Friday, January 16, 2009

Spanish central government to agree on Valencia and Alinghi deal

According to information we deem to be reliable, the meeting that took place earlier on Friday in Madrid between the Spanish central government and representatives from Alinghi, concerning the 33rd America's Cup, finished with the minister in charge most probably agreeing on the deal.

The details are sketchy, but it appears that the central government has agreed on one important point, the extension of the tax and fiscal measures for another year. As as a result all America's Cup teams based in Valencia will practically pay no taxes at all for the fiscal 2009 year, similar to what has been taking place for almost 5 years now. Again, we don't have the exact information concerning the details of the agreement and especially the case of BMW Oracle.

Another issue is what will happen if Alinghi loses the current court case in New York. Will the agreement between the Swiss and the three Spanish public administrations still be valid? All these details will surely be ironed out but there isn't yet any public announcement.

Finally, the Valencian Regional government confirmed on Friday that ACM returned in July 2008 the amount of 15.2 million euros, corresponding to its part of the host city fees plus taxes. ACM put an end to the contract with Valencia for the 33rd America's Cup on the 27th of June, 2008, always according to the Valencian Regional government.

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At 2:09 AM, Anonymous Anonymous said...

The BMWO team has not registered for the 33rd AC, therefore they have no right to the tax exemptions that the Spanish government has provided to the participants of the next AC.

But Larry Ellison certainly will resolve that problem as well: he will personally reimburse all the teams after he wins the AC in the court room. He is just that kind of guy, sporting, fair, and always with the interest of the free world on his mind. NOT ......


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