Pullout costs illbruck team $1.4m

By JULIE ASH

The syndicate backing the German entry illbruck will forfeit more than $1.4 million by its decision to pull out of the America's Cup because of a shortage of money.

The syndicate says it is ceasing its preparations for the cup immediately.

"Despite intensive efforts to find a corporate sponsor, a commercial partner has not been found to finance the campaign," illbruck chief executive Michael Illbruck said yesterday.

The Royal New Zealand Yacht Squadron has yet to be told officially of illbruck's withdrawal, which will come from the club it represents, Dusseldorfer Yacht Club.

Illbruck would have been the first German entry in the 151-year-old event.

Since announcing its challenge in November 2000, illbruck has always made it clear it would need additional partners to help to finance the campaign.

With a round-the-world campaign also on the go, illbruck was always going to find it hard financing two events.

The syndicate paid the required US$100,000 ($233,000) to enter the America's Cup regatta and lodged two performance bonds of US$250,000 ($584,000) apiece by the January deadline, which guaranteed its participation.

None of that is refundable.

Last month, Illbruck sent an SOS, saying unless more money was found before April 1 the campaign would close.

"Our first priority was to succeed in the round-the-world and we are on track toward that goal," Illbruck said in that statement.

"The America's Cup challenge was always intended to get Germany into the cup, because we believe that only a long-term vision will bring the cup to Germany."

Yesterday, he said the withdrawal from the cup would not affect illbruck's entry in the round-the-world race, in which they have the overall lead after four legs.

The nine-leg event started in Southampton in September and finishes in Kiel, Germany, in June. The fifth leg from Rio do Janeiro to Miami is in progress.

"Our success so far in the round-the-world race demonstrates that Germany can compete with professional sailing teams," Illbruck said.

Although the syndicate's cup campaign has been on shaky ground for a while, the team's preparations were well advanced.

The hull of GER68 is nearing completion in Bremen. Illbruck's base in Auckland is fully fitted with a sail loft, boat shed, mast shed and offices. Team meteorologist Chris Bedford has been collecting data critical to cup preparations in Auckland.

Their base could be used by the controversial nuclear-sponsored French syndicate Le Defi Areva, which has yet to find a home.

Illbruck's withdrawal reduces the number of challengers to nine.

The Louis Vuitton Challenger series starts in October.

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