Offshore solo racing is a fantastic R&D lab and allows the brand to make claims of functionality and comfort. As Van Liew’s Technical Clothing Sponsor, Gill’s broad line of wicking shirts, pants, fleeces, hats, jackets and foul weather gear will be an important factor in Van Liew’s safety, comfort and competitive goals.

Brad said:

“Gill makes products that work. They are constantly doing the research and development necessary to offer superior options for inshore and offshore sailing. I trust them to provide products that are durable, light, and breathable for the extreme environment I will face offshore.”

During offshore training sessions this summer and the Transatlantic sail from the U.S. to the start of the race in France this fall, Van Liew and his crew will sport Gill’s OS1 Atlantic foul weather gear constructed using a 5 Dot™, 3-layer highly breathable waterproof fabric. Van Liew calls it tough and functional. Gill’s Race Collection, which offers a UV protection factor of 50+, will be used for some of the lighter conditions offshore and during inshore sails devoted to final boat preparations and sponsors.

In warmer conditions Gill’s technical t-shirts will wick moisture away from the skin and dry quickly. The fact that they are made from100% recycled material pleases Van Liew as he has some clear objectives for sustainable living during the race. He will attempt to sail the entire 9 months without using any fossil fuels whatsoever, assisted by hydrogenerators and solar panels. The ECO 60 boat he will be racing is in fact recycled as well, built in 1998 and raced in dozens of events since then.

David Pritchard, President of Gill North America says:

“Gill is proud to align our brand with Brad and Team Lazarus. Brad has the experience and spirit to win that make for great racing and I trust we will all enjoy watching the action throughout the event.”

More Sailing Clothing and Apparel News…

I’m a 40 yo ex NAVY helicopter rescue swimmer, avid catamaran sailor and current Photographer, video director and producer. I have some great ideas that will go unheard with this (age) limitation.

“All three represented a nice mix of shot composition, artistry and effects to make them appealing to watch.”

The statement opens with:

The America’s Cup is the world’s third-largest sporting competition, after the Olympics and soccer’s World Cup.

Of course it depends on how you define largest, but the statement doesn’t stand up to a lot of scrutiny. It’s certainly not the 3rd largest in terms of teams, competitors or countries competing, or number of spectators.

It is America though, and sports like Rugby don’t mean much to the population of San Francisco. For example, Deloitte estimates that the Rugby World Cup has the potential to generate up to £2.1 billion (yes that’s GBP) in economic benefits while capital expenditure costs are among the lowest for an event of  such magnitude.

In a list of 200 valuable sporting properties compiled by Sports Pro Magazine, the America’s Cup comes in 71st based on the event in 2007, which most agree to be the best ever held.

But the value of the property and the economic impact are different things and an American venue has advantages of spectator and media access. If San Francisco gets it right, then the value to the City could be enormous. Just as Valencia used the America’s Cup to position itself as a city capable of hosting major events and securing an F1 Grand Prix as a result, San Francisco could use the America’s Cup to regenerate parts of the city and create jobs.

The headline numbers from the report released yesterday show that the economic impact of the America’s Cup could total $1.4 billion and create 8,840 jobs.

The report, titled The America’s Cup: Economic Impacts of a Match on San Francisco Bay, was prepared by The Bay Area Council Economic Institute (BACEI) and Beacon Economics.

The report found that the increase in overall economic activity in San Francisco hosting the 34th America’s Cup could be on the order of $1.4 billion, almost three times the estimated impact of hosting the Super Bowl ($300-$500 million). Additional taxes alone to the City’s General Fund are expected to net more than $13 million, based on more than $24 million in revenue, and an estimated $11 million in tourism related costs. The potential increase in employment surrounding the event could be on the order of 8,840 jobs.

