Innovative Minds and Sea-Faring Sailors: What Can Be

Learned from the America’s Cup?

What is The America’s Cup?
The America’s Cup is a sailing regatta unlike any other. It is the most sought-after prize in
competitive sailing and to win, a team must be in possession of elite sailors and elite sailing
technology.

The America’s Cup is technically one single race series (a “best of” series of races where a
sailing team must win a certain number i.e. 4 out of 7 races) between the previous
America’s Cup winner (the defender) and one other team (the challenger). The defender has
a distinct advantage, they are able to choose the type (class) of boat that will be used during
the races, where the races are held, and what the racecourse will look like. All of these
“rules” have been established over a long history of America’s Cup racing. In the early years
of the America’s Cup, there only ever used to be one challenger every so often, however
after the 1960’s there was a drastic increase in teams wanting to win the America’s Cup. The
challenger series, a precursor to the actual America’s Cup series was created to determine
which lone sailing team would compete in the actual series for the Cup.

Today there are normally 5 – 11 teams that compete in the challenger series, one of which
will face the defender in a “best of” 9 races series, and smaller championship races that
happen around the world; these races although not affiliated with the America’s Cup, give
sailing teams the opportunity to test their boats against the competition.

A Brief History of the America’s Cup:

Every few years, without a regular schedule, some of the world’s best
sailors, backed by some of the world’s most successful companies,
clash in one of the world’s most gripping regatta’s – the America’s Cup.
For 170 years the Auld Mug has been continually sought after by
challengers from all over the world, a tradition that started forty-five
years before the modern Olympics. Today the America’s Cup is
symbolic of cutting-edge innovation, high-society, and sailing
expertise, but how much of the modern cup can be attributed to the
regattas of yester-year? What is it about this cup that has allowed it to
be transformed from a face-off between two skippers to the
technological spokesperson of, in some cases, entire nations? To
better understand how such an evolution has come to pass, we must
first dive into the Cup’s early years and find out exactly why the
parameters of the America’s Cup make it such a unique, opportunistic,
sporting event.
 ‘The story of the America’s Cup is a colorful, even purple one.’1

22nd of August 1851. John Cox Stevens and

his New World Schooner, America,
challenged the British Royal Yacht
Squadron to a race. The regatta would send
the entire Royal Yacht fleet and their lone
US challenger around the isle of Wight off
the coast of England. Waiting eagerly at the
finish line was Queen Victoria and her
entourage, the Queen, noticing that the
boats were making their way down the
final stretch, asked her Signal Master ‘Who is winning’, to which he replied: ‘The America
Ma’am’. She next enquired as to who was second. His response set the tone for the next
170 years of racing: ‘Your Majesty, there is no second.’ After being presented with the, then
called, 100 Pounds Cupi, John Cox Stevens gifted his prize to the New York Yacht Club (NYYC)
under a Deed of Gift which stated that the trophy was to be “a perpetual challenge cup for
friendly competition between nations.” It would take another 132 years for any other nation
to successfully take the cup away from Rhode Island. The NYYC who, before their loss to the
Australia II in 1970, had seen off 24 challenges are the original defenders of the America’s
Cup. It was their sailing prowess that cultivated the desire to be better from challengers
around the world.

The First Signs of Innovation

After their loss against America in 1851 there were a sweep of British mariners aching to pit
their best craft against the defending yacht club. In the years following, new and improved
boats were seen making the Atlantic voyage to challenge for ownership of the Auld Mug.
None were successful. However, each ship that left an English port, be it the Galatea, or the
Valkyrie series (some of the biggest yachts ever built), or Sir Lipton’s Shamrock II & III came
back with an eagerness to try some new strategy to beat the Yanks.

It is in Sir Thomas Lipton’s campaign during the first

three decades of the 20th century that the first true
innovations came to the America’s Cup.ii He was the
first to introduce sports sponsorship to the regatta. He
would plaster the sides of the stands, and other spaces
with the names of upper-class companies, a ploy that
saw large financial windfall from the event and gave the
1
Buckley C., (1992, May), The True History of the America’s Cup, Forbes, Vol. 149(10). P. 55.
America’s Cup its prestigious standing. Although he never won Auld Mug, his failed attempts
created a loveable loser character and the name Lipton is still postered as a major tea brand
in America.2 Sir Lipton also brought innovation to the design of his boats creating the never
before used J-Class yacht, a beautiful craft with billowing sails and a crew of 63 men.

Changing the Winning Tide

Over the following two decades, Australia, as well as other countries around the world
would take an interest in the America’s Cup scene, bolstering the Cup to worldwide
celebrity status. By this time the Cup’s origins and sponsorship history had evolved the
regatta into a series affiliated with extreme wealth. As such, in the post-war world, many
nations were keen to have their names associated with the connotations of challenging for
the America’s Cup. Wishing to stay true to the Deed of Gift, there could only be a single
challenger to face off against the Cup’s defender, so grew the need for a Challenger Series
which would determine the boat to race against the current defender of Auld Mug.

