Team
New Zealand Handed Financial Boost (03/06/03)
(source
: NZ
Herald)
Team New Zealand will get an initial NZ $5.6 million
from the Government to allow contracts to be signed
with key members, Minister for the America's Cup Trevor
Mallard said today.
Mr Mallard said that without the money Team New Zealand
could lose "human capital and intellectual property".
"If this happens, all our best sailing, design and boat
building talent will be forced to join foreign syndicates
and related industries, which would be a tragedy for
New Zealand yachting and for New Zealand. We don't want
to see that happen," he said.
Mr Mallard said discussions with Team New Zealand were
continuing and the Government would not be in a position
to confirm a final figure on how much it would give
the team for several months. A challenge in Europe in
2007 was likely to cost more than NZ $120 million.
Mr Mallard said the Government's final contribution
would depend on an assessment of the potential economic
benefits to New Zealand from the Europe regatta.
"It will also depend on Team New Zealand's ability to
raise substantial funding from the private sector, both
from here and overseas, to mount a credible challenge."
Discussions are being held in New Zealand about
the financial side of a future challenge for the America's
Cup.
Prime Minister Helen Clark has made it clear the Government
would be unwilling to use public money to help Team
New Zealand, if the business community does not also
come on board to support another challenge.
She says discussions are underway between America's
Cup Minister Trevor Mallard and Team New Zealand. However
the Prime Minister says the Government would be looking
for an indication that there would also be strong interest
from corporate sponsors.
Auckland's Chamber of Commerce is also warning business
to come to the party. The kiwi syndicate is thought
to be toying with the idea of bringing a big overseas
backer on board. Chief executive, Michael Barnett, says
New Zealand business would be the loser if that were
allowed to happen. He says it would be a lost opportunity
to expand export markets.
But the hopes Team New Zealand has of attracting sponsors
for an America's Cup challenge will be curtailed by
strict advertising rules in Europe.
A defense in France could stop the Steinlager brand
being a sponsor because of restrictions on alcohol and
tobacco advertising.
The Lion Nathan beer has been associated with the Kiwi
team since 1987. Lion Nathan corporate affairs and sponsorship
director Graham Seatter said the company was waiting
till Team NZ decided whether it could mount a challenge
before it made a decision on sponsorship.
Advertising restrictions would be a factor in future
sponsorship decisions, Mr Seatter said.
Another casualty of Europe's strict direct-to-consumer
advertising rules would be pharmaceutical firm Eli Lilly,
which became a secondary sponsor for Team NZ last month.
The company used the campaign to promote its erectile
dysfunction pill Cialis. Eli Lilly's marketing director
John Williams said direct-to-consumer advertising of
medicines was allowed in the United States and New Zealand
but not in Europe. That seemed unlikely to change soon.
The America's Cup may be Switzerland's cup but
Team New Zealand leaders Tom Schnackenberg and Dean
Barker want to keep their team together and have a shot
at winning back when the Auld Mug is next contested
in Europe, probably in 2007.
On board NZL 82 after the fifth loss to Alinghi, Barker
said he was incredibly proud of his Team New Zealand
camp and wouldn't have wanted to sail for anyone else
in this America's Cup.
Both he and Schnackenberg said they would "love" to
keep Team New Zealand alive for the 2007 America's Cup
event in Europe.
"I would love to be able to keep this team together.
The progress this team has made since the pretty tough
times in mid-2000 has been just amazing," skipper Barker
said. "Sure, we haven't won, we haven't been successful,
but we've got an incredibly good foundation - intellectual
property, hardware and talent - to put together a team
again."
Schnackenberg said the 2003 defence campaign had been
a fantastic team.
"We're still all friends at the end of a tough competition,
and we can build on something marvellous," he said.
"But it will take a lot of effort."
"It has been a fantastic experience being part of this
team and we have just about doubled our (America's Cup)
experience now. With that as a building block we can
form a formidable campaign for the next cup," he said.
"I myself, and I think everybody else in the team, wants
that."
Schnackenberg is optimistic Team NZ can raise the estimated
$120 million needed to be competitive in Europe but
former Team New Zealand sailor Craig Monk believes it
will be incredibly difficult for Team New Zealand to
mount a challenge in Europe.
"I would say there would only be a 10% chance," he said.
"The only company (out of the current sponsors) which
would have the resources is SAP."
Of the existing Team NZ sponsors neither Telecom nor
Lotto would be likely to be interested in supporting
a challenge, with no benefit from a campaign in Europe
for New Zealand domestic firms. Steinlager might find
the challenge too great.
International companies could back Team New Zealand
to get international media exposure, but also use it
as a way of entertaining big clients.
Former America's Cup challenge supporter Sir Michael
Fay could also be encouraged to help out, as well as
mega-wealthy Kiwi businessman Graeme Hart who has a
super-yacht of his own.
The countdown on the clock will be Team New Zealand's
greatest enemy. The longer it takes for them to find
the necessary funds, the longer it will be before they
can sign team members.
Despite the embarrassing beatings, key personnel are
sure to be targeted by other syndicates.
It's sure black boat skipper Dean Barker will be a prime
target but he said the team would take a couple of days
to think about what could have been done differently
in this campaign, and what might be done in the future.
"We'll get together in a couple of day's time to talk
about the way it was and what we've done wrong," he
said.
There was little sense of celebration as Swiss
and New Zealand yachts left the Viaduct Basin on Saturday
for the fifth and possibly last match of the 31st America's
Cup.
New Zealanders, expecting Saturday's race to seal the
departure of the Cup from their nation after an eight-year
residency, sent the yachts to sea in funereal silence.
A small crowd gathered to see the yachts leave their
docks - first New Zealand and Alinghi 20 minutes later.
There were only several hundred people at the docks,
far less than the several thousand who had watched the
yachts set off earlier in the races.
Alinghi leads the best-of-nine series 4-0 and needs
to win only one of five remaining races to take the
Cup to Europe for the first time in 152 years.
Spectators raised a feeble cheer when New Zealand's
race yacht, NZL-82, slipped its moorings and left the
harbor flanked by police and support boats. It made
its exit through a small entourage of spectator craft,
down also from the hundreds that thronged the harbor
for earlier departures.
New Zealand was able to take only one yacht to sea.
NZL-82 broke its racing mast Friday and had to borrow
the mast of its sister, NZL-81, to be ready to race
again. NZL-81, without a mast, remained in its shed.
A floating pontoon, moored at the center of Viaduct
Basin, was being decorated with flags and bunting in
anticipation of an afternoon trophy presentation if
Alinghi wins.
