logo
When SailGP came to New York City: Spectators, ‘storytelling' and star-studded investors

When SailGP came to New York City: Spectators, ‘storytelling' and star-studded investors

New York Times3 days ago

In New York City, there is never any shortage of sports and entertainment options. This weekend alone, the New York Yankees hosted the Boston Red Sox in front of a sellout crowd and more than 100,000 people attended the Governors Ball music festival.
The battle for market share has rarely felt so fierce, yet a short ferry ride over the water to Governors Island and another live sports event was in demand: SailGP. Just under 10,000 people filled out a grandstand — at $85 (£63) per ticket for adults and $43 for kids — to watch a sport growing in appeal and increasingly marketed as the Formula One of the seas.
Advertisement
The product is increasingly straightforward: 12 nations compete in 12 destinations for $12.8 million worth of prize money across the season. They race in identical hydrofoil catamaran boats, which can go at speeds of over 60 miles per hour. During this weekend's event, racers navigated rainy conditions and choppy waters on the Hudson River, with the skyscrapers of Manhattan and the Statue of Liberty painting a picture-perfect backdrop. Spain took their second consecutive event win in the difficult conditions. After finishing the Fleet Races in third with 38 points, Los Gallos held off New Zealand and France to take home the victory in the three-boat final.
'Sailing used to be white triangles on a blue background way out at sea,' says Andy Thompson, SailGP's managing director. 'But that is very far from what SailGP is today. It's a racing property.'
The past fortnight has offered further evidence that SailGP is captivating investors. First, the Italian team was acquired by the women-led investment firm Muse Capital at a valuation of $45 million in a consortium that includes the Hollywood actress Anne Hathaway. This represented considerable growth for teams that were selling for between $5m-10m only two years ago.
The former Milwaukee Bucks owner Marc Lasry has previously led a group which acquired the U.S. team for $35 million. In March, Real Madrid forward Kylian Mbappe bought into the France SailGP team.
If we needed any more evidence that Sail GP is the en-vogue sporting investment, this came last week when Ryan Reynolds added to his growing sporting portfolio by teaming up with Hugh Jackman — yes, that's Deadpool and Wolverine — as the pair became controlling owners of the Australian SailGP team. The Aussies, who have now rebranded as the Bonds Flying Roos — yes, that's Bonds underwear as the title sponsor — won the first three Sail GP championships and were runners-up last season.
Advertisement
Their star sailor Tom Slingsby, an Olympic gold medallist and CEO of the Aussie SailGP team, says he became aware of visits to SailGP events by Reynolds' team at Maximum Effort, the production company and marketing agency founded by the actor ('maximum effort' being the catchphrase of Reynolds' movie Deadpool). Tentative discussions have already started about a possible docuseries, following on from Reynolds' investment in Welsh soccer club Wrexham and Colombian soccer team La Equidad.
'They bring star power,' Slingsby tells The Athletic. 'To have Deadpool and Wolverine, they're the 'it' people right now. They also bring an element of storytelling. We're seeing what Ryan's done with Wrexham. They're just going to be fun owners. Having chatted with Ryan, he is incredibly funny and he's going to fit really well with our team.
'Importantly, every discussion with them is, 'What do you guys need to do to be successful?'. Obviously there's talk of ways to promote our team in the league, but it all comes second to us being successful on the water. I was obviously pretty strong on us being athletes first, and if we can be entertaining for the public as well, that's great, but we want to win on the water.'
The U.S. team's ownership group is similarly stacked with big-time investors and star names. Mike Buckley, the CEO and on-boat strategist for the U.S. team, says: 'We wanted the most diverse ownership group that we could possibly find. We want people who don't think like us and have different areas of expertise.
'I can pick up the phone and call Marc Lasry, who runs one of the most successful private equity firms in the world (Avenue Capital). He won the NBA championship and took the Bucks from the back to the front and the valuation from a few hundred million to three or four billion.'
The U.S. ownership also features founding Uber engineer Ryan Mckillen and his wife Margaret, the Resy co-founder Gary Vaynerchuk, Hollywood actress Issa Rae, the NFL's DeAndre Hopkins and boxer Deontay Wilder.
For sailors, SailGP provides game-changing security by providing year-round events beyond the America's Cup and Olympic Games.
Advertisement
'Sailing used to jump on the radar every four years and then it just disappeared off the mainstream public's vision,' says Slingsby. 'After an Olympics, when you finish your event, you'd just be sitting there and there's no funding, you're out of a job for a while and you're waiting for the phone to ring.
