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Marketing Jobs >> Marketing Articles >> Marketing Career Feature >> Bertarelli defends his America's Cup vision
  • Marketing Career Feature
Bertarelli defends his America's Cup vision

by Bill Center     
Ernesto Bertarelli is trying to change the America's Cup.

And the 42-year-old Swiss billionaire doesn't hide that fact, although he disagrees with claims from American challenger Larry Ellison that he is violating the Deed of Gift.

Perhaps it was the suit filed by Ellison's front - the Golden Gate Yacht Club - that brought Bertarelli, along with his prized trophy, to the United States last week.

The head of the Alinghi juggernaut schmoozed with officials of the New York Yacht Club, visited Ellison's power base of San Francisco and talked to anyone who would listen to his arguments.

"They (Ellison and new BMW Oracle skipper Russell Coutts) are painting us as the evil empire," said Bertarelli. "I think these are two greedy individuals.

"They say I am trying to hold on to the America's Cup forever. In 10 years, I hope I am not a part of it anymore. But what I'd like to do is take advantage of a clear opportunity for sailing.

"I am engaged in trying to make sailing something more than for wealthy individuals."

Easy for the pharmaceuticals czar to say. He is one of the world's wealthiest men - a man who literally bought the America's Cup by raiding the successful Team New Zealand franchise in 2000 to form Alinghi - which has dominated the past two America's Cups.

Now he wants to increase the size of the boats - to the waterline length limit of 90 feet set by the Deed of Gift - and put the America's Cup on every-other-year footing.

How does that bring the "little guy" back into the game?

"I think it will make the event more attractive to the public and to television and sponsors," said Bertarelli, who wants something more than just a longer boat.

"I want to see a spectacular boat, something that is exciting to watch. A boat that will fly across the water on downwind legs and catch the interest and imagination of spectators. A boat using the latest in technology."

Bertarelli had hoped to have his plan in place by the time of the next America's Cup. He was, in fact, gunning for a 2009 event to establish his biennial program. To help the cause, he accepted the challenge of a little-known Spanish yacht club to be the Challenger of Record.

It was a cozy arrangement. The new challengers happened to be headquartered in Valencia, Spain, where Bertarelli's Swiss team successfully defended last spring. And they seemed to agree with everything Bertarelli sought to do.

Too cozy in Ellison's view. The challengers and defenders are usually embattled foes who negotiate at length on even the smallest of technicalities.

And Ellison isn't alone. Soon after Bertarelli announced his agreement with the Spanish, Louis Vuitton withdrew as sponsor of the challenger series (ending a quarter-of-a-century partnership) and Italy's leading syndicate (which twice raced for the America's Cup) closed shop.

Ellison chose the opposite tack. He filed his own challenge - much like New Zealand did against San Diego Yacht Club in 1986 - and sued Bertarelli in hopes of making it stick.

The New York Supreme Court will hear the case Oct. 22.

If Ellison (or GGYC) is successful in its suit, the next defense could be sailed next summer. If not, Bertarelli can advance his program to revamp the America's Cup - although the earliest possible date for the next defense would be moved to 2010.

On the surface, Bertarelli's plan has some positive aspects. A biennial event would be easier to market to television and sponsors for individual teams as well as the event.

But the America's Cup has always been a challenger-driven event. Bertarelli's quasi-unilateral planning could turn it into a defender-controlled event.

You would think the Challenger of Record would be the first to oppose such a plan. But the Spanish win no matter what. They remain the host of the event as long as Alinghi keeps winning.

Ellison's suit says Bertarelli's plan not only manipulated the rules but created a fake Spanish yacht club as a co-conspirator.

"All of us are just astonished by what is taking place here," said Tom Ehman, head of external affairs for Ellison's BMW-Oracle team and formerly the head of the America's Cup in San Diego from 1987-92.

Of course, someone is always surprised by anything that ever happens in the America's Cup.

There are even rumors circulating that Ellison and Bertarelli will agree to a compromise and settle out of court before the case is heard in New York City later this month.

"All this suit has done is delay the event we want to have," said Bertarelli last week in a phone interview.

Sound familiar?

Ehman said almost the exact same thing in 1987 as San Diego Yacht Club prepared to go to court to defend against New Zealand's renegade challenge.

"We are in a no-man's land," said Bertarelli.

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