THERE WAS a flurry of commercial activity around the America’s Cup this week, with four new sponsors announced for the 34th edition of yacht racing's most iconic event.
Added to the official supplier category were Starwood Hotels & Resorts; PriceWaterhouseCoopers (PWC); The Napa Valley Vintners & Destination Council and Althelia Ecosphere, joining other official suppliers Hanson Bridgett, YouTube, Garmin, Puma and Sailors for the Sea, as well as current principal partner Louis Vuitton.
According to the Frontiers Deals Database an official supplier partnership is worth around $10m, meaning the announcement of four new partners for the America’s Cup would result in a $40m injection of commercial income. Given the nature of some of the partnerships, however, the cash valuation is likely to be significantly lower as a result of value in kind sponsorship contributions. PWC, for example, will be providing the America’s Cup with a full range of tax and accountancy services throughout the duration of the event.
Similarly, Althelia Ecosphere will be working alongside the America’s Cup team to ensure that the event is delivered as environmentally-friendly as possible via the implementation of the company’s expertise, as opposed to a multi-million dollar cash deal.
Louis Vuitton however, which has enjoyed a stuttering relationship with the event in recent years having pulled out of sponsorship duties in 2007, only to return to the fold again in 2010, is paying a significant cash amount for premium affiliation and title rights to the Louis Vuitton Cup. Frontloaded values its contribution at around $20m.
There is a Headliner interview with the chairman of the America’s Cup Event Authority, Richard Worth, in the current issue of SportBusiness International.