'When I've been between Olympics, I've had other jobs — bartending and boat building, all sorts of things. You're doing anything you can to keep the money coming in.
'In 10 years, we'll definitely be seeing SailGP still here and racing in consistent events. It's going to be the backbone of sailing. It's five years old now, a lot of people were saying that it would be around for a year or two and disappear.'
Founded by the billionaire Larry Ellison, the co-founder of tech firm Oracle, SailGP is discovering traction in what their executives describe as the crossover market between lifestyle and experiential sports. Slingsby notes there are markets such as New Zealand where the fandom is more intense, and athletes are approached at hotels and when out for dinner.
SailGP's executive Thompson says the event's ratings 'regularly average around 20 million dedicated viewers around the world.' In the U.S., CBS and its Paramount+ streaming platform broadcast the event. Their highest-rated events — which bring in around 1.8 million viewers — have been intentionally scheduled to follow NFL games in order to capture audiences from America's most popular sport.
SailGP's chief revenue officer Ben Johnson bristles at any suggestion sailing is a 'niche' sport, but the locations of some races — St. Tropez in France, Abu Dhabi and Dubai in the Middle East, or Manhattan — do lend themselves to an exclusive in-person audience. The aim is a vast broadcast audience and a hot-ticket live event.
Johnson says they are taking learnings from events such as the Kentucky Derby, or the Indy 500, as well as F1, and 'leagues who are moving from traditional sports operators to more sports entertainment and even just broadly entertainment properties.' By attracting celebrity investors (or employing DJ Khaled as the league's 'Chief Hype Officer'), SailGP want to make their events, much like F1, a place to see and be seen.
Advertisement
Johnson says: 'It is very intentional. There are brands like (European soccer champions) Paris Saint-Germain, where they are more of a lifestyle brand than they are a traditional sports team. They are a perfect example of where we see the opportunity in the global sports space.
'We don't need to be a season-ticketed event. We don't need local media rights to validate our audience growth or our revenue model. We think the demand right now from an experiential standpoint is the highest it's ever been and will continue to grow. So we're focused on new fanbases and inspiring the next generation of lifestyle sports fans.
'People (are) looking for social, communal, family-friendly, brand safe moments where they can bring people together. And I think we're the perfect backdrop for that. It's new, it's novel, fast, you know, all the things that you need to really capture people's attention.'
Sponsors are certainly discovering the appeal. SailGP's title sponsor is Rolex, but across the league and teams there are now investments or partnerships from sovereign wealth funds, such as Mubadala Capital (of Abu Dhabi), as well as Emirates airline sponsoring the league and Red Bull partnering with the Italian team, while the U.S. team have sponsorships with Tommy Hilfiger, Amazon, and T-Mobile. The British team is title-sponsored by Emirates and has a partnership with JP Morgan, while Deutsche Bank sponsors the German side.
'I would expect next year you (will) see all the teams somewhere close to commercial profitability,' says Buckley. When asked about profitability, Johnson said SailGP does not disclose its financials, but it is 'ahead of our own internal targets.'
The growing investment in the sport is also accompanied by increased jeopardy. Only Spain have won more than one event this season, which may be one of the advantages of sailors racing on identical boats — meaning winning and losing come down to conditions on the day and the performances and skill of those on board. That is not to say there have not been challenges.
May's SailGP event was supposed to be held in Rio de Janeiro for the first time but it was cancelled after a defect was found in some of the fleet's wingsails. Australia's wingsail collapsed in San Francisco in a moment Slingsby called a 'scary situation.' The 12 boats were all back on the start line in New York.
With 12 teams and money swishing around the sport, talk invariably turns to expansion.
Russell Coutts, SailGP CEO and an Olympic gold medallist with New Zealand, has previously spoken about expanding the number of events per season to as high as 20 or 24. Plenty of nations remain untapped, notably Saudi Arabia and Qatar, which has poured money into sports elsewhere.
Advertisement
'I think the demand right now exceeds 12 teams,' Johnson says. 'We have an opportunity for us to announce expansion teams, continue to look at markets that we think are really additive.'
Buckley says 'balance' is key, concluding: 'There are plenty of countries out there that aren't represented currently in the league. It would be great for all of us.'

