Four years ago, some people in the sport of sailing were predicting the end of the Med Cup. However, since then, with the help of sponsorship from Audi and a mature approach to the rules which made racing competitive, the series has(d) grown to be one of the top sailing competitions in the world.
However, reliance on a single sponsor is a always a risky strategy, and the series has suffered a blow in recent days, with Audi deciding not to renew its sponsorship of the series.
For sponsors, the Med Cup is a simple sell – if the target audience is southern Europe. By focussing on Spain, Italy and portugal, the regatta tour keeps costs down as well as tightly defining the target market.
Of course in an environment where the economies of Italy, Portugal and even Spain are set to continue to be challenging, sponsors need to asses their prospects of return more carefully.
And while not the kind of thing to be written into a public statement, there is increasing unease from the people of Germany about the degree to which the country is seen to be supporting southern Europe might also be a factor for a car brand like Audi.
Or to put it in less politically charged language:
Audi is paying special attention to the future of German competition sailing. Since 2010 the company has been supporting Sailing Team Germany, the German national sailing team, providing cars to the top sailors and pool vehicles for traveling to and from the regattas and practice sessions. The commitment is aimed at accompanying the talents on their way toward the 2012 Olympic Games in London in the best possible manner.
That’s not to say that Audi won’t support events in Italy and Spain. Regattas supported by Audi include the “Copa del Rey” off the coast of Majorca and the national Audi Sailing Series in Italy. And it’s not just European events that Audi is backing away from. The company has decided to end sponsorship deals in Australia recently as well.
As a result of the withdrawl of Audi’s cash, the Med Cup has decided to suspend the 2012 series. As well as the lack of sponsorship, the organisers – World Sailing Management (WSM), say that the lack of commitment from TP52 teams to all events and question marks over the ability for local authorities and host ports to find enough money to maintain a quality commitment to the event contributed to the decision to cancel the 2012 season.
A statement cites:
Serious uncertainty regarding the number of boats, mainly in the 52 Series (TP 52 class), willing to commit to compete in all of the events comprising the circuit with the risk of an insufficient number of competitors to ensure the competitive level reached by the circuit in previous seasons.
The lack of financial resources available to local authorities in their bid to become potential venues for the events of the circuit, which limited the ability to address their usual obligations and maintain the circuit’s level of quality.
The Med Cup has enjoyed a good run, but despite Audi’s involvement, and the participation of commercially backed teams like Quantum Racing, the series is still falls into the ‘Rich Owner’ category. The presence of Spanish royalty and a couple of America’s Cup teams over the years has prolonged the lifespan of the TP52 – taking it from the latest fancy floating toy for guys with a competitive edge, to a boat that provides close competition and great looking sailing.
The clash of cultures that underlies so much of the sport is still evident.
As Kate Laven said in the Telegraph yesterday:
The conflicting needs of owners who campaign their boats privately such as Britain’s Niklas Zennstrom’s Ran and those of corporate sponsors like the 2011 winners Quantum also created problems for both organisers and sponsors since private owners want only to go racing and have little interest in complying with sponsor’s media and corporate demands.
For many involved in the series, the news is not unexpected. The talk is that the TP52 owners will continue to race in 2012, without the hospitality rigs and the live IPTV broadcasts. ‘Fans’ will be a less important stakeholder group, but there are also wider implications for the sport and the relationship between the sailing and sponsorship.
