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via Bloomberg.com: News.
By Alex Duff and Aaron Kuriloff
Feb. 8 (Bloomberg) — Billionaires Larry Ellison and Ernesto Bertarelli have turned an America’s Cup boom into bust.
A 30-month wrangle over rules canceled a 19-team qualifying event, scared off sponsors like Banco Santander SA, UBS AG and Nestle SA and shrank the organizing budget to 8 million euros ($11.1 million) from a record 230 million euros in 2007, organizers said.
The wait continued today. The start of the best-of-three sailing regatta in Valencia, Spain, was postponed for two days because of a lack of regular wind speed today, race officials said. The event is sandwiched between the Super Bowl and the Winter Olympics in Vancouver. International interest has declined so much that organizers gave away the television rights, officials of Bertarelli’s Alinghi team said.
“This is not going to be a windfall for anyone,” Gary Jobson, the president of U.S. Sailing and the cup-winning navigator in 1977, said in an interview. “It’s going to cost them both a lot of money.”
The economic impact of the 159-year-old event, sailing’s oldest competition, is less than 10 percent of the $7 billion last time, according to Tom Cannon, a sports business professor at the U.K.’s Liverpool University. There are no infrastructure benefits and most of the about-$500 million spent will be on the two competing boats, Cannon said.
Switzerland’s Bertarelli, 44, said his team has struggled to get sponsors to replace UBS and Nestle, which used the last event to promote its Nespresso brand. The 65-year-old Ellison’s BMW-Oracle retained Bayerische Motoren Werke AG while losing backers including insurer Allianz AG.
95% Legal
“It’s a difficult sell,” Alinghi captain Brad Butterworth, 50, said in an interview. This America’s Cup is “95 percent legal, 5 percent sport.”
Bertarelli got $10 billion in the 2006 sale of family drug company Serono SA, while Ellison, chief executive officer of Oracle Corp. is worth about $22.5 billion, making him the world’s fourth-richest person according to Forbes magazine.
Bertarelli has accused Ellison of turning the event into a spending race to suit his challenge, comparing the U.S. billionaire’s tactics to “corporate raiding.”
“Larry has more money than anyone else, so why would he like a Cup that costs less,” Bertarelli said in an interview last month. “He likes a Cup that costs more.”
Oracle team CEO Russell Coutts, 47, says Alinghi consistently tried to bend the rules in its favor. Ellison didn’t respond to a request for an interview for this story.
No Challengers
“Bertarelli’s new protocol did not make commercial sense,” Coutts said. “Most corporate sponsors want the competition regulations to be stable and provide a fair format and rules for the teams.”
The billionaires’ spat has even touched on which has the better business and sailing credentials. Bertarelli was to have been Alinghi’s helmsman today, while Ellison wasn’t named among 10 sailors on the BMW-Oracle boat, according to team statements. Ellison said early today his participation depends on the weather conditions.
It’s the first time there hasn’t been a qualifying contest since 1988, ostracizing challengers from countries including South Africa, Italy and New Zealand that competed last time. The 2007 event made a profit of 66 million euros shared between 12 teams. For this year, Geneva-based Alinghi ceded management of the commercial rights to Valencia’s city hall and regional government.
“The America’s Cup has lost the sense of national importance,” Cannon said. “From being one of the four or five biggest sports events, it’s become frankly parochial.”
TV Rights
The Spanish authorities are airing the event on the Internet for the first time. The value of the media rights is limited because the event could be over in as little as three days, according to Jerome Pels, general secretary of sailing’s ruling body ISAF, which is based in Southampton, England. The last edition, including a qualifying event sponsored by luxury- goods maker LVMH Moet Hennessy Louis Vuitton SA, lasted three months. Today, a few hundred spectators were milling around the port zone, where a big screen has been set up to show the racing.
The cup dates back to 1851, when John Cox Stevens, commodore of the New York Yacht Club, challenged U.K. skippers to a race off the Isle of Wight. Cox’s boat, America, won and his club defended the trophy for 132 years until an Australian challenger snapped the streak. Alinghi became the first European winner in 2003 and defended the title successfully four years later. CNN founder Ted Turner and the Aga Khan are among previous team backers.
