Farewell to the America's Cup after 91 days together! Global viewership tops a hundred million, with commercial value beyond measure!

Media reports said: “In modern America's Cup history, Team New Zealand's four victories include two successful title defences. In the Cup's history of more than 100 years, no team other than the Americans has achieved this.”

The America's Cup becomes this year's biggest global sporting event, with spending rivalling FI

Statistics put cumulative global viewership of the America's Cup at 2,900,000,000, and the New Zealand Government has called it this year's “biggest” sporting event. Preliminary international viewing figures supplied to Auckland Unlimited indicate that more than approximately 100,000,000 people watched this year's Cup, while around 200,000 people from across New Zealand travelled to Auckland to watch.
 
Established in 1851, this oldest sailing competition is now the world's most influential and prestigious sailing event. Alongside the Olympics, the football World Cup and FI motor racing (F1 racing), it is described as one of “the world's four most influential traditional sporting events”.

Industry insiders say: “The America's Cup brings enormous prestige, but also enormous expense.” New Zealand's hosting costs reached US$180,000,000 (approximately NZ$250,000,000), while spending by a single team this year has exceeded US$120,000,000. This makes it the world's most expensive sporting event after F1. The America's Cup has no “maximum budget”, meaning there is no ceiling on spending.
 
Big-name sponsors abound: why do corporate giants favour the world's most expensive sport?
 
Many people may be unfamiliar with the America's Cup, but you will surely have seen OMEGA's limited-edition regatta watches and the America's Cup collections from Louis Vuitton and Prada. These are classic examples of sporting energy perfectly blended with luxury fashion.
 
Every America's Cup attracts a host of big-name sponsors. This year, Team New Zealand's principal sponsors were Emirates, OMEGA and Toyota. For the Italian team, leading global luxury brand Prada was both the team's main sponsor and the naming sponsor of the Prada Cup, which determined the challenger.
 
Global brands' enthusiasm for the America's Cup is far from new. Back in 1983, the America's Cup first evolved into the “Louis Vuitton Cup”. In subsequent competitions, Louis Vuitton not only participated directly in the sailing event but also worked closely with the America's Cup to stage a series of preliminary races. These later became qualifying or selection races, with the Louis Vuitton Cup-winning team advancing to the final.

Louis Vuitton's support for the event has also extended into many other areas, including rights to develop commercial activities onshore and on the water, and media rights for international television and online platforms.

Similarly, on 1 March 2020, leading global luxury group Prada announced that it would become the title and principal exclusive sponsor of the 36th America's Cup, with sponsorship worth €23,000,000 (approximately US$27,000,000).
 
A Prada Group spokesperson said: “As the title and principal exclusive sponsor of the 36th America's Cup, the company can use the regatta to further enhance Prada Group's international profile and build stronger brand value through this oldest of sporting events.”

The America's Cup has enormous global influence and is also extremely expensive, attracting a large number of wealthy people. Major brands compete for naming and sponsorship rights, demonstrating the value the world's leading brands place on the Cup. Its vast viewership, wealthy audience and long cultural history have made it a particular favourite among global corporate giants.

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Forecasts predict the America's Cup will boost New Zealand's economy by 600,000,000 to 1,000,000,000 New Zealand dollars, with commercial value beyond measure

A forecast made in 2017 estimated that this America's Cup would add NZ$600,000,000 to NZ$1,000,000,000 to New Zealand's economy and support 4700 to 8300 jobs. It projected that 21500 to 26275 international visitors would arrive in New Zealand for this year's event. However, pandemic-related border closures this year mean these estimates may need to be reassessed.

The America's Cup's commercial value nevertheless remains significant. New Zealand has achieved economic growth by hosting the regatta. According to media reports, the Cup contributed around NZ$640,000,000 to New Zealand's economy when it was held here in 2000 (NZ$981,000,000 after adjusting for inflation). The America's Cup held in New Zealand in 2003 generated NZ$529,000,000 in gross value added (NZ$745,000,000 after adjusting for inflation), with Auckland directly benefiting by NZ$450,000,000. 

Hosting the America's Cup in New Zealand has created thousands of jobs and brought hundreds of millions of New Zealand dollars into the local economy. This helps explain why the New Zealand Government is so supportive of hosting the event.

Nick Hill, chief executive of Auckland Council's economic development agency Auckland Unlimited, said: “Although this America's Cup has been affected by the pandemic, its true value and these ‘benefits’ will be realised over time.”

He said: “Hosting the 36th America's Cup is extremely valuable for New Zealand. It strengthens the country's position as a market leader in international sailing and the marine sector, while also delivering intangible assets, such as building New Zealand's brand and Auckland's profile. Its true commercial value is beyond measure.”

If tennis represents the pinnacle of individual competition in ball sports, and F1 Grand Prix racing represents the most advanced technological competition in motoring, the America's Cup combines the strengths of both. It brings together physical strength, intelligence and teamwork, harnessing natural wind power and developing technologically advanced boats to compete in unpredictable conditions. This competition also embodies New Zealanders' indomitable spirit.

Even when fierce winds rise, never give up on life. We look forward to seeing you again in beautiful New Zealand for the next America's Cup.