Next time you prepare a regatta budget, just remember this one…and thank your lucky stars you aren’t on the hook. According to the Bermuda government, the 77 million dollar cost of hosting the regatta can be broken down into two categories: The $37M bill is all Bermuda’s, while the second depends on ‘private sponsors’ and totals another 40 million.
- Investment in Bermuda infrastructure and services over the next three years, which is estimated at $37 million, and
Sponsorship of the event over three years as part of Bermuda’s bid package, which includes $15 million in direct sponsorship and a $25 million sponsorship guarantee. For clarity, this sponsorship guarantee is not money spent by the government, but rather an underwriting of private sponsors. That underwriting will be reduced as additional commercial sponsorships facilitated by Bermuda come on line and by a proportion of admissions revenues earned up until August 2017
Finance Minister Bob Richards stressed that the claim that the America’s Cup will cost the Bermuda government $77 million is false. That statement assumes that the America’s Cup in Bermuda will be an abysmal failure with no sponsors.