On the 14th September 1983 the Australian Sailing Team lowered their boat Australia II into
its berth on the Rhode Island marina. Getting ready for the 26 th America’s Cup, they kept the
hull concealed with skirting until it was submerged by the water. If anyone had looked
under the skirt of the Australia II, they would have noticed a radically redesigned “winged”
keel, a breakthrough innovation that gave this 12-metre class yacht 30% less upwind
resistance and a lower center of gravity. The
Australian’s vessel would take the America’s Cup
to a before unheard of seven races, and ultimately
back to Perth, winning the deciding race in a
ferocious final push. For the first time in 132 years
the America’s Cup would be leaving American soil
although it would return once more in 1987 with a
sweeping victory (4-0) off the Fremantle coastline.

A closer look at Australia II and the

1983 America’s Cup:
When the Australia II crossed
the finish line 41 seconds
ahead of NYYC’s Liberty there
was a sense that it was always
going to happen. Although the
1983 series had gone to a
before unheard of 7 race
2
ibid.
finale, Australia II seemed a clear favourite (even amongst American supporters). The men
from down under appeared destined to win. So much was the confidence of the NYYC
shaken that in an informal vote its directors would have decided to cancel the series had
this course of action not been seen as too much for the international audience to bear.
Instead, the committee ‘contended that the boats keel, which has been kept secret, does
not meet the qualification requirements.’3 The legality of the Australian boat was deemed to
stay within the 12-meter class rule (the guidelines an America’s Cup boat must satisfy) and
at the request of manager John Longley, the keel was to be kept hidden from all but those
that were measuring it.4 This was the first time in America’s Cup history that all the ships
bells and whistles had not been proudly displayed by a challenging team. The Australians
knew they had something special and they did not want to ruin the surprise before
Australia II had been pitted against the American defender. The intriguing pre-race tactics
and different team dynamic of Australia’s 1983 campaign run was actually the culmination
of over a decade’s worth of investment by an interesting Australian businessman, Alan
Bond.

The Bankrolling Entrepreneur

The America’s Cup is powered by

science but sailed by artists, it is a
unique intersection where one
cannot make up for the other but
both must work seamlessly together
to create excellence, nothing short of
this will guarantee success. Such was
the relationship between Australian
skipper John Bertrand and designer
Ben Lexcen. However the Australian

3
Australia II is backed on keel. (1983, Aug 02). New York Times (1923-Current File) Retrieved from http://ezproxy.auckland.ac.nz/login?
url=https://search-proquest-com.ezproxy.auckland.ac.nz/docview/122146778?accountid=8424
4
Fisher, B. (2017, May). FOR HIS EYES ONLY: THE MAGAZINE OF SAILBOAT RACING THE MAGAZINE OF SAILBOAT RACING. Sailing
World, 56, 98-102. [Retrieved from http://ezproxy.auckland.ac.nz/login?url=https://search-proquest-
com.ezproxy.auckland.ac.nz/docview/1962549547?accountid=8424].
1983 team was not a duo but a trifactor; heavily involved with the decision making
processes was the ever opportunistic Alan Bond. Whereas Lexcen was a proven Australian
designer and Bertrand was one of the best sailors in the business, Alan Bond was an
entrepreneur ‘who seemed more interested in real estate than winning the America’s Cup.’ 5
Why then was his influence a key driver for the 1983 success? The answer lies in Bond’s
entrepreneurial spirit. Born in Hammersmith (London, England), Bond relocated to Australia
where he became a highly influential businessman. He bankrolled three Cup challenges
before the victorious Australia II campaign however ex-wife Eileen Bond suggested that they
‘never really got close [to winning the AC] until 1980.’6 After his initial, and rather
uneventful, challenge in 1971 Alan Bond began to source sailors, designers, and managers
from his social and business networks. His business trained ear offered a fresh perspective
to team building in the America’s Cup. Bond believed that they ‘could win it if [they] had a
breakthrough.’7 Without Bond’s drive for success the 1983 team may not have been so
radical in their approach to the America’s Cup. Building on his bankrollers drive for the next
big thing Ben Lexcen finished his revolutionary design for the 12-meter class yacht that
would face defender Liberty. In the boardroom there was talk about how the Australian
boat would be revealed to the public. Playing the role of Devil’s Advocate, Australia II
manager John Longley suggested that the design remain secret instead. Keeping the
Americans in the dark about their technological leap would create the unnerving
speculation needed to psychologically best a historically confident team. Although Bond did
great things for the international sporting image of Australia, and for the sailing industry,
not to mention the fact that his team was the first in over a century to take Auld Mug off the
Americans, his business dealings were steeped in controversy. In 1992 he was declared
bankrupt and in 1997 he pleaded guilty to fraud, serving four years in prison.