Analysis of economic impacts from prior America’s Cups, specifically Valencia 2007 serves as starting point for this analysis. This analysis makes a number of assumptions: the infrastructure costs and spending will be several billion dollars less (Valencia built a massive marina and channel, hotels, transit etc); spectator attendance will be considerably larger (SF is already an established international destination and amphitheater allows for better viewing); the media’s presence will be larger (broadcasting the races is likely to be significantly more desirable for the international media); the presence of super yachts will be smaller (SF not a tradition super yacht destination due to weather and Pacific location).

More America’s Cup News…

Pure Michigan, a function of the Michigan Economic Development Commission, provided the title sponsorship for the 2009 race. It’s back this year, and talking about extending it beyond 2011. George Zimmermann, Vice President of Travel Michigan, the marketing unit of the commission said to The Detroit News:

“It’s a good sponsorship for us, for a variety of reasons.”

Pure Michigan became the most-visited state tourism site in 2009, largely because of the race. Some two million hits occurred when spectators logged on to michigan.org/gps to follow progress of the race, including individual boats on both routes. The service is available again this year.

The cost of staging the event is estimated at $USD 500,000, making sponsorship crucial to the race’s success.

Last year there were 18 sponsors. This year there are 24, including some who have returned, like DTE Energy, Veuve Clicquot and Bacardi, which is back for the first time in five years. Bruce Babiarz, of BAB Associates LLC says:

“It’s been a great year, and there’s already a great deal of interest for next year. We’re at the best sponsorship level in five years. Bell’s Beer signed up right after last year, and Pure Michigan has a multi-year renewal option. It’s a fanatical tradition that has never been halted since its introduction in 1925. It’s a good fan base not only statewide and regionally, but in other parts of the world.

More USA Yacht Racing News…

In a very unscientific poll down the pub, we asked a couple of sailing fans to think about the top (commercial) sailing events in the world – almost all mentioned the Volvo Ocean Race, several mentioned the World Match Racing Tour, the Audi Med Cup, the Extreme Sailing Series (previously – and still known as the iShares Cup), and a couple mentioned the Louis Vuitton Trophy – though it was described as “that thing where they race old America’s Cup boats”.

When prompted about the RC 44 Championship Tour, the reaction was: “Oh yeah – I always forget about that.”

Perhaps it is because the Class sits somewhere between amateur and professional and is aimed at boat owners rather than spectators, that the awareness is not higher, but given the names of the sailors on board the boats, the RC44 really should have more recognition.

To date, 22 RC44 One Design boats have been built. The Class has announced that two new boats will be constructed as the Class grows on the back of news that events will be held in the USA.

Certainly there is scope for more sailing circuits in the USA. In the country where NASCAR puts on a travelling show almost every week of the year, it’s a little surprising that no-one has managed to create a series using the 18 Foot Skiff or Extreme 40 or some other boat as a platform for a professional tour.

Will the RC44 Class be able to manage it? A project to expand to North America is underway. The first regatta on US soil, the Oracle RC 44 Cup Miami, will take place on December 7 – 12 in South Beach Marina.

RC 44 founder and co-designer Russell Coutts says:

“I really look forward to competing in Miami. First of all because it is a beautiful sailing venue, but also because it is a symbolic step for the RC 44 Class as it will be the first time we race on American territory. Our goal is to develop a parallel circuit in the USA, and to see the European and American fleets meeting during several events, including the yearly World Championship.”

Following the Oracle RC 44 Cup Miami, the first regatta of the Championship Tour 2011 will also take place in the United Sates (west coast) whilst other regattas will be organised on American waters in the coming years.

The American events are important. Notably missing from the World Match Racing Tour, the USA is a massive market that is not well served by sailing as a professional sport.

The RC 44 Class has also announced that its historical partnership with SLAM has been extended until 2012. SLAM is the RC 44 Class’ official clothing supplier; it provides the Class management, umpires, race officials and guests with technical clothes that are particularly well adapted to their work.

More RC44 News…

Since the Golden Gate Yacht Club won the right to defend the cup in February, the City has been preparing a proposal to host the event utilizing assets along the southern waterfront, and seeking early support from key local stakeholders. The announcement allows the City to leverage national resources and make this a coast-to-coast campaign.

