One of the most prestigious and longest running sponsors of the America’s Cup wants some of its money back, according to the San Francisco Business Times.
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.
A spokesman for the America’s Cup, which began this week and runs until September, was not immediately available for comment.
A Louis Vuitton spokesman was not immediately available for comment. But a Louis Vuitton representative told a New Zealand newspaper that the company was “not happy” with the Louis Vuitton Cup so far.