Skirting the Truth

Never before had there been an

air of mystery surrounding an
America’s Cup yacht. Of course, in
previous years people would look
and speculate at the changes
made by the designers, trying to
decipher the exact benefits of
different shapes but this was the

5
Down By the Sea: America’s Cup 1983., 2013, Australian Story, ABC TV. [Available Online: https://youtu.be/t-L3L_3dyOE].
6
ibid.
7
ibid.
first time one was lowered into the waters at Newport sporting a skirt that protected her
Keel from the eyes of onlookers.
The psychological effect this had on other teams (particularly the NYYC) was perhaps,
underestimated. The Australia II’s performances during the challenger series, proved that
whatever the Australians had done was worth protecting from their opponents. The crew,
management, and race regulators had been sworn to secrecy, media outlets drilled up the
mystery and the overall effect was an environment before unseen at an America’s Cup race.
A series that had before been about demonstrating the wealth and prowess of a team, was
now, at least for the Australian challengers, about keeping their technological knowledge
under blue and green tarpaulin. The simple action of hiding the keel shifted the 1983
campaign from one that was purely raced on the water, to one that first took place in the
minds of opposition sailors, it was akin to the pre-match Haka performed by the All Blacks
and the result was just as unnerving. Had their opponents seen the changes made to the
Australia II’s keel there may well have been some nerves but more likely, there would have
been a scurry of action to try and better understand its function. By withholding the ability
to “size up” the Australian competition, Alan Bond’s tactic altered the America’s Cup from a
single race series, to a psychological battle; an element that has stayed with the competition
into the modern day.

The Keel of Australia II

A typical 12-meter class America’s Cup yacht was a ‘heavy boat for its length, with a
considerable amount of ballast [stabilising “weights”]. The draft restrictions and large
volume of the hull resulted in a shallow depth keel, with a poor aspect ratio and poor
efficiency.’8 Wishing to retain the stability of a large ballast, but improve upon the relatively
poor performing shallow keel, Ben Lexcen toyed with the idea of applying ‘wings’ to the
bottom of the keel that would counter the 12-meter class’s main performance problems.

8
Payne D., Australia II, The Winged Keel and More, Australian National Maritime Museum. [Online] Available at:
https://www.sea.museum/2013/09/24/australia-ii-the-winged-keel-and-more .
The Australia II is not the first time that Lexcen experimented with ‘wings’. During the
1950’s he made a similar breakthrough by placing endplates on the keel of an 18-foot skiff. 9
The Australia II Keel

Lexcen made the ‘wings’ large, thus concentrating the ballast lower down to improve the
yacht’s stability and increasing its overall speed. He also “put the keel on essentially upside
down.”10 This radical redesign, accompanied by the additional weight of his ‘wings’ provided
a much lower centre of gravity compared to other 12-meter class yachts. One of the draw-
backs to Lexcen’s potentially revolutionary design was the greater drag created by the
‘wings’. Working on one-third scale models out of a wind-tank in Norway, Lexcen and his
team developed changes to the hull that would counter his drag problems. There was
‘careful manipulation of the hull shape at the measurement points to ensure it had a long
waterline to take advantage of the power that was achieved with more sail [more power
potential] and more stability than the other designs.’ 11 The result was a yacht that was
technically superior to its counterparts, a point proven by Australia II’s dominance of the
Louis Vuitton 1983 challenger series where the innovative yacht won all but a handful of its
races.

Home Run?

Despite outstanding leadership, an imposing

psychological aura, and technological phenomena that
was the Australia II, the 1983 America’s Cup was not a
clean cut win. The Australians’s boat suffered technical
difficulties in the first and second races. During the
third race Australia II created a lead of approximately
five minutes over Liberty, the largest of any America’s
Cup series before the wind died completely and the
race was halted. In the replay the Americans narrowly
won. Australia II found itself 3-0 down. Of course they
went on to win the next four races and crown themselves champions. Only one of these
races was won by a considerable margin (approx. 3.5 minutes), which demonstrated that,
although the Australia II was far superior on a good day, there is little to be said about the
consistency of the innovation. Was it just that the crew needed longer to understand how to
sail the new design properly? Was it that the yacht performed best in certain wind
conditions, or was it the opponent skipper, Dennis Connor having good and bad days? One

9
ibid.
10
Down By the Sea: America’s Cup 1983., 2013, Australian Story, ABC TV. [Available Online: https://youtu.be/t-L3L_3dyOE].
11
Payne D., Australia II, The Winged Keel and More, Australian National Maritime Museum. [Online] Available at:
https://www.sea.museum/2013/09/24/australia-ii-the-winged-keel-and-more.
thing is for sure, the Australian 1983 America’s Cup team demonstrated exactly what was
possible within the class-rule competition boundaries.

