Cash is king
34th America’s Cup is March 31st, after which a team would pay a late fee of US$200,000 if their entry is accepted. Thus far, the list of entries for the 2013 event includes six declared teams and two that have not wanted to announce themselves. Here is the payment schedule to enter the event:
By March 31, 2011, a notice of challenge and US$25,000.
By April 30, 2011, a performance bond of US$200,000.
By June 1, 2011, an entry fee of US$100,000.
By December 31, 2011 (or earlier if required by protocol), an additional performance bond of US$800,000.
Additionally, each team is required to compete in the America’s Cup World Series (ACWS) that will begin this year. The schedule of events is to be announced by March 31st, and there is a financial penalty for any team not competing in the ACWS.
To compete in the 2011 ACWS, each team will need to buy at least one AC45 from America’s Cup Race Management, which is the entity established to provide independent, professional, and neutral race management. A 50% deposit to purchase the 675,000 euro (US$940k) AC45 is needed by March 31st to guarantee timely delivery, with the balance due upon receipt.
Entering the 34th America’s Cup includes many conflicts. Those teams that have entered either have the funding or hope to gain it. Declaring their entry should help to establish teams but it is done without knowing the race schedule. And they have many financial hurdles ahead of them.
The fees listed are only some of the entry requirements. There is a long road from the initial US$25,000 entry fee and the estimated 100 million euros (US$140mil) needed to be competitive. As one group who is seeking to enter told Scuttlebutt, “Good luck to those teams that have ‘entered’ so far, but all I am saying is that at this stage, talk is cheap.”
Subscribe to Post Comments [Atom]