America's Cup, here's why Team New Zealand (Dalton and de Nora) chose to change

A change was needed. For Team New Zealand, because after winning the last three America's Cups, after a dominance that has its roots in the first Louis Vuitton Cup won in 2007 (plus two others), eighteen years of it, new motivation was needed. For the challengers, because ultimately, being at the mercy of the Kiwis' decisions for so long was starting to feel burdensome. Hence, the turning point. For some, it was interpreted as a series of concessions by Team New Zealand, but perhaps the key is another, one that hinges precisely on change. For the good of the America's Cup itself, which must survive, adapting to the times and without losing its identity.

“I always thought we would find a solution, in the spirit of tradition and at the same time opening the Cup to the future,” says Matteo de Nora , Team New Zealand team principal, and these words pretty much sum it up.

The choice of Italy

More or less, because there's no shortage of behind-the-scenes information. The choice of Naples, first and foremost. The "fantasy-Cup" rumors swirl of a secret agreement between Luna Rossa and Team New Zealand, which included the Italian venue and the change of Kiwi helmsman Peter Burling. In reality, this theory is flawed. It was De Nora himself who chose Naples over Athens, rewarded by the favorable conditions that ACE —the Cup's organizing company, headed by the Kiwis and likely to expand starting this edition with the addition of Challenger representatives—has found at both the central (government, Sport and Health) and local levels.

Team New Zealand has always said that this way we "went into the lion's mouth," considering Luna Rossa one of the favorite teams, thus giving them the "home field advantage" and cheering. There will certainly be a welcome and cheering, but according to the New Zealanders, it won't become the "twelfth man" like in football, just as playing on home waters will only matter up to a certain point for the Italians, because weather is an inexact science that all competing teams possess. So, there's a long way to go before we even consider an agreement. In fact, Luna Rossa was probably surprised by the decision itself.

The discussion is broader if we look at the new Protocol and the 39th edition of the Cup. The Defender no longer has to defend the title "at home" (though obviously they can still do so: if New Zealand were economically prosperous, the Kiwis would do so). The venue can be established before the games even begin. Does this distort the nature of the Cup? A change that also meets the commercial needs—sponsors, etc.—but also those of the teams, including potentially new ones. Times are changing.

The voice money

Naples, as an event, is expected to cost between 80 and 130 million euros. Then there's the government's investment in Bagnoli, which is another expense item. Speaking of the event, there will be a base amount, which will be provided by the Italian government, and then there will be sponsors. ACE and Sport e Salute, the government's operational arm for major events, will seek them, with the understanding that if the sponsorship amount proves significant, the government itself could recoup part of its investment.

Team New Zealand, like other teams, must then find the money to support the team itself. In this case, it can count on a strong core of long-standing sponsors (Toyota, Omega, MSC, among others) who are likely to renew their contracts. It must be said that the Kiwis have never been at the top of the Cup budgets, always hovering around $80 million, compared to the $100-$200 million of some challengers.

The Burling Case

Peter, the quintessential modern Cup helmsman, with three victories, was the man they were watching closely. Yet, the Kiwis let him go. Why?

It's well known that Team New Zealand salaries aren't exorbitant (other teams offer much more) and that team membership is also tied to other values. Burling, young but no longer very young, reportedly asked for a pay raise that didn't meet the team's guidelines. Furthermore, he reportedly asked for free entry into other circuits and events, from SailGP to ocean races (see the recent Fastnet on the Ultim Lazartigue). All legitimate, money and experience. Hence, the separation from the team.

The fact that he was hired by Luna Rossa and that the new rules now allow for unlimited boarding of two foreigners (for the Fantasy Cup, this was already known in advance) makes Burling's move by Max Sirena, the CEO of the Italian team, a masterpiece. Burling, whether on board or ashore, is certainly a real asset.

And the Kiwis? We still need to talk about change. Perhaps, to find new motivation, Team New Zealand needed to turn the page on Burling. Then, we could also talk about the need to continue rejuvenating the role of helmsman; on the AC75s, the era is closer to the twenty-somethings than the over-thirties, but perhaps the answer is a combination of all these reasons.

The delay of the Protocol

Did the Defender and Challenger of Record take their time in drafting the new Protocol? Well, maybe a little. But there are reasons that go beyond the complexity of the matter. The first is that the divorce between Ben Ainslie and Jim Ratcliffe, his sponsor in Barcelona, was a seismic event that delayed the process for several weeks. Ainslie, now leader of Athena Racing, first had to resolve the issue of the yacht club that had signed the agreement with the Royal New Zealand Yacht Squadron to be the Challenger of Record (initially, it was said that the role would be extended to Ratcliffe, as he was the boss of Britannia), then get back on track.

Then, time was also extended by the discussions initiated by some teams, particularly tycoons , who were represented by lawyers and who insisted on bringing water to their shores. In short, the usual debate, perhaps more heated this time, because it truly was a momentous change for the America's Cup: new governance, nationality rule (perhaps the most debated point), women...

The new governance

The Defender is no longer the absolute master of the America's Cup. There will be a board representing the challengers, a CEO, perhaps independent, who will act as their spokesperson; this will be the inner sanctum where the most important decisions will be made. Change, indeed.

The AC Partnership—that's the name of the new entity—is tied to the Louis Vuitton Cup registrations. Whoever gets involved also gets a seat at the table. It's likely that all the Barcelona teams will sign up. Perhaps. Athena Racing (Ainslie should find new resources), Luna Rossa, the French, the Americans, and who knows if Alinghi, seem more than likely.

When will this new governance be fully operational? The Memorandum states that it will be established starting with the 2027 edition (effective immediately) and also specifies that ACE will establish ACE Italia, a subsidiary to manage the Naples event, whose ownership will be transferred to the AC Partnership. Furthermore, the latter will be required to honor all contracts already in place with ACE.

It's easy to predict that full capacity will be reached in preparing for the 39th edition, and that the management of the Naples event will still be under the control of ACE, along with ACP. The quicker we start, the faster we learn.

The new teams

Grant Dalton, CEO of Team New Zealand, said in a conversation with a media group that if a new team arrives, it will be Italian. Perhaps not for this edition, but perhaps for the 39th? Roberto Lacorte's interest, which he has expressed on several occasions, is well known. It's true that the opportunity is tempting, because the Cup is in Naples and Italian sponsors are more interested. It's also true that the new additions, starting in the 38th edition, could come to the Youth and especially Women AC teams, either as a permanent presence or as a first step toward a subsequent participation in the Louis Vuitton Cup.

Other teams? The Australians have reportedly made their presence felt, while the rumors about the Swedes from Artemis have been unconfirmed.