Bending the rules

In the early years of America’s Cup competition, skippers had been able to race their craft
under the National Law. This allowed each boat to be built and raced under the
specifications of their home nation. In 1958, rough design restrictions nicknamed the “12-
meter-rule” were created which governed the building parameters and sail area for an
America’s Cup vessel. Within these parameters there was still plenty of room for design
change, but the class ruling put limitations on the types of modifications that could be
made. Designers were forced to work within the rules to produce new vessels with faster
speeds than their predecessors. This prompted internal research and development specific
to the America’s Cup boats whereas before the “innovative” designs may have been
replicated from fast schooners or military vessels.

In 1988, a young group of New Zealand sailors arrived in a mammoth 90-foot waterline
boat to challenge for the America’s Cup. Their boat was pitted against a much smaller
American catamaran. Defender Dennis Connor fended off the kiwi bid in a Cup series which
highlighted the flaws in the 12-meter-rule. Noting the
awkward nature of the 1988 regatta the rule was modified
into the Modern AC-Class, this would ensure that all
America’s Cup vessels would look similar whilst providing
enough room for teams to make changes to speed and
performance. This change would mark an end to the old
style of America’s Cup boats and pave the way for more
modern design interpretations.

Falling on Modern Times

After 1983, the America’s Cup took
innovations in its stride. Team New
Zealand, who were slowly climbing the
world sail rankings began to voice cutting
edge innovations, producing ‘on the limit’
designs and forcing the world of sailing
into a new technological frontier. Teams
from Italy and Sweden were also hot on
the heels of the Americans, it would seem
that after 135 years the playing field had finally levelled out. As the competition grew, rules
on the nationality of a team’s sailors began to change. Although all crew members had to
have resided in their teams country for a certain period of time, they were no longer
required to hold a passport and therefore, the talent pool became more evenly spread
throughout America’s Cup nations. Swiss team Alinghi took full advantage of this rule
change to “poach” (well within their rights to do so) many of the world’s best sailors.
The result was a 2003 and 2007 America’s Cup victory.
With their victories, it became perfectly clear that teams
were now competing for sailors as well as for the Auld
Mug, and how do you lure a sailor over to your team?
With a very fast yacht. Enter the modern America’s Cup.

The foiling Generation

As the courting of the world’s best sailors increased, so did

the technological prowess of the yachts being designed.
The speeds with which the 34th America’s Cup (and beyond)
was fought brought exciting new records to the series. In
2013, San Francisco defenders Team Oracle entered a
foiling catamaran design known as the AC72. A Hydro-sail
(as foiling boats are called) has wing-like foils mounted
under the hull. As the craft increases its speed the
hydrofoils lift the hull up and out of the water, greatly
reducing wetted area, resulting in decreased drag and
increased speed. Not only are these modern class
America’s Cup yachts much faster, they are far more technologically minded than any
predecessor. The complex foil system is a delicate array of engineering and electronics that
must be operated by battery packs that come as standard (specified in the AC-system rules).
The sail shape and design resembles more of an Aeroplane wing than a traditional sail, and
in the upcoming 2021 America’s Cup class ruling the hull has been designed without a keel
of any kind. As always, teams can make changes to the shape, size, and other dynamics
which would lead to different performance advantages so long as they are within the Cup’s
class ruling.12 However, with the recent pursuit of radical changes to AC yacht design, some
challengers feel the innovations are getting too much.

‘They’re too expensive, for participation you need something

that’s more realistic pricewise’
– Grant Dalton, General Manager Team New Zealand

An article on the 34th America’s Cup points out that there were three challenging teams at
2013 Luis Vuitton series compared to eleven at the 2007 event. The difference? A $100
million dollar (USD) investment into the new foiling class of yacht. 13 It would seem then that
the advancements in technological sailing are outweighed by the inability of challengers to
match the price of innovation. Despite these troubling signs, the 2021 design will set
challengers INEOS back 110 million pounds ($153m USD) with any other interested
challengers having to invest similar
amounts for the chance to race Team
New Zealand in the 36th America’s Cup.14
Under the age-old Deed of Gift, the Cup
may be challenged by any foreign nation,
however investment by nations new to
sailing seems slight given the hefty price
tag.
INEOS Team UK Base of Operations

