KEY POINTS:
Aboard the Team New Zealand support boat motoring forlornly back to shore after the 2003 loss to Alinghi, a fog of helplessness descended. Following such a crushing defeat, how could there ever be another New Zealand challenge for the America's Cup?
Above the thrum of the engine and splash of waves, Toyota boss Bob Field called for everyone's attention. The country's reputation and the legacy of its Cup efforts were on the line, he told the group of key stakeholders. "We cannot quit now or we'll forever be labelled a nation of quitters," he said.
Toyota was the team's longest-serving sponsor, and although Field was emotionally committed to supporting another quest, he knew it would be tough. The only prospect was if someone was brought in to steady the ship.
Field had only one name in mind: Grant Dalton.
About the time Field was making his speech, Dalton, an ocean-racing veteran who hadn't been involved with the Cup since 1987, was at home staring at the TV. The whipping handed out to the black boat left him chilled. Around the world, the fact that New Zealand held the America's Cup made Kiwi sailors feel invincible. Now it was gone, he began to wonder if he could help rebuild that pride.
Within days, syndicate head Tom Schnackenberg called the team together to discuss finding a future leader. Mike Quilter, a six-time Cup veteran who had made three global circumnavigations with Dalton, stood up and in his own forthright manner made his thoughts clear - the man for the job was "Dalts".
"The thing is that the team needed leadership, like any sports team or business," says Quilter. "And when Dalts is in charge, there's no doubt who the boss is."
Four years after his April 2003 appointment, Dalton - who turns 50 tomorrow - has built a team which has not only fought back to its feet, but has punched its way back into the game. All other challengers have been overwhelmed and, in the past week, it has wrenched Alinghi's iron grip from one handle of the ewer.
Win or lose from here, the efforts in Valencia have vindicated the calls of those who brought Dalton onboard. He's achieved it through a leadership style which mixes strong direction and inclusiveness. His sound yachting pedigree commands respect, while his business skills shine through. Those who stand beside him are intensely loyal, undaunted by his no-nonsense manner.
Even his old mate Quilter says Dalton is "not everyone's cup of tea".
"In the early days, Dalts was a dictator but he learnt a lot from Peter Blake about employing good people and letting them do their job," says Quilter. "He leads very much from the front and he sets the work ethic."
He's also incredibly competitive. "You go for a run with him in the morning and he wants to win."
His direct style caught some members of the 2003 campaign by surprise. One veteran waiting to hear if he had a job was rung by Dalton and told: "Listen, I'm sorry. No, actually, I'm not sorry. There's no job for you."
Even Schnackenberg was unceremoniously cut from the team.
One former Team New Zealand member says Dalton is not afraid to offend. "He's honest, up-front and strong, and some of the guys have struggled with that. But frankly it was needed," he says.
Skipper Dean Barker was not immune to Dalton's uncompromising style, with friends of Barker's saying Dalton came down on him "like a ton of bricks" for the first two years. But Barker responded positively, and the results on the water speak for themselves.
Even sports minister Trevor Mallard copped the gruff treatment, recalling his first meeting with Dalton as unexpectedly tense. The Government had announced within days of the loss it would give the syndicate $5 million to retain key staff. More money was promised - but one of the conditions was that the management and governance be sorted out.
Business leader Gary Paykel had approached Mallard and the former trustees saying the solution was Dalton. Paykel had known the sailor since he was a 28-year-old looking for round-the-world sponsorship from Fisher & Paykel. "Even back then, you only had to spend five minutes with him to think, 'This guy's different. He's got drive, he's got that determined look in his eye'."
Paykel, later appointed syndicate chairman, acted as a go-between, and invited Mallard to meet Dalton. It was not a job interview, as such, since the Government had no say in who should be boss. Nonetheless, Mallard expected to be asking most of the questions. Not so.
"You could say I thought he was incredibly driven," says Mallard. "I'm not the most diplomatic person in the world, but Grant was even less so. There was a little bit of sailor talk. There was a feeling he was testing us out."
Dalton had seen the adverse public reaction to the decision to put taxpayers' money into the team and wanted to make sure Mallard had the stomach to go through with his commitment to front up with more (the total was eventually $33 million).
Since that first meeting, the pair have enjoyed a much more cordial working relationship. Early on, they met at Dalton's house to nut out details, and Dalton has kept the minister constantly informed about developments - even better than some of the state-owned enterprises, Mallard notes.
Mallard's experience shows that with Dalton, if you've convinced him you've got what it takes, you're all right in his books. When he came on board, he brought with him a cluster of trusted lieutenants to fill key positions. Warren Douglas, the team's PR man, and Bronwen Kempster, Dalton's PA, have been with him for years.
One of his first appointments was Kevin Shoebridge, the team's sailing and operations manager, who has competed with Dalton over the years, including winning the 1993-94 Whitbread together on NZ Endeavour.
Toyota's Field sees the Dalton-Shoebridge combination as crucial. "Just as important as Grant, is the huge workload and responsibility carried with skill and diplomacy by Kevin Shoebridge.
"Grant and Kevin make a great team at the top and have inspired tremendous loyalty and commitment throughout the team."
Dalton and Shoebridge may be a tight band, but there's no feeling within the 140-strong syndicate that this is a two-man state. In fact, an egalitarian atmosphere pervades.
George Jakich, a shore-crew member with responsibility for the rigging, jumped at the chance to sign up because of Dalton's "no bullshit" approach.
"He doesn't suffer egos," says Jakich. "Across the board, everyone is treated equally, everyone is made to feel just as important as the next guy. He really backs up his team."
