Auckland will not host the 2027 America’s Cup after the government declined to back the city’s bid, effectively ending hopes of bringing sailing’s most prestigious event back to home waters. The decision, confirmed today by Tātaki Auckland Unlimited (TAU), has drawn disappointment from key stakeholders while reigniting broader debates about national priorities and the role of major events in New Zealand’s economy.
A Collaborative Bid
Auckland’s proposal to host the 38th America’s Cup was contingent on a three-way funding partnership between Auckland Council, central government, and the private sector. According to TAU chief executive Nick Hill, that framework was ultimately unsustainable without government involvement.
“MBIE has informed TAU that the government is unable [to] provide the funds required and on that basis the bid cannot proceed,” Hill said in a statement. He added that the outcome highlighted the need for “a long-term sustainable funding model in New Zealand to support major events.”
TAU had spearheaded the bid with the backing of Emirates Team New Zealand and the Royal New Zealand Yacht Squadron. The strategic goals were clear: leverage Auckland’s sailing legacy, existing infrastructure, and event management expertise to stimulate economic recovery, bolster international visibility, and foster national pride.
The Government’s Position: Fiscal Caution Over Flag-Waving
The Ministry of Business, Innovation and Employment (MBIE) informed TAU that the government would not be committing funds to the bid. The rationale appears rooted in the country’s current economic climate, marked by constrained public finances and rising demands on spending in areas such as health and housing.
A spokesperson for Team New Zealand acknowledged the government’s position with a mix of disappointment and pragmatism. “we understand there are other priorities for the New Zealand Government right now,” the team said, noting that while private support had been strong, it was not sufficient to carry the bid without state backing.
Stakeholder Reaction
Emirates Team New Zealand, who successfully defended the Auld Mug in Barcelona last year, had hoped to bring the next regatta back to Auckland. “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,” the team said. “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.”
The hospitality sector, which stood to benefit significantly from an influx of international visitors, also voiced its dismay. Steve Armitage, chief executive of Hospitality New Zealand, called it a “disappointing blow” for the accommodation and food industries. “Major events like the America’s Cup drive demand across the host city, from hotel bookings to restaurants, bars and cafés. The flow-on benefits touch almost every part of the hospitality sector, and so many other sectors.”
Economic Stakes: What Auckland Lost
Barcelona’s successful hosting of the 2024 America’s Cup brought in an estimated NZ$1.9 billion in economic benefits, a figure repeatedly cited by proponents of Auckland’s bid. Professor Mark Orams of Auckland University of Technology estimated that Auckland would need to commit NZ$200 million to secure hosting rights, suggesting a potential return on investment similar to that seen in Catalonia.
Aside from the direct financial gains, proponents argued the event would have boosted global exposure for Auckland, created local jobs, and reinforced New Zealand’s position as a world-class venue for international sporting events.
The Road Ahead for the America’s Cup
With Auckland officially out of the running, the race to host the 2027 America’s Cup now turns international. Saudi Arabia has previously expressed interest, and the Jeddah Yacht Club hosted a preliminary regatta ahead of the 2024 event. According to Team New Zealand CEO Grant Dalton, at least two strong overseas bids are currently in play. A final decision on the host venue is expected by June 2025.