Mayor Newsom said:

“The San Francisco Bay Area is blessed with physical assets that are unmatched anywhere in the world. This announcement allows us to leverage resources throughout the country to ensure that 34th America’s Cup is defended in America.”

San Francisco Bay does form a natural amphitheatre - unlike some previous cups, where racing was held far offshore and viewable only by spectators in boats. San Francisco has a compelling case that from the public shoreline, including Marina Green, Crissy Field, to the Marin headlands, Angel Island, Alcatraz and Fisherman’s Wharf, to its skyscrapers, the viewing platforms are unlimited. This combined with the City’s existing hotel, restaurant and cultural infrastructure, makes San Francisco the world class city it is and an ideal host for the America’s Cup.

Hosting major events is sometimes a game where the rich get richer and the poor get poorer. Once a city has built the physical and social infrastructure to host a major event, it can leverage those assets to attract more. San Francisco has extensive recent experience in hosting major international sporting events, including the 2008 Beijing Olympic Torch Relay, Major League Baseball All Star Game, PGA Tour President’s Cup, and the AMGEN Tour of California.

The Bay Area is also famously home to some of America’s and the World’s most innovative and successful technology companies. This helps to support Larry Ellison’s vision for incorporation of new technologies and media into the America’s Cup.

To advance the City’s campaign the Mayor has commissioned an economic impact study that will be released next week that will illustrate the significant financial benefits to the local, state and federal economies should San Francisco secure the host city rights. The Mayor is also forming a national America’s Cup Organizing Committee (ACOC) to marshal the private and corporate support necessary to win the campaign.

Additionally, the City has already secured significant local support including resolutions, adopted unanimously from: the San Francisco Board of Supervisors, the Port Commission, the Bay Conservation and Development Commission, and the Recreation and Parks Commission, as well as letters of support from the Golden Gate National Recreation Area, Metropolitan Transportation Commission, Water Emergency Transportation Agency, San Francisco Bar Pilots Association, Port of Oakland, the San Francisco Convention and Visitor’s Bureau, and San Francisco Airport, among others.

The City and its partners are eager to work with Golden Gate Yacht Club and the BMW ORACLE Racing team to finalize the proposed racing facilities on the land and water. Working with the State and federal governments the City will secure the necessary approvals and commitments to meet the team’s stated deadline of selecting the 34th America’s Cup venue by the end of 2010.

More America’s Cup News…

A statement issued by BMW ORACLE today says:

San Francisco has put forward a strong, well rounded venue proposal, and is now the only city in the USA under consideration to host the 34th America’s Cup match.

The announcement gives San Francisco an added level of security which will enable it to petition for investment from state and national sources. Despite being home to some of the country’s most wealthy corporations the city will seek public funds to build the infrastructure required for the event.

San Francisco’s Mayor Gavin Newsom said:

“We are very honored to lead a national effort to host the 34th America’s Cup. Larry Ellison has a transformative vision for hosting the Cup on San Francisco Bay, and we are prepared to leverage the nation’s support to make this a coast-to-coast campaign and to realize that vision.”

San Francisco beat other US candidate cities including Newport Rhode Island, San Diego and Long Beach. While Newport had history on its side, San Francisco seems to fit better with the ‘New Deal’ America’s Cup that BMW ORACLE are envisioning. San Francisco also has the ability to bring sailing to the city. Russell Coutts said:

“Our team has said from the outset that San Francisco and the Bay Area have the potential to provide a superb stage on which to host a memorable America’s Cup. Larry Ellison, has called the Bay ‘a fantastic natural amphitheatre’.”

It is hard to imagine a US based team not staging the America’s Cup in home waters. While Swiss based Alinghi were forced to hold the event outside of Switzerland due to the rules of the Deed of Gift, an American defender would have a hard job of selling a non-American venue to the US public. Were BMW ORACLE to choose a European venue – the long term impact on the sport of sailing in the USA would be significant.