Barker admires Dalton's commitment. "He puts his job before family most of the time," says Barker. "He is 120 per cent committed to making this team successful and that rubs off on the guys."
It's also significant that Dalton has taken a place on the raceboat, albeit as a lowly "sewer rat", doing dirty work like packing wet sails. He's nowhere near the brains trust at the back, but he's not cloistered in an office. It also gives him the advantage that if all hell breaks loose on board, he's among it, witnessing it first-hand.
At the end of each race day, he sets to work with a rubbish bag, one of his self-assigned jobs.
Dalton's demeanour is always the same when they reach shore, says Paykel. "There's no hype or no euphoria. And when things don't go so well, he's not banging the table. He keeps heads cool."
Significantly, Peter Blake had a similar attitude and also took a sailing role in 1995, the greatest Cup team of all.
It's one thing to have a committed team, but in the America's Cup, success relies on money. When he joined, Dalton knew the most taxing task would be raising enough to pay for the dual-hemisphere campaign - an estimated $140-$160 million. Not that he was daunted. His round-the-world days gave him ample experience at knocking on companies' doors.
Before the first corporate cheque arrived, several backers provided bridging finance, a vote of confidence that with Dalton on board, the challenge was on. Controversially, Dalton also accepted a loan - understood to be tens of millions of dollars - from Alinghi head Ernesto Bertarelli, paid back as sponsor's money landed.
The search for sponsorship took Dalton and business manager Tony Thomas, an old hand at Team New Zealand, on a global forage. Thomas approached about 40 corporates, and the pair pitched to about 20 of those.
In June 2004, airline Emirates signed up as the main sponsor in a deal estimated at more than $30 million. Spanish brewery Estrella Damm and Toyota were second tier, but vital, backers.
Toyota's Field says the company's long-term commitment to the team meant it was always determined to be involved, especially because it has been such a beneficial relationship to the company.
"Being associated with a team of ordinary New Zealanders achieving extraordinary results on the world stage is very much in keeping with our 'everyday people' theme in New Zealand," says Field.
Toyota Japan was also eager to enhance its exposure in Europe and so topped up its New Zealand entity's contribution. The Japanese money was secured after Mallard and Dalton travelled to Tokyo in 2003, attending a function thanking Toyota and others for supporting previous campaigns.
Dalton outlined plans for the 2007 challenge, but Field says it was "more an exercise in diplomacy than a concrete proposal". He admits though that the presence of the pair helped pave the way in final funding negotiations.
Field puts Dalton on the same par as Blake when it comes to credibility with sponsors, instilling confidence and working hard to ensure they get value from the relationship.
"It's fair to say we made Grant's appointment as CEO a condition of our involvement because he was the only guy we believed could make enough of a difference to lift ourselves out of the hole we were in after the 2003 defence," says Field. "We were right."
From Dubai, Boutros Boutros, an Emirates' senior vice president, says the team's approach appealed because it coincided with the airline's sporting interests and its global strategy. But, he says, Dalton was a crucial factor. "He was not only passionate, but also realistic and ultimately compelling," says Boutros. "He was very, very persuasive."
With money in the bank and staff secured, Dalton set about the real task - winning back the Cup. He has incredible attention to detail, not only with the boats but the business too, signing off every invoice over $500.
For advice, he turns to a circle of businessmen. Paykel says he and Dalton will often have informal chats as big decisions need to be made.
"He's prepared to bounce ideas off people. He isn't rip, shit and bust, although he might give that impression. He's a very measured person."
Dalton is also close to entrepreneur Geoff Ross, of 42 Below vodka fame, and former TVNZ head Julian Mounter. On Tuesday, the first lay-day of the Cup match, Dalton and the team took time to honour another one of his mentors, the late Sir Tom Clark, by scattering his ashes along the start line in Valencia. Considered the patron of New Zealand's international yachting missions, Clark was a fierce supporter of Dalton.
Not long before he died two years ago, Clark was asked what he thought about Dalton.
"What I admire about him is he has balls with a capital B. Grunt, grunt." Baring his teeth the 88-year-old added: "Rrrrr!"
Dalton has that effect on people.
Six things you should know about Grant Dalton
1. Dalton is married to Nicki and has three children, Eloise, Mack and Olivia, who have joined him in Valencia.
2. He is one of the world's greatest ocean racing sailors, having completed six round-the-world races - winning twice - and one record-breaking 62-day global sprint on Club Med in 2001.
3. This is his second America's Cup campaign - he was part of the 1987 Fremantle Kiwi challenge but failed to make the sailing team, a rejection which hurt for years.
4. A long-time motor-racing fan, particularly Formula 1, he races a Porsche on the New Zealand motor racing circuit.
5. His background was as an accountant, a profession which gave him a sound grounding in the business of running round-the-world and America's Cup campaigns.
6. He is a notorious cleanliness freak, admitting his behaviour borders on obsessive. For his 40th birthday, he was presented with a cake in the shape of a Jif bottle.
Money, money, money
* Naming sponsor: Dubai-based airline Emirates. Deal estimated at more than $30 million
* Elite sponsors with branding rights on boat:
Carmaker Toyota
Spanish brewery Estrella Damm
Figures not disclosed
* Government money: Tourism NZ and NZ Trade and Enterprise have provided $33.75 million and used the team to promote the country.
* Exclusive suppliers:
Line 7
Omega
Fisher & Paykel
Vodafone
Maersk Line
Murphy & Nye
* Others: More than 70 other companies have supplier relationships with the team
* Millionaires' club: Several wealthy backers stumped up with cash as bridging finance in the syndicate's early days. One was Swiss-Italian businessman Matteo de Nora, a long-time fan, who handed over several million dollars and persuaded others to do likewise.
