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SCUTTLEBUTT #501 - February 10, 2000

THE CHALLENGERS
Who are these Italians who have survived the toughest ever challenger series to win the right to race against New Zealand for the America's Cup? They are businessmen, entrepreneurs, world sailing champions and superb athletes.

Leader of the team is Patrizio Bertelli, who married Miuccia Prada twelve years ago and then guided the Prada fashion house into an international conglomerate that is one of the world's most successful businesses. Bertelli is an experienced and enthusiastic racing sailor, who in the early stages of the Louis Vuitton challenger series sailed aboard LUNA ROSSA frequently as the 17th man. This is an honorary position that allows no participation in sailing the boat, but provides the best spectator seat in the house. When LUNA ROSSA lost her mast in the semi finals he decided he must be bringing bad luck and gave up his place aboard.

One of the problems with America's Cup financing is that prospective sponsors like to know the effort will be successful before they make a commitment. However, the biggest and most important expenditures are in research and design, which must come at the beginning of the campaign. So getting a challenge off the ground with the early financing that will give the best chance of ultimate success is very difficult. Because Bertelli was underwriting the Italian effort with his own resources, in the same way that American Bill Koch did in his successful 1992 operation, he was able to make decisive and astute moves early in the game.

He bought two of Koch's boats, including the newest, Mighty Mary, all of Koch's research and computer codes and most of his logistic support equipment. Then he went after an all-star design team and hired American Doug Peterson and Argentinean German Frers. Peterson had been with Koch's winning design group in 1992 and was co-designer for Team New Zealand when they took the Cup to Auckland in 1995. Frers had been chief designer for the 1992 Italian challenge that won the Louis Vuitton series and then lost the America's Cup to the Koch juggernaut. Both Frers and Peterson had to take up residence in Italy two years before the first scheduled race of the 2000 series in order to qualify under the country of origin rules.

Also moving to Italy early were British boat builders Ian King and Bill Green, along with their team of carbon fiber and composite construction experts, who were hired by Bertelli to move to Milan and build the two LUNA ROSSAs.

As his skipper Berteilli tapped 37 year old (now 40) Francesco de Angelis, a native of Naples who won the J-24 world championship in 1987, and at the helm of Italian grand prix racers MANDRAKE and BRAVA, won titles in the ILC 40 and One Ton Cups five times. The six foot five inch helmsman has an easy smile and very calm demeanor. Through the toughest of times leading to the Italian victory in the Louis Vuitton Cup, de Angelis's voice could be heard over the on-board sound system instructing his crew to keep their composure and focus on sailing the boat. He spoke only when he felt it was necessary and most of the time was the picture of concentration, allowing tactician Torben Grael to provide the verbal input that kept LUNA ROSSA in the express lane.

With all the talk of super stars scattered throughout the challenger fleet, the brightest of all may well be Brazilian native Grael, who lists on his record the Star Boat World Championship, along with a second and a third in that most competitive of classes, Olympic Gold, Silver and Bronze medals, and five World Championships in the Snipe Class. This is a man who has stared down the stresses of world caliber sailing for decades, and although he made some wrong calls in the challenger trials, they were fewer than anyone else's. In the last two races of the final series against AMERICA ONE, he shaped LUNA ROSSA's victories with surgical skill, easing his boat into the lead on the opening leg each time, and then cutting off the passing lanes.

Throughout the rest of the Italian sailing team are Whitbread Race veterans, world champion crews, and some winch grinders who have not been outworked by any other boat's men of muscle.But perhaps the most important quality the Italians take to the doorstep of the New Zealand defenders, is the experience of winning the Louis Vuitton Cup. They have come out on top in a series that saw 202 races sailed between October 18 and February 6. Through it all, the superiority of their boat and crew has seldom been in question and their five to four win over AMERICA ONE has set them up to meet the Kiwis like no other preparation could possibly have done. -- Bruce Kirby, Sailnet Website

Full story: http://www.sailnet.com/

AMERICA'S CUP PREVIEW -- Chris Law
The race management is now under new auspices, that of Harold Bennett of the Royal New Zealand Yacht Squadron. You might ask why this is happening: well, the Louis Vuitton Cup is over, and how spectacularly exciting it was. It was run by Vince Cook, who presented a meticulously well-run regatta. There were more than 200 races sailed, as the series went from Round Robin 1 with only one point per win, to Round Robin 2 four points, and then Round Robin 3 with nine points. Six boats went through to the semifinal before coming down to the final two competitors, and eventually the winner.

