Taxpayers' cash kept away from Bertarelli

By HELEN TUNNAH

No taxpayers' money will end up in the pocket of Ernesto Bertarelli as Emirates Team New Zealand repay the Swiss billionaire millions of dollars for keeping their America's Cup campaign afloat.

America's Cup Minister Trevor Mallard confirmed through a spokeswoman yesterday that the $34 million of public funding for Team New Zealand had been "ring-fenced" from the loan set up with Bertarelli, the owner of its arch-rivals and cup-holders Alinghi.

Team NZ syndicate head Grant Dalton confirmed that the loan, estimated at tens of millions of dollars and needed to ensure a challenge could be mounted, was unsecured and had to be paid back.

He indicated on Radio Sport that might be at the rate of a 10 per cent cut out of sponsorship dollars raised.

"It's unsecured. It's a progressive payment as we go towards our total budget.

"From now on if we raise $5 million we give him [Bertarelli] $500,000 back or whatever. "It's a percentage, so as we finish off our money we proportionately pay him back."

Mr Mallard's office confirmed yesterday that taxpayers' money was not part of that deal, and would not go to Bertarelli.

Under a deal arranged by the Government with Team New Zealand before they lost the America's Cup 5-0 to Alinghi, taxpayers will contribute up to $34 million for the 2007 challenge.

That relied on Team New Zealand raising at least $66 million in private money, although the amount needed for the challenge is expected to reach around $150 million. Major sponsors so far include Dubai airline Emirates Air and Toyota.

Just four syndicates have so far confirmed entries for the next regatta, while others, including Team Dennis Conner, have said they will struggle to be there because costs have rocketed.

On Radio Sport, Dalton had little time for critics of his funding plan, including Conner, a four-time cup winner.

After being told Conner was "furious" at the arrangement, Dalton said that reflected sour grapes.

"Maybe he should get off his fat arse and see if he can raise the money.

"Maybe he shouldn't eat so many pies and get on with bloody working a little harder."

Mr Dalton said the loan meant the difference between challenging or not.

However, another potential syndicate head was also surprised at the deal.

The GBR Challenge syndicate, who raced in Auckland in the last cup, are also still trying to pull together the estimated $US100 million needed for a challenge.

Owner Peter Harrison told Britain's Telegraph newspaper that he was "astonished".

"It's almost unbelievable and it's unfair."

He said he could understand why Bertarelli, whose loan was personal and was not linked to Alinghi's budget, would want a glamour team such as Team New Zealand at Valencia but all potential challengers should be treated equally.

"It would be like Manchester United not being in the FA Cup for some reason, so they are given $10 million to take part but then not giving any money to the Hartlepool Uniteds."

The newspaper's long-time yachting writer, Tim Jeffery, also pointed out the loan meant Team New Zealand was indebted to the man who was targeted as part of the Black Heart, anti-Alinghi campaign which marred the Auckland cup.

Russell Coutts, who Bertarelli sacked and has tried to exclude from the cup with a late rule change, had not known about the loan when he worked for the Swiss.

He is taking legal action against Alinghi, alleging breach of contract.

urther reading: nzherald.co.nz/americascup