"I think it's just the financial reality of the Cup now."
The America's Cup has always been an expensive business. But the budgets have grown exponentially with each edition, despite promises from successive defenders to limit the costs and make the event more accessible.
With the event this year moving to new hi-tech wingsailed catamarans, the cost of launching a credible campaign in San Francisco is estimated at $120 million.
Just three challengers, Artemis, Luna Rosa and Team New Zealand will compete in the 34th edition - Team New Zealand being the only one not backed by a billionaire.
They've had to scrape together their campaign budget from a range of multi-level sponsorship deals, with the New Zealand Government chipping in $37 million of that. But that public money comes with conditions.
For their investment, the government is expecting Dean Barker and his crew to return home in September with the silverware, and with it the myriad of financial benefits for New Zealand's marine, hospitality and tourism industries that would come with hosting the next event.
The cash injection from the Government was considered a one-time only deal, and without it, Team New Zealand recognise they won't survive in the current climate.
Right now though, Dalton isn't prepared to elaborate on the consequences of failure.
"Certainly at director level we are thinking win-lose scenarios, but my brain is not programmed past September - my life isn't programmed past September - so it's not something I personally give much thought to," he said.