It hardly received nary a mention, but the America's Cup was held a couple of weeks ago in Valencia, Spain. Call it the race of the billionaires. Oracle Corporation founder Larry Ellison was victorious in BMW Oracle over the defending champion, Alinghi, led by Swiss entrepreneur Ernesto Bertarelli. You had to look far and wide to find any coverage, an average of about five lines of agate type in local newspapers.
What happened to this sporting world institution? Greed and money. They truly killed the golden goose that was the America's Cup. It's hard to believe that at one time it was the world's third largest sporting event, trailing only the World Cup and the Olympics. That certainly is heady company. It used to deliver billions to local economies. Today that impact is estimated at one-tenth of what it once was.
Always a sport of the rich, as most are in today's times, it became a sport of the uber-rich. The cost in the 2010 America's Cup was so prohibitive that long time sponsors UBS, Nestle and Banco Santander took a pass. When sponsors drop out you know you are in a world of hurt! This year the qualifying races - the Louis Vuitton World Series - was canceled as countries like China, Spain, Germany, South Africa, Italy and New Zealand said no mas!
The last twenty years of America's Cup history reads like ten miles of bad road. Bad decisions followed by worse decision making. Millions spent in court. The shift from 12 meter class boats to 110-foot trimarans with 223-foot hard wind sails. Technology ruled the day and fans rued the day it happened. They took the sport out of the sport of sailing. Money was the ruination of the America's Cup.
At one time, personalities like flamboyant Australian Alan Bond, Ted Turner on his boat Courageous in 1977, and skipper Dennis Conner ruled the seas off Newport and Freemantle, Australia. It was fun and made for great theater. You cared about the competitors and the competition.
People tuned in on TV. In 1987, with Dennis Conner trying to win back the cup down under, EPSN signed an unprecedented deal to air 70 hours of coverage of what was at that time yachting's premiere event. They sold out all the time and averaged 1 and 2 ratings even though the events were aired live - which meant they went off around midnight to 2 a.m. on the East Coast. The America's Cup helped validate fledgling ESPN network. In 2010, there was no media coverage in the U.S. or Canada. It was reduced to coverage on a YouTube channel. Talk about irrelevance.
There is no debating that sponsors and money were always a part of the America's Cup and always will be. What's missing today is a brand value return for fans and sponsors alike. From a product life cycle perspective, the America's Cup is far past decline. It's essentially in the brand graveyard, being rendered meaningless in the sporting world.
Can it experience a brand renaissance? There is talk of going back to monohulls again. With Ellison and his Golden Gate Yacht Club in control, there is initial talk of bringing the America's Cup races back to Newport, R.I. and returning to a best out of nine races rather than best of three. Branding history tells us that it is hard to return to your roots. With the America's Cup brand having already been washed away to a great extent, it is a sail worth taking.
I agree. Money and technology have spoiled what was once a terrific event (even if the U.S. always won). I was just learning to sail as a 7-year old boy when the America's Cup resumed with 12 Meter boats in 1958 following a long wartime hiatus. While I was aware of the difference between the Blue Jays we sailed and the 12 Meters, there was still so much in common: main, jib, spinnaker, racing tactics, seamanship, and the rest. I doubt today's kids, sailing their Opti's, make the same comparison with the high-tech Cup boats of today.
Incedentally, you can still see many of the America's Cup 12 Meters - still sailing, still beautiful - every summer in Newport, R.I. I doubt today's cup boats will still be sailing - and thrilling real sailors - 50 years from now!
Another great piece of insight into the rise and fall of seemingly stalwart brands. The precipitous decline of the America's Cup brand, I agree is a shame and due to the lack of controls behind the influx of big money. Big money flows into Golf, Pro football, etc. and yet the integrity of the game and the longevity of brands like the Masters or the Super Bowl prevail. Why? Both the PGA and the NFL have strong control and a strong commitment to brand equity. Unfortunately, the America's Cup brand had no strong organization behind it to be the guardians of the brand and its value. To me, therein lies the shame - the tragedy of losing such an historic international competition to near irrelevance.
As one of those people who stayed up into the wee hours of the morning to watch Dennis Connor, as a collector of plank on frame wooden America's Cup yacht models and as someone who actually sailed the Courageous with a corporate crew as a team building event, I marvel at those magnificent J yachts and 12 meter boats and the skills it takes to manage them. Anyone who has roamed the boat yards of Newport and seen these yachts have nothing but respect for the sport made famous by the America's Cup.
To me the lesson learned is a strong organization needs to be committed to protect and defend the brand with rules, requirements and integrity. If it acquiesces to big money, the result will more than likely be the beginning of the end. Great piece Bill!