Legal Tussle
The legal tussle over this year’s race began when the U.S. team challenged Alinghi for naming specially formed Spanish yacht club Club Nautico Espanol de Vela to co-write the rules. BMW-Oracle won the right to become challenger and in May 2009 a judge in New York ordered a resolution with a so-called Deed of Gift match.
To be sure, it’s not the first time there has been a dispute between wealthy America’s Cup team owners. The last Deed of Gift match in 1988 between Michael Fay’s New Zealand challenger and Dennis Conner’s Stars and Stripes also descended into acrimony over boat regulations.
In 1903, U.K. tea trader Thomas Lipton began a 10-year wrangle with the New York Yacht Club over rules, only for World War I to delay the contest until 1920, according to America’s Cup historian Jacques Taglang.
“It was the same type of discussion but with more politeness,” Taglang said. “There was a lot of letter writing and chatting.”
‘Dogzilla’ Boat
The boats for this edition will be the fastest in America’s Cup history, team officials said. Oracle’s “Dogzilla” has sailed at more than 41 knots, or about 46 miles-per-hour, CEO Coutts said. The trimaran, whose 190-foot carbon-fiber foil is bigger than the wing of an Airbus A380 passenger jet, gets its nickname from the D.O.G. moniker for the Deed of Gift match.
The Alinghi catamaran, with a width similar to two tennis courts side-by-side, is more geared towards lighter winds, Coutts said. With the boats too big for most regattas and tricky to transport, Ellison and Bertarelli may not get much mileage on their investment after this week.
The Swiss team’s boat, which had to be airlifted over the Alps from its landlocked base by a Russian military helicopter, may be transported back to Lake Geneva to try and set yachting speed records, Butterworth said
“It’s not something that you just give to a yacht club or weekend sailor,” Butterworth said. “It’s pretty quick.”
To contact the reporters on this story: Alex Duff in Valencia at aduff4@bloomberg.net; Aaron Kuriloff in New York at akuriloff@bloomberg.net.
Last Updated: February 8, 2010 12:47 EST
Justice Kornreich of the New York Supreme Court informed the America’s Cup defending yacht club, Société Nautique de Genève, and the challenging Golden Gate Yacht Club today via telephone conference that she will not hear the American challenger’s complaint regarding the ‘constructed in country‘ requirement of the Deed of Gift before the 33rd America’s Cup Match which is scheduled to begin on 8 February.
This means the 33rd America’s Cup is free to proceed as ordered by previous New York rulings: in Valencia on the 8, 10 and 12 February.
“This is excellent news. We are delighted that BMW Oracle’s attempts to disqualify Alinghi and to win the America’s Cup in court have been denied. We look forward to meeting them on the start line here in Valencia on 8 February to race for the Cup; something they can no longer try to avoid,” said Ernesto Bertarelli – two-time America’s Cup winner – on hearing the news when returning ashore after today’s race training session.
De ANWB drukt een speciale uitgave van Children of Haïti ter nagedachtenis aan de overleden ANWB projectredacteur Gosse Best en zijn gezin door de verwoestende aardbeving in Haïti.
Gosse en zijn vrouw Gaby, mede-auteurs van dit boek, spanden zich al langer in voor kinderen in Haïti en maakten in 2009 samen met andere adoptieouders het prachtige fotoboek Children of Haïti.
Het boek staat vol foto’s van dit kleurrijke land, waar de nood nu zo hoog is. De foto’s geven een beeld van de Haïtianen, het dagelijks leven, de natuur en een kijkje in een kindertehuis.
Steun de kinderen van Haïti en koop dit boek!
De opbrengst komt ten goede aan een aantal projecten op het gebied van kinderen en onderwijs in Haïti via forhaiti.com en de verzendkosten komen ten goede van giro 555.
Société Nautique de Genève has issued the Sailing Instructions and the amended 33rd America’s Cup Notice of Race.