Rob Wilson, a sports

Budget (USD, Millions, Approx.) economist has gone on the
$180
$160
record saying ‘It [the
$140 America’s Cup] is a sport
$120 driven by technology, which
$100 makes it very expensive.’15
$80 Wilson states that there is a
$60
‘huge backroom’ of staff and
$40
investment that goes into the
$20
$0 modern America’s Cup boats.
INEOS TEAM NZ AMERICAN LUNA ROSSA STARS AND
MAGIC STRIPES
12
How the new AC75 will fly, 2018, The World Sailing Show. [ONLINE] Available at: https://www.youtube.com/watch?v=_bNO0t2s02I.
13
Robson D., Oracle pulls off stunning comeback in America’s Cup, 25 September 2013, USA Today Sports. [ONLINE] Available at:
https://www.usatoday.com/story/sports/sailing/2013/09/25/oracle-team-usa-beats-new-zealand-americas-cup/2871027/
14
Vast cost of competing in America’s Cup raises questions from sponsors, December 2019, Financial Times: Special Report. [ONLINE]
Available at: https://www.ft.com/content/cfc0d884-f004-11e9-a55a-30afa498db1b
15
ibid.
The Cup’s audience like to buy in to the idea that the biggest budget will often win.
However, this is a concept that Team New Zealand proved wrong at the 2017 Cup series
where they, with the help of a commercial and not individual backer, allocated a budget of
$50 million (USD) against teams that had allocated much, much more. Grant Dalton adds
another layer of monetary complexity to America’s Cups investors by stating that ‘For 2021,
the Team New Zealand budget will be about half that of INEOS and other rivals.’ 16 So, in this
modern age of foiling craft, how is Team New Zealand able to fund a vessel that adheres to
all the same design parameters and is able to compete with challengers for half the price?
The answer Grant Dalton provides, is that ‘Team NZ staff accept a lower payroll than they
would receive from a “mercenary” team.’17 It would appear then, that the actual investment
into a modern America’s Cup craft is smaller than the figures suggest, yet there is still open
opposition to 2021 America’s Cup Class yacht designs.

A Closer look at the 2021 AC75

Patrizio Bertelli, the patron of Luna Rossa has labelled the new class for the 36 th America’s
Cup ‘Too difficult, too extreme’.18 He goes on to say that the New Zealand team has raised
the bar too high, focussing on a completely new boat, which is very extreme and requires a
lot of research and development to understand. But why is this boat, not the first mono-
hull, nor the first to foil, but the first to combine the two, proving to be so complicated?
The short answer, is a complex array of moving struts that the boats will use to glide above
the water. Foiling a AC75 is much more complicated than foiling any of the previous Cup-
class vessels. Where the AC72 catamarans had 4 points of contact with the water (the two
rudders and two foils), the AC75 has three points of contact and a ballast. Sailing the new
boats becomes more about the harmony between speed, sailing, and stabilising
technology.19 Research fellow Joe Banks from The University of Southampton describes the
AC75 foiling process as such:

‘Imagine a big wing, like on a plane above the boat. If you go fast enough that wing will lift
you up like a plane. If you then put that wing under the water - the density of water is about
1000x more than air - therefore the force on the foil (wing) is 1000x more. This means a
smaller foil could produce as much force as an aircraft wing would. 20

16
ibid.
17
ibid.
18
Pozzo F., Bertelli: "America's Cup boats are too extreme", 22 June 209, La Stampa. [ONLINE TRANSLATED] Available at:
https://www.lastampa.it/mare/2019/06/22/news/bertelli-le-barche-dell-america-s-cup-sono-troppo-estreme-1.3654323

19
ibid.
20
How has ‘foiling’ made boats much faster?, 16 July 2015, Mainsail, CNN, Presented by Shirley Robertson. [ONLINE] Available at:
https://www.youtube.com/watch?v=BVuWXApdfdE
The result is a boat capable of speeds up to 50 knots (92km/h), a leap forward in the pursuit
for speed and certain to provide a more exciting spectacle for the America’s Cup audience.
Sail team innovators now set out to eliminate the drag from the foil in the hope that their
design will have a speed edge over the opponents. All of this foil testing must be completed
within the strict AC75 guidelines which highlight the design parameters of any America’s
Cup vessel.

Some of the more important rules are:

- Strict limitations on the number of components that can be built including hulls,
masts, rudders, foils, and sails.

- Supplied foil arms and cant system to save design time and construction costs

- Supplied rigging

- One design mast tube

(AC75 v1.1)

Given the design restrictions, America’s Cup teams have

taken a more simulation focussed structure to their
research and development. The teams will need to test
multiple mono-hulls, foils, sail areas, etc. to figure out
which set up will best complement their style of racing.
Team American Magic understand the need for
simulation expertise and have partnered with Airbus
(aeronautic giants) while INEOS have partnered with
Jaguar Land Rover as their main innovation partner.
Emirates Team New Zealand, as the name suggests, are
major design partners with Emirates while Team Luna
Rossa have partnered with Panerai and Pirelli. Each
team has taken a different approach to the AC75 design parameters, even so two different
design camps have taken shape. The first, comprising of BAR Land Rover and American
Magic, have settled on a wider (some might argue safer) design that offers good weight
distribution and stability. Luna Rossa and Team New Zealand on the other hand have settled
on much sleeker, faster looking (although perhaps too cutting edge) yacht design. During
the lead up to the 2021 races in March, each team will run electronic simulation(s) and
practical tests, adjusting their designs before finalising their two boats that will ultimately
face off for the 36th America’s Cup. Although neither camp knows which design pathway
will win out, they can be confident that their interpretation of the AC75 design output is
reflective of their own innovative prowess.