We were on the pin end of the line, measuring accurately the start line bias, and we also had Ockam Instruments giving us wind speed and direction. At times there were three separate matches being run on one course, and I can honestly say, there wasn't a match that I can recall whose outcome was affected in any way by race management error, which is remarkable. Vince now retires to watch, and it will be interesting to see the effect of a new local race management for the Cup itself.

The new committee will have its hands full, especially with crowd control. The spectator fleet was estimated at more than 1,000 boats for the final race last Sunday, and you can imagine the effect if this huge armada was not firmly but graciously controlled. There are restricted zones and what they call stake boats which mark the outer limits of the course, and round which all spectator craft have to pass. The only boats allowed on the course other than the race boats and their two chase boats is us on the TV boat, and then the media boat, and then a PR/spectator boat for each syndicate. So you can now get the feeling of just how huge this event is going to be.

For interest, TVNZ, the host broadcaster has in excess of 20 cameras running, three helicopters, four race-cams on each boat, plus four microphones on each boat for the crews. So we really get amongst the action, and the TV imagery has been fantastic. The TV audience on Sunday peaked at a factor of 29, which in TV gobbledygook means in excess of two-thirds of the TV audience in New Zealand was watching the America's Cup. This is expected to rise to 90 percent, the figure we attained when New Zealand won the cup in San Diego in '95.

So the stage is set. I understand we are going to give you full technical analysis and weather information, along with all the crew lists and every bit of detail we can. Suggest you get the work done now, mow the lawn, and get in credit for house-points - you're going to need them, you won't get much done for 10 days after that! -- Chris Law, Quokka Sports

Full story: http://www.americascup.org/

CURMUDGEON'S COMMENT: Gary Jobson and Jim Kelly will be broadcasting all races of the America's Cup LIVE on ESPN2. The action starts on Friday, February 18 at 7:00 PM Eastern Time -- 4:00 PM on the West Coast. Complete schedule: http://www.jobsonsailing.com/tvsched.html

REAL AMERICA'S CUP MEMORABILIA
AmericasCupStore.com is always open, featuring official team wear like the AmericaOne logo cap and Team New Zealand's "Lucky Red Socks". Pick up your copy of the Official America's Cup Event Program-- 136 glorious pages of Cup history, profiles on all competing syndicates, specially commissioned portraits of team skippers, and page after page of magnificent competition photography. You can only see these at http://www.americascupstore.com

NEW ISAF MATCH RACING RANKINGS
Issued February 8, 2000 - OPEN RANKINGS: 1. Sten MOHR DEN 2. Magnus HOLMBERG 3. Luc PILLOT FRA 4. Jesper BANK DEN 5. Jes GRAM-HANSEN DEN 6. Morten HENRIKSEN DEN 7. Markus WIESER GER 8. Andy BEADSWORTH GBR 9. Jesper Radich JOHANSEN DEN 10. Tomislav BASIC CRO 22. Neville WITTEY AUS 23. Peter GILMOUR JPN 36. Peter HOLMBERG ISV 53. Ed BAIRD USA 61. Paul CAYARD ITA

WOMENS RANKINGS: 1. Betsy ALISON USA 2. Shirley ROBERTSON 3. Dorte O. JENSEN DEN 4. Klaartje ZUIDERBAAN NED 5. Paula LEWIN BER 10. Cory SERTL USA

Complete rankings: http://sailing.org/iyru/worldrankings.htm

LETTERS TO THE CURMUDGEON (leweck@earthlink.net)
Letters selected to be printed are routinely edited for clarity, space (250 words max) or to exclude personal attacks. But only one letter per subject, so give it your best shot and don't whine if people disagree.