Nevertheless, some European governments are more aggressive than the US when it comes to allocating public funds and doing deals to attract major sporting events like the America’s Cup. If a European city comes up with a deal like the one that lured the Volvo Ocean Race to Alicante, then the Defender will have to choose between pleasing the US public and money. Proposals from European cities are more likely to be used as leverage with San Francisco to come up with a better deal.

More America’s Cup News…

WYRF: What are the key changes you are introducing for the next America’s Cup?

Russell Coutts: We are obviously working in a lot of different directions. I think by now everybody has understood that we want fair rules; one of our priorities is also massively improved media output, particularly on screens whether that’s television or other devices. We are doing a lot of research on technology and formats, and will do some tests in July. For example, some people pretend that you can’t do match race with multihulls, or that you need slow boats; this needs to be confirmed. It is very important for Larry and I to make sailing more TV friendly and understandable by a large public; otherwise the sport simply won’t move forward.

WYRF: How do you respond to those that are saying you are taking a long time to announce the format of the next Cup?

Russell Coutts: It is true. We are just trying to do things well and to take the right decisions: it’s a heavy responsibility and a major task. The choice of the venue is obviously key, and a lot of things depend on it, including the boat. We also want to bring the costs down and need to be very careful with the decisions we take. The number of crew is one element: typically personnel accounts for 60 % of the budget of a campaign. Other elements include sensible restrictions on material and technology.

WYRF: Will you develop a circuit of pre-regattas?

Russell Coutts: Yes, absolutely. This concept started in 1997 and was perpetuated in 2000 and 2007 with the Acts, which were good. We need to move up from this, particularly with regards to the logistics, which will play a huge role. We also need a format that really has a meaning. Our objective is to increase the value of the America’s Cup for all teams and investors and we therefore need more events.

WYRF: Do you have a target number of teams?

Russell Coutts: We clearly prefer eight top level teams to fifteen and half of them disappearing half way through. Considering the current state of the economy, eight teams is a realistic number. Our goal is to build commercial value for the teams and partners; if this leads to more strong teams in the future, then great!

WYRF: How can you guarantee that the process for the next Cup will be democratic and that you won’t have an edge over your competitors?

Russell Coutts: We have hired some people who are not part of our team or defence organization and are working on the rules for a new boat and the ‘on the water’ race organization. We will announce the rules a long time ahead of the event and this will guarantee its fairness. We want the rules to be in place before people start joining, so that teams and partners know what they sign-up for. We have already circulated a draft Protocol to a small group of people and soon a bigger group will receive it. When the rules come out it will be clear to everyone that they are fair.

WYRF: How do you concretely consult the other teams considering that the registrations are not open?

Russell Coutts: At this initial stage we consult people who have a lot of experience. Nobody is excluded; there’s just a natural selection as we speak to teams and people who have already participated in the America’s Cup. In the next two months we will identify potential new teams and speak to them. Basically what we want is to consult the event’s stakeholders. Then we will take the decisions. We can’t use a system of votes, because we need to consider all the aspects of the organization, TV, logistics etc…

WYRF: Do you have a preference between monohulls and multihulls?

Russell Coutts: I honestly don’t, and as a team we don’t either; what we want is the best event.

WYRF: There are many rumours concerning the venue. How open is the selection process and what are the criteria?

Russell Coutts: Well, San Francisco is an appealing venue to Larry as everyone knows. But the selection process remains open, and it is not restrained to the US. The first criteria will be the sailing conditions, as we want to create a great event. Delays kill the sport and we must avoid this. I must say that I am gratified to see how motivated the potential venues are: the interest is huge.

Book your delegate seat at the 2010 World Yacht Racing Forum

The 56 page draft is a ‘listening and living’ document. Teams have been invited to comment and, contribute to its final form. It is not known if other interest groups will be invited to comment. It offers another chance for input before the Protocol is finalized and published by the of 31st August 2010 target.

