Tuesday, March 10, 2009

Reports: Ernesto Bertarelli asks for 65 million euros for 33rd AC in 2010

If one is to believe Las Provincias, Valencia's main newspaper, it isn't just the Dow Jones or the Nasdaq indexes that have fallen by half in the last 18 months amidst the current global financial crisis. It is also the fee Valencia will have to pay Alinghi in order to be the host city of the 33rd America's Cup in 2010.

As we have often stated, Las Provincias is in broad lines a right-wing newspaper with very close ties to Valencia's city and regional governments. As a result, its sources are reliable and its reports are accurate, or at least accurately convey the information these two government bodies provide.

In today's edition an article reports that according to the Consorcio (the body that represents the local, regional and central governments in the America's Cup organization), the host-city fee for the 33rd America's Cup is now 65 million euros, down from the initial 105 million agreed in 2007, a reduction of almost 40%. The schedule is for 2 pre-regattas to take place this year and the Challenger Selection Series and America's Cup match in 2010.

Always according to the same report, the minister of Public Administration has asked for the Consorcio's board to convene on the 25th of March, in order to take a decision on that issue. Valencia's mayor doesn't agree with that date, a further sign of the tensions that exist between the local and regional govenrments on one side and the central one on the other. Still, all three parties want to see the next edition of the world's oldest sports competition to take place here in Valencia.

Regardless of the political discrepancies, the hosting fee will also depend on the nature of the America's Cup match. As everybody, even remotely interested in the America's Cup, knows its fate hangs upon the decision the 7 judges of the NY Court of Appeals will take sometime in the near future. If Alinghi prevails in the court case, then a conventional Cup will take place and as a result, according to the report, the host-city fee will be 65 million euros. If on the other hand BMW Oracle is the party that wins the case, then the match will only involve the two teams and accordingly the price Valencia will have to pay Alinghi will be lower. The article doesn't mention that figure.

An option the city studies is to pay 20 million euros for the 2 regattas this year, regardless of the outcome of the case. This sum will then be deducted from the total fee.

Labels: , ,


At 4:59 PM, Anonymous Anonymous said...

"Las Provincias is in broad lines a right-wing newspaper", jo macho, tas pasao... I think you are a little off about the newspaper. Las Provincias is the best newspaper by far of Valencia and is way apolitical than any other newspaper in the region. Conservative? Probusiness? non socialist?, pro fallas? may be. But because it doesn't go against anything that the local government propose doesn't mean that doesn't often critizes that same government. "Right wing" sounds very offensive and an unfair and bias depiction of the newspaper.

At 3:05 PM, Blogger Norberto said...

i'd bet the valencian government will postpone it's decision till the court decision in ny. maybe eb will have nothing to offer after the court ruling.

norberto, the original.


Post a Comment

<< Home