-- From Jonathan Woolf-Willis -- When you read Larry Edwards' article about AmericaOne's future together with Doug Holthaus' insights, one obvious question immediately leaps out: Is Doug Peterson now free of his obligations to Prada so A1 can sign him up NOW for the 2003 challenge?????????

-- From Dinsmoor White, Annapolis -- Has anyone thought of taking the many ICAC yachts which are now in existence, and using leftover funds from the several cup campaigns to make these over into a one design group, then holding a national regatta or series to determine who our American challenger would be? Once that has been determined, then the winning group can go about raising the funds, working on the new technology, and developing a successful campaign.

-- From Marc Herrmann -- In the event the Cup would go to Italy and the US Teams will invariably pursue to challenge, the Corporate Team Leaders should consider one of the comments made by Cayard during the post Race 9 interview which, to my mind, summed it up perfectly. "For any US Team to consider mounting a challenge, perhaps a more unified America is needed to formulate this challenge to successfully regain the Cup". In the event egos cannot be honed around the concept of "one" strong team, perhaps an intra-American challenger series will assist in determining the best team to challenge for the Cup. Just think of the possibilities of amalgamating 4 Teams into one. Corporate sponsorship would certainly no longer be an issue. "The Team" would be able to focus on the task at hand.

This said and if certain Corporate Sponsors that have been left out of "The Team" are still looking to spend their $ elsewhere, they might wish to consider sending these corporate $ north of the 49th Parallel in mounting a Canadian challenge. Since Canada produces a number of world calibre sailors in the likes of Ross MacDonald (Toshiba) and Curtis Blewitt (AOne) just to name a few, the potential for an underdog upset could be in the making.

-- From Bruce B. Nairn (Re support of community sailing) -- Dawn, Paul, Ed and the rest of them have supported sailing in very real ways: It's spelled involvement at all levels over a very long time. It just so happens that they have spent their most recent sailing time on the AC. And good for them! They have certainly worked hard to get there and for what exactly? I haven't read their W-2's, and I haven't seen Dawn in a new Porsche lately so I don't think that they are getting particularly rich in the process. Definitely no golden eggs here.

Grass Roots sailing gets a huge boost from the interest in the AC, Volvo, and Grand Prix sailing. I don't know about the rest of you, but I grew up in Penguins with visions of the America's Cup dancing in my head.

-- From Bruce Hollis -- The item in 'Butt #500 on nominations for the Australian Olympic Team failed to mention the very worthy Josh Grace and David Edwards, the nominated Soling crew with Neville Wittey. They worked pretty hard to get there too.

LOUIS VUITTON FINALS WRAP UP -- Paul Cayard
This series did not end the way we had planned. The score told the story of an unbelievably tough regatta; the most competitive series of match racing ever staged in the America's Cup. Our comeback from 3-1 and the broken mast, were answered by Prada's comeback from facing a double match point. Each team bore its heart and soul several times throughout the twelve-day ordeal. But in the ninth and final race, Prada had the upper hand. We are very disappointed. We don't accept defeat easily...in fact we take it on the chin. It is personal and the sting won't be forgotten soon with the AmericaOne Team.

However, there is a lot to be proud. AmericaOne was the best team in the USA and came very close to beating the best that the world had to offer. It is a fact that Prada spent twice the money and time that we did toward the same goal. So how did we get so close? People, organization, determination, and passion. We had the best group that I have ever worked with in a Cup and it was an honor to have them commit to our campaign. No one came to work at AmericaOne for the money. They came out of respect for the group we had assembled and the belief in those people and their determination. This is the most satisfying compliment I have ever had and I want to once again thank every member of AmericaOne for their effort and commitment.

