Why is the America’s Cup Partnership such a big deal? (Or is it the beginning of the end….)

Back in August the Protocol for the 38th America’s Cup was finally agreed and signed. Within it were details of a major structural change to the America’s Cup: the formation of a new Partnership, but that was only finally agreed last week. Matt Sheahan analyses why it’s important

Despite looking like another bland piece of America’s Cup politics and procedure, it is difficult to overstate the significance of the newly formed America’s Cup Partnership (ACP).
First revealed a few weeks ago in the 38th America’s Cup Protocol, the ACP changes fundamentally the way in which the Cup will be run in the next cycle and beyond.
And while there are good reasons for the change, it’s not going to be universally popular. In fact, this could be the most controversial Cup move in modern times, some say it could even be the beginning of the end for the Auld Mug as we know it.
Sir Ben Ainslie, who has played a major part in creating the ACP – and whose team Athena Racing represents the Royal Yacht Squadron, the Challengers of Record – says this is, “The biggest step change in the history of the Cup,” and that the ACP is, “Critical to the future success of the Cup.”
His opposite, Grant Dalton, CEO of Emirates Team New Zealand representing the Defenders, the Royal New Zealand Yacht Squadron is equally punchy. “If we hadn’t have done this it could have been pretty much the end of the Cup.”
Both are bold statements and both will raise plenty of comment and fierce debate.
RNZYS Commodore David Blakey and RYS Ltd’s Bertie Bicket shake hands, watched by Sir Ben Ainslie and Grant Dalton, to mark the signing of the Protocol for the 38th America’s Cup, in August 2025. Photo: Suellen Hurling / RNZYS / America’s Cup
Spreading the load
Traditionally, if you win the America’s Cup you take on the responsibility for putting on the next event once a Challenger has thrown down the gauntlet.
It’s a big obligation, both logistically and financially and puts huge pressure on both the Defenders and the club they represent, especially in multi-challenger Cup cycles where the burden of hosting an event that runs for months can place huge demands on infrastructure.
Covering the huge financial costs is made even harder as the short-term nature of a Cup cycle that lacks any detail makes it especially difficult for sponsors to justify putting their hands in their pockets.
This means that the time frame between America’s Cup matches inevitably gets drawn out, which in turn causes its own problems when it comes to maintaining public interest in the event. Filling these gaps with more events costs more money and so the problem continues to spiral.
The financial. burden of hosting multi-challenger Cups, such as the very successful 32nd Cup in Valencia, Spain in 2007, is significant. Photo: Jose Jordan/AFP via Getty Images
The ACP seeks to change this by sharing the logistical and financial burden with the other competitors.
In simple terms, under the new structure when a Challenger enters the America’s Cup it takes a place on the board that governs the event. From here the rules, the schedule, the venue selection and every other detail of the cycle is agreed and actioned.
Dalton and Ainslie argue that this creates future structure to the event around which hosting deals can be made for future venues along with long term sponsorship deals and other financial considerations.
They also argue that costs can be better controlled and talk of spending caps which they say would help to increase the number of future potential teams.
No longer unique?
All of which sounds positive, especially given that this is how SailGP, which was born out of the 2017 America’s Cup, is currently growing.
SailGP has succeeded in creating a commercially focussed, spectacle-driven circuit – but is that the right direction for the future of the America’s Cup? Photo: Felix Diemer for SailGP
But there are those that will argue that democratising the America’s Cup strikes at the heart of its foundation.
Commercialising it in this way, and running a Cup event every two years as has been suggested, risks turning it into another world championships of sailing and removes the winner-takes-all aspect that has drawn a steady stream of billionaires for 174 years.
The appeal and potential commercial benefit of winning the Cup and bringing it home could also be gone if hosting deals have been made for future cycles. This could also reduce the appeal and prestige of the Cup making it harder to raise finances.
Big money deals
But Dalton and Ainslie don’t see it this way.
“We would dearly have loved to be able to negotiate with Naples for two cycles,” says Dalton. “Their infrastructure bill is €180 million, but when you can only plan for one cycle you can’t do long broadcast deals and you can’t do long sponsor deals which is the well known Achilles heel of the Cup.
“So, in this commercial world – and knowing that our sport is niche – we knew it was time to make that move. And so along with the Challenger of Record with support from the New York Yacht Club we have been able to do it but it’s not been easy because there’s a lot of stakeholders to be satisfied.”
Ainslie agrees. “The challenge has been trying to convince stakeholders that this is the right move for the Cup,” he says.
“Initially there was quite a lot of resistance for many different reasons and it’s taken 12 months to get to this point. But as hard as it’s been, actually the conviction from Grant that this is what we should be doing has delivered at the end of the day.”
The America’s Cup has endured since 1851, as captured in this painting of America running to the finish line of the RYS Cup in Cowes. Will these new changes secure its future? Image: duncan1890 via Getty Images.
But these are big changes, and even Dalton has his concerns. “We knew that if we didn’t do anything then we might not have a Cup in 10 years time.
“So, in the end this was a call that we had to make but you won’t be able to convince me that we’re right yet, I think only time will tell.”
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