America’s Cup Press Conference Announces “More Thinking Time Needed”

The America’s Cup was back in the news yesterday for all the right reasons. A much anticipated press conference presented a new vision for the trophy – a united front, with Defender and Challenger of Record in agreement on the manner in which to move forward. But Russell Coutts and Vincenzo Onorato will have to state some preferences and show some leadership, otherwise the design by consensus process outlined may produce a compromise event.

Russell Coutts started by acknowledging a subtle change in the communications from BMW ORACLE and the Golden Gate Yacht Club. The event was compared by America’s Cup sailor Cam Lewis, a sailor, not an ‘off the water’ rules expert.

But Coutts’ opening remarks also made reference to the business of the America’s Cup, citing past tycoons that had participated including; J.P Morgan, Sir Thomas Lipton and Ted Turner. These were not just people who transformed sailing, they were men who transformed business. The AC34 organisation now needs to walk a fine line between keeping the traditions of the cup alive while going after the cash in the form of television and venue revenues.

The headlines

• New rules issued before entries closed with independent professional management.
  
• A new class of fast, exciting boats created in conjunction with all teams.
• Annual racing in multiple venues to increase commercial viability
  
• Transformed television and online coverage

Coutts said that ‘they’ wanted to give a voice to experts who have never been asked before. These included fans, but more importantly for the money men television executives and event management companies. The changes to sailing could be far reaching, having an effect on fundamental elements of the sport including boat design and rule changes to allow race officials to change the course and length of racing to fit television schedules.

New Class.

One thing that is certain from yesterday’s press conference is that there will be a new boat. Bruce Nelson and Peter Melvin have been asked to create concepts – one monohull and one multihull. Coutts and Onorato refused to express any preference for one or the other yesterday, instead falling back on what may become a stock phrase for the next few months; “We’ll let the teams decide.”

The brief given to the designers of the new America’s Cup Class rule are:

• It should produce dynamic and close racing
• It should use advanced, efficient (green) and cost-effective technologies
• It should be distinctive as an America’s Cup class
• It should be able to race in any venue in winds from 5-35 knots

The last condition is a result of television executive input based on America’s Cup events of the past. Coutts and Lewis agreed that for a race that is supposed to be the pinnacle of sailing to be cancelled because of too much wind sent the wrong message. Coutts also said that his preference was for boats that were ‘physical’  – where all the sailors on the boat were active, not strategists.

Whatever the final shape and size of the boat, the plan is to have them racing in a regular series by 2012.

The Venue.

Coutts states that the right to choose the venue of the America’s Cup is one of the most rewarding aspects of winning the trophy. While Valencia was chosen by Alinghi because Switzerland has no open sea, it would be a big shift in the America’s Cup for the defender not to hold the final races on home soil. Despite the USA having about 12,000 miles of coastline, Coutts refused to confirm that racing would be held there. Given the commitment to transform the televisual element of the event, perhaps the final will be held in a timezone that would make the event broadcast on US prime-time.

The venue will be announced by the 31st of December.

Given the venue for yesterday’s announcements, Rome may have a place in part of the America’s Cup sailing calendar. Russell Coutts responded to local media saying he wouldn’t rule it out and Vincenzo Onorato said that they needed to look into it.

Annual Series.

Even if the Americas Cup is tweaked to bring the event in line with other major sporting events, the cycle makes it very difficult to make the trophy financially viable without resorting to private cheque books. Teams have struggled to stay afloat in the years where there is no racing and commercial partners can’t make the most of their investments.

Russell Coutts has announced that there will be an annual America’s Cup series using the new class of boats. While he admits that this will increase the costs for teams, he believes that there would be increased value to cover it. The conference was attended by Bruno Trouble and Paul Cayard representing the World Sailing Teams Association (WSTA) and the Louis Vuitton Trophy. Coutts said that there were large sponsors from the past who were pleased with the direction the Defender was taking, hinting that Louis Vuitton would return to the America’s Cup after a very public spat with Alinghi.

