Bruno Peyron - Energy Team - Photo: Stéphanie Billarant
We sat down with Bruno Peyron – then man behind the business of Energy team.
Was the America’s Cup ever on your wishlist?
No. Never. And I have never been interested in the America’s Cup apart from a little bit of curiosity and a fan of the talents. This is for two reasons.
The first is that I have been sailing on Multihulls for more than 30 years – that was my favourite game. The second was that from the point of view of partnering and sponsorship it as impossible to sell. And even if you sell it, I mean you were just in the position that your return on investment was not positive.
For more than one and a half centuries, this has been a game more for private rich people, rather than a commercial product, which is going to change now.
So what makes this America’s Cup different from a sponsorship point of view?
A few different things. The first is the nature of the product. The future is multi-hull. It’s faster. More dramatic and more spectacular. It’s going to change the audience – it will be younger and wider in terms of marketing. This is the first major reason.
The second reason is the cost of the campaign. It’s still a lot of money, but for the first time I think it is reachable and can be balanced. There will be a positive ROI.
In France we are used to putting together campaigns and I think that the level of budget required is not so far away from the level of the two biggest teams in France today plus a few secondary partners. So it’s reachable – if you compare it to the benchmark – if we imagine what the numbers will be, I think that it will be very interesting for partners.
And how are sponsors responding?
So far, well. It’s a new product, and as usual for a new product you need some time. I’ve spoken with Russell (Coutts) and the team to share my conviction that it won’t take four months, as predicted, but one year to do the job. At least 6 months to get the first answer to the question – do we think the reaction of partners is positive towards the new product? And if, by chance, the answer to this first question is yes – and I had this answer in April, I told them, I am going to need at least 6 months more to build up the package.
We are in a very good position now, because we are lucky enough to be the only new team to have the backing of a good, big brand like Corum and a couple of others which allows us to guarantee the two seasons in AC45 – so we are the only one along with Team New Zealand of course – but they have been around for years now.
Now we have to finish the job for the big one. To get a sponsor.
Corum will back you for the full two years?
Yes. That’s what I am saying. This is not anymore a fantasy or a dream. This is real. Here we are.
Are there any other revenue streams available to teams – other than sponsorship?
No. We don’t have any private money, we don’t have any government money. So we have to build up a real commercial package, which has to be balanced and powerful and that is what we are doing.
Is there any way to make money from things like merchandising…
Yes, but it is marginal. Of course Marinepool sponsor us and they are a very good brand and we are pleased to work with them. We will do a special range with them, but any revenue will be marginal compared to what we need.
What about revenue from TV?
The revenue from TV is supposed to be shared in a way, but for the moment, the priority is to improve the visibility instead of trying to get money from it. So the level of the production is very high – this is the first step.
The second step is to try to get the best media deals everywhere in the world – especially in the markets where the teams are coming from and on this point, I think we need to push a bit more.
Would a French Event help that?
I am sure. Everything could help, and the fact that there are two events in Italy and none in France – it’s a bit surprising. But we could have helped – we could have introduced ACEA to Marseille for example, but anyway…
Are there conflicts between the organisers and the teams?
We can disagree. We still disagree on a few things, but they are listening and we can give them credit and I think that is good.
We are working very well with ACRM, Iain Murray and his team are doing a fantastic job. We disagree on the sails rules and we are talking about that, but again, maybe I am wrong, but I trust the level of lucidity around the process and the level of interest. Maybe I am a dreamer. Let’s hope I am not alone.
None of the results of the World Series count for the next phase. Is this more of a show in a way?
No its not just a show , it’s real high level racing but there are still things that need to improve.
I disagree with the choice of just using the so called “super sunday” points after having been racing almost 10 races in the week , it would be far better to count all races like in any high level competition to get a real ranking and not just a good or a bad day for a team.The point system is also a bit peculiar where some boat that doesn’t even start or finish get the same points than one that finishes the course properly. That has to change.And one last thing. It seems like new format will make more of match races than fleet races . I can understand why, because at the end, the America’s Cup is a match race , but we need more fleet races to raise awareness in every market where there are far more sailing fans than match racing fans .So I consider this move a mistake in terms of marketing in the short term where the priority is to promote the product.We have plenty of time to promote match racing and we can keep a fair ratio in the program, but again, just ask the newcomers on TV and Youtube what they want to watch and you ll get a very simple answer.The new America’s Cup will succeed as a revolution only if we, all together, are able to attract a far larger audience than fans and forgetting this could be dangerous.
