Vincenzo Onorato replies to Salvatore Sarno

Salvatore Sarno, owner of Team Shosholoza, the first ever America's Cup challenger to come from Africa, stated in a recent interview in the Italian newspaper Quotidiano Nazionale that the 34th America's Cup was very expensive and as a result Shosholoza wouldn't be taking part. Vincenzo Onorato, owner of Mascalzone Latino, Challenger of Record, sent Quotidiano Nazionale a letter, replying to Captain Sarno's claims. [Note: The translation from the original Italian text is mine]:

I take inspiration from the interview by Captain Sarno in your newspaper to provide my testimony on the current state of the America's Cup and the budgets the teams that will require in order to participate. Captain Sarno is obviously not informed about the latest changes in the Protocol, dating from December 12th, among which it is reported that the entry fee was lowered to US$ 100,000 instead of € 1 million. The performance bond instead of US$ 3 million dropped to US$ 1 million (200,000 by April 1, 2011 and 800,000 by December 31, 2011).

Russell Coutts (left) and Vincenzo Onorato. Rome, 6 May 2010. Photo copyright Gilles Martin-Raget / BMW Oracle

The spirit with which we acted Russell and I was to dramatically reduce costs; the proof is that for the first time in the history of the Cup, during the first two years racing will be held on one-design yachts of 45 feet. This decision was also motivated to provide time for the teams to find sponsors and funding. I have never stated the minimum budget would be € 80 million. It is plausible Captain Sarno could do the next America's Cup with Shosholoza by spending € 17 million as he stated his budget was in the 32nd edition. This is certainly not a budget to win but the Captain Sarno has demonstrated he was able to achieve more than flattering results with limited resources.

The heart of the problem is different: the world economic situation is very different from the ebullient financial markets that marked the 32nd edition. It is correct when Captain Sarno refers to "these times" as "crazy". For Russell and me this has resulted in filling, in reduced terms, the event and therefore the value of the sponsors' investments.

I would also like to remind that Mascalzone Latino's position is not different from that of the other teams. We do not have any sponsors to date, although we have some important negotiations in progress, and it is our subjective interest (to be able to participate in the event) and objective as Challenger of Record (to have many teams in the race), to keep costs as low as possible. We at Mascalzone Latino declare in all honesty that we are struggling to survive. With the same clarity I would have preferred that important teams such as Team Origin and Shosholoza, instead of using pathetic excuses related to the event format, the catamaran revolution and the budgets, to name a few examples, they limited themselves with more dignity in declaring that at this moment they had no money and no prospects for a sponsor.

Sincerely"

Vincenzo Onorato

Video: Ludde Ingvall talks about the Australian challenge in the 34th America's Cup

Ludde Ingvall and Dario Valenza, respectively skipper and project manager of YuuZoo Big Boat Racing, talk about the Australian challenge they submitted for the 34th America's Cup. Despite its length, the video is quite interesting because it allows to see the logic behind the Australian challenge. According to Ingvall we should consider that this challenge has been practically accepted, even if the project lacks any funding. It is surprising that they decide to enter the America's Cup and then start looking for the necessary funds to compete and not the other way round.

Captain Sarno: This America's Cup is very expensive; Shosholoza will not take part

An unknown outside South Africa, Captain Sarno became a household name in the sailing world when he built from scratch Shosholoza, the first ever America's Cup challenger from Africa. An Italian by birth but a fervent South African at heart, Captain Sarno showed the world what the new South Africa was able to do by entering the world's oldest sports trophy competition and managing to have a decent performance despite being absolute beginners with a relatively low budget.

Sarno spoke to the Italian newspaper "Quotidiano Nazionale" about Shosholoza, the America's Cup and why there won't be any South African entry in this edition:

What is happening? Do you ever get stopped by sailing fans that want to ask you about Shosholoza? Can you tell us what they tell you?

"Well, it happens much more often than I would have ever imagined. Shosholoza has remained alive in the minds of sailing fans because everybody could have been in the role of one of my guys. I'm asked whether we'll take part in the next America's Cup and I reply it will be very difficult. Many people want to know what my guys are doing and they are not surprised to learn that almost all of them went back to their original jobs."

Let's step back a few years. How was Shosholoza born?

"Shosholoza was a dream and now it's a reality."

How do you make a dream come true?

"It costs tremendous stress. My son who is an excellent surgeon has always told me there two types of stress: the good one and the bad one. The good one is a product of work you like and projects like Shosholoza: something that tires you but doesn't make you sick. The bad one is produced by people's wickedness but also form work that you don't like. One can fall ill and have his health deteriorate, just like it happened to me due to the wickedness after Shosholoza. I have always been a dreamer, just like the song of Peppino di Capri. As a child, at my home in Nocera, I used to climb the mountain to see a glimpse of the sea, and dreamed of conquering it, one day, sooner or later. I have never stopped, I have always believed in it and in every thing I have done I have always put all my effort and above all my passion."

Is there a secret in all that?

"The secret is simple and complex: you really have to believe in your dream, even if it's a big one; never re-dimension it or settle with anything less. Of course you need a thorough analysis of a project but the most important ingredient is passion and that strange thing you feel in your chest when you think about it, that thing called "feeling" in English. Having that thing you are able to transmit the passion to the rest of people, those that have to follow you and, above all, those that have to finance you. I can guarantee you that people can see if there is true passion."

So, we now come to Shosholoza. When did the adventure really start?

"In the moment I started having a crew of black guys, in 2001. I thought it would be possible to show the world that in the new South Africa, blacks and whites could achieve something good working together, and what stage could be better than the America's Cup? That's when I talked to my sons and wife."

What was the first real step towards the Cup?

"Surely the name. I would have liked to use "Madiba” which is how black people called Mandela, but then I thought someone would insinuate that I wanted to use Mandela, and I profoundly love and respect him to let somebody insinuate something like that. This is why I chose Shosholoza, which is a hymn to team work, just what we wanted."

