INEOS Britannia pulls out of America’s Cup – but what next for the Cup – and British hopes?

Sir Jim Ratcliffe’s INEOS Britannia will not compete in the next America’s Cup - but what does that mean for British chances, and what else do we know about the 38th America's Cup?

Sir Jim Ratcliffe’s INEOS Britannia will not compete in the next America’s Cup.

The release issued last night stated: “INEOS Britannia announces that it has withdrawn its intention to challenge for the next America’s Cup.

“The decision has been taken after a protracted negotiation with Athena Racing Ltd following the conclusion of 37th America’s Cup in Barcelona.”

This follows the dramatic split between team boss and skipper Sir Ben Ainslie, and twice Cup title sponsors INEOS and Sir Jim Ratcliffe in January. INEOS Britannia became the first British team to reach a Cup final in 60 years, but lost 7-2 to Emirates Team New Zealand in Barcelona last October.

The release went on to place the blame with Ainslie’s team for the fact that INEOS would not be competing in the 38th America’s Cup:

“The agreement that had been reached with Athena would have allowed both parties to compete in the next Cup, but it depended on a rapid resolution. INEOS Britannia had agreed the substantive terms very quickly, but Athena failed to bring the agreement to a timely conclusion. INEOS Britannia is of the opinion that this six-month delay has undermined its ability to prepare for the next Cup and so has reluctantly withdrawn its challenge.”

Sir Jim Ratcliffe, Chairman of INEOS, commented, “This was a very difficult decision to have taken following our challenge at the last two America’s Cups.

“We were the most successful British challenger in modern times with an exceptionally quick boat and we felt with the very effective input from the Mercedes F1 engineers that we had a real chance to win at the next Cup. Unfortunately, the opportunity has slipped away.”

This is a major reversal since INEOS’s first communication in January, which stated that the team “already have 100 scientists and engineers working on the design of our AC38 yacht” and had appointed Dave Endean as CEO.

As recently as early March, Sir Jim Ratcliffe told the BBC – in a long-form interview that addressed the many tribulations of his sporting investments – that: “We will be at the next America’s Cup and I think we will be there with a very quick boat.”

Ainslie’s Athena Challenger of Record

Ainslie’s side has remained tight-lipped on the subject, after an initial release stating that they were “astounded” by INEOS’s announcement in January.

The Challenger of Record remains the Royal Yacht Squadron, Cowes, UK. Shortly after the split, Ainslie quietly laid down a line in the sand with the team, now known as Athena Racing, describing itself as ‘the British Challenger for the 38th America’s Cup’ on the Athena team website.

This fact was equally discreetly confirmed by the Royal Yacht Squadron on its own website, with an update in February that: “Athena Racing represents Royal Yacht Squadron Ltd, the British entry for the 38th America’s Cup lead [sic] by Sir Ben Ainslie.

It went on to add: “Royal Yacht Squadron Ltd is honoured to be the Challenging Club for the British Challenger of Record Athena Racing for the 38th America’s Cup. We will work alongside The Royal New Zealand Yacht Squadron to deliver the protocol for the oldest trophy in modern sport.”

So far, so British.

Ainslie’s funding challenge

But the big question British supporters have been asking since the very public break up is: can Sir Ben get the funding he needs to build a competitive entry?

There are many with deep loyalties to Ainslie in the sailing world – from his early Olympic successes Ainslie was the figurehead of a wave of British Sailing Team successes that in turn attracted world-class funding and personnel, developing Team GBR into a ‘medal factory’ that was the envy of almost every sailing nation.

His successive Olympic victories, America’s Cup challenges, and most lately SailGP team ownership, have brought yet more sponsorship funding and employment opportunities for those good enough and lucky enough to join his squads. Off the water, many have also worked with him for decades – including his CMO Jo Grindley and others on the commercial side who, of course, got a British America’s Cup team to Bermuda long before the INEOS partnership .

Ainslie is also, as anyone who’s even remotely followed sailing will know, not a man to be underestimated, particularly when backed into a corner.

One good indication of the team feeling came after Ainslie’s Emirates Team Great Britain won the Sydney Sail GP, with plenty of posts on social media from key players praising Ainslie’s leadership.

Of course, loyalty alone won’t pay the very substantial bills for an America’s Cup team, but it was known that both new backers and some of the original team founders were being courted in Barcelona.

Interestingly, the British SailGP F50 now carries branding for both JPMorgan and Howdens. JPMorgan has been associated with Ainslie since his Olympic campaigns, while Howdens insurance has now added sailing to a sporting portfolio that includes rugby (British and Irish Lions) and horse racing (Ascot Racecourse and the Bahrain Turf Club, among others).

Where next for America’s Cup?

Another challenge for Ainslie – or any other team looking to secure additional financial backing right now – is the uncertainty about where the next Cup might be.

It won’t be in Auckland, that much we know. It wasn’t an April’s fool, but Emirates Team New Zealand’s announcement – dropping into inboxes in the northern hemisphere just hours before April 1, certainly had plenty of us checking the date.

The statement read: “It would take a combination of private backing, local government as well as central government support to make it happen, but not at the expense of funding other priorities in the tough economic climate.

“In this time, the team have had comfort in the level of private support and have been working with Tātaki Auckland Unlimited who have been proactively spearheading the bid. So, it is with both disappointment and understanding to hear MBIE and central government have decided not to back the 38th America’s Cup in Auckland in 2027.

“While the significant economic benefits of hosting the America’s Cup and other major events are well proven, such as €1.034b (NZ$1.9b) of economic benefits in Barcelona in 2024, we understand there are other priorities for the New Zealand government right now.”

Other European options?

And so far, when it comes to the 38th America’s Cup venue, that’s all we’ve got.

Last year’s host city of Barcelona is known to not want to re-host. A play from Valencia, hosts of the hugely successful 32nd Cup in Spain in 2007, and the 2010 Deed of Gift Match, went understandably quiet after devastating floods hit the region.

The rumour mill is currently in overdrive suggesting alternative European venues. Naples is reported to be a forerunner, which would reward the longest standing entrants in the modern day Cup, with Italian syndicate Luna Rossa Prada Pirelli. Although it would be unusual, to say the least, for a defeated Challenger to have the Cup held in their home country despite not having won it – and therefore not be hosting it.

Italy would no doubt appeal to the luxury brands associated with the Cup – Prada from Luna Rossa, event partners Louis Vuitton, 37th Women’s America’s Cup partners Puig. And remaining in a European time zone would presumably help with negotiations when it comes to all-important TV rights. (Though to really build continuity of audience from Barcelona, what the Cup needs is some racing soon, which is looking increasingly unlikely…)

New Zealand news outlet Stuff – who always have their ears to the ground on the Cup, even if it’s hard to know who to listen to – are reporting that Greek shipping tycoon George Prokopiou is behind a bid for the country to host, with Athens a forerunner. It would be a spectacular venue for sure, but Greece has never entered the America’s Cup – it has no fan base nor physical base.

And though there is much less chatter about Jeddah or Abu Dhabi these days, the option of the event going to the Middle East – with all the financial and political ramifications that brings – still looms over the Cup.

Lost momentum?

For fans, it’s hard not to feel disappointment that the momentum of the 37th America’s Cup has faded – for British fans in particular, it’s a bitter disappointment that the opportunity to build on the best Cup result in 60 years has been lost.

There has long been sufficient depth of talent at the very top end of British sailing to support more than one Cup bid – between Ainslie, Dylan Fletcher, Giles Scott, Paul Goodison, Hannah Mills and others – but funding one viable and competitive team is yet again going to be the biggest challenge.

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