Different Foil Arm Designs for All 2021 Participants

Copyright Image: Francois Chevallier

Social Innovations from the America’s Cup

The America’s Cup is not just a watersport, there is a considerable amount of time, energy,
and money spent by the host country in order to prepare for the Cup series. This investment
is a prime opportunity to showcase the best of what each host country has to offer and can
act as a catalyst to any projects that may have already been in place. There is ample
opportunity to secure easy credit from investors wishing to cash in on the craze associated
with hosting an America’s Cup series.

Similar to the Olympics or any other major

sporting event, hosting the America’s Cup
brings all the usual fan-fair that cities must
endure before being ready to host an
 internationally esteemed event. Whereas the
Olympics, Football World Cup, Winter X-Games, etc.
rely heavily on establishing infrastructure that will
support the specific sports; be that new stadiums or
athletic tracks, the America’s Cup needs only a body of
water and sufficient harbour space for competitors’
boats. In spite of this, the 2021 series will see $114
million NZD of government funds and a further $98
million (NZD) of Auckland council funds be allocated
for infrastructural upgrades around the Auckland
viaduct and particularly to Wynyard Quarter where
the America’s Cup teams will be based.21 This
government funding follows the lead of downtown
redevelopment to the waterfront area which has been
ongoing for considerable time. The changes, under
council owned Panuku projects, sees the rejuvenation
of underutilized waterfront spaces, particularly around Silo Park and Queens Wharf.22 The
trouble now is understanding how the event will pay for itself. “Cup” citiesiii often have no
choice but to redevelop their current infrastructure in order to accommodate the needs of
the event they’re hosting. How to approach their redesigns leaves city councils with quite a
complex problem. There are certain ways of investing that will ensure a quick return on the
investment. The small island of Bermuda invested $77 million (USD) into their waterfront
developed and were expected to return $250 million (USD). A study by
PriceWaterhouseCoopers pitched most of this return to come from the worldwide coverage

of the event. The report also estimated that during the event the amount of high-end super
yachts to visit the island increased by 134% and that advertising exposure brought $80.9
million (USD) back into the country.23

21
Orsman Bernard, 17 May 2018, $100m for America’s Cup in Budget, NZ Herald.
22
Bulk Storage Terminal transformation to begin, 22 August 2019, Panuku Development Auckland. [ONLINE] Available at:
https://www.panuku.co.nz/news-and-blogs/bulk-storage-terminal-transformation-to-begin

23
ACBDA., 35th America’s Cup Bermuda Legacy Impact, 2017. p. 10.
These numbers might indicate that the America’s Cup is a worthy investment, however
long-lasting return is not always the case as is demonstrated by the 2007 America’s Cup held
in Valencia.

‘The prospect of hosting this event [2007 AC] injected unbridled enthusiasm
into the local community led by a political class seeking short-term political
gain at a time in which the Valencia region became the beacon of Spain’s new
economic grandiosity, based on easy credit to embark on extravagant
projects.’
- Salvador del Saz-Salazar

Although the project was met with the same amount of investment as the Bermuda series a
few years later, the projected future use of America’s Cup infrastructure was not properly
thought out. In Valencia, it seemed that the emphasis was on attracting foreign visitors to
the waterfront. As such, the government created
large concrete esplanades upon which spectators
could stand. These upgrades to the Valencian marina
were at odds with the interests of local residents who
typically envisioned a waterfront with public open
space, free access to the water, an authentic place to
be used by them.24 It would seem this upgrade to the
Spanish city was not done to build on the existing needs of its residents, but to make a quick
return; the long-term result was a less than desirable albeit expected one. The Valencian
marina remains underused by its residents and the Spanish government are finding it
difficult to repurpose the space.

The Fremantle Approach

One of the most quoted impacts on a “Cup” city is that of the 1987 series in Fremantle. The
fringe city sits on the outskirts of Perth and the post-industrial era had left the port town in
need of refurbishing its identity.25

Bond’s America’s Cup win had, indeed, hit Fremantle like a tsunami, a tidal
wave of gigantic proportions, a force of such magnitude that permanently
changed not only the face of Fremantle, but the very identity of the place.
During the euphoric years between 1983 and 1987 it brought about many