Professionalism at the highest level, no set working hours and always a thousand unexpected things around the corner. How does the table of sailing's giants look like?

"It's much easier than you think and in any case much easier than my normal job that is full of uncertainties and difficulties of any kind."

And now, that everything seems to have changed with the new catamarans, what will happen to the dear old America's Cup?

"(The expression on Sarno's face becomes dark) It's not a beautiful thing… Larry Ellison has let Coutts do everything, and I think the result is absolutely catastrophic. Aside from the spectacular yachts they wanted to go too far with the evolution. The 90-foot yachts proposed by Alinghi would have provided the same spectacle and would have cost less."

Mascalzone Latino as Challenger of Record?

"Onorato has accepted too many of Russell Coutts' ideas. He offends the intelligence of all Italian sportsmen when he states, in agreement with Coutts, that costs have been reduced and then goes on to say that you need a budget of 80 million euros. By increasing the entry fee to one million and the performance bond to two, they wanted to restrict the number of possible participants. Team Origin and the Germans have stated that a challenge costs much more than the 25 million many have budgeted (including ourselves at Shosholoza). Even if one appreciates the sportsmanship, it seems ridiculous to me that a team has to go to New Zealand to do more or less a sailing course, in order to then think about beating the teachers. Everybody should know that in the previous edition, the French, the Germans, the Chinese and the Swedish had a real budget of 25 million, +39 was at around 20, the New Zealanders at 35 and ourselves at 17. You now need 3 million just to start and then go to New Zealand to train on the fixed-wing catamaran. In short, as stated by the organizers themselves, you need between 40 and 70 million for 3 years: Crazy in these times!"

What will the next America's Cup look like? Putting aside the last strange challenge, can it be better than the 32nd where Shosholoza took part?

"The 32nd America's Cup will go down to history as the most beautiful sailing competition ever. I will never forget Trapani. We will never repeat a similar number of visitor and a similar enthusiasm. The Acts provided that extra thing to the final competition. Without any doubt the next Cup will be spectacular and the yachts (I can't say how many, 4 or maybe 5?) will give a nice show but it won't be match racing. A sort of Formula 1, perhaps that, but is the public ready for such a drastic change? Probably we will need some more time and in any case I hope that at the end, sailing, with or without a fixed wing, will continue to amaze."

However, will a new African challenge be possible again?

"Certainly yes, but not in this edition. The world is still in crisis and the way I see it, mobile phones can only sponsor one or two boats each time..."

BMW pulls out of Oracle Racing

[Source: BMW Oracle] At the end of the year BMW will bring to a close its longstanding partnership with ORACLE Racing and thereby end its involvement in the America's Cup. This is by mutual agreement of both partners. Both parties set ambitious goals and achieved the ultimate objective: winning the America's Cup.

BMW has partnered BMW ORACLE Racing since 2002. Technology and skills have transferred freely between the automaker and sailing team, most notably in the fields of structural engineering and high-modulus composite construction. The result was celebrated in the February when the yacht USA 17, the fastest yacht in the history of the America’s Cup, won the 33rd Match with a resounding 2:0 victory off Valencia, Spain.

"On the design and engineering front, BMW engineers set new benchmarks in terms of intelligent lightweight design," said Ralf Hussmann, General Manager BMW Sports Marketing and Brand Cooperation. "In winning the 33rd America’s Cup, we achieved all of our ambitious goals. We will continue to be involved in the sport on a national level."

"The America’s Cup combines a technological challenge with a sporting one and success is measured by the result on the race course,” added Russell Coutts CEO of BMW ORACLE Racing.

No more BMW in BMW Oracle Racing as of January 1st, 2011. Photo copyright Gilles Martin-Raget

Australian Syndicate Submits Notice of Challenge for the America's Cup

[Source: YuuZoo Big Boat Racing Team] Today a Syndicate of Australians including legendary yachtsman Ludde Ingvall, skipper of the YuuZoo Big Boat Racing Team, has submitted a Notice of Challenge to the defending Golden Gate Yacht Club of San Francisco. The Syndicate aims to bring together nationwide resources and skills in a true people's challenge. Lodging the application reserves a place for Australia to return to competition for the world's oldest international sporting trophy.

Ludde Ingvall: "Excellence in youth sailing is my objective. We want to bring home the many talented Australians sailing for other countries and give them a chance to compete for their country. We want to create a legacy for future generations, something to aspire to, a reason for any Australian youngster to get out there and take part in our wonderful sport of sailing at all levels."

Project manager Dario Valenza: "Bringing an event to Australia would rival Oprah's visit in tourism value as well as boosting Australia's marine industry."

Ludde Ingvall, skipper of YuuZoo at the 2009 Rolex Sydney Hobart Race. Photo copyright ROLEX / Kurt Arrigo

Syndicate member and multi hull expert Peter Baker: "Australia has been the challenger at seven and the defender at one of the 33 America's Cup events so far and has sought to challenge on three other occasions. Australia has provided America's Cup teams worldwide with more members than any other nation in modern times. We want to bring them home. The last America's Cup was won for the USA by an Australian skipper on a boat designed by an Australian racing against another boat designed by an Australian for a Swiss team. Yet Australia has been out of the game for 13 years."

YuuZoo Co Founder Ron Creevey says: "We are delighted and excited about partnering with the Big Boat Racing Team to work on the feasibility for the Australian America's Cup entry. Personally I would like to call on other Australian corporations and individuals to get behind the idea and bring the America's Cup back to Australia. We have watched the cream of Australian talent such as James Spithill and Adam Beashel compete for many countries over the past 20 years and it will be extremely satisfying for YuuZoo to be involved by providing the platform for talented Australians to represent our country."

"The best sailors on the fastest boats" - The F1 of sailing. This is the new format America's Cup: a level playing field where giant, faster than the wind, 22 metre catamarans powered by 40 metre rigid wings fly on the edge of control with one hull in the water and the other metres above. The furious action takes place in locations across the globe including Australia. On courses which are chosen as natural amphitheatres, close to shore where spectators can almost reach out and touch the amazing machines dueling in short races in rapid succession.

