Hosting the America's Cup: Can Ireland afford the prestigious sailing event?
The Ben Ainslie Racing America's Cup team in action on their T1 foiling AC45 catamaran; teams pay around €100m to participate in the prestigious event. Credit: Mark Lloyd/Lloyd Images
There are those who believe an America’s Cup hosted in Ireland is a dream worth chasing.
And there are those who are just dead against it.
But there are also those who think that if Ireland has to host any international sailing event, it should be one with more appeal, and less cost, like SailGP — the sailing world’s fastest racing league.
Launched by former America’s Cup winners Larry Ellison and Russell Coutts in 2018 to establish a commercially viable annual global race series, it involves national teams competing against each other in a series of contests hosted around the world.
SailGP teams pay around €5m to compete, far less than the €100m or so needed for an America's Cup team.
For now, though, the dream of hosting America’s Cup is the one being discussed and it’s one that goes back a while.
In 2003, the sailing grounds of Dingle Bay were discussed in the Seanad as a possible location for the contest for the oldest trophy in international sport.
However, Ireland’s bid was beaten that year by landlocked Switzerland, the first European country to win the cup.
Fast forward to today and Ireland's application to host the 37th America’s Cup (AC37) in 2024 has not only been accepted by race organisers in New Zealand — the last America’s Cup winners — but until last Friday looked very likely to have succeeded.
On the previous Monday, Minister of Public Expenditure and Reform Michael McGrath revealed that Minister of Sport Catherine Martin was not ready to bring an America’s Cup proposal to the Cabinet until after September 17, the date that the preferred bidder was to be announced.
This date was subsequently put back, though, raising Ireland's hopes once again.
The potential economic boost from the cup is sizeable: Some scenarios put the figure at €400m to €500m, though costs are estimated to be between €180m and €190m.
Apparently, in the worst possible scenarios, Ireland could lose money on its investment, much like the situation facing some Olympic host cities or countries that made large investments to host World Cups.
If it did, Ireland wouldn’t be the first America’s Cup host to either lose money or end up with debts.
A few days before the September 17 announcement had been due to be made, Valencia had pulled out.
The south eastern Spanish port city was a hot contender having hosted it twice previously.
In June, shortly after Valencia yacht club Real Club Náutico de Valencia announced its bid to host the cup, the city’s mayor Joan Ribo was less than enthusiastic.
And the reason for his coolness? The level of outstanding debt from hosting the contest in 2007.
“We have to pay €6m this year and six next year,” he told reporters.
“This started in 2007, we are in 2021, and we are still paying debt.
The cost-benefit analysis on Auckland's hosting of the last cup contest doesn’t make for great reading either.
The country’s official “post-event” report on the 36th America’s Cup (AC36) pointed to losses of more than €90m.
Some of the money spent was on works that were planned regardless, but were brought forward to be ready in time for AC36.
The event — which was the most-watched America’s Cup of all time — attracted 38,745 visitors to Auckland, and they stayed a total of 377,765 nights around the region. It had a global audience of 68.2m viewers in 198 countries.
While the fact that New Zealand was on lockdown at the time is one factor in its losses, it’s not the only one.
The report states: “The overall economic return of AC36 was much lower than forecast.
“This was due to the lower-than-expected number of challengers and then the subsequent impacts of Covid-19, as well as the costs being higher than forecast.”
Despite the determination by the organisers to have it hosted elsewhere, New Zealand is still in contention to host the contest.
Asked about it recently, the country's prime minister Jacinda Ardern said her government is still in negotiations with organisers.
But she has also made it clear there is only so far her government is prepared to go into negotiations.
“We’ve put our best foot forward, but there’s also limits to what we can do,” Ms Ardern said in June.
Sailing Ireland CEO Harry Hermon is in no doubt of the benefits of an America's Cup hosted here.
"It wouldn't just be for sailing,” he said. "I think all water sports would have a huge kickback from the America's Cup if it was to come to Ireland in terms of showcasing the outdoors and showcasing the water as such."
A contractual dispute emerged between the race organisers and New Zealand due to issues which emerged during an audit.
While allegations of financial impropriety were found to be wrong, consultants Beattie Varley still rapped the organisers for failing to maintain a "contemporaneous and documented record" that would allow for objective verification.
“It attracts an increased criticism given costs are funded to a significant amount by taxpayers," it added.
Minister Michael McGrath was asked by the if he had read the report.
Although he said he hadn’t seen it himself, he said that “as part of due diligence being carried out, we are looking at the experience in New Zealand” and that all elements "will be considered in the round".
Among the elements which is likely to be factored into any consideration is the €60.5m economic boost the country saw from hosting the Volvo Ocean Race finale in 2012.
But it should be remembered that the event left organisers Let’s Do It Global Ltd with debts of around €400,000.
And when they passed on the chance to host it again, they said this was a “consequence of the present debt and lack of interest by government agencies in investing in any new application”.
It remains to be seen if the supporters of the America's Cup can keep the momentum going and save it from sinking, as it did in 2003, but the last word goes to former senator, Joe O'Toole, whose idea to host the America’s Cup in Kerry was brought up in the Oireachtas in 2003.
He doesn’t think Ireland can afford to host an America's Cup at the moment and that maybe now is not the time to make a serious bid for it.
“Ireland is good at this kind of thing, there's no question,” he said.
“We are in the right location, we have the amenities and we have the capacity, and have the interest in doing this.
“It will be good for the Irish brand, that's really what I was aiming for.
“I think we should throw our hat in the ring.
“(But) I don't think we can afford to do it at this stage, maybe it's not the time to go full-blooded.”
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