Emirates Team New Zealand sought $150 million, with half from taxpayers, but the bid failed.
Civic leaders urge a sustainable funding model for major events to avoid missing future opportunities.
Crashing out of host contention for the next America’s Cup has been labelled a “golden opportunity” missed for Auckland in terms of direct economic windfall and international exposure.
The announcement has been met with frustration from civic leaders and calls for an urgent review of how New Zealand funds major events.
“This is an event that would bring thousands of people to our waterfront and a boost in business for hotels and local businesses while it’s on,” Heart of the City chief executive Viv Beck said.
“This was a golden opportunity to utilise purpose-built infrastructure and reap a timely economic return.”
Emirates Team New Zealand confirmed today that negotiations to bring the competition for the Auld Mug back home were at an end, citing a lack of funding from the Government.
It’s understood Team NZ were looking for around $150 million to secure hosting rights, with half of that coming from taxpayers.
In a statement, the team confirmed Auckland was out of the running for the event, expected to be held in 2027.
“The team have had comfort in the level of private support and have been working with Tātaki Auckland Unlimited who have been proactively spearheading the bid.
“So, it is with both disappointment and understanding to hear MBIE [the Ministry of Business, Innovation and Employment] and central government have decided not to back the 38th America’s Cup in Auckland in 2027.”
Heart of the City chief executive Viv Beck.
Beck said news that Auckland was unable to proceed with a hosting bid was “seriously disheartening”.
Aside from the direct economic benefits to Auckland, the campaign would also have delivered national benefits, including international tourism, tangible opportunities for jobs and trade, as well as profiling New Zealand’s marine innovation and technology.
“It is frustrating that ongoing representation to Government about the need for urgency in resolving a sustainable funding mechanism for major events has not yet delivered an outcome.
“Getting this funding in place must be fast-tracked so missing out to well-funded bidders competing for other major events doesn’t become the norm.”
Heart of the City understood that money was tight and that the Government had other priorities. However, growth was also a key priority, Beck said.
She referred to comments made six months ago when New Zealand won in Barcelona: “If there is quick action now and some imagination in how it could be funded, it would be great to get our country’s mojo back with a massive event like this to look forward to.”
Crowds at the Viaduct Basin in Auckland, as people watch the undocking of Luna Rossa and Team NZ prior to racing in the 2021 America's Cup. Photo / Alex Burton
Team NZ’s statement alluded to the $1.9 billion windfall Barcelona reaped from staging the 2024 regatta, saying “significant economic benefits of hosting the America’s Cup and other major events are well proven”.
Auckland Minister Simeon Brown told the Herald the Government considered a request from Tātaki Auckland Unlimited (TAU) to support hosting the cup in Auckland.
“But, after considering the proposal, ministers decided the estimated cost of $75 million, and possibly more - due to the uncertainty about local government and philanthropic support – was too high.
“We recognise the benefits of hosting events like the America’s Cup. Auckland would have been a great host for the event, but in Government we have to make tough choices.”
Supporting the event would have meant ring fencing money at the expense of other priorities like supporting New Zealanders with the cost of living and frontline school and health services, he said.
“We look forward to cheering Team NZ on as it defends the cup and will seek opportunities to promote New Zealand as part of the event.”
TAU said Auckland’s bid was contingent on a three-way funding partnership between Auckland Council, central government and the private sector.
“MBIE has informed TAU that the Government is unable provide the funds required and on that basis the bid cannot proceed.
“The TAU team has worked incredibly hard to try and make this opportunity work for Auckland; we already have the infrastructure and major events expertise in place and really wanted to be able to host our sailors on home waters.”
The missed opportunity illustrated the need for a long-term sustainable funding model to support major events, which generated huge economic, cultural and social benefits for the country.
Sports Minister Mark Mitchell revealed it would have cost the Government $75 million to host the event. Photo / Zach Quin
Sports Minister Mark Mitchell revealed it would have cost the Government $75m to host the event.
“We would have loved to have hosted the America’s Cup at home.
“I think we’re all extremely proud of the cup, its history and what it means to us as a country, but just the harsh reality of it was, it was just, too much money.”
Auckland Mayor Wayne Brown said as a keen supporter of bringing major events to the city, he felt it was a shame the America’s Cup would not be returning in 2027, particularly given the Barcelona windfall figures.
“It takes a strong partnership between the Government, local government and private investment to bring these major events to New Zealand, hence my strong advocacy for a bed-night levy. A bed-night levy means Auckland would’ve met its share of costs.