Also, we would never have gotten where we were without our corporate partners, many of whom are world leaders in their industry. What and honor to have the support and confidence of Ford Motor Company, Global Integrity, Hewlett-Packard, Intessa, SAIC, Telcordia Technologies, United Technologies, Visteon, Network Solutions, Lycos and Charles Schwab! Most of these companies had a very direct involvement in the technical program of AmericaOne and truly made a difference in our boat speed at the end of the day. AmericaOne was the only US team to gather over $20M of corporate support.

Our private donors are also very near and dear to us. Many come from the St. Francis Yacht Club, where I grew up in the junior program in the 70's. Thanks to the leadership of Larry and Jan Finch, Fritz and Lucy Jewett and Tom and Alexa Seip, the Founders' Club generated $8M. Much of this money came early and allowed us to make commitments to key people in 1996 and begin technical work that requires long lead time. The "seed" money concept of a start-up company was the model we used and it too was a critical piece of our puzzle.

What went right? Too much to list but I want to mention a few highlights:
* Bruce Nelson and his technical team did an awesome job of coordinating the efforts of 40 plus people, many of them representatives of our sponsors, and produced two excellent boats in USA 49 and USA 61. Prada was designed by the man who designed the Kiwi boat in 1995, so they had a strong starting point and an open checkbook for the past three years. We were basically equal to their performance...that was a big wall we scaled technically!

* The corporate sponsors made a selection from a field of six candidates in the USA and chose AmericaOne. We delivered on our prediction that we would be the best team from America. This is important to me because talk was cheap in 1997 but the proof is in the results.

* AmericaOne also set the standard for corporate fulfillment in the sport of sailing. It was an important goal of mine that we provide a valuable commercial experience for our corporate partners and I believe we have succeeded in this.

* I know that our private donors, who made the trip down to New Zealand, really enjoyed the America's Cup experience and I am happy they could see first hand how the team operates. We had all our private supporters with us in name on the inside of the boat, another personal touch that I am proud of.

* Bob Billingham and his staff set up outstanding operational facilities both in Long Beach, CA and Auckland, NZ and did it very cost effectively.

* Everyone on the team, from the crew to the shore team, from accounting to food and housing approached their jobs as a competition with the individuals who held similar jobs on other teams.

* Time and again, after mistakes were made, we looked ourselves in the mirror honestly, made adjustments and came out the next day hitting on all cylinders. This is a critical trait for any successful team; and AmericaOne has it!

What went wrong? We did not win.
* Time was probably our biggest enemy. Construction of USA 61 was delayed when a sponsor withdrew. Our team operated for just over one year. Our competition operated for three years and was sailing their race boats for six months.

* A bit too much on the key peoples plates. Trying to stay lean at the outset meant a management structure that was small and probably overloaded.

Where do we go from here? I have been overwhelmed by the e-mails and faxes of encouragement during the past 48 hours. Even though life for us these days is disappointing it seems that there is a large amount of respect for what we have achieved and an equally large amount of support for the continuation of AmericaOne. This is helping us recover.

I believe that after the appropriate digestive period, AmericaOne may challenge for the Cup again. We don't give up easily and what we have built should be added to, not left to flounder. The assets we have are top quality and completely unencumbered. We have run a program that is flush...no debt. We have a very experienced team that should stay together. We must start very soon as all this talent can quickly disperse. I would like to think of the next few months as a well-deserved break between chapters rather than the end of a book.

I believe that we always handled ourselves professionally with class and dignity. These are traits, which are larger than any one of these events and are very important to me. It has been an honor and pleasure to represent all of you, our corporate partners, the St. Francis Yacht Club, and America. I thank you for this opportunity. -- Paul Cayard, http://www.americaone.org

INTERNATIONAL YOUTH MATCH RACING
The Royal Yachting Association (GBR) team has stretched to an early lead in Group A of the Coca-Cola Cup with five wins and no losses, while four teams in Group B share a 4-0 win-loss record.

