Larry Ellison Wants America's Cup Every Two Years

By Sam Sheringham

Jan. 12 (Bloomberg) -- Larry Ellison's BMW Oracle Racing team is leading a drive to stage the America's Cup every two years instead of four, a switch that may make it difficult for new syndicates to break into sailing's most prestigious event.

Most of the 12 teams competing this year are "strongly in favor" of a two-year cycle because it would cut costs and provide a more regular revenue stream, said Tom Ehman, a director of the team led by Ellison, chief executive officer of Oracle Corp., the world's third-largest software maker.

``You would get more interest, more excitement, more events in a shorter period of time, more television, more revenue and less money going out the door,'' Ehman, a veteran of nine America's Cups, said in an interview at the London Boat Show. ``It's a much better deal.''

The four-year cycle was designed to give new syndicates time to gather sponsors, boat designers and crew. Oracle and champion Alinghi, backed by biotechnology billionaire Ernesto Bertarelli, are each spending more than $100 million on this year's race in Valencia, Spain, where the lineup includes newcomers from China, South Africa, Germany, Spain, Italy and France.

Two years would give new teams less time to mount a threat to those who already have their infrastructures in place, said James Pleasance, managing director of Force10 Marketing, which specializes in sailing sponsorships.

``For new challengers to raise the sort of money they need to be competitive against these very well-funded teams, it would be a tighter time frame,'' he said in an interview. ``However, a shorter cycle will boost interest in the cup.''

Nonstop Roadshow

The change would be the latest innovation aimed at increasing the exposure of an event that dates back to 1851. Teams in this year's cup have competed in a 2 1/2-year series of qualifying regattas, hosted by ports around Europe and watched by 1.3 billion television viewers. A biennial event could turn the cup into a nonstop global roadshow.

``The world has changed, people's attention span is shorter,'' said Ehman. ``In the America's Cup, when we had this four-year cycle it just went into the big abyss.''

Teams are making their final preparations for April's final qualifying regatta and the Louis Vuitton Cup in Valencia. The winner earns the right to challenge Alinghi in the June 23 to July 7 final. The champion gets to choose the venue and timing of the next edition.

Less preparation time would give the event more ``continuity,'' said Paco Latorre, spokesman for race organizer America's Cup Management.

``It gives consistency to the existing teams whether they are rich or poor,'' he said in a phone interview. ``It doesn't discard new teams but it favors existing teams.''

Businessman Keith Mills said the British team he's trying to put together at a cost of 120 million euros ($155 million) could probably finish no better than third if the next edition were in 2009.

``The second one, in 2011, we aim to win,'' he said.

To contact the reporter on this story: Sam Sheringham on at ssheringham@bloomberg.net
Last Updated: January 12, 2007 06:38 EST