Crunch talks as Cup stars wait

By TERRY MADDAFORD

The next America's Cup reaches a crunch point this week, with star sailors and their financial backers in delicate negotiations to confirm their part in the 2003 defence.

Underpinning the urgency is the fact that Team New Zealand members receive their last pay this week, with contracts ending on Friday. Young skipper Dean Barker is one who is uncertain about his future.

Yesterday, one of the key players taking over the defence, Brad Butterworth, said: "Getting things sorted out is a priority if we are to avoid a serious situation which could easily go bad.

"I, like others, have had offers from elsewhere. We want to stay in New Zealand, but we have to think of our families."

The talks are expected to peak in the next 48 hours. They involve the charitable trust that owns Team NZ, the family of five sponsors and the new organisers led by Butterworth, Russell Coutts and their business advisers.

The Herald has learned that the key issues are the fate of sponsorship deals and the sale price of Team NZ assets to the new group. And the price, it seems, may be the immediate hurdle.

While the trust has agreed to the need for a smooth transition, it must assess the dollar value of the assets.

It is understood that Team NZ's current head, Sir Peter Blake, has told the trust that the assets, including goodwill, are worth "many millions of dollars."

But there is a feeling that Butterworth and his group expect simply to move in and take over.

The Team NZ Trust comprises Richard Green (chairman), Sir Tom Clark, Roger France, Jim Hoare and John Lusk. They agreed to be on the trust after being invited by Sir Peter.

While the issue is complex, the trustees want to resolve it quickly. They are obliged to discharge their liabilities and obligations before distributing the residue of the trust to charities.

A spokesman for the trust said it was important to keep the waters calm but remain optimistic that matters would be resolved in the next few days.

And a Team NZ spokesman said it had encouraged the talks. The family of five sponsors had "first right of refusal" to sponsorship roles and Team NZ hoped common ground would be found.

Butterworth said: "On the positive side, we have this great opportunity. But for the Cup to continue to flourish there are integral things we need, like the boats and the compound.

"We want to get going. If we want to retain key people we have to get started. But we can't do anything until the current trustees sort out their commitments to the current family of five sponsors.

"We are keen to take on, and expand, the team the way it is, but for that to happen the existing trust has to sort out where they stand.

"There are ongoing negotiations which we hope will lead to a smooth transition."

At the sharp end, the sailors must wait for the corporate power-plays.

After finishing third in an Auckland match-racing regatta at the weekend, and before heading to Perth for today's Australia Cup regatta, star skipper Barker said Team NZ's future was uncertain.

He even hinted that another - perhaps overseas-based - New Zealand syndicate might be formed to challenge for the America's Cup in 2002-03.

Butterworth did not see that as likely, but admitted that some New Zealanders had received, and would continue to receive, offers from challenging syndicates.

Timing is critical for any sailors thinking of joining an overseas syndicate because strict eligibility criteria must be met.

While article 13 (a) of the America's Cup (1999-2000) Protocol provided for a minimum three-year residential qualification, that will be reduced to two for the next regatta, which means all syndicate members must show their hand by October.

Butterworth said the trust had outstanding responsibilities to its sponsors. "Those have to be resolved before a new trust can be appointed.

"The problem at the moment is all about funding. Around $40 to $50 million was spent in this campaign.

"That will be higher next time. We will have to pay more to retain key people."

Butterworth said the Royal New Zealand Yacht Squadron, as holder and trustee of the America's Cup, was "100 per cent behind us," but he and his group could not move until the situation between the present trustees and their sponsors and other matters were resolved.

He said the new group was continuing discussions with the sponsors, who had spent "millions of dollars" and were, understandably, asking for time to consider their future involvement.