24
Waterfront Redevelopment in Post-America’s Cup Valencia: Some Insights from a Survey to Local Residents Salvador del Saz-Salazar ;
Leandro García-Menéndez ; and Andrea Tabi, Journal of Urban Planning and Development v. 114, 2, 2018.
25
Jim Macbeth , John Selwood & Sarah Veitch (2012) Paradigm Shift or a Drop in the Ocean? The America's Cup Impact on Fremantle,
Tourism Geographies, 14:1, 162-182, DOI: 10.1080/14616688.2011.597422 p. 169.
 lasting and dramatic changes in Fremantle’s infrastructure and development.
Many were not new concepts, but the prospect of the America’s Cup defence
injected unbridled enthusiasm and private and government money into the
socio-political dynamic.26
Much of the change to Fremantle came about as investors sought to usefully sow their
money into the city. From 1983 (when Australia II won the America’s Cup) to 1987 (the
America’s Cup year) the town was rejuvenated. Of the $51m (AUD) allocated for the
Fremantle revamp only $9.9m (AUD) was used on America’s Cup specific infrastructure. The
rest was assigned to redeveloping public access waterfront space, the fishing harbour, as
well as more long-term projects such as dune protection and pathways. 27 The main impact
of all these changes was that people
from the metropolitan area would visit
Fremantle more often, taking advantage
of the tourist-focussed hub of seaside
activity. The forward thinkers of
Western Australia jumped at this
opportunity to give Fremantle some
identity, however not everyone took to
the America’s Cup preparations so
readily. Many of the Fremantle
residents resisted the government
issued change, staging political battles
to keep the Fremantle lifestyle purely for the sake of it. Despite meeting some resistance,
entrepreneurially focussed governing bodies – a by-product of the 1980’s Australian labour
party – started to privatise and sell portions of Fremantle to interested clientele, one of
which was Notre Dame University. Other areas of the city were developed into seaside
suburbs, a practice that continued well past the 1987 Cup series. As the transportation
networks around Australia grew and the Fremantle heavy industry dissipated,
tourism/leisure took a firmer stand as the city’s main earner. Today, Fremantle still operates
as the port city of state capital Perth, however it is also known as a university town with rich
history and leisure attractions.28 Unlike the America’s Cup series in Valencia, Fremantle
seized the opportunity to use the spotlight as a catalyst that would give their city’s identity a
much needed facelift.

Gearing up for the 36th America’s Cup

26
ibid. p. 167.
27
ibid. p. 168.
28
ibid. p. 177.
 As March 2021 draws ever closer, the onus is on the City of Sails (Auckland,
New Zealand) to ensure it is ready to hold the event. The different participant
spaces were signed over to their respective teams in mid-January 2020, now
all that remains is to ensure that the New Zealand economy reaps as much
benefit as possible from the series. To captivate their domestic audience, the
host nation will show all the races in a ‘free-to-air’ licensing deal with TVNZ.
Offering the state owned enterprise exclusive rights to live-coverage, the event will not be
interrupted by advertisements during the races. TVNZ executive, Kevin Kenrick stated that:

‘It brings the whole country together and as a nation we’re really
invested in the team’s success.’29

It is unclear how the rights will be

distributed overseas. The pay-per-
view schedule for previous
America’s Cup’s may not prove to
be as lucrative for its 36th rendition.
Instead the televised series will
cater to a wider, albeit less
prestigious audience, enticing them
with 3D-modelling, graphics, and
live race statistics. For travelling
fans, there are fan zones on the water’s edge that offer various degrees of exclusivity. The
race markers have been expertly placed around the Hauraki Gulf so that they are in sight of
the copious viewing spaces. Spectators will be able to gather at the surrounding bays, hills,
and dormant volcanoes to watch New Zealand defend the Auld Mug.

The investment of council funding into Wynyard Quarter, bay-side suburbs, Tamaki Drive,
and throughout Auckland CBD demonstrates a government eagerness to impress visiting /
streaming nations with updated infrastructure. The marina’s in Westhaven and Orakei have
undergone maintenance in preparation for oversees moorings. Even KZ1 (the New Zealand
challenger for the 27th America’s Cup) which sits at the entrance to the viaduct has been
freshened up. On the surface, the ‘Cup’ city looks ready to receive the commotion that
comes to its shores early in 2021. Some of the more pessimistic bystanders remember back
to 2011 and the now underutilised Party Central area of Queens wharf, they look at the
construction trusting that Phil Goffiv has learned a thing or two in the last decade.

29
TVNZ secures exclusive broadcast rights to 2021 America’s Cup, 31 May 2018, One News. [ONLINE] Available at:
https://www.tvnz.co.nz/one-news/sport/other/tvnz-secures-exclusive-broadcast-rights-2021-americas-cup
Concluding Comments

The America’s Cup is a sporting event with rich history, its practices are steeped in tradition
and despite all this, it is this regatta that defines innovation throughout the sailing world.
Beginning with Gentleman individuals and since expanding to include commercial backers,
highly technological innovation partners, and a global audience, the America’s Cup truly is a
sporting phenomenon. It has created its own ecosystem which relies on the constant
innovation of challengers to drive the sailing community’s pursuit of faster, better boats.
Wherever the America’s Cup goes it takes with it an element of expectation. Expectation of
glamour and entertainment, it is taken as a sign of prosperity and used to inject new-life
into cities that might be struggling to find their identity. Competition for the Auld Mug
creates an atmosphere of possibility both on and off the water, there is opportunity in every
event. The modernisation of the America’s Cup series, vessels, and rulings forces creative
solutions to increasingly complex technological problems. The challengers drive to have a
faster boat than their opponents provides a constant increase in the rate of change to
thresholds, if this record breaking standard continues then there is no telling what
America’s Cups of the future will look like. One thing is certain, they will only get more
exhilarating to design, sail, and watch.
Reference List:
ACBDA., 35th America’s Cup Bermuda Legacy Impact, 2017.

