Cash plea days after win
Grant Dalton asked for an immediate $5 million to help pay crew salaries.
Team New Zealand’s SOS for $5 million after their America’s Cup win included a plea from boss Grant Dalton for an assurance that the crew would know that he could “pay their salary after next week”.
Text messages, emails and letters between the yachting syndicate and the Government released under the Official Information Act showed Dalton, right, requested the funding “as soon as possible in order to secure our core team”.
“It would be great to tell the team I can pay their salary after next week,” Dalton wrote to Simon Bridges, Minister for Economic Development, on June 29 — just two days after Emirates Team NZ lifted the Cup from Oracle Team USA.
“We have innovated ahead of the biggest and richest in the world and we have done it on a significantly smaller budget. Our small budget was timed to get us through to the final and the contracts with our team all end next week,” Dalton’s letter read.
“We are extremely conscious that we need to lock in our key team members before they fall prey to tantalising offers from other syndicates.”
Dalton explained that until details for the next America’s Cup had been agreed, the team could not secure sponsorship commitments.
This is not the first time Team NZ has struggled with money.
Dalton revealed earlier this year that until winning the Louis Vuitton Cup qualifier on June 12, the team couldn’t afford to pay sailors’ salaries.
He previously said that a press release announcing Team NZ’s closure was drafted in October 2015, after the board of directors decided that the cash-strapped syndicate had to close shop. A last minute bail-out from an overseas donor allowed Team NZ stay afloat. Dalton’s letter requesting the recent $5 million payout was a response to a series of text messages between Bridges’ office and a member of Team NZ about upcoming funding. The exchange began on June 26, a day before Team NZ won the Cup. “I’ve been asked to give you a call to discuss what ETNZ are planning on saying publicly in terms of next steps and any possible support that might be needed should we win the Cup,” a text from Bridges’ office read. A week later, on July 3, the $5 million was approved. The Government gave the same amount of money to Team NZ after its defeat in San Francisco in 2013.
The conditions of the investment have been withheld.
The Herald on Sunday contacted Team NZ for comment but they did not respond by deadline.
The Government has set a deadline of mid-August for initial advice about Team NZ’s plans to defend the Cup in New Zealand in 2021. This will help establish the basis of the next phase — funding and contracting — should the Government decide to put in more money.
The advice to ministers is set to include potential benefits of New Zealand hosting the 36th America’s Cup, timeframes for key decisions, strategic objectives the Government should seek in return for further involvement and recommendations on the next steps.
A group formed by the Ministry of Business, Innovation and Employment, Department of the Prime Minister and Cabinet, Treasury, Sports NZ and other relevant agencies will provide the advice.