Auckland America’s Cup bid over as Team NZ confirm funds not available

Skipper Peter Burling and foil controller Blair Tuke with the Auld Mug after winning the America's Cup against Luna Rossa Prada Pirelli Team 7 - 3 in 2021. Photo / Photosport

Auckland will not host the 38th edition of the America’s Cup.

After confirming conversations were under way about bringing the competition for the Auld Mug back home last month, Auckland will not be moving forward as a potential host, with Emirates Team New Zealand noting a lack of funding made available by the Government.

In a statement, the team confirmed Auckland was out of the running for the event, expected to be held in 2027, saying they were disappointed but understood the Government’s position.

“Since winning the 37th America’s Cup in October last year The Royal New Zealand Yacht Squadron and Emirates Team New Zealand have been intent on exploring the possibility of hosting the 38th America’s Cup in Auckland with the understanding it would take a combination of private backing, Local Government as well as Central Government support to make it happen, but not at the expense of funding other priorities in the tough economic climate,” the statement said.

“In this time, 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 and Central Government have decided not to back the 38th America’s Cup in Auckland in 2027.

“While the significant economic benefits of hosting the America’s Cup and other major events are well proven, such as €1.034b ($1.9b NZD) of economic benefits in Barcelona in 2024, we understand there are other priorities for the New Zealand Government right now.”

Emirates Team New Zealand sailed their AC75 Te Rehutai in Auckland ahead of the 2024 America's Cup in Barcelona. Photo / Emirates Team New Zealand

Tātaki Auckland Unlimited (TAU) also released a statement confirming the bid would not go ahead.

“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.

“This situation again illustrates the need for a long-term sustainable funding model in New Zealand to support major events. Major events generate significant economic, cultural and social benefits for the country, including increased tourism, job creation and international profile.

“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.

“TAU, on behalf of Auckland Council, wants to reiterate the region’s support for Emirates Team New Zealand and any future America’s Cup events.”

Peter Burling, Blair Tuke and Emirates Team New Zealand celebrate victory with the America's Cup. in 2021. Photo / Photosport

It was understood that Team NZ were looking for around $150m, with half of that ideally coming from private backers.

That was a similar structure to the successful bid from Barcelona to host the 2024 edition. A bid of €70 million ($131.5m) was ultimately accepted from the Spanish city, with public institutions accounting for €45m ($84.6m) and private entities making up the other €25m ($46.9m).

The host venue for the next edition of the America’s Cup is expected to be confirmed by late June. That was one of several foundational agreements made by the Royal New Zealand Yacht Squadron and Britain’s Royal Yacht Squadron when the latter was confirmed as Challenger of Record for the next cycle.

A venue for the regatta was to be announced by the defender within eight months of the final race in the Barcelona match, while it was also agreed the regatta was to take place within three years of that date – subject to any adjustments needed regarding what hemisphere it is sailed in.

The Deed of Gift states no racing is to be held between November 1 and May 1 if sailed in the Northern Hemisphere, and the reverse if sailed in the Southern Hemisphere.

The loss of the America’s Cup being held in Auckland comes days after Auckland Council and the Government said they have no plans to fund a staged redevelopment of Eden Park, costing hundreds of millions of dollars.

The privately owned park plans start with a $110m development of the Lower North Stand, followed by redeveloping the Upper North Stand with potential additions such as hotel and student accommodation. Stage 3 would see the installation of a retractable roof.

Auckland Mayor Wayne Brown said as a keen supporter of bringing major events to the city, it was a shame the America’s Cup will not be returning in 2027, particularly given recent figures that showed Barcelona benefited to the tune of $2 billion from hosting the last America’s Cup.

“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.

“We need funding that is going to be workable and does not put the burden on Auckland ratepayers. I acknowledge the work that was done by Tātaki Auckland Unlimited to bring the cup home,” Brown said.

‘Would have loved to have hosted’

Minister for Sport and Recreation of New Zealand Mark Mitchell revealed it would have cost the Government $75 million to host the 38th edition.

“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.“At the moment we’ve got other areas that we need to invest $75 million in.”

Hospitality NZ chief executive Steve Armitage said confirmation that Auckland is unable to proceed with a bid to host the 38th America’s Cup in 2027 is a disappointing blow for the hospitality and accommodation sectors.

He said large-scale events play a crucial role in supporting New Zealand’s economy, particularly for industries that rely on visitor spending.

“Major events like the America’s Cup drive demand across the host city, from hotel bookings to restaurants, bars and cafés. The flow-on benefits touch almost every part of the hospitality sector, and so many other sectors,” he said.

Armitage said this further reinforces the need for a consistent, nationwide approach to event and tourism funding.

“Hospitality NZ supports mechanisms like a bed tax in principle to fund events, but we are not in favour of piecemeal, region-by-region approaches that create confusion and inconsistency. We need to do it once, and do it right,” Armitage said.

“A national strategy is what’s needed to give councils, event organisers and businesses the certainty they need to plan and invest. Without that, our sector, and many others, continue to operate in an uncertain environment that undermines long-term recovery and growth.”

Christopher Reive joined the Herald sports team in 2017, bringing the same versatility to his coverage as he does to his sports viewing habits.