Team NZ moves to retain 'core group'

1.00pm

In a bid to prevent poaching by other America's Cup syndicates, Team NZ has offered contracts to "an extended core group".

Team NZ declined to name those offered contracts.

Team New Zealand will make a decision by October on whether to challenge for yachting's America's Cup in 2007.

Trust chairman Ralph Norris said the syndicate had started a feasibility study on heading to Europe when the Auld Mug comes up for grabs again.

In another development Norris said the trustees were looking to appoint a managing director to take "an overall responsibility" for Team New Zealand.

"Reporting to this person will be a director of sailing, who will have the experience to lead the sailing group and control the boat design process. Other senior staff will be appointed to handle funding, facilities and other administration functions," Norris said.

It could not be established what impact these appointments would have on the role of Team NZ chief executive Ross Blackman.

In the meantime, it was moving to preserve its ability to mount a challenge if a decision was made to proceed.

This included protecting key people and intellectual property, including:

* a commitment from syndicate head Tom Schnackenberg that he would stay on as a member;

* offering employment contracts to an extended core group,

* the $5.6 million initial government funding announced last month;

* completing an internal review of the unsuccessful 2003 defence.

Team New Zealand's eight-year hold on the cup ended on March 2 when Swiss syndicate Alinghi completed a 5-0 sweep off Auckland.

Alinghi had six former Team NZ crew on its yacht, including skipper Russell Coutts and tactician Brad Butterworth, who switched sides shortly after the successful defence three years ago.

Norris said Team NZ had been "extremely active" in the weeks since the last regatta ended.

"We were determined never again to be as vulnerable as we were in 2000 to defections," he said in a statement.

"We regard the commitment by Tom to be critical, and he will be the nucleus of any 2007 Team NZ."

Norris said the initial government funding had allowed the syndicate to offer contracts to key personnel, and negotiations with them were going on.

That money would be treated as a loan and repayment would be covered by the sale of assets if the decision was made not to go ahead with a challenge.

Team New Zealand spent $85 million on the last regatta, in which it kept its funding formula of a "group of five" main sponsors.

Norris said a successful challenge in Europe would need a significantly increased budget funded by global firms.

Team New Zealand would need a boat design, sail and sailing team package greatly superior to that of any syndicate that came to Auckland, he said.

Trustees were seeking to appoint a managing director to take over responsibility for Team New Zealand.

Norris said the internal review had involved a frank appraisal of every aspect of the last campaign.

But before any conclusions not relating to intellectual property were made public, they would be discussed with team members, sponsors and business partners.

However, the reasons identified for the loss "lie entirely within the team", Norris said.

"The reasons are not the result of insufficient sponsorship funding or the work of business partners," he said.

"Our boat builders, suppliers and contractors all performed to very high standards."

- HERALD STAFF, NZPA

Further reading: nzherald.co.nz/americascup