Team New Zealand dumps Dean Barker

Team New Zealand has gone ahead with its plans to dump Dean Barker as helmsman, despite insisting last week rumours it was about to do so were false.

Instead, Team New Zealand has replaced him with 24-year-old Peter Burling, who will take on helming duties with Glenn Ashby, who was wing trimmer in 2013 and has also now been appointed sailing director.

Mr Burling skippered the New Zealand sailing team entry to victory in the Red Bull Youth America’s cup in San Francisco in September 2013 and was only signed on to the next America’s Cup in January last year.

Rumours of Mr Barker’s axing began to swirl last week but Team New Zealand denied them as “inaccurate”, although it said it was undertaking a restructuring process. Mr Barker skippered Team New Zealand boats in four America’s Cups.

Today team management said this review was complete. “Dean Barker was involved in the review and restructuring process and Emirates Team New Zealand wants to retain his services as performance manager and sailing coach with a place on the executive committee,” a statement said.

“In the review of Emirates Team New Zealand, the team clearly identified the need for such a role. It is a crucial position for the team and we have been discussing this as a possible option for Dean since last November.

“Until the review process was completed, it would have been unfair to all involved, and therefore inappropriate, for Emirates Team New Zealand to comment on the various reports in the media over the last week.”

Team New Zealand has made a formal offer to Mr Barker and said he is still considering it. However, Mr Barker is understood to have called in lawyers, upset at being dropped as helmsman.

Team New Zealand also admitted that having the next America’s Cup series in Bermuda will have a “serious impact” on the team’s finances and sponsorship funding, reducing the budget by some $20 million.

“This meant the team has had to reduce its remuneration budget and each team member has, as a result, taken a significant pay cut.

“Additionally several million dollars has been axed from the operations budget leading to the scrapping of one of the foiling AC45s that we had planned and, consequently, the elimination of one of the planned helmsman positions.”

While $36 million was committed to the last losing campaign, Economic Development Minister Steven Joyce told media last week that Team NZ is likely to get less government funding this time round.

The government has previously acknowledged that having the big-spending syndicates in Auckland for months in the lead-up to the cup provides an economic boost.

However, it will not confirm funding details until the America’s Cup Authority formally announces whether New Zealand has secured the qualifiers’ series, which means