To read the documents, please click here:
Former Alinghi skipper Russell Coutts has warned the America’s Cup holders to “play by the rules” as the war of words between the Swiss team and bitter rivals BMW Oracle intensified on Monday.
Both teams have blamed each other for the break-up of talks in Singapore last week aimed at ending their long-running dispute before their head-to-head showdown for the 33rd America’s Cup in Valencia on February 8.
BMW demanded Alinghi apologise and retract comments accusing the Americans of withdrawing from an offer to settle.
In a letter published on Alinghi’s website, the Societe Nautique de Geneve (SNG), under the colours of which Alinghi sail, accused their rivals of “bad faith conduct”.
SNG said the Golden Gate Yacht Club (GGYC), under whose colours BMW sail, had filed a “factually and legally baseless motion with the New York Supreme Court”.
But BMW Oracle Racing chief executive Coutts said it was the Cup holders who pulled out of an agreement.
“It should have ended in Singapore. An agreement, drafted by Alinghi, was signed by BMW Oracle Racing and the International Sailing Federation, acting as witness, but Alinghi did not sign it,” New Zealander Coutts said by telephone from Valencia on Monday.
In the latest of a host of lawsuits that have dogged the competition for over two years, BMW Oracle have asked the New York Supreme Court to rule on the validity of Alinghi’s sails on their giant catamaran, believing they contravene nationality rules under the Deed of Gift document which governs the event.
“All we are asking (Alinghi president) Ernesto Bertarelli and Alinghi to do is play by the rules. It is as simple as that. Constructed in country is one of the fundamental rules of the America’s Cup,” said Coutts.
“Bertarelli has said that ‘Should the American justice system outlaw their (the sails) use, it would be like asking Roger Federer to defend his title without using his tennis racket.’ To that I would say they do not allow players to play with illegal tennis rackets at Wimbledon.”
Coutts, a three-time winning America’s Cup skipper and Olympic gold medallist, was hired by BMW Oracle chief Larry Ellison, like Bertarelli one of the world’s richest men, in 2007.
Coutts led Alinghi to victory in 2003 against his former team New Zealand but fell out with Bertarelli a year later and was sacked.
Asked if he bore any grudges against Bertarelli, Coutts said “No, I don’t.”
“I’ve got a lot of friends in the (Alinghi) team. That will never change. I want this sorted out so we can go racing.”
Coutts said he had spoken to Bertarelli since being axed by Alinghi but “did not think they were on friendly terms”.
“Certainly, it’s not a personal issue with me. If the rules are straightended out, that’s all I want. The personalities to me have no bearing on these issues, it’s about the rules.
By ERIC SHARP
FREE PRESS SPORTS WRITER
Until now, the Swiss and American teams squabbling over the America’s Cup have been tapping each other on the cheeks with verbal kid gloves. Today, the Americans took the gloves off and delivered a backhanded rap across the chops when they called Swiss skipper Brad Butterworth a liar.
The newest round of nastiness came after the Swiss Alinghi and American BMW-Oracle teams met with mediators in Singapore earlier this week in an attempt to negotiate terms for the America’s Cup matches scheduled to start Feb. 8 off Valencia, Spain.
The meeting failed to resolve the many points of contention and broke with each side accusing the other of acting in bad faith.
After he returned to Valencia, Butterworth told BYM Sailing and Sports News that when the he sat down for the second day of talks, he was stunned to find that BMW-Oracle overnight had filed another complaint with the New York Supreme Court, which acts as trustee for the America’s Cup.
“At this stage, the relationship between the two teams soured dramatically, but despite this surprising development, the International Sailing Federation representatives encouraged us to take the (tentative) agreement back to (team owner Ernesto Bertarelli), which I agreed to do,” Butterworth said.
“The meeting ended, and the ISF guys left for the airport. During the course of the afternoon, I was initially instructed that BMW-Oracle were keen to sign the deal, but by the time I got hold of the (Swiss) guys in Valencia to discuss it, Oracle had withdrawn from the agreement.”
