The America’s Cup: A Billionaire’s Dream On Water

The America’s Cup, also known as the Auld Mug, is the most prestigious sailing trophy in the world. It’s the dream of a small group of sailing enthusiasts, including fashion moguls, high-tech billionaires, and biotech magnates, who invest millions of euros to assemble the best sailing team and cutting-edge technology for their boat.

Text Anja Van Der Borght

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Hundreds of thousands of spectators have already flocked to Barcelona in recent months to witness a preliminary round of the 37th edition of the America’s Cup or to experience the electric atmosphere as the final approaches. The tension is always palpable, just as it was 150 years ago when the America, the yacht of the New York Yacht Club, defeated an armada of British sailing ships in a legendary race around the Isle of Wight. Since then, the America’s Cup has been named after the first winner of the race. Until 1983, the year Australia won, the America’s Cup trophy had been displayed continuously in the New York Yacht Club’s trophy cabinet. Not surprising, considering the club would adjust the America’s Cup rules when necessary to ensure that the trophy stayed in American hands (preferably their own). This led to a very intense competitive history. It took 132 years before the Auld Mug left New York for the first time to be claimed by another continent.

European Winner
“The New Zealand team and the Swiss Alinghi team were neck and neck at the finish line, at least as the radio blared in 2003: ‘And there he goes… The wind drops… From 10 to 7 or 8 knots. A final gybe (gybing is a sailing and windsurfing maneuver where the sails are shifted to the other side while catching the wind, unlike tacking—editor’s note). And… Alinghi manages to overtake its rival in the final few hundred meters before the finish. Let’s see if it can recover enough time, as Team New Zealand with skipper Dean Barker was 34 seconds or about 130 meters ahead of Alinghi at the first buoy, and at the last mark, Team New Zealand still held a 26-second lead. Yes! Alinghi makes it and crosses the finish line with a 7-second lead, putting skipper Russell Coutts’ team ahead 2-0 in the best-of-9 race series for the America’s Cup. Both teams will meet again on Tuesday for the third race. It promises to be another thrilling battle, as if Alinghi wins, the sailing cup will be won by a European team for the first time in history,” the radio commentator concluded. In the end, the Alinghi team from Switzerland, a landlocked country, won the America’s Cup—something that had seemed impossible up until that point in 2003.

Tons of money are spent on new designs and materials, which are guarded as if they were top state secrets.

Hard Business Talent

These days, more than just an excellent boat and a well-functioning sailing team are required to compete for the coveted America’s Cup. The battle for this trophy is now fought primarily with immense financial resources and super-sophisticated technology. In the races, the differences come down to seconds, and every tiny improvement to the sails, mast, hull, keel, etc., can make the difference between winning and losing. Tons of money are spent on new designs and materials, which are guarded as if they were top state secrets. In 1983, the Australian team began covering its keel before removing the boat from the water to prevent competitors from glimpsing a revolutionary new design featuring a wing at the base of the keel. Most of the boats competing in this year’s fourteen regattas of the America’s Cup are fully wrapped in a protective covering when taken out of the water. This prominent role of technology is nothing new. In 1903, renowned American banker J.P. Morgan had a sailboat built specifically for the America’s Cup with a telescoping mast that could extend up to 65 meters. Morgan won. During the previous edition of the Cup, telecommunications magnate Craig McCaw outpaced all the other teams by purchasing exclusive rights to use the Wi-Fi frequencies around the Hauraki Gulf long before the first race even started. As a result, the other teams were forced to rely on narrower-band radios and mobile phones for communication between their sailboats and support vessels during the preparation for the races. All this communication equipment is literally thrown overboard in a waterproof floating bag before each race, as the rules prohibit any communication with the technical staff onshore or on support boats during the competition. The referees communicate with the participants via colored flags.

Sailors Versus Computers
Wind meters, speed gauges, GPS equipment, digital cameras, tension meters, navigation software… The wealthy backers of teams like Oracle’s CEO Larry Ellison, telecom magnate Craig McCaw, and Paul Allen (formerly of Microsoft) invest millions of dollars to transform a sport traditionally based on intuition and experience into a hard science governed by data. As a result, mathematicians, programmers, designers, engineers, and meteorologists have become just as crucial to a team’s success as the sailors themselves. “A sailor’s success depends significantly on their ability to predict the weather and, in particular, the wind,” explains a Dutch sailor. “A sailor needs to see where the wind is strongest on the water, how the wind is affected by objects and other weather phenomena. But we’ve reached a point where technology is indispensable. For instance, we work with Red Bull Racing, who assist our designers in crafting the keel and handle telemetry, bringing all their Formula 1 expertise to the table.” Some teams have weather boats that have been out on the water every day for two years to collect data. These measurements are then used to develop models that—believe it or not—can predict how wind and water will behave during a specific race. However, sailing isn’t entirely about money and technology. In the previous Louis Vuitton Cup, the race was often won by the boat that crossed the starting line first. This means that maneuvering the boats in the five minutes leading up to the start remains the most critical factor in determining who wins and who loses. This game of gybing, tacking, turning, drifting in the wind, and luffing can’t be simulated by computers. When two boats are technically equal, the one with the better crew still has the best chance of victory. So sailors, set sail!

At the start of the 37th America’s Cup in Barcelona, a mix of veteran teams and notable challengers from around the world compete in this historic race. Switzerland is represented by Alinghi Red Bull Racing, aiming to reclaim the title they once held. The American NYYC American Magic team carries the legacy of the prestigious New York Yacht Club. New Zealand’s Emirates Team, the defending champions, seeks to hold onto the trophy. European competition is fierce, with entries from INEOS Britannia (UK), Luna Rossa Prada Pirelli (Italy), and Orient Express Racing Team (France). In total, six boats will challenge Emirates Team New Zealand, with the winner earning the honor of hosting the next edition of the America’s Cup.