Team NZ confident of cup money

By HELEN TUNNAH

Team New Zealand remains confident that it will find enough money to run next year's America's Cup, despite a council report that it is $9.5 million short.

The Auckland City Council this week detailed the shortfall as part of an agenda document that proposed a one-off $650,000 grant for the America's Cup defenders.

The grant would be made to Team NZ Ltd, which last year paid $600,000 plus GST for commercial and management rights over the Viaduct Basin.

Team NZ chief executive Ross Blackman yesterday would not discuss financial details or confirm the size of the shortfall.

But he did confirm that most of the money still needed was for the company America's Cup 2003.

It runs the cup match itself, which begins in February and is a best-of-nine series between Team NZ and the winner of the challengers' regatta.

AC2003's costs include promoting the match, and the management and staffing of it.

Blackman, who is also chief executive of AC2003, said the cup had to be run, so the costs would be met.

The international sponsorship market was tough, and was tighter because of events such as the terrorist attacks of September 11, he said.

"We've just found that it is more difficult so far to fund the event, but the good news is we still have eight months to secure the funding."

At the 2000 cup, the company had five sponsors, but just two, Air New Zealand and Fuji-Xerox, have re-signed.

Talks are ongoing with other potential sponsors.

The company does not have to pay for the challengers' regatta, starting on October 1, which is run by Louis Vuitton.

The Auckland City Council's finance committee yesterday voted 6-3 to make the grant, with a final decision to be made at today's full council meeting.

Mayor John Banks has supported the payment, citing the economic boost to the region of the cup.

An economic study completed for the Government put the benefits to Auckland of hosting the last regatta at $473 million, and $640 million to New Zealand.

Team NZ Ltd has a separate group of sponsors for the defence, German technology company SAP, Telecom, Steinlager, Lotto and Toyota.

Television New Zealand is also a sponsor, but SAP has taken its branding rights.

Although Team NZ Ltd has paid the $600,000 for the Viaduct rights, the council has already spent that money.

It was used to help meet the $1.5 million cost to ratepayers of hosting the Volvo Ocean Race stopover.