An independently managed, ongoing Annual World Tour is planned and part of the Syndicate's strategy is to stage events in Australia.

YuuZoo racing at the 2009 Rolex Sydney Hobart Race. Photo copyright ROLEX / Kurt Arrigo

The new boats will test strength and finesse, require nerves of steel and super fast reflexes. Skills required in all sailing but honed to perfection in the giant AC72 yachts. The new Australian Syndicate wants to bring AC Supporters together in giving young, talented Australian sailors the chance to step up and shine on the world stage.

Ludde Ingvall: "We want to get everyone working together to make possible a true people's challenge for the benefit of all Australians. The new format America's Cup is a once in a lifetime chance to jump to the front of a sporting and technological revolution. Being part of the America's Cup also means bringing races to Australia, fantastic for tourism and the chance for Australian fans to see their team in action. Our aim is to engage the Australian public, corporate Australia and Australian sailing institutions such as yacht clubs and associations. We are undertaking due diligence with well respected business advisors reporting on the economic impact of taking part in what is the third largest sporting event in the world."

The Syndicate is seeking the advice of the sailing community through an Advisory Panel, seeking the support of the Australian public through a Supporters Club and the support of the Australian Government through both Sport and Tourism Authorities. "Most importantly we need the support of the whole Australian sailing community," said Ludde Ingvall.

Video: Rhode Island TV channel reports on America's Cup talks

BMW Oracle officials "very serious" in intent to move forward with Rhode Island

Related documents

- Letter from Stephen Barclay, COO of BMW Oracle, to Keith Stokes, Executive Director of the RI Economic Development Corporation, dated December 17th, 2010

GOLDEN GATE YACHT CLUB
Yacht Road, San Francisco, California USA 94123

December 17, 2010

Mr. Keith Stokes
Executive Director
Rhode Island Economic Development Corp.
Suite 101, 315 Iron Horse Way
Providence, R.I. 02908

Dear Keith,

I would like to thank you for meeting with our team over the past week and, in particular, arranging the meetings yesterday with Governor-elect Chafee and Senate President Paiva-Weed.

Over the past week, you have clearly presented why Rhode Island, and Fort Adams State Park, in particular, has the capability to host the 34th America's Cup, an event that is one of the largest sporting events in the world in terms of economic benefit and mass media audience. In particular, we are impressed with Fort Adams and the possibility of its being the center of public access, use and enjoyment of Narragansett Bay.

We are very serious in our intent to move forward with Rhode Island. There is much to do to meet the timeframes we have set. The Golden Gate Yacht Club has committed to other America's Cup teams that a host city will be announced by December 31, 2010.

On our side we must establish the how the teams, visitors and VIPs will be accommodated and how we will raise the necessary corporate sponsorship. You can greatly assist us by advising on the readiness of Fort Adams to complete the necessary public infrastructure improvements to base the teams and hold the event within the timeframes we have discussed with you and your team.

To demonstrate our interest in working with Rhode Island, I have asked Tom Ehman, a fellow member of the GGYC Board and America's Cup Committee, and head of External Affairs for BMW ORACLE Racing, to attend next Monday's Rhode Island Economic Development Corporation's December board meeting to convey our interest to your Board and the Governor.

I look forward to our continued dialogue over the next several days.

Yours sincerely,

Stephen Barclay
GGYC Board and America's Cup Committee
C.O.O., BMW ORACLE Racing

Adios Valencia...

I never had the slightest doubt this would be taking place, I only thought it would have been in 2011 instead of 2010. As one can observe from the photo, I'm referring to BMW Oracle, the America's Cup defender, permanently leaving its base in Valencia. After more than 5 years in the Spanish city, the holders of the world's oldest sports trophy are packing up in order to leave by January 1st, 2011. When Valencia Sailing visited the base earlier on Monday morning, the most visible sign was the crew stripping the base of any BMW Oracle branding, starting with the giant poster of USA17.

The personnel will only be working a couple of days this week and then definitely leave, handing the base to the crews that will dismantle it. Although this information has not been confirmed, we understand BMW Oracle will be based in Auckland for the next few months.

An era ends now in the America's Cup. After seven years and one month, Valencia ceases to be the "world's sailing capital" and another city will take over. However, with only eleven days left until their deadline, of which 4 are holidays, BMW Oracle would rather hurry up and announce the venue of the 34th America's Cup.

Crews striping all BMW Oracle branding from the base. Valencia, 20 December 2010. Photo copyright Pierre Orphanidis / Valencia Sailing

Valencia Sailing talks to Kevin Reed, head of Canada's America's Cup drive

The last time Canada was present in the America's Cup was in Fremantle in 1987 when a combined project from Secret Cove Yacht Club and Royal Nova Scotia Yacht Squadron challenged the Defender from the Royal Perth Yacht Club and got eliminated in the Louis Vuitton Cup round robin.

Fast forward nearly a quarter of a century and it now seems possible that the world's second largest country by area could be once again represented in the competition for the world's oldest sports trophy. Red Maple Racing, led by Toronto financier Kevin Reed, is the project that embodies Canada's drive in the America's Cup. Valencia Sailing talked to Reed about the background, current sate and future of the project.

Valencia Sailing: Let's start with a brief background on the project. What made you try to form an America's Cup challenge?
Kevin Reed: I've certainly been a fan of the America's Cup for perhaps three decades and it's something Canada hasn't had an entry in since 1987. In the last 5-6 years I have been speaking with Paul Henderson, a former ISAF President, about an entry for Canada. All these years, both personally and through the companies I own, I have sponsored many Canadian Olympic athletes, including Canadian Olympic sailors. With the new format America's Cup Race Management and America's Cup Event Authority have prepared it has certainly become very attractive now for Canada to take a look at this. The economics of the old model or at least the last 10-15 years was restrictive but now, Russell Coutts and his team have done a tremendous job transforming it into a business like Formula 1 or other professional sports.

