Yay – no further taxpayer funding for America’s Cup this year

June 25th, 2014 at 4:20 pm by David Farrar

The Herald reports:

Team New Zealand has released a statement this afternoon confirming it will challenge for the 35th America’s Cup.

Chairman Keith Turner said the team had secured sufficient private funding and sponsorship to be able to commit to a challenge without having to ask for Government funding.

Excellent, Go Team New Zealand. But I still think the rules are rigged even more than normal, so it will be hard. I’m not convinced the taxpayer should invest next year either, but worth looking at the economic case.

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33 Responses to “Yay – no further taxpayer funding for America’s Cup this year”

  1. Longknives (4,691 comments) says:

    Interesting that they release this statement the very same week that NZ finds out just how much taxpayer cash these guys have been spending on their lavish lifestyle…
    Maybe they realise they’ve been sprung? And the gravy train lifestyle has to be reeled in a bit??

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  2. goldnkiwi (1,281 comments) says:

    Not impressed with Grant Dalton coming to the government in election phase.

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  3. Captain Pugwash (98 comments) says:

    Bugger, there goes my free junket to the Caribbean, or where ever the next cup is being held.

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  4. kowtow (8,326 comments) says:

    I hope the Nats’ newly found backbone on largesse at taxpayers expense lasts beyond the election.

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  5. burt (8,241 comments) says:

    No government funding …. I’ll believe that if it hasn’t happened at the end of the next millionaires toys show down.

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  6. burt (8,241 comments) says:

    It’s been a while since Clark was on the boat getting her photo op for committing tax payers money to billionaires. It’s no surprise the National socialists wanted to do the same.

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  7. JeffW (326 comments) says:

    “Committing” to a challenge may not be the same as undertaking the challenge; they’ll be back.

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  8. stephieboy (2,801 comments) says:

    burt,you naturally protested the actions of the Clark government back then as you must of the funding of the Rugby World Cup 2011.?
    Right.?

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  9. gump (1,638 comments) says:

    We have already given them $5 million to get them towards the next cup challenge.

    http://www.stuff.co.nz/sport/americas-cup/9308791/Team-New-Zealand-given-finance-to-bridge-gap

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  10. B A W (99 comments) says:

    Now the big question is will we pull out or not? And if we stay can we please please please have someone else pay the bill.

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  11. duggledog (1,528 comments) says:

    Well, that’s just super news. Now, how about addressing the several other billion dollars of rubbish spending?

    Speaking of rubbish spending

    Just watching Cunliffe and Parker deliver their lame old tax hike policy, or envy tax. God they really do look a pair of bumbling school boys.

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  12. Dom Knots (155 comments) says:

    Great. Now we get to listen the inept bumblings of the over medicated Martin Tasker, again. Bring back the ferocious rantings of the under medicated Pete Montgomery.

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  13. Yogibear (361 comments) says:

    What I’d like to see, if the government ever gets around to doing the numbers, is a comparative assessment of value for money from sport sponsorship.

    The amount of money the government sank into the Americas Cup would sponsor a top World Tour cycling team for 4 years – thats 12 Grand Tours (where both the live a TV audiences dwarf the Americas Cup audiences – and that’s for ANNUAL events)

    We could buy a sticker somewhere beside the air intake on a F1 car – Again, massive global audiences that tune in each month (not every 4 years) that put the Americas cup to shame.

    Even a logo on the Shorts of an EPL football side “Visit the Arse End of the World – Visit NZ” has to be better value for money.

    There are three potential benefits from bankrolling a Team NZ – Awareness for tourism, boosting the yacht industry and hosting if we win.

    On the first measure any of the sponsorship I note above would have to give a better return for $ spent

    On the second – Has to be a high risk gambit, given our boats fell apart when we defended last, and we got shafted by a better boat this time around. I note the boat building industry hasn’t suffered as a result. They suffer far more on the NZ$ movements.

    As for hosting – Again, spending $35 mil+ on what is effectively a “competitive bid” is pretty crap investment. You’d get better value for money using it to promote global conference hosting, or tourism with China or putting it into the major screen fund (where you don’t pay unless the project actually happens).

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  14. duggledog (1,528 comments) says:

    Yogibear

    At the same time, let’s do an assessment of the actual value of all the countless dollars the Government has pumped into ad campaigns for speeding drink driving etc which, to all accounts is ZERO.

    Apparently they make no difference

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  15. wreck1080 (3,885 comments) says:

    2 weeks ago the campaign was sunk if they didn’t get taxpayer money… now they are sweet?

    Something smells rotten to me.

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  16. dime (9,869 comments) says:

    love how everyone gets so fired up about the big issues! 30 mill for a boat race isnt ideal, but 25 million a week for the dpb is a fuck load worse

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  17. rangitoto (241 comments) says:

    It sounds like Chicago is the current front runner for the venue. Americas Cup on a lake just seems wrong.

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  18. burt (8,241 comments) says:

    stevphieboy

    Absolutely, what the hell was the government doing funding an event that sold seats at a price that most New Zealanders couldn’t afford.

    Good luck to the Rugby big business bunch if they want to fund it and charge significant entry fees to games, people come form all over the world for this stuff and more power to them. But why on my dime ?

    This mumbo-jumbo socialist speak about the benefits to the local economy are just rubbish. I have no arguments there are benefits, but there are also costs. It’s not the governments job to spend our money on entertainment that most of us can’t afford.

