Sponsors rescue Team NZ deal

By JAMES GARDINER

Team New Zealand's new leadership have reached agreement that will keep the major sponsors on board and clear away $5 million in debt the syndicate took on last year to stay afloat.

After a tense and bitter week of negotiations, a relieved Brad Butterworth yesterday reported that a deal had been done with the "family of five" sponsors - TVNZ, Toyota, Steinlager, Lotto and Telecom.

He said that at one stage he considered walking away. "Some things you've just got to ask yourself, do you need it?"

Skipper Russell Coutts revealed this week that the dispute over how the Team NZ leadership would change following the America's Cup victory had been a source of tension for several years.

When the Herald reported the dispute, shortly before racing began in the Cup finals, the paper was severely criticised from many quarters for being unfair or unpatriotic.

Syndicate leader Sir Peter Blake tried to downplay the row as no more than a family squabble. Events this week have shown how serious the falling-out was.

Coutts said there was anger that the existing management had chosen to sell NZL38 from the successful 1995 campaign. That was regarded as giving away technological know-how to competitors, and the reported price-tag - about $1 million - was regarded as too low.

Team members yesterday expressed frustration that they had won national adulation but did not know whether they had jobs or where their next pay cheque was coming from. Later in the day there was relief to learn that a deal was being done.

Bowman Dean Phipps said there had been serious approaches from Italy to several of the crew. Some had been disappointed when their contracts ended yesterday to find there was no bonus for winning.

Butterworth, who spoke just before joining many of his team-mates at the wedding of bowman Joey Allen in Auckland, said he and his partners in the new leadership, Russell Coutts and Tom Schnackenberg, hoped to keep the team intact.

The issue over whether the new leadership should pay the current Team NZ trustees - Richard Green, Jim Hoare, Sir Tom Clark, Roger France and John Lusk - was still to be resolved, he said. "The sponsors are behind us so I think the trust side of it will sort itself out."

The charitable trust that owns the companies Team NZ and AC2000 Ltd has revealed little about what it will do with any surplus. It has indicated the beneficiaries will be maritime-related and has said $100,000 went to the Spirit of Adventure Trust after the 1995 campaign.

It is unclear why the final negotiations have been so crucial for Sir Peter, who has left for Britain, and spokesman Alan Sefton.

Although executives of the syndicate, they were employees like the sailors and other shore-based staff and had no directorships or shareholdings in the associated companies.

Mr Sefton said this week that there was no "cashing up" and there would be no personal gain by anyone associated with the team as a result of the transfer of assets.

The assets at issue are the boats, the waterfront facilities, intellectual property rights and good will. It is believed the trustees wanted between $10 million and $20 million for them.

The Coutts camp say the assets should be transferred to a new charitable trust at no cost, then that trust could transfer them to future syndicates.

What had not been previously revealed is that Toyota, Steinlager, Telecom and Lotto, which had already put up $3 million each in sponsorship, together advanced a further $5.25 million to Team NZ with agreement that the money would be repaid should they not continue as sponsors. TVNZ had a different arrangement, tied up with its host broadcaster status and coverage rights.