15.09.2007
The 32nd America's Cup competitors receive their share of EUR 66.5
million profit
Valencia, 15th September 2007 - AC Management (ACM), organiser of the
32nd America's Cup, distributes 90% of the EUR 66.5 millions net surplus
the event generated over the past four years to participating teams.
This will help teams prepare for the 33rd America's Cup which is to take
place in 2009.
By creating a single structure managing both the Challenger Selection
Series and the America's Cup Match and by developing a professional
marketing strategy, the organisers of the 32nd America's Cup succeeded
in creating a net surplus to be shared with all competitors of the 32nd
event.
This EUR 66.5 million surplus comes from a total revenue of EUR 240
million, generated largely through the city bid and the four year
sponsorship programme, but also through TV rights, the hospitality
programme and the concessions and marinas of Port America's Cup.
"This is a significant result and by providing the funds to the teams
now, we aim to help them prepare their 33rd campaign, while also giving
continuity to the event," said Michel Hodara, CEO of ACM.
Ernesto Bertarelli, syndicate head of Alinghi, Defender of the 33rd
America's Cup, commented: "The vision for the 32nd America's Cup was to
create a fantastic sporting occasion, in Europe, with a viable
commercial business model comparable to other major global sporting
events."
The America's Cup delivered on both accounts with this edition being
arguably the best ever with over 4 billion TV viewers and 6 million
visitors, watching extremely close racing. Bertarelli now looks to the
future: "Our vision for the 33rd America's Cup is to create an even
greater sporting occasion for 2009 with an exciting new class of boats
and to build upon the successes of the 32nd edition."
THE STRATEGY AND STEPS TAKEN TOWARDS THIS NET SURPLUS DISTRIBUTION:
1. AC Management SA (ACM), the event organising body, approached the
America's Cup strategically and created one property by combining the
America's Cup Match with the Challenger Selection Series, while before
they were run by separate entities. ACM also created Pre-Regattas which
ran the course of the four year campaign;
2. The professional marketing of the property worldwide, focusing on the
brand equity of the 'America's Cup', generated ?66.5m net surplus from
?240m revenue. Of this surplus, 90% is to be distributed to the
participating teams.
3. The value generated came indexly from the City bid process and from
the integrated sponsoring rights that offered to Partners a presence
that ran the course of the four year campaign.
4. ACM also controlled the television rights, the hospitality,
concessions and marina mooring within Port America's Cup.
5. The redistribution formula is 10% to ACM, 45% to the Defender, 45% to
the other teams as published in the 32nd Protocol in 2003.
6. Thus, the top challenger (i.e. Emirates Team New Zealand) will
receive over ?9m. The minimum contribution, to teams who did not qualify
for the Semi Finals, is still over ?1m.
7. While the distribution date indicated in the Protocol is March 2008,
ACM accelerated the closing of the accounts to allow teams to take
immediate advantage of the revenue, helping them to prepare for the next
campaign. The 33rd America's Cup will take place in 2009 in Valencia.
|