While the boat class and the protocol are open to the teams for discussion, the format of the annual series is looking like a done deal. The official press release includes a sales-pitch from Paul Cayard that doesn’t mention any of the reforms to the Cup, but rather positions the WSTA and Louis Vuitton Trophy as the natural home of the America’s Cup Class…

“We believe that the WSTA and its Louis Vuitton Trophy events are exactly the type of activity that needs to be incorporated into the big picture of the America’s Cup. With its global venues in important markets, regular calendar of events, tight racing in America’s Cup class boats, equal representation for each team, these events represent great commercial value that the teams can pass along to their sponsors.”

The announcement of the regular racing may impact on series like the Audi Med Cup where several teams are currently competing.

The Future of the Cup.

Yesterday’s conference was a lot of symbolic smoke and spin, but it needed to be done. Coutts and Onorato seem to think that teams who want to compete will come to a consensus about what the boat will look like and how the event will be run and Turner Sports or ESPN will tweak it so that we all tune in to watch.

One of the more interesting questions that Russell Coutts did express an opinion on, was about the introduction of nationality rules for crew. Coutts initially answered with the stock “We’ll ask the teams”, but then added that personally he would be in favour of such a change.

Key Dates Announced

• Protocol for the 34th America’s Cup will be issued by 31st August
• Design rule released by 30th September
• Notice of Race & Sailing Instructions published by 31st December
• Venue confirmed by 31st December
• Challenge Period open from 1st October – 31st January 2011

You can watch a replay of the Press Conference here…

Louis Vuitton Trophy a Showcase for the Côte d’Azur

Regular readers will know that the vast majority of sailing sponsorships are designed for a business to business audience. Some are lucky enough to rank as major events which drive tourism and investment in regions and towns. While many of sailing’s ‘politicians’ are trying to tear down perceptions that yacht racing is an elitist sport, the backers of the Louis Vuitton Trophy have a vested interest in keeping the sport exclusive.

Bruno Trouble, who has been a driving force behind the new event that features the old Version 5 America’s Cup boats, was once quoted as saying:

“The day we get a pizza company with its brand on the mainsail of a competing yacht, that is the end of the America’s Cup as it is now.”

Major events though, do give local development agencies a great chance to attract investment and business to a region. Any city with the infrastructure and logistical capabilities to host eight professional sailing teams and press and meet their requirements shows that longer term, the same city can provide a good environment for a company to locate a corporate HQ or facility.

Team Côte d’Azur, a promotion and economic development agency for the region around Nice is using the Louis Vuitton Trophyto host a small number of company leaders from Telecom and Life Science sectors. As this is Frnace, company heads were mostly sailing buffs and responded immediately to the development agency’s invitation. The leaders spent a day enjoying the competition while discussing also the reasons that had led them to invest in the Nice Côte d’Azur region to grow their business.

Team Côte d’Azur’s director Philippe Stefanini:

“It is very interesting for us to bring together prospects from different sectors for such a prestigious, exciting venue as the Louis Vuitton Trophy. The exchanges among our guests allow them to grasp the reasons why similar international companies have chosen to locate here and that helps them in their decision making.”

http://www.investincotedazur.com/en/newsletter/index.php?txt=act8937

Bruno Troublé Comments on the Louis Vuitton Trophy, Nice.

The Louis Vuitton Trophy in Nice is a relatively risky undertaking, even with the backing of the long time America’s Cup luxury goods sponsor (sorry – partner) and Bruno Troublé. The event was hastily arranged and the Nice was not the first choice for the November date.

Troublé has spoken about how the new event came to be on the Côte d’Azur and where we might see the Louis Vuitton Trophy next.

“We were supposed to go to Hong Kong in November but because there was only one place to go in Hong Kong, and the pier there was not finished, we had to cancel Hong Kong in June. We were willing to have an event in November, so we managed to convince Nice very very quickly.”

“At the end of the season there are not many places in Europe where you can sail: Marseilles, for example, is a great venue, but the wind is blowing 40 knots every day. Nice is also a very dynamic city. The Mayor is also the Minister of Industry, so he has a lot of power and he managed to make a decision in a week, whereas normally with public support like that takes months. So he is so powerful he has no problem to make a decision and then make it happen.”

The Louis Vuitton Trophy has improved upon the mecahnisms available to teams to promote their sponsors. One of the reasons for the event was to try and salvage some media value for partners who have been denied an America’s Cup appearance thanks to the squabbling between Alinghi and BMW ORACLE.

