America's Cup: In a world lacking big events, why this is the knees-up NZ needs

Friday, 11 December 2020

Team NZ's Te Rehutai and INEOS Team UK's Britannia training on the Waitemata Harbour in Auckland.

OPINION: The significance of this week’s build-up America’s Cup regatta may be get lost in a country focussed on the run-up to Christmas, and – finally – the summer holidays that follow a difficult 2020.

If you’re even slightly interested in the first racing encounters between four of the world’s fastest, highest-tech sailing boats then you’ll follow the AC75 clashes in the World Series event in Auckland from Friday.

The four days will be a foretaste of the challenger series and cup final which runs from mid-January to late-March – one of the biggest international sports events anywhere as Covid-19 curbs global gatherings.

After a year in which most households were hit by Covid-19 and the lockdowns, it may seem a frivolous distraction for those finding themselves without work, separated from family, or just struggling.

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Aucklanders last turned out for live America’s Cup racing in the ill-fated defence in 2003.

But whether or not you are a fan of the America’s Cup, and its association with international glamour and wealth, the reality is Auckland and Aucklanders would be worse off without it.

The upgrading of the city’s waterfront for a slew of largely cancelled major 2021 events has provided thousands of construction jobs and will leave a more enticing environment even if the cup leaves.

Defender Team NZ and challenger Luna Rossa faced off for some training races on the Waitematā Harbour

It is easy to focus on the $40 million the government has contributed to the event itself, forgetting the rest of the half-billion dollar, four-team circus which is paid for by commercial, largely foreign sponsors.

Auckland Council has spent little on the America’s Cup itself, but is putting more than $300 million into downtown and waterfront public space upgrades, and converting the Wynyard Wharf tank farm into team base areas.

That work had to be done anyway in the long term plan to turn Wynyard into a commercial, residential and park area, and other infrastructure upgrades were similarly needed, but brought forward ahead of the cup.

Italian challenger Luna Rossa during practice on Auckland’s Waitematā Harbour

Thousands of workers have been building this long-term infrastructure that has a bigger role in Auckland’s future, beyond the Cup regatta.

Covid-19 and the closure of the country’s borders to most travellers since March, has knocked out most of the economic benefit which was used to justify public spending.

Spending by visiting superyachts was forecast to amount to anything between $118-$293 million, but a little more than a dozen of the expected 160 have made it through the restrictions, for refits and servicing.

International visitors, foreign sponsors and media will also be largely absent.

But it is at this point that the question of “why bother” becomes one of, is the glass half-full or half-empty.

Auckland would normally be buzzing now with foreign tourists, backpackers and cruise ship visitors, spending money in local businesses. But it is not.

The America’s Cup now assumes the role of the only major contributor of foreign spending to the city.

Hundreds of crew and families from the three challengers, will spend up to six months living in Auckland, paying for rental or hotel accommodation, eating and drinking and shopping in local businesses.

Team New Zealand, has been one of the country’s highest-tech design and manufacturing businesses, spending tens of millions of dollars locally, creating the world’s most sophisticated racing yacht.

Most of that is paid for with foreign sponsors’ cash, and all of the above generates GST and income tax.

Those who would wave a wand and make the America’s Cup disappear, would leave a big economic sinkhole in Auckland.

But most of all, once the racing begins, the buzz alone will be a big enough payoff during a summer otherwise bereft of the usual big sporting events.

There has never been anything like the America's Cup to excite New Zealanders, once the start-gun goes.

After a year which desperately needs dispatching with a good knees-up, the America’s Cup won’t bring universal joy, but it will bring joy and jobs for huge number and the country would be the poorer without it.