Team NZ dip out on sponsorship worth millions

By CHRIS BARTON and SIMON HENDERY

Team New Zealand have missed out on a sponsorship deal with the German computer giant SAP, leaving a multimillion-dollar cash gap for the next America's Cup defence.

SAP, the world's third-largest software company, had been in talks with Team NZ about stepping into the prime "family of five" sponsorship spot left vacant by Television New Zealand.

But SAP co-chairman Hasso Plattner told the Herald that talks with Team NZ about a major sponsorship deal had broken down.

Discussions had since resumed, Mr Plattner said, but SAP was interested only in signing up for a minor sponsorship role.

Although Mr Plattner is an enthusiastic sailor his yacht Morning Glory won the 1998 Sydney-to-Hobart race he said a deal with Team NZ would be based purely on potential brand exposure for SAP.

Sponsorship requirements to pay for the 2003 campaign are tipped to be as high as $85 million - up about 80 per cent - leaving a question mark over who will pick up the slack.

TVNZ announced this month that it would retain broadcasting rights for the 2003 campaign, but was pulling its One logo from the sails and side of the black boat challenge "because Team NZ requires a considerably higher level of sponsorship than in previous campaigns."

Rick Ellis, the state-owned broadcaster's chief executive, said the move would help Team NZ's defence by opening the door to additional sponsorship.

Team NZ have never detailed their sponsorship figures, but TVNZ, Telecom, Steinlager, Lotto and Toyota are believed to have contributed about $5 million each to Team NZ's last campaign.

Team NZ chief executive Ross Blackman said that talk of a deal with SAP was speculation.

Last May, the Government negotiated a $5.6 million deal with Team NZ after key figures Brad Butterworth and Russell Coutts defected to a Swiss syndicate.

Sport Minister Trevor Mallard said the extra cash was intended to stem the flow of Team NZ members to foreign challengers.

Last night, Mr Mallard would not comment on whether the Government might step in again to bail out Team NZ if a new sponsor could not be found.

"I am in relatively frequent contact with Team NZ, but it is inappropriate for me to comment on the state of play of any of their individual negotiations."

A Team NZ spokesman said that sponsorship negotiations were continuing and an announcement on a new family-of-five sponsor would be made once a deal was struck.

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