Troublé is proud of the technique they have introduced allowing teams to show their own branding on board. Each team purchases their own genniker from the organisers, while at the beginning of each day team a large patch with the team branding and logo is velcroed on to the mainsail in reverse order that the teams will be sailing a particular boat. When teams swap boats the outgoing team simply peels off their mainsail branding cleverly revealing the branding of the incoming team.

Louis Vuitton Trophy regattas in 2010 are planned for – Auckland in March, La Maddelena, Sardinia in May-June, Newport, RI in August and Hong Kong in November.

World Yacht Racing Forum 2009 Announces Speaker Line-Up. #WYRF

For better or worse, depending on where you sit, sport is now business. Big business. All sports are having to come to terms with the realities of the economics and business models of sports – whether it be professional events or grass-roots development.

Most would agree that the business of yacht racing is confused and fragmented. Even at the top level, many teams are not run as a business with gaps in revenue filled by wealthy owners out of their own pocket. It seems that anyone can announce a new series or a new event or a new class – irrespective of the impact it might have on the sport as a whole.

The only way that the sport of sailing will compete for share of media, sponsorship dollars and talent is to come together and talk through some of the issues facing the sport, and to that end the World Yacht Racing Forum is a must for anyone who is in the business of yacht racing.

The first forum, held in Monaco in 2009 attracted over  300 delegates from 37 countries, the second edition of the Forum returns to Monaco this 9-10th December, 2009. The topics promise to address some of the most pressing issues facing the sport – with sessions for debate including:

• Yachting Sponsorship – can Sailing deliver real value for money?
• Leveraging a Sponsorship Deal – How do we maximise the investment?
• Can Yacht Racing deliver economic returns for host cities and ports?
• Tapping into new Media audiences – The Future of Sailing on the Web and Television
• How can event costs be trimmed for today’s economic climate?
• Governing the Sport – What Can Sailing Learn from other Sports?
• What space is there for Multihull Racing in the international calendar?
• Americas Cup: How do the Challengers see the future of their event?

Over 60 speakers will address these issues, not just from the sailing world, but from Formula 1, Tennis and other sports that arguably do it much better than sailing does it.

This year’s World Yacht Racing Forum promises an outstanding line up of sailing personalities and top speakers including Conference Chairman Peter Gilmour (AUS) and keynote addresses by Tom Whidden, CEO of North Sails, and two time Vendee Globe winner Michel Desjoyeaux. Other confirmed and invited speakers include;

• Mark Turner CEO, OC Group
• Nick Fry Chief Executive, Brawn GP
• Nathalie Quéré Head of Global Sponsorship, BT Global Services
• Michael Rasmussen Chief Marketing Officer, VELUX
• Daniel Miles Group Head Marketing, Puma AG
• Jerome Pels Secretary General, ISAF (International Sailing Federation)
• Vincenzo Onorato CEO, Mascalzoni Latino
• Jamie Singer Partner, Onside Law
• Bruno Troublé Founder, Louis Vuitton Cup
• José Antonio Muñoz Manager, Deporte Andaluz
• Knut Frostad CEO, Volvo Ocean Race
• Scott Macleod Senior Vice President- New Business, Sony Ericsson WTA Tour
• Ignacia Triay Director, Audi MedCup
• Julien Benoist Head of Sponsorship, Foncia
• Richard Moore CEO, Capitalise
• Richard Brisius CEO, Atlant Racing
• Maria Moynihan Lee Festival Director, City of Galway
• Daniel Calero Manager, Puerto Calero – Canaries
• Ulrich Lacher Managing Director, IFM Sports
• Henrik Sund Managing Director, Grow AB
• Stéphane Kandler CEO, K Challenge
• Ian Taylor CEO, Virtual Eye
• Richard Simmonds Managing Director, Sunset & Vine
• Marijn Harinck Founder, United Games
• Jean-Dominique Lauwerins CEO, Be Tomorrow
• Michel Desjoyeaux Multi Vendee Globe Winner
• Josh Hall CEO, Portimao Global Race
• Dominique Wavre President, IMOCA
• Riccardo Simoneschi CEO, B Plan Marketing
• Paul Cayard Professional Sailor
• Stephan Kandler CEO, K Challenge
• Sotoris Buseas CEO, Greek Challenge

This year, a new event has also been added to the schedule – the Yacht Racing Design and Technology Symposium – which will run parallel to the Forum in an adjoining conference room (www.yrdts.com). The Symposium will include presentations and panel discussions from experts in the field of yacht racing design and technology including the latest developments in performance hull and composite design, hydrodynamics, coatings, rigging, sail making and much more. Owners of racing yachts from a select number of classes are being invited to the Symposium free of charge. A total of 14 panel sessions and presentations are scheduled across both conferences, plus two evening functions for all participants.

