America’s Cup sponsor Louis Vuitton wants a refund
Published on July 10th, 2013
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