Valencia Sailing: From what I understand, you claim the changes brought by Russell Coutts made the cup interesting for you. Does that mean that the 32nd America's Cup in Valencia or the ones before in Auckland were not interesting from a Canadian perspective?
Kevin Reed: Although very exciting as a fan, it was very prohibitive on the financial side, from a Canadian perspective. I was at the 2007 Cup in Valencia and it was very exciting, a great event and certainly of interest but the new format has allowed us to set up a committee to examine this. We hope to take a decision in the next 45 days if we are going ahead with the challenge but right now with the new format we are very optimistic we should be able to do something for Canada.

Valencia Sailing: At what stage of preparation is the project right now? Will you personally fund it or will you have other backers as well, whether private individuals or companies?
Kevin Reed: In the next 45 days we'll be looking at a few things. One of them is the financing mechanisms. Can we put them in place so that the project is financed not only by me but also Canadian companies that want to sponsor us? In the next area, we believe there is enough Canadian talent to put together an all-Canadian sailing team. Another area we are looking into is the design and build team and again we believe the talent is here. So, we have three things Paul Henderson, myself and the rest of the team are looking at: The financing mechanisms, the sailing and the design and build teams and we are trying to be all-Canadian in all three areas, as much as we can.

Valencia Sailing: Do you believe you can be competitive with a solely Canadian team?
Kevin Reed: We certainly believe we have the talent pool to do that. There is a number of Canadians that have been involved in previous America's Cups as well as other major sailing events and we are convinced this talent pool is right here in Canada.

Valencia Sailing: Let's get back to the issue of costs. In a recent article in the Toronto Star, you mentioned you had in mind a budget of 30 to 45 million dollars. Do you still stick with that figure?
Kevin Reed: Yes, this is what we are looking at for the next three and a half to four years. We think that the annual budget will be between 10 and 12 million dollars. What's important for us is the new format and the fact it continues post-34th America's Cup. That's very important to us because it will help build the Canadian interest in the event, the fan base as well as the Canadian sponsorship dollars. The communication we get from the America's Cup organizers is that they are trying to build this so that it continues after the 34th edition.

Valencia Sailing: You mentioned the interest in Canada. How popular is sailing in Canada? Do you think you'll get a strong base of followers or will it remain a niche event, mainly unnoticed by the mainstream media?
Kevin Reed: Since we haven't had an entry since 1987 it will take some time to get a broader appeal. There is a strong core sailing population in Canada but to get the broad appeal it will take longer. This is why we strongly believe that if we put an all-Canadian team together we will get the media to follow us.

Valencia Sailing: Where will the team be based?
Kevin Reed: That's a good question. We still haven't decided. The challenge will come from the Royal Canadian Yacht Club which is in Toronto. Where we base the team will depend on the race schedule. We will look at it and then decide where it will be the most efficient location to be based. Paul Henderson will decide what the most efficient location for the team to train and live is.

Valencia Sailing: I suppose that from a Canadian perspective, San Francisco is the ideal venue for this edition of the Cup.
Kevin Reed: I would say that America is because we are seeing some communication that perhaps Rhode Island is also on the hunt. Without a doubt, either San Francisco or Rhode Island would be ideal for us. As long as it's in the US it certainly helps a lot to pull together the Canadian support.

Valencia Sailing: If for some reason, even the most remote, the venue is not in the US will that put an end to your challenge?
Kevin Reed: No, it will not stop it but it will make it harder for Canadian sponsors because although the format is to have 5 races next year and 8 in 2012, the big lure, the big attraction is that Challenger and Defender Series will take place in North America. That's very attractive for Canadian sponsors and viewer audience.

Valencia Sailing: What feedback do you get from the potential Canadian sponsors. Do they see an interest in such a project?
Kevin Reed: They sure do. Canada is in great shape, our economy is in great shape, we weathered the downturn extremely well and we've got numerous Canadian companies doing great things around the world and it makes sense to a lot of them to entertain their clients in a world-class event like the America's Cup.

Valencia Sailing: Given the fact Canada has been out of the Cup for almost 25 years you must start from scratch. Do you feel you don't have enough time to set up a competitive team?
Kevin Reed: Time is not our friend. We start we a tight time frame, without a doubt, but as I said we start with a number of great Canadian sailors today that we feel we can pull together and be extremely competitive in our first shot in the next 2-3 years.

Valencia Sailing: Can you give us at least a hint on who the skipper or the principal designer will be?
Kevin Reed: I'll leave that to Paul Henderson if he wishes to disclose. Our number one goal is to make sure the financing mechanisms are in place and once we have that and a commitment from the team we will certainly have a formal announcement. We hope to have that by February.

Valencia Sailing: You mentioned Paul Henderson quite a few times. Is he in charge of the sport part of the team?
Kevin Reed: Paul and I are working hand and hand on this but I focus on the business aspect of it and he focuses on recruiting the sailors.

Valencia Sailing: You are an accomplished ice hockey player and you played competitively in your youth. As a sportsman, how much different is sailing from ice hockey?
Kevin Reed: Well, one is one ice and one is on water that hasn't frozen yet, at least here in Toronto. Both sports have a team aspect where you need everyone to work as one team and I think the similarities are quite striking between ice hockey and sailing. No one person can win it but you need the entire team to win it. For me it's a big attraction because I love team sports and I have always been a big supporter of team sports.

Valencia Sailing: Are you sailor yourself?
Kevin Reed: Yes, I am.

Valencia Sailing: Will you be onboard the yacht during the Cup?
Kevin Reed: First of all we will make sure we put on the boat the people that can win it, after that we will have to take care of our sponsors and if at the end there is a spot I would be happy to go for a ride.

