America's Cup 2017 will be raced in Bermuda

The next America’s Cup will be raced in Bermuda in June of 2017.

Rumours about the host venue was confirmed at a press conference in New York this morning NZ time by Harvey Schiller, the commercial commissioner for the America’s Cup.

“In Bermuda we have a perfect international venue to demonstrate the excitement America’s Cup boats and teams can generate,” Schiller said. “The sailing conditions are near perfect. The race course on The Great Sound is a natural amphitheater with room for racing and spectators, amid a spectacular backdrop of islands and beaches. And the proposed America’s Cup Village at the Royal Naval Dockyard will be the heart of the event for the teams and fans alike," Mr Schiller said.

The tiny island (population: 64,000) is popular with tourists from the nearby US, and companies after a tax-efficient location (the 50% Spark-owned Southern Cross Cable is incorporated there, and its Kiwi CEO Anthony Briscoe lives on the island) — an element that might hold appeal to Team Oracle USA owner Larry Ellison.

Oracle skipper Jimmy Spithill is also a fan. “I’ve raced there several times and the variety of conditions means you can never let your guard down. We’ll all need to be at the top of our game to have success and that’s how it should be,” he said this morning.

But the decision is likely to put more pressure on our government over how much money it chips in to Team New Zealand's campaign.

On Monday, Economic Development Minister Steven Joyce told media, "It's hard to see the benefits of it from a New Zealand exporter's point of view if it's Bermuda [rather] than if it's San Diego, but we'll keep an open mind."

Mr Joyce said he had consulted with NZ Trade &  Enterprise and Tourism New Zealand "and they were unambiguously more interested in the West Coast of the US than Bermuda".

The government ploughed $36 million into the last America's Cup campaign and provided another $5 million after the 8-9 race loss to US entry Oracle in San Francisco in September last year in order to keep key staff.

Team NZ openly preferred San Diego, but MD Grant Dalton said this morning his team was committed to competing in Bermuda.

ABOVE: The official announcement video