Russell Coutts, CEO of BMW ORACLE Racing said in a statement:

“This has been a painstaking process, but we believe it sets out a New Deal for the America’s Cup and fair play for all teams. It also incorporates the vision of the Cup held by Larry Ellison and BMW ORACLE Racing. To create a fair playing field we plan to issue all of the event rules before the end of the year, and this is a significant first step in that direction. Teams will know exactly what they are signing-up to.”

Potential teams asked for these key elements to be included the 34th America’s Cup Protocol and they have been:

• neutral race management body
• wide-ranging powers for the Jury
• cost cutting measures
• initiative to transform television & media output
• added-value to sponsors & business partners
• sustainable, long-term business model

The World Sailing Team’s Association has been influential in the creation of the document. Through the WSTA, proposals include –  a maximum of eight pre-regattas per year for consistent racing and exposure for the teams in the years leading up to the America’s Cup.

Despite Coutts statements at the recent press conference that the next America’s Cup would be for sailors, the Protocol will address costs by reducing the sailing opportunities for sailors by cutting number of racing crew. There will be nosailing periods and limits will be placed on the numbers of hulls, masts, appendages and sails teams can build.

It is proposed that at the end of the 34th Match, the ‘New Deal’ will leave an inheritance of substantial funding and assets to the next Defender in a move to end the stop-start cycle teams have faced previously. This sustainable legacy is dependent of the 35th America’s Cup defender continuing with neutral race management and a schedule of regular competition.

We’ll look at areas of the protocol concerning advertising and media in coming days…

More America’s Cup news…

Haxthausen says:

Last February, the America’s Cup trophy returned to the U.S. for the first time in 15 years. …the 33rd America’s Cup was a commercial failure by most measures. It also featured a car maker as key sponsor: BMW.

The winning syndicate, BMW Oracle headed by Oracle CEO Larry Ellison, is estimated to have spent some $200 million on the project. While most of that money appears to have come from Ellison’s own pockets, BMW was also a key stakeholder.

The idea of a car brand sponsoring sailing activities seems counterintuitive. And in the case of BMW, the yacht sponsorship activities seem especially odd in the context of BMW’s dropping of its Formula One sponsorship activities. Formula One was an arguably closer fit with the brand, but it was also a much higher ticket item for BMW, estimated at above $300 million annually.

The idea of a car brand sponsoring sailing is as counter-intuitive as an insurance company sponsoring a soccer team or an energy drink sponsoring a Formula 1 car. It makes no difference what you are selling, it is about positioning, association and relevance to your audience.

Haxthausen reasons for BMW’s involvement in the America’s Cup campaign, leaving aside their sponsorship of sailing in Europe, are:

The 2010 America’s Cup was all about technological innovation and speed performance, key elements for the brand producing the “ultimate driving machine.” BMW has cited the opportunities for leveraging America’s Cup innovations in its cars as a key driver of its involvement.

BMW targets an affluent, well-educated, active group of potential customers, globally. This target not only has an interest in cars and motorcycles, but it also follows golf and sailing; as a result, BMW is involved in sponsorship activities covering all four sports categories.

BMW, a prestigious brand, seeks affiliations with prestigious events. The America’s Cup, which claims to be the oldest active trophy in international sports, still has significant prestige, despite recent controversies.

Sailing is green, and all car companies, including BMW, seek a green image.

The last one is perhaps a little bit debatable. Sailing is powered by the wind, but spending $200 million on a boat that will be sailed 3 times and never used again is hardly an endorsement for efficient use of resources or sustainability.

Nevertheless, BMW have shown a long term commitment to the project and have probably benefited, not just from media value, but significant research developments and IP that could generate direct revenue against the investment in the America’s Cup.

In the 2009 DARK BLUE BOOK, BMW ORACLE lists it’s services as including; “Carbon Construction – composite construction of components and parts”, something that a luxury auto-maker can contribute to and benefit from. Sometimes, sponsorship is not about media, it’s about business partnerships that are not visible to the consumer.