America’s Cup sponsor Louis Vuitton wants a refund

One of the most prestigious and longest running sponsors of the America’s Cup wants some of its money back. Louis Vuitton, the posh French retailer that has been a primary financial backer of the competition, wants $3 million refunded because so few teams have entered.

Louis Vuitton’s initial sponsorship was for $10 million, according to an America’s Cup source. Its contract was based on at least eight teams taking part in the Louis Vuitton Cup, a round-robin playoff to determine which team will ultimately sail against Oracle Team USA in the America’s Cup championship.

There are three teams entered in the Louis Vuitton Cup: Italy’s Luna Rossa, Sweden’s Artemis Racing and Emirates Team New Zealand.

Since the 1980s, there have been anywhere from 7 to 13 teams taking part in the competition. Several potential challengers – from Korea, France, Australia, Spain and Italy – pulled out of the America’s Cup, many citing the financial burden of competing at sailing’s highest level.

Louis Vuitton can get a $1 million rebate for each team less than six that participate, the Cup source said. That would mean the company is entitled to get $3 million back.

Should any of the remaining teams pull out of the competition – which they have hinted they might do – Louis Vuitton would be entitled to even more money back. – Eric Young, SF Business Times, read on