Allianz has commissioned a report
into the economic impact of participating, winning
and hosting the America's Cup.
The winner of the America's Cup, which starts June
23 in Valencia decides the date and location of
the next event. Dubai, San Francisco, Genoa and
Valencia are considered as possible venues.
Team Alinghi from landlocked Switzerland is the
first defending champion not to hold the event at
home, and hasn't decided where to stage the races
if it wins again.
The Allianz Economic Report conducted in co-operation
with Professor Tom Cannon, Dean of Buckingham University
Business School and a leading expert in sport and
business finance has taken into account a large
numbers of factors* in order to draw the conclusion
found in the report.
"I have been conducting studies
into sport for many years, but I was genuinely surprised
by the size of the prize in the America's Cup",
commented Professor Tom Cannon on the Allianz Economic
Report. "A sport competed for by millionaires
and billionaire has developed into an event which
delivers billions of dollars to the winning syndicate
and its chosen city."
Dubai would benefit the most because the event would
coincide with the completion of $75 billion worth
of investment including a new airport and metro
in the United Arab Emirates sheikdom.
"There is a strong economic case for holding
the next one in Dubai," said Professor Tom
Cannon. "But the traditions of the sport are
sometimes more important than cash."
Valencia, which spent $2.9 billion to prepare for
the first edition in Europe since 1851, has "every
chance" of hosting the next edition if Alinghi
wins because the city has the infrastructure in
place, Eugenio Perez, the regional government official
responsible for the America's Cup, said in an interview.
A second straight edition would bring $2.75 billion
of economic spinoffs to Valencia, Cannon's study
If BMW Oracle Racing were to win the Cup and bring
it home to the USA to either San Francisco, the
home of Larry Ellison's team, or Newport, the America's
Cup host from 1930 to 1983, the corresponding economic
impact would be $9.9 Billion or $4.5 Billion
Total economic return from Luna Rossa winning and
then hosting the America's Cup in Genoa, Italy would
be in the region of $3.75 Billion, according to
If Emirates Team New Zealand won the 32nd America's
Cup and took it in New Zealand, the total economic
return for hosting the 33rd America's Cup in Auckland
would reach $1.75 Billion.
Emirates Team New Zealand could expect to generate
increased revenues if it chose to host the event
in Dubai but would be unlikely to opt for the United
Arab Emirates sheikdom.
"There is maybe a two in 10 chance," Cannon
said. "There is too much emotion involved on
the part of the New Zealand nation."
Success by Desafío Español would bring an additional
$1.5 Billion into the Spanish economy in direct
and indirect effects in the short to medium term
of hosting the 33rd America's Cup- generating around