If the Cup gets $30 million, then what do we get?

By HELEN TUNNAH

Sporting groups promise they will be lining up at the Government's door if taxpayers shell out tens of millions of dollars to losing America's Cup syndicate Team New Zealand.

New Zealand Olympic Committee president John Davies said major sports brought tourism and trade benefits to the country, and it would be good for all sports if governments recognised that.

America's Cup Minister Trevor Mallard yesterday denied reports that he had already pledged $30 million to an America's Cup challenge in Europe in 2007, more than five times the $5.6 million handed over last month.

"I don't make personal commitments of public money," he said. "We've said we'll look at things.

"They've got to go on and get some other people first and then come back. We might not be the last on board but we certainly won't be the first."

He said until a fresh Team NZ challenge was confirmed, no promises would be made. He has already said more money may be given if the syndicate presents a sound business case for funds to help mount a challenge, expected to cost up to $150 million.

It is understood the Cabinet has discussed the possibility of giving the syndicate more money though it is unclear whether actual amounts have been discussed.

The Independent newspaper yesterday reported that the Government had promised to match every $2 of private sponsorship raised by Team NZ with $1 of taxpayers' money, up to a maximum of $30 million.

The day Team New Zealand lost the America's Cup, trustee Ralph Norris confirmed that the syndicate already had some financial plans in place to keep the team intact, and four days later Mr Mallard announced the Government's first grant.

The money comes from the tourism and trade budgets, although it is not known if any other promotional efforts have been reduced or cut to accommodate the Team New Zealand spending.

Mr Davies said Olympic Games attracted vast crowds, as did individual sports at their world championships or events such as last weekend's Badminton horse trials, which draw crowds of 200,000, or next month's Confederations Cup soccer in France.

"They all bring great credit to New Zealand and they also create an image of New Zealand," he said.

"We welcome the concept that the Government now looks at sporting teams and establishes the value that they are to New Zealand, and offers some funding for them.

"In many instances they stimulate tourism and they may stimulate trade. We'd like to think the Government treated all sport on an equal basis.

"We'll certainly be talking to Mr Mallard to promote that."

What Team New Zealand has to do in exchange for funding is not clear. The syndicate uses the money for expenses. The $5.6 million is being spent pursuing un-named crew, and in return must meet some sponsorship commitments.

A contract outlining the syndicate's tourism and trade deal exists, but Mr Mallard would not say what was in it, citing commercial sensitivity.

However, it is understood the deal requires national tourism and trade logos to be displayed on boats, while key team members may be required to attend events overseas.

There were overseas obligations for crew in the last campaign, but marketing agents say a team must be careful to avoid over-committing itself because that could affect performance.

After a poor run of results at the start of last year, skipper Dean Barker was excused from public engagements, saying the time pressure was affecting his sailing.

Cash for sport

Taxpayer funding provided by Sport and Recreation New Zealand

Yachting NZ $751,850

Netball NZ $614,000

Bowls NZ $466,283

Swimming NZ $392,640

NZ Golf Assn $374,792

Soccer NZ $250,000

Athletics NZ $247,770

NATIONAL TOTAL $13.358m

Year ended June 2002


Further reading: nzherald.co.nz/americascup