Both conferences will share an exclusive exhibition and networking lounge with over 30 stands allowing delegates to meet and network with new contacts and industry colleagues. Participants will also have the opportunity to visit the exhibition area of the adjoining Motorsport Business Forum at the Grimaldi Forum on the same dates, plus an invitation to the exclusive ‘Track & Ocean’ cocktail reception jointly hosted on 9th December at the Meridien Beach Plaza Hotel.

Although only in its second year, the World Yacht Racing Forum has already found its place firmly on the yachting calendar as Event Director James Pleasance explains;

“What last year’s Forum proved is that the sailing industry absolutely needs an event like this. By industry professionals coming together and sharing strategies and best practices, it helps raise the quality and value of the sport globally, as well as addressing some of the sports key issues. It is also an excellent place to network and make new contacts. Monaco is very accessible in December, it really is a must-attend event for anyone in the business of sailing and yacht racing.”

Register at http://worldyachtracingforum.com/registration.php

First Louis Vuitton World Series Event to be in Nice, In Novemeber.

The Louis Vuitton World Series (LVWS) and the World Sailing Team Association (WSTA) held a press conference in Paris yesterday to outline more details about their plans. The first event will be sooner than some might have thought, November this year in fact in the French city of Nice. There’s quite a lot of detail in this story and we will be digging a little more over the coming days, but in the meantime, here are the highlights from the official announcement.

As reported last week, the new event will be based on the successful Louis Vuitton Pacific Series held in Auckland in February 2009, using version 5 America’s Cup monohulls. There will be 10 places for teams, with eight slots already filled.

The second Louis Vuitton World Series event is scheduled for March 2010 in Auckland, New Zealand, followed by a Series in La Maddalena (Italy) in May 2010.

Organizers are also evaluating interest from other international cities to complete the racing calendar for 2010 and 2011. Bruno Troublé, creator of the Louis Vuitton Cup and LVWS spokesperson comments:

“We have received serious interest from cities like Athens, Greece; Valencia, Spain; Newport, RI, USA; Cape Town, South Africa; Hong Kong, and Abu Dhabi to host future events. ” The WSTA and Louis Vuitton will announce more events (2010/2011) during the Nice regatta this year.”

Teams confirmed for the first event in Nice include: BMW ORACLE Racing (USA), Emirates Team New Zealand (NZL), Italia by Joe Fly (ITA), K-Challenge (FRA), Mascalzone Latino (ITA), Swedish Challenge Artemis (SWE), Synergy Russian Sailing Team (RUS) and Team French Spirit (FRA) .

Pietro Beccari, Executive Vice President of Louis Vuitton, in charge of Marketing and Communication, notes:

“We only announced the Series last week and already another four teams have expressed interest for the remaining two berths for Nice. We will soon confirm the remaining teams for the LVWS – Nice.”

Yves Carcelle, Louis Vuitton’s Chairman and CEO, is delighted with this new chapter, which complements but is separate from their 25 year association with the Cup:

“In the wake of the Louis Vuitton Pacific Series, which brought a breath of fresh air to the sailing world, this Series will allow, once again, the teams to come together in a competitive but friendly atmosphere.”

Grant Dalton, CEO of ETNZ and a WSTA founding team explains:

“The Louis Vuitton Pacific Series was a great success. It seemed logical to try and build on this and that is what we have done. It is a win-win situation for Louis Vuitton, the teams and the host cities.”

Russell Coutts, CEO of BMW ORACLE Racing, a WSTA founding team, explains:

“Sailing teams at the top of the sport require sponsorship. Sponsors require an annual global calendar of compelling events. And the sailors seek a highly-competitive series where they can face their toughest opponents on a fair playing field. We see this Series as addressing all of those elements and are excited by the potential.”

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