Racing on Auckland's Waitemata Harbour had to be interrupted for about 40 minutes today after two yachts collided and one broke a shroud. The collision occurred in the second flight of the day when Bucklands Beach Yacht Club (NZL) hit King Harbor Yacht Club (USA) during their spirited pre-start. Bucklands Beach was penalised, but the King Harbor Yacht had to make a pit-stop to have the rig removed and the shroud replaced before racing could resume. With the contest already behind schedule because of no wind yesterday, the delay added pressure on race officials. But in a perfect breeze of 12-14 knots, Group A and Group B each completed four flights of matches.

Royal Yachting Association leads Group A with 5 wins and no losses, with Royal New Zealand Yacht Squadron Blue (NZL) on four wins, Royal Prince Alfred Yacht Club (AUS) on three, Royal Sydney Yacht Squadron (AUS) and Royal Danish Yacht Club (DEN) on two each and Kanagawa Youth Yacht Club (JPN) on one. Yacht Club Punta Ala (ITA) and St Francis Yacht Club (USA) have yet to post wins in Group A.

In Group B, Royal New Zealand Yacht Squadron Red (NZL), Cruising Yacht Club of Australia, King Harbor Yacht Club and Royal Perth Yacht Club (AUS) are all unbeaten on four wins each. Bucklands Beach Yacht Club (NZL), Circolo della Vela Erix of Lerici (ITA), Fukuoka Yacht Club (JPN) and Wakayama Marina City Yacht Club (JPN) have yet to score. Sixteen teams from seven nations are taking part. This is the largest entry ever in an event which has come to be regarded as the unofficial world championship of youth match racing.

The teams, which are competing in a brand new fleet of Elliott 6m yachts, are split into two groups of eight teams, which are each scheduled to complete two round robins before semifinals and finals take place on Sunday. -- Ivor Wilkins

ATTENTION REGATTA ORGANIZERS
This is the time of year to plan for those summer events. And if it's a really big event, you will need bow numbers, banners, backstay pennants and flags. And obviously, it all has to fit within the budget. Who can make that happen?. Well, the Mumm 30s, the Mumm 36s, the Corel 45s the Farr 40s, the Hobies 16s, the 49ers, the SoCal Volvo regatta and lots of others learned North Graphics was the best place to go. Why? Just call Whitney Gladstone and you'll find out: (619) 224-8667, http://www.northsails.com/graphics/

TONIGHT'S THE NIGHT
Leif Beiley, the designer and builder of the B-25, B-32, B-35, and the new Bravura 29, will be online tonight from 5:00 pm to 7:00 pm PST, 8:00 to 10:00 pm EST. The subject is design and construction of Sport Boats. To join in for live chat, or just to listen to what others have to say, log onto the Elliott / Pattison Sailmakers website: http://www.epsails.com

FIRST ENCOUNTER
The first encounter between Team New Zealand and Prada came on a day when both teams had their two boats out in preparation for the start of the America's Cup -- just over a week away on February 19. At the end of their separate training sessions, the four boats were all heading upwind back towards Auckland. The two "A-boats," helmed by skippers Russell Coutts and Francesco de Angelis respectively, bowed out of the engagement. But Dean Barker and Rod Davis on the "B-boats" hooked up with each other for about five minutes.

Barker, sailing NZL-57, tacked to leeward of Davis in ITA-48 and about a boat length away. With the late afternoon light slanting across their sails, the two yachts sailed boat-for-boat. NZL-57 seemed to edge out from below ITA-48, but Team New Zealand was very quick to discount any significance from the encounter.

"It was just a bit of a bow and a curtsy before the big dance," said designer Clay Oliver, who sailed on NZL-57. "We sail our boats together for hours in testing," said Coutts. "Often we can't pick the differences. In fact, we sometimes have to sail for days before we can detect any real difference. I doubt we could see any major difference between us and Prada in that short time."

"There wasn't anything in it," said Barker. "We had old sails and they were messing about as well. You can't take anything out of it. It was nice to get close to them and sail in the same piece of water. -- Ivor Wilkins, Quokka Sports

Full story: http://www.americascup.org/

THE CURMUDGEON'S OBSERVATIONS
The nail that stands out frequently gets hammered down.