Back in August the Protocol for the 38th America\u2019s Cup was finally agreed and signed. Within it were details of a major structural change to the America\u2019s Cup: the formation of a new Partnership, but that was only finally agreed last week. Matt Sheahan analyses why it’s important<\/p>\n
Despite looking like another bland piece of America\u2019s Cup politics and procedure, it is difficult to overstate the significance of the newly formed America\u2019s Cup Partnership (ACP).
\nFirst revealed a few weeks ago in the 38th America\u2019s Cup Protocol, the ACP changes fundamentally the way in which the Cup will be run in the next cycle and beyond.
\nAnd while there are good reasons for the change, it\u2019s 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.
\nSir Ben Ainslie, who has played a major part in creating the ACP \u2013 and whose team Athena Racing represents the Royal Yacht Squadron, the Challengers of Record \u2013 says this is, \u201cThe biggest step change in the history of the Cup,\u201d and that the ACP is, \u201cCritical to the future success of the Cup.\u201d
\nHis opposite, Grant Dalton, CEO of Emirates Team New Zealand representing the Defenders, the Royal New Zealand Yacht Squadron is equally punchy. \u201cIf we hadn\u2019t have done this it could have been pretty much the end of the Cup.\u201d
\nBoth are bold statements and both will raise plenty of comment and fierce debate.
\nRNZYS Commodore David Blakey and RYS Ltd\u2019s Bertie Bicket shake hands, watched by Sir Ben Ainslie and Grant Dalton, to mark the signing of the Protocol for the 38th America\u2019s Cup, in August 2025. Photo: Suellen Hurling \/ RNZYS \/ America\u2019s Cup
\nSpreading the load
\nTraditionally, if you win the America\u2019s Cup you take on the responsibility for putting on the next event once a Challenger has thrown down the gauntlet.
\nIt\u2019s 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.
\nCovering 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.
\nThis means that the time frame between America\u2019s 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.
\nThe 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
\nThe ACP seeks to change this by sharing the logistical and financial burden with the other competitors.
\nIn simple terms, under the new structure when a Challenger enters the America\u2019s 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.
\nDalton 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.
\nThey 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.
\nNo longer unique?
\nAll of which sounds positive, especially given that this is how SailGP, which was born out of the 2017 America\u2019s Cup, is currently growing.
\nSailGP has succeeded in creating a commercially focussed, spectacle-driven circuit \u2013 but is that the right direction for the future of the America\u2019s Cup? Photo: Felix Diemer for SailGP
\nBut there are those that will argue that democratising the America\u2019s Cup strikes at the heart of its foundation.
\nCommercialising 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.
\nThe 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.
\nBig money deals
\nBut Dalton and Ainslie don\u2019t see it this way.
\n\u201cWe would dearly have loved to be able to negotiate with Naples for two cycles,\u201d says Dalton. \u201cTheir infrastructure bill is \u20ac180 million, but when you can only plan for one cycle you can\u2019t do long broadcast deals and you can\u2019t do long sponsor deals which is the well known Achilles heel of the Cup.
\n\u201cSo, in this commercial world \u2013 and knowing that our sport is niche \u2013 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\u2019s not been easy because there\u2019s a lot of stakeholders to be satisfied.\u201d
\nAinslie agrees. \u201cThe challenge has been trying to convince stakeholders that this is the right move for the Cup,\u201d he says.
\n\u201cInitially there was quite a lot of resistance for many different reasons and it\u2019s taken 12 months to get to this point. But as hard as it\u2019s been, actually the conviction from Grant that this is what we should be doing has delivered at the end of the day.\u201d
\nThe America\u2019s 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.
\nBut these are big changes, and even Dalton has his concerns. \u201cWe knew that if we didn\u2019t do anything then we might not have a Cup in 10 years time.
\n\u201cSo, in the end this was a call that we had to make but you won\u2019t be able to convince me that we\u2019re right yet, I think only time will tell.\u201d
\nThe post Why is the America\u2019s Cup Partnership such a big deal? (Or is it the beginning of the end\u2026.) appeared first on Yachting World.<\/p>\n","protected":false},"excerpt":{"rendered":"
Back in August the Protocol for the 38th America\u2019s Cup was finally agreed and signed. Within it were details of a major structural change to the America\u2019s Cup: the formation of a new Partnership, but that was only finally agreed … <\/p>\n