Valencia Sailing: Thanks, is there anything else you would like to add?
Kevin Reed: I can tell you that the America's Cup Race Management and Event Authority have done a tremendous job in trying to help challengers come into this. What they have done for the good of the sport is wonderful and I couldn't say enough good things about how they are trying to help us and all the other challengers to get involved. These guys are first-rate professionals. Russell Coutts, Tom Ehman and their team are doing a great job.

Work on AC45 catamarans moving ahead in New Zealand

[Source: America's Cup] Work on the AC45 catamarans, which the Cup teams will use to race in the 2011 America’s Cup World Series events, is continuing at pace in Warkworth, New Zealand.

Dubbed the ‘little sister with attitude’ in comparison to the enormous AC72 cats the teams will race in the Louis Vuitton Cup and America’s Cup, the first AC45 is scheduled to be launched in the new year, with others rolling off the assembly quickly thereafter. Entered competitors will have a chance to participate in sea trials following the initial launch.

After the 2011 season, the AC45s will be used in the Youth America’s Cup series, developing the next generation of Cup sailors.

Construction of the first AC45 catamaran. Warkworth, 17 December 2010. Photo copyright Ivor Wilkins / America's Cup

Construction of the first AC45 catamaran. Warkworth, 17 December 2010. Photo copyright Ivor Wilkins / America's Cup

Construction of the first AC45 catamaran. Warkworth, 17 December 2010. Photo copyright Ivor Wilkins / America's Cup

Construction of the first AC45 catamaran. Warkworth, 17 December 2010. Photo copyright Ivor Wilkins / America's Cup

Construction of the first AC45 catamaran. Warkworth, 17 December 2010. Photo copyright Ivor Wilkins / America's Cup

Construction of the first AC45 catamaran. Warkworth, 17 December 2010. Photo copyright Ivor Wilkins / America's Cup

Construction of the first AC45 catamaran. Warkworth, 17 December 2010. Photo copyright Ivor Wilkins / America's Cup

America's Cup Protocol changes after Competitor Forum

Related documents

- 34th America's Cup Protocol - Amendment 3

[Source: America's Cup] Changes will further reduce costs, encouraging teams to focus their investments on the water

Several cost-reducing amendments to the America’s Cup rules have been adopted, following recommendations from the Competitor Forum, as well as prospective teams.

To maintain an open dialogue with current and potential teams, America’s Cup Race Management (ACRM) has hosted two briefings to gain insight into the needs of teams. Further discussions between ACRM and the Competitor Forum have resulted in amendments to the Rules that will reduce costs for participants.

“These changes are designed to allow the teams put their initial investments into building their teams and boats,” said Iain Murray, CEO, America’s Cup Race Management (ACRM) and Regatta Director for the 34th America’s Cup. “We are here to help the teams and to ensure that every dollar will be well spent.”

Key points of the Rule Amendments

- Reduce entry fee by USD1.2million and bond requirements by USD2million

- Increase the equipment that ACRM will ship for Competitors to America’s Cup World Series venues

- Give Competitors an additional three months to build their first AC72

- Provide Competitors two additional months with common AC72 design team

Details of the Rule changes were revealed by Iain Murray and Richard Worth, the Chairman of the America’s Cup Event Authority, as they participated in a panel discussion at the World Yacht Racing Forum on Wednesday afternoon in Portugal.

Do yacht clubs really matter in the America's Cup?

According to the Deed of Gift, the basic set of rules that govern the America's Cup, "any organized yacht Club of a foreign country, incorporated, patented, or licensed by the legislature, admiralty or other executive department, having for its annual regatta an ocean water course on the sea, or on an arm of the sea, or one which combines both, shall always be entitled to the right of sailing a match for this Cup". In the 32nd edition of the world's oldest sailing event, a few exceptions were granted. The Spanish challenged through their national sailing federation, the Chinese through the newly-created Qingdao International yacht Club, while finally the Germans opted as well for a previously non-existent club.

Then in June 2007, Alinghi lowered the bar even further and together with their sinister bedfellows, the then President and Vice President of the Spanish Sailing Federation, Gerardo Pombo and Manuel Chirivella, created the Club Nautico Español de Vela (CNEV) in a week in order to have a hip-pocket challenger of record for the 33rd Cup. Although duly registered as a yacht club, the CNEV didn't exist beyond paper. BMW Oracle filed a lawsuit and the rest is history.

Start of the first race of the 2010 Aleph Cup. La Grande Motte, 27 November 2010. Photo copyright Aleph Yacht Club

However, and despite its rhetoric during the long and tedious legal battle of the 33rd America's Cup, the current Defending yacht club, Golden Gate Yacht Club, accepted and validated on Friday, December 10th, a formal challenge by a yacht club that is a barely a month old (officially registered on November 4th) and held the first edition of its annual regatta just two weeks ago, on November 27th.

We are referring to the newly-created Aleph Yacht Club that will be represented by Aleph Team France, the team headed by Bertrand Pacé and Alain Gautier. I think this is another proof that the yacht clubs are mere technicalities and the organizers focus instead on the credentials of the project rather than the underlying club and of course you could hardly get stronger credentials in France than the duo Pacé-Gautier. The yacht club, obviously, meets the criteria set by the Deed of Gift, but just the strict minimum.

The offices of Aleph Yacht Club are in Paris and their regatta was held at the premises of the Yacht Club de La Grande Motte (YCGM) in southern France. This is understandable since the French capital is not anywhere near an "ocean water course on the sea, or on an arm of the sea". It's puzzling though that not one single member of the club took part in their first ever annual regatta, as per the score table!!

Maybe that's why the America's Cup is still at the pinnacle of our sport and if they ditch that antiquated rule they might just become another circuit like the Volvo Ocean Race or the AUDI Medcup.

Aleph Team France becomes official 34th America's Cup Challenger

[Source: Aleph Team France] A major milestone has been reached by ALEPH, challenge led by the tandem Pacé Bertrand and Alain Gautier. The inscription of the French project has just been validated by the Golden Gate Yacht Club. ALEPH officially becomes a challenger for the 34th America's Cup. Backed by the French Sailing Federation, the French challenger gets the official status of "Team of France for the 34th America's Cup" and is renamed "ALEPH-TEAM FRANCE".