American negotiators earlier had said that they twice signed a draft plan that Butterworth agreed to but then backed out of after contacting Bertarelli.
An angry Marcus Young, commodore of the Golden Gate Yacht Club of San Francisco that sponsors the American entry, sent a letter today to Pierre-Yves Firmenich, commodore of the Swiss team’s sponsor, Societe Nautique de Geneve, demanding “an unreserved apology for the falsehoods set out by Brad Butterworth about the attempts to negotiate a mutual agreement in Singapore.”
Young said his club had a copy of the tentative agreement signed by both American negotiators and David Kellett, the representative for the ISF, and that “our side did not withdraw the offer to settle. The opposite was true.”
It now appears as if the 113-foot American trimaran and 115-foot Swiss catamaran, the two most radical and perhaps fastest racing yachts ever built, will meet in a truncated, best-of-three race series off Valencia under rules written in 1887. But those races will be mere window dressing for the legal dispute continuing in the background in the New York court.
That is, unless the court decides before Feb. 8 that the Americans are right in their claim that the Swiss had their sails made in the United States and only added some finishing touches in Switzerland, contravening a clause in the 1887 rules that require that the yacht be “constructed in the country” of the sponsoring yacht club.
While the Americans were issuing their angry letter, the Swiss were relaunching their boat for training at Valencia, where team owner Bertarelli offered a cryptic comment about the sails issue.
“Our sails are rooted in Swiss technology, and they have been constructed in Villeneuve, Switzerland. This Swiss technology has been used by both defenders and challengers in the America’s Cup since 1995, and we have been through years of development in Switzerland to construct them,” he said.
“Should the American justice system outlaw their use, it would be like asking Roger Federer (another Swiss) to defend his title without using his tennis racket. BMW-Oracle would win the America’s Cup in court as, without our sails, we cannot race.”
Source
Geneva, Switzerland – (2010-01-13)While Brad Butterworth, Alinghi skipper and Société Nautique de Genève representative, was in Singapore engaged in good faith discussions to resolve remaining issues ahead of the 8 February America’s Cup Deed of Gift Match in the presence of David Tillett, the chairman of the ISAF America’s Cup Jury, and David Kellett, the ISAF representative, BMW Oracle unilaterally aborted talks by filing their ninth lawsuit against the Société Nautique de Genève at the New York Supreme Court seeking to disqualify the Defender from the upcoming Match.
“BMW Oracle has already successfully disqualified 18 teams through the US courts to gain access to the Match, now they are seeking to win the Cup without ever racing for it,” said Brad Butterworth. “This latest lawsuit has come as a shock given we were planning a further meeting to finalise discussions today, it demonstrates extreme bad faith. Clearly they are not ready to race. They have completely disregarded the jurisdiction of the ISAF America’s Cup Jury, which they sought so hard to have instated, and have instead reverted to the New York courts where they clearly feel they have a greater chance of success,” he added.
SNG’s defending yacht has been constructed in Switzerland in compliance with the provision of the Deed of Gift. SNG disagrees with GGYC’s interpretation.
BMW Oracle’s statement that Alinghi will be using USA-made sails is wrong. The sails for the Match have been constructed in a sail loft in Villeneuve, Switzerland. Furthermore, the 3DL process of making sails is subject to Swiss intellectual property rights. The inventors of the process, Jean-Pierre Baudet and Luc Dubois, are two Swiss engineers. Every challenger and defender for the America’s Cup since 1995 has used 3DL Swiss technology based sails.
“BMW Oracle’s attempt to derail the America’s Cup, and disregard ISAF’s jurisdiction, and their continued unsportsmanlike behaviour is unacceptable,” said Fred Meyer, SNG vice-commodore. “Alinghi is ready to race on the 8 February as mandated by the 7 April 2009 court order,” he added. “We won the right to defend the America’s Cup on the water by winning the 31st and 32nd editions, we want to go racing, we do not want the outcome of the America’s Cup determined in court,” he concluded.