Australia II is backed on keel. (1983, Aug 02). New York Times (1923-Current File) Retrieved from http://ezproxy.auckland.ac.nz/login?
url=https://search-proquest-com.ezproxy.auckland.ac.nz/docview/122146778?accountid=8424

Bertelli P., "America's Cup boats are too extreme", 22 June 209, La Stampa. [ONLINE TRANSLATED] Available at:
https://www.lastampa.it/mare/2019/06/22/news/bertelli-le-barche-dell-america-s-cup-sono-troppo-estreme-1.36543232

Buckley C., (1992, May), The True History of the America’s Cup, Forbes, Vol. 149(10)

Bulk Storage Terminal transformation to begin, 22 August 2019, Panuku Development Auckland. [ONLINE] Available at:
https://www.panuku.co.nz/news-and-blogs/bulk-storage-terminal-transformation-to-begin

Down By the Sea: America’s Cup 1983., 2013, Australian Story, ABC TV. [Available Online: https://youtu.be/t-L3L_3dyOE

Fisher, B. (2017, May). FOR HIS EYES ONLY: THE MAGAZINE OF SAILBOAT RACING THE MAGAZINE OF SAILBOAT RACING. Sailing World, 56,
98-102. [Retrieved from http://ezproxy.auckland.ac.nz/login?url=https://search-proquest-
com.ezproxy.auckland.ac.nz/docview/1962549547?accountid=8424].

Payne D., Australia II, The Winged Keel and More, Australian National Maritime Museum. [Online] Available at:
https://www.sea.museum/2013/09/24/australia-ii-the-winged-keel-and-more

PWC, Economic, Environmental and Social Impact of the 35th America’s Cup on Bermuda, October 2017, Royal Gazette

How has ‘foiling’ made boats much faster?, 16 July 2015, Mainsail, CNN, Presented by Shirley Robertson. [ONLINE] Available at:
https://www.youtube.com/watch?v=BVuWXApdfdE

How the new AC75 will fly, 2018, The World Sailing Show. [ONLINE] Available at: https://www.youtube.com/watch?v=_bNO0t2s02I.

Macbeth J., Selwood J., & Veitch S., Paradigm Shift or a Drop in the Ocean? The America's Cup Impact on Fremantle, 2012, Tourism
Geographies, 14:1, 162-182, DOI: 10.1080/14616688.2011.597422

Orsman Bernard, 17 May 2018, $100m for America’s Cup in Budget, NZ Herald

Robson D., Oracle pulls off stunning comeback in America’s Cup, 25 September 2013, USA Today Sports. [ONLINE] Available at:
https://www.usatoday.com/story/sports/sailing/2013/09/25/oracle-team-usa-beats-new-zealand-americas-cup/2871027/

TVNZ secures exclusive broadcast rights to 2021 America’s Cup, 31 May 2018, One News. [ONLINE] Available at:
https://www.tvnz.co.nz/one-news/sport/other/tvnz-secures-exclusive-broadcast-rights-2021-americas-cup

Vast cost of competing in America’s Cup raises questions from sponsors, December 2019, Financial Times: Special Report. [ONLINE]
Available at: https://www.ft.com/content/cfc0d884-f004-11e9-a55a-30afa498db1

Waterfront Redevelopment in Post-America’s Cup Valencia: Some Insights from a Survey to Local Residents Salvador del Saz-Salazar ;
Leandro García-Menéndez ; and Andrea Tabi, Journal of Urban Planning and Development v. 114, 2, 2018
Jim Macbeth , John Selwood & Sarah Veitch (2012) Paradigm Shift or a Drop in the Ocean? The America's Cup Impact on Fremantle,
Tourism Geographies, 14:1, 162-182, DOI: 10.1080/14616688.2011.597422

Images: All images have been found from public domain sites using Google Images.
i
The Cup was renamed to America’s Ewer, after the boat that won it, when it was donated the New York Yacht Club.
Around 1930 name was changed once more in a marketing effort to distance the cup from any confusion surrounding
the word Ewer, perhaps the middles classes thought it was a type of sheep racing? The Cup is now affectionately
known as the Auld Mug.
ii
Lipton Challenged five times for the Cup.
iii
Cities that host major events. “Cup” refers to the America’s Cup but the principle can be applied to any nation
hosting a major sporting event.
iv
The Mayor of Auckland.