the schedule
for 2004.
The Challenge Series events (formerly IACCSF), begun
in 2002, were the first real exposure many local sailors
and spectators had to IACC boats in action. These
efforts, no doubt, helped to set the stage on the
Bay for the Moet Cup, in 2003, and will continue to
attract interest as 2007 approaches.
The Sausalito Yacht club shares the vision of members,
John Sweeney and Tina Keinjan, that San Francisco
Bay is one of the world's greatest sailing venues
and will ultimately host an America's Cup challenge.
We're confident that whatever direction Sweeney's
Challenge Series chooses, SYC will have the opportunity
to participate.
Sausalito
YC in the 2007 America’s Cup ? (12/22/03) (source
:
Rumours)
The Sausalito Yacht
Club who played host to the IACCSF/Challenge Series
regattas for the last two seasons has been rumored
to be the club of choice for a new San Francisco based
America’s Cup team.
Rumors have been circulating for the last two months
that John Sweeney (formerly with America True and
Oracle/BMW Racing) and Tina Kleinjan both Sausalito
Yacht Club members will launch a campaign to be funded
by two prominent Bay Area residents and an Aerospace
company.
It would be no surprise to anyone that Sweeney and
Kleinjan who already own four IACC yachts would fund
and run a new team. It's said the duo have always
planned on having their own team and would run the
entire operation from there America’s Cup base on
Treasure Island.
If the rumors turn out to be true, San Francisco could
have several teams to cheer for in 2007. Larry Ellision
is said to be returning with Oracle/BMW Racing.