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  19. UrbanNeocolonialist (286 comments) says:

    Some positives from the cup spend – it is advertising that tends to target the very well healed who drop a lot of coin when they visit, and who tend to have more leisure time to do so as well.

    When we win and host it produces a huge money input to NZ – guess it has been a couple of billion to date for 2000-2003. Total NZ funded bill to date perhaps $300 million? (guessing most money has come from Emirates) And we have been in cup final every time for last 5? events (two of which we won), coming damned close 2007 and 2013 as well so if history is any guide that is pretty good odds of another big pay-day and pretty good returns on ‘investment’.

    Complaints about what Dalton and Barker are earning; how much sponsorship has Dalton bought into Team NZ? Salesmen are the most valuable members of every business – he has been more than worth it and would be exceptionally hard to replace. Barker will probably be fighting to keep his job this time round with competing up-and comers (as it should be).

    By comparison the 2011 Rugby world cup cost the country about $400 million, most of which was covered by tickets, with about $40 million net deficit.

    And personally I love watching the cup, have more fun watching it every few years (even when we lose) than the endless saturation coverage of rugby

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  20. adze (2,106 comments) says:

    goldnkiwi:
    “Not impressed with Grant Dalton coming to the government in election phase.”

    Yeah, I wonder if they tried a Rio Tinto on the government.

    Rio Tinto threatened Tiwai Point with closure last year. Ruthless bastards.

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  21. mjw (392 comments) says:

    This must be a hard blow for the Ducati dealers.

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  22. Rich Prick (1,682 comments) says:

    Good. See what happens when leeches are told to fuck off, they learn to find money elsewhere. If corporate sponsors think investing in a $2m CEO good on them. But the taxpayer should never be asked for that level of welfare. As a mad keen sailor, i still see my fun as a personal thing and not something taxpayers in South Auckland or Kawerau ought to subsidise.

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  23. Rich Prick (1,682 comments) says:

    mjw, as a Ducati owner I can confirm the good times for dealers is not at sale time, rather at service time. Believe me.

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  24. Manolo (13,590 comments) says:

    Neither this year nor next!

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  25. Scott1 (530 comments) says:

    Have a look at the economic case – but keep in mind almost everyone will be giving you information will be exaggerating the benefits and downplaying the costs and risks.

    Thre is a lot of academic research out there to indicate this sort of investment is often worthless, in measurable terms – despite the flood of analysis before such events that they would be highly profitable.

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  26. ross411 (778 comments) says:

    UrbanNeocolonialist (164 comments) says:
    June 25th, 2014 at 9:15 pm
    ….
    And personally I love watching the cup, have more fun watching it every few years (even when we lose) than the endless saturation coverage of rugby

    After all your hand-waving about how worthwhile it is, you’re still suggesting we pay for it, because _you like it_. I want you to pay for free to air Wimbledon funding. I’m not going to bore you with hand-waving, just be honest and demand you pay for something I want. Not so acceptable unless it’s padded with bullshit, is it?

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  27. ross411 (778 comments) says:

    Rich Prick (1,493 comments) says:
    June 25th, 2014 at 10:08 pm
    mjw, as a Ducati owner I can confirm the good times for dealers is not at sale time, rather at service time. Believe me.

    David Cunliffe, is that you?

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  28. KiwiGreg (3,250 comments) says:

    @ Scott1 the research also tends to ignore the cost of forceably extracting the taxes to subsidise the “desired” event from those who would not voluntarily pay for it.

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  29. freedom101 (496 comments) says:

    “Next year” is a long time in politics. i.e. after the election.

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  30. Paulus (2,608 comments) says:

    Understand that Emirates are going to continue despite that two of the three probable venues are not on Emirates flight schedules so no advantage. Bermuda, San Diego are not but Chicago is.
    Who would want to sail anywhere Chicago is beyond belief – but money counts in the Americas Cup – that’s all.
    Having worked and sailed in Bermuda it is a perfect sailing venue. But it is not US Territory but British.
    If so Emirates will have to change their venues to include it, and it is not a very Toyota place due to car restrictions.

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  31. jcuknz (704 comments) says:

    rangitoto (180 comments) says:

    June 25th, 2014 at 7:41 pm
    It sounds like Chicago is the current front runner for the venue. Americas Cup on a lake just seems wrong

    I think you will find that the ‘lake’ is pretty big and gets as rough as any ocean. My impression of SF was that the difference is the water is salty and poluted rather than just poluted .

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  32. Akaroa (552 comments) says:

    America’s Cup eh?

    Hmmm, a lot of posters – not to mention a lot of the wider population – are still living in the past I see!

    (Maybe that should read ‘poseurs’ not ‘posters’)

    America’s Cup sail-boat/yacht racing is a timeworn hangover from the 1930s – a time when there were people (playboys?) with the wherewithal to finance, and the empty days and hours to pursue, their juvenile dreams of ocean dominance – in between hanging around Cannes and Deauville, that is.

    Sport it aint, and never was, – and any NZ Government that puts any of my hard earned taxes into this frivolous farago of posturing nonsense can say a big ‘Goodbye’ to any vote from my direction.

    Let those who want to waste their time in this ridiculous way stump up the dollars to indulge themselves.

    Stay out of my pocket Mr Dalton!!

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  33. Richard Hurst (846 comments) says:

    Could we pls apply this to all sports funding? I don’t consider funding the personal ambitions of athletes to be a core govt function or a good use of my tax dollars.

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