Russell Coutts: "The news that ALEPH - TEAM FRANCE joins the ranks of official 34th America's Cup competitors is great."

Jean-Pierre Champion, President of the French Sailing Federation (FFV): "It is a satisfaction to see the project we are backing become an official challenger. We're not there yet but a milestone has been achieved and we are very happy. In addition, this inscription gives us the right to name this project "Team of France", as promised. After the French Olympic Sailing Team and the French Match Racing Team it is the 3rd French team and we wish as much success as the first two."

Bertrand Pacé: "Representing your country is an immense privilege, another reason not to disappoint and be up to the challenge. True to its strategy, ALEPH - TEAM FRANCE will continue to gather the French talents who want to promote the collective result. "

Alain Gautier: "For each team member this is a moment of pride and emotion. The team spirit cultivated by the French teams in handball, athletics, swimming, or more recently the brilliant French team in Olympic sailing is a source of inspiration for ALEPH - TEAM FRANCE: success is built in the strength of a team, both in individual as well as team sports. "

ALEPH - TEAM FRANCE is the 4th international project to become an official 34th America's Cup Challenger and continues its efforts to complete its financial partnership before March 2011. The new format set by the organization will offer ALEPH - TEAM FRANCE sponsors unprecedented media exposure.

Fourth challenger confirmed for 34th America's Cup

[Source: America's Cup] Event organizers today confirmed the receipt of the fifth entry for the 34th America’s Cup in 2013. The official announcement by the team is expected in the coming weeks.

“On the heels of our first major partnership in Louis Vuitton, we’re extremely pleased to make another significant announcement today in the confirmation of our fifth team,” said Iain Murray, Regatta Director for the 34th America’s Cup and CEO of America’s Cup Race Management (ACRM).

Nearly 160 years old, the America’s Cup has become one of the world’s leading sporting competitions. Focused on creating a new era for the America’s Cup, the America’s Cup Event Authority is transforming the event for media and online broadcasting to deliver an enhanced viewer experience.

In addition, ACRM is transforming the on-the-water experience through the introduction of elements that will deliver unparalleled racing competition, including new course formats, racing rules and the wing-sailed AC72 catamaran, a groundbreaking new boat design.

The entry process and validation procedures are set out in the America’s Cup Rules and can be found at americascup.com

The entry period for the 34th America’s Cup runs November 1, 2010 to March 31, 2011.

Korean challenger in the 34th America's Cup?

So far, in the history of the world's most prestigious sailing event there have been four occasions when an Asian team mounted a challenge. The first Asians to contest in the Louis Vuitton Cup were Nippon Challenge in 1992, skippered by Chris Dickson. The Japanese built upon that campaign in order to return in 1995, skippered that time by a national, Makoto Namba, and helmed by John Cutler. The third challenge from the Japanese syndicate came in the 2000 edition with a team led by Peter Gilmour. That would be the last time, so far, Japan would challenge.

The fourth Asian challenger would come two editions later, in Valencia in 2007, in the form of the well known China Team. It now seems there is some probability the 34th America's Cup will see the first ever challenger coming from another Asian economic power, Korea. While I was in Kuala Terengganu for the Monsoon Cup, I had the opportunity to talk to Dong Young Kim, founder of the Korea Match Cup, about Korea and the America's Cup. Dong Young Kim was in the two meetings for existing and potential competitors, first in Paris and more recently in Dubai, wearing two hats.

His first hat was that of event promoter. He created from scratch Korea Match Cup and turned it into one of the most popular events of the World Match Racing Tour in a mere 3 years. So, it would only seem obvious that he would be interested in hosting one or more events of the America's Cup World Series. The current venue of Korea Match Cup, on the northwest coast of the country, is unsuitable, lacking the sufficient race area to accommodate the much bigger AC45's, let alone the AC72's, so his proposed venue is the southern city of Busan.

Dong Young Kim, founder of the Korea Match Cup and leader of the first ever potential America's Cup effort by South Korea. Gyeonggi, 8 June 2010. Photo copyright World Match Racing Tour

Still, I was more interested on his idea of trying to set up a team, not just organize an event. If projects from established nations have problems getting off the ground how can someone from an Asian country with no presence whatsoever in high-level international sailing pretend to mount a syndicate? Especially under terms that, for the likes of Keith Mills, make it practically impossible to win? Kim's reply was quite straightforward. Whatever the yacht might be, his argument is, he's absolutely aware the Korean Team has no chance at all to win in their very first try. If the yacht was, always according to Kim, a "big RC44" or similar monohull, then his chances of a decent performance, even among the challengers, would be practically nil. He sees the winged multihulls as the factor that puts all challengers practically on the same level and could prevent the team from becoming the equivalent of China Team in Valencia.

There are little details Kim could give me about the project other than it's still in a preliminary state. It goes without saying that the team, if it goes ahead, will mainly consist of non-Koreans as the country, precisely, lacks the knowhow and manpower. His main task right now is to raise the necessary funds for the campaign and has set a goal of approximately 40-45 million euros. He considers that amount enough for the goals of the team and his fundraising drive is limited to the major Korean corporation. Although he couldn't give a definite deadline after which a decision would need to be taken as to whether the project goes ahead or gets killed but he said he was optimistic. At least, money is not something the huge Korean groups are in lack of!

Video: Louis Vuitton Cup Retrospective

Here's a nice video retrospective of the 30 years Louis Vuitton is associated with the America's Cup, through the sponsorship of the Challenger Selection Series, called, what else, the Louis Vuitton Cup.

It's also interesting to see how the shape of the ACC yachts turned from a aircraft carrier into a canoe!

San Francisco Mayor Applauds Port Commission Approval Of City’s Host Agreement For 34th America’s Cup

[Source: San Francisco Mayor's Office] Mayor Gavin Newsom today issued the following statement after the Port Commission voted unanimously to approve the resolution supporting the Host City and Venue Agreement for hosting the 34th America’s Cup in San Francisco:

“The Port Commission today reaffirmed that San Francisco is the best place on earth to defend the America’s Cup and bring a potential $1.4 billion economic boost to the region. The public and community enthusiasm for hosting the America’s Cup has been tremendous, demonstrated at the Port Commission today by the broad support for the bid from local residents, merchants, union representatives and maritime enthusiasts.

With both the Host City Agreement and the Northern Waterfront Agreement being advanced to the full Board, we are providing opportunities to improve the spectator experience and increase the public benefit. I want to thank Port Executive Director Monique Moyer and the Port Commission for their commitment to bring the America’s Cup to the San Francisco Bay and all the economic benefits, jobs and excitement that come with it.”

On Wednesday, December 8, the Board of Supervisors’ Budget and Finance Committee is expected to consider a resolution in support of the Host City and Venue Agreement.

34th America's Cup team budgets: 20 or 120 million euros?

How much would it cost to have a competitive challenger in the 34th America's Cup? It depends on who you ask. Sir Keith Mills, principal of the now-defunct America's Cup hopeful Team Origin, had stated that he needed 100 million pounds (120 million euros) for the British potential challenger to mount a successful campaign. Russell Coutts stated last September that the "smallest teams could operate on a budget of 40 million euros", which means the big competitive teams should have a considerably bigger budget. Finally, Iain Murray, CEO of America's Cup Race Management, told the media in Dubai on Thursday that approximately 20 million euros could be enough.

Our colleague Michele Tognozzi, editor of FareVela, talked to Silvio Arrivabene and asked him to give his expert opinion on what the costs are in this edition of the world's oldest sports trophy. Arrivabene knows what he's talking about having done two America's Cup campaigns with Mascalzone Latino, the most recent one as the operations manager, while in the 33rd America's Cup he was the construction and planning manager of Alinghi 5. If there's somebody that knows a thing or two about building big catamarans, it's Arrivabene.

Here's what Arrivabene had to say about budgets and the 34th America's Cup:

FareVela: Iain Murray talked about 20 million euros to participate in the 34th America's Cup. Does this figure seem plausible to you?
Silvio Arrivabene: First of all, we need to agree on what "participate" means. If one wants to be there without any ambition to succeed, then it could even be a conceivable figure, for one AC45, one AC72, one wing and a basic group but nothing more. Something similar to China Team in Valencia in 2007. No possibilities at all and a presence that will pass unnoticed. If, on the other hand, as it would seem logical in an event of the significance of the America's Cup, one has the ambition to win, I think it's a figure absolutely undersized and nothing remotely close to what instead we will need to spend.

FareVela: We are obviously interested in the second case, that of a team with the ambition to win. Can we enter into more details?
Silvio Arrivabene: I start by saying that I have carried out a study of the Protocol for some potential projects that had been conceived and as a result I rely on objective data. In summary, a team that wants to try to win must already have a couple of Extreme 40's for training, then a couple of AC45's (US$ 600,000 each just the boat), two AC72's and a development plan that foresees up to 8 wings (the maximum allowed by the rules), about 10 rudders and daggerboards (in a catamaran you always think in pairs) and a development of soft sails. For the aerodynamic research we assume a couple of engineers for the AC45's, a team of 3-4 engineers dedicated to the AC72's and the wings, in addition to the people directly involved in the construction.

FareVela: How much would all that cost?
Silvio Arrivabene: We suppose it's a new team with the maximum ambitions and a tested boat yard, such as Green Marine, with which I collaborated up to a couple of years ago. For the wing on USA17, 64 meters high, BMW Oracle has declared 100,000 hours of work. With a shared knowhow and an AC72 wing, 40 meters high, I think we could envisage 15,000 hours of work at an hourly rate of approximately 50 euros. I'm only referring to the boatyard cost, excluding materials, people and research. As a result, just for the construction of one piece it would be around 750,000 euros. We are talking about just one wing.

A big team needs 8 wings at 15,000 hours each, 4 hulls at 3,000 hours each, 4 rudders and 4 daggerboards. Just the hourly cost, with a calculator in hand, can reach 6 million euros, to which we need to add engineering and development, research and the people to do it. For an AC45 we would need approximately 21,000 hours of work. Just one wing corresponds to two thirds of an ACC Version 5 yacht.

In fact, it seems to me that if you aren't BMW Oracle you will find it difficult to build 8 wings, given the fact they have an advantage of at least two years in the sector in addition to unlimited resources. During AC33 they had no budget limits, now I think they also have prudent people internally, that care about that issue, for example I think of Murray Jones, but undoubtedly they are in an enormously advantageous position.

3D simulation of an AC72. Video copyright America's Cup

FareVela: Any other expenditures?
Silvio Arrivabene: We shouldn't underestimate material costs. There are pieces that need a lot of carbon, for example the daggerboards, the rudders that can cost up to 80,000 euros each. We have to keep in mind that just having the money will not be enough, but specific knowledge is also required that you either have it or you build it. To do that you need time with competent people available for two years and the possibility to test and develop. The America's Cup is not a one-design race, on multihulls speed is everything and the experienced people in that sector count for much. Such specialists are expensive.

FareVela: What about the sailing team?
Silvio Arrivabene: We have been told that the AC45's have a crew of 5 and the AC72's a crew of 11, but in order to have two AC72's you will need 22 sailors and you can't expect having the best without making a "reservation". They are called "retainer" contracts, a basic way to lock on to some sailors while you wait until you can use their services on the water, and have to be added to the 11 monthly salaries you would pay the sailors you hire right away.

In addition, on multihulls it won't be possible to have muscular neophytes fresh out of the gym or from rowing that accept a minimal 2,500 euros per month because they wish to be there. You will need experienced and skilled sailors with abilities and technical knowhow, unless you want to take some skilled kid out of the 470 and train him, but that will not be the case with our hypothetical team, that has the ambition to succeed. Between the design, sailing and shore teams, costs will rapidly increase for a 2-year campaign, the minimum if you hope to just be close to the Defender's abilities.

FareVela: What about the logistics?
Silvio Arrivabene: As far as transportation in concerned, it seems ACRM will have a ship where all equipment will travel, but every team will have to take care on its own of the international shipments and the construction of new pieces. You shouldn't think that there isn't always a new bow or rudder that has to be shipped to San Francisco or wherever the event or pre-event takes place. With two and a half years until the event, scheduled for September 2013, that's the reality, obviously excluding BMW Oracle.

FareVela: After we do all the calculations what figure do we get?
Silvio Arrivabene: I think that a plausible figure is around 100 million euros, in any case much more than the 60 million Coutts and Onorato were talking about. The 20 million euros conceived by Iain Murray are, I repeat, for a team that is only interested in participating, without any ambition.

FareVela: It goes without saying that in the America's Cup winning is the only thing that counts. Who can spend those figures?
Silvio Arrivabene: I repeat, it's not just an issue of having the money or not, it's also the experience and the people that count in order to achieve it. You may have the budget but still not be able to get through to the real challenge against BMW Oracle.

FareVela: Given the fact the strongest potential challenger, Alinghi, has just announced it won't be taking part in the America's Cup under these conditions, are we already heading towards a final between Coutts' BMW Oracle and Paul Cayard's Artemis?
Silvio Arrivabene: It's too early to say but instead of Artemis I always think it will be the Kiwis. Emirates Team New Zealand, if they ever decide to enter the America's Cup, have the right people even in the design team that has been strengthened with skilled people. Grant Dalton's own statement that ETNZ won't take part in the Cup unless they are able to win it, seems to be addressed at BMW Oracle so that, if within 6 months there are few teams taking part, they facilitate the participation of the kiwis. It counts having Emirates Team New Zealand in the event, there is no doubt.

FareVela: And the so promised show?
Silvio Arrivabene: These days we have seen in Dubai how the close encounters, the fights and the battles are the essence of match racing. We didn't miss the show in the Louis Vuitton Trophy. Speed alone doesn't bring any show, going at 25 knots all alone in the middle of the sea isn't so important, unless you are in the Volvo Ocean Race, I can assure you about that. I'm just back from a season on Esimit Europa 2, a 100-foot supermaxi. We rounded Sicily in the last Rolex Middle Sea Race fighting against the watch and giving our best, but we were all alone out there, that's the truth. If there's no fight, boredom comes quickly, can you tell me what's so spectacular in watching a Formula 1 car going at 300 kph by itself in a straight line? When I think about spectacular sailing, the Volvo Ocean Race and the TP52's come in mind, and for sure not the AC33 last February. You can go as fast as you want, even at 30 knots, but if there's no close fighting there will be no show and anyone that sails knows it.

FareVela: What are your personal plans?
Silvio Arrivabene: As I said, I sailed this season on Esimit Europa 2, as the navigator. It's a very complex boat with lots of technology and many systems so my role implied lots of work. We are now preparing the 2011 season. In addition, I'm involved with engineering consultancy in various fields. I've done three America's Cups, so I'm not interested in doing it just for the sake of it but an interesting project can always be stimulating.

34TH America’s Cup announces partnership with Louis Vuitton

[Source: America's Cup] The next major step in realizing its new vision, the America’s Cup Event Authority introduced its first partner, Louis Vuitton. A continuation of its 30-year long association with the America’s Cup, the Paris-based fashion house will present the prize, the Louis Vuitton Cup, to the winner of the America’s Cup Challenger Series, as well as serve as Official Timing for the 34th America’s Cup.

“We are thrilled to announce today the continuation of our 30-year partnership with the America’s Cup. Having met with the team several times, we believe that the 34th edition will be the best America’s Cup yet,” said Yves Carcelle, Chairman and CEO of Louis Vuitton Malletier.

In 2013, the Challenger Series will be staged with the winner earning the right to compete in the America’s Cup Finals. The Challenger series will be once again called the Louis Vuitton Cup, recognizing the brand’s long partnership with the America’s Cup.

In addition, Louis Vuitton will be Official Timing for the America’s Cup World Series competitions, promoting its watch collection.

34th America's Cup - Louis Vuitton Partnership announcement. From left, Bruno Troublé, Russell Coutts, Yves Carcelle, Richard Worth and Pietro Beccari. Dubai, 27 November 2010. Photo copyright Gilles Martin-Raget / America's Cup

“We are extremely priveleged that our vision for the next America’s Cup has attracted the return of a company like Louis Vuitton,” said Richard Worth, Chairman, America’s Cup Event Authority. “The 34th America’s Cup will culminate in 2013, marking the 30th anniversary of Louis Vuitton’s support of the sport of sailing, so we could not be more proud to see this great partnership continue and strengthen.”

Since 1983, the Louis Vuitton Cup Challenger Series has been held whenever there has been more than one challenger team for the America’s Cup. Its role is twofold – to select the best challenger team from the teams presented and, to prepare the winner for success against the Defender in the following America’s Cup Finals.

“I have competed for the Louis Vuitton Cup three times in the past, so I know how important it is to the Challenger’s success. We welcome the return of Louis Vuitton and look forward to racing the winner of the Louis Vuitton Cup in 2013,” said Russell Coutts, CEO, BMW ORACLE Racing.

The Louis Vuitton Cup will be in the summer of 2013, with the America’s Cup Finals in early fall. The events will feature the AC72 wing-masted catamaran, a ground-breaking new boat designed to deliver unparalleled racing competition and on-the-water excitement.

Video: Second stage of production of the AC45

Tim Smyth, Core Builders, guides us through the 2nd stage production of the AC45. Video copyright America's Cup