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

What The CPI Inflation Numbers Mean For The Future
What The CPI Inflation Numbers Mean For The Future

Forbes

time10 minutes ago

  • Forbes

What The CPI Inflation Numbers Mean For The Future

The Consumer Price Index numbers for May came out on Wednesday. The seasonally adjusted number was up 0.1% in May, a drop from April's 0.2%. except for March, it was the lowest monthly inflation figure since July 2024. Over the last 12 months, inflation was 2.4% before seasonal adjustment. There is volatility over time, but also a downward trend line, even if it hasn't dropped fast enough for people's tastes. Below is a graph from the Federal Reserve Bank of St. Louis, showing year-over-year comparisons. Year-over-year changes in the CPI Federal Reserve Bank of St. Louis The news was good, at least in theory and at a high level. At a more detailed look, perhaps not. Other issues — tariffs, rising deficit spending, and spending cuts for important common good activities — combine with inflation to create greater uncertainty in the near future and the potential for a recession. Here Are The CPI Details That Affect You CPI at the headline level sounds good. Details are, on the whole, more discouraging. Here are some product categories where inflation was much higher: All are necessities, if not for everyone, for many millions. Other items helped keep the headline inflation down: The moderating factors don't necessarily remove the burden of the items with greater inflation, depending on how households spend and experience inflation. Near Future Effects On Inflation 'Shelter and energy are going to keep the disinflation trend intact,' wrote Jamie Cox, managing partner for Harris Financial Group, in a note. 'Prices are moving down in two of the largest categories, so investors should expect further declines in inflation in the coming months. 'However, CPI remains above 2% and even though the tariff rates are going to be less than originally feared, after they are implemented, they will further increase the cost of goods,' wrote Chris Zaccarelli, chief investment officer for Northlight Asset Management, in a second note. 'Because of this and the tariff pause that's scheduled to be lifted next month, we are still cautious, but many of the risks that were present in early April, appear to be receding at this time.' As Oxford Economics noted, the May CPI data have been 'encouraging, but unlikely the new norm.' For example, the administration announced a temporary trade truce — again — with China following talks in London. This time, tariffs will be 55%. That's a blended number and includes 20% tariffs on fentanyl, a 10% reciprocal tariffs, and then an average 25% for tariffs already in place before this year, according to a MarketWatch report. The congressional spending bill is likely going to send spending and the deficit up, which will also provide inflationary pressure. While the headline numbers sound like a reprieve, it probably won't be ultimately.

Betsy Jochum, 104, Dies; Last Original Member of Women's Baseball League
Betsy Jochum, 104, Dies; Last Original Member of Women's Baseball League

New York Times

time10 minutes ago

  • New York Times

Betsy Jochum, 104, Dies; Last Original Member of Women's Baseball League

Betsy Jochum, the last of the 60 players from the inaugural season of what became known as the All-American Girls Professional Baseball League — which decades later inspired Penny Marshall's 1992 film, 'A League of Their Own' — died on May 31 at her home in South Bend, Ind. She was 104. Her death was announced by Carol Sheldon, vice president of the league's players association. 'When I got picked to play in the league, it was amazing,' Jochum (pronounced JOCK-em) told The South Bend Tribune in 2012. 'I was actually going to get paid for playing a game. Girls didn't do that back then.' At $50 a week, she was earning more than her father, a carpenter. In 1943 she joined the South Bend Blue Sox, one of four teams in what was initially called the All-American Girls Softball League. Philip K. Wrigley, the chewing-gum mogul and owner of the Chicago Cubs, started the league to maintain fan interest in baseball during World War II, when many major leaguers were serving in the military. The other teams that first season were the Kenosha Comets and the Racine Belles, in Wisconsin, and the Rockford Peaches, in Illinois. In her rookie season, the 5-foot-7 Jochum played in the outfield, batted .273, led the league in hits, stole 66 bases and was chosen for the All-Star Game at Wrigley Field in Chicago, the home of the Cubs. Players from South Bend and Rockford beat rivals from Kenosha and Racine, 16-0. The game, which drew 7,000 fans, raised money for the Red Cross and other wartime causes. Jochum fared even better in 1944. Her .296 batting average led the league, and she stole a remarkable 127 bases, including seven in one game. She earned the nicknames Sockum Jochum and Sultana of Swat. Want all of The Times? Subscribe.

New Cardinals edge rusher Josh Sweat works to bring franchise same success he had in Philly
New Cardinals edge rusher Josh Sweat works to bring franchise same success he had in Philly

Washington Post

time18 minutes ago

  • Washington Post

New Cardinals edge rusher Josh Sweat works to bring franchise same success he had in Philly

TEMPE, Ariz. — The most recent time edge rusher Josh Sweat was seen on an NFL field, he was making life miserable for Chiefs quarterback Patrick Mahomes in the Eagles' Super Bowl win in February . Now he hopes to lead the Arizona Cardinals to that sort of success. 'All you got to do is approach every day with your max effort,' Sweat said on Wednesday during the second day of the team's minicamp. 'I promise you'll see a result. That's what made the difference for me.' The 28-year-old Sweat signed a $76.4 million, four-year contract in March as the centerpiece of the Cardinals' rebuild of the defensive front. General manager Monti Ossenfort also added free agent linemen Dalvin Tomlinson and Calais Campbell, and selected Walter Nolen III with the No. 16 overall pick out of Mississippi. On top of that, Darius Robinson — a first-round pick last season from Missouri — hopes to make a big jump after an injury-filled rookie season. This year's third-round pick Jordan Burch is also pushing for a role. But it's Sweat whom the Cardinals expect to lead the way. 'I embrace it,' Sweat said. 'At the end of the day, I'm trying to be the best teammate I can be and help out however I can.' Third-year coach Jonathan Gannon is pleased that Sweat has embraced more leadership heading into his eighth NFL season. Arizona finished 8-9 last season, which was a four-win improvement over 2023. Now the franchise is trying to get back to the playoffs for the first time since 2021. 'Guys pick his brain about certain things,' Gannon said. 'He'll help in that way, because he's played a lot of ball. He's been successful. I always say, 'You want to know ball, talk to the players.' He's one of those guys you can talk to.' Sweat's resume speaks for itself. He had 2 1/2 sacks of Mahomes in Philadelphia's 40-22 victory over Kansas City in the Super Bowl. He added eight sacks during the regular season and has been a consistent pass rush threat with 39 sacks over the past five seasons, including at least six each year. He was a Pro Bowl selection in 2021. 'I know he can impact a game,' Gannon said. 'That's one of the reasons we signed him.' Gannon is familiar with Sweat's talent after spending two seasons with him in 2021 and 2022 as the Eagles defensive coordinator. The Eagles made the Super Bowl in Gannon's final year before losing to the Chiefs, which was one of the big reasons he earned his first opportunity to be a head coach with the Cardinals. Nick Rallis — Arizona's defensive coordinator — was also with the Eagles during those two seasons as linebackers coach. The hope is the familiar faces will help Sweat make a quick transition to a new franchise. 'From a standpoint of what his job description is — that's not going to change much,' Gannon said. 'Then it's just tweaking his game. There's some differences than what we did with him (in Philadelphia) to what we do now and he picked it up quick.' Sweat agreed: 'The scheme, you can play fast in it. Picking it up is easy. It's not going to take me very long at all.' ___ AP NFL:

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store