The NZ Herald revealed that the Swiss billionaire, Team New Zealand's arch-rival, propped up the start of their campaign with a significant amount of money.

Last night, Emirates Team New Zealand managing director Grant Dalton said a deal had been struck, but it was a "no strings attached" loan which would be repaid.

Dalton would not say how big the loan was, but when asked if it was in the tens of millions of dollars, he said: "Well, there wouldn't be much point doing it for $100, would there?"

It's understood that Bertarelli was worried the 2007 regatta in Valencia would not draw enough quality syndicates. He wanted the New Zealanders to be there to pep up the racing and ensure that Europe's first hosting of the America's Cup was a success.

Dalton said the money was a loan from Bertarelli personally and was not connected with the Alinghi sailing team or AC Management, the company organising the regatta.

"It's a no-strings-attached deal, which means it's a money deal," he said. "He has no involvement in any shape or form in Emirates Team New Zealand. It's a complete arm's-length deal."

Dalton said he had approached Bertarelli because they were old friends, and he was grateful for his help.

"I believe Ernesto Bertarelli's motive was to ensure that Team New Zealand competes at Valencia because, in his view, the regatta would lose some of its appeal without us. It would be like holding the soccer World Cup without Brazil."

The deal was done about three months ago, just before the Middle Eastern airline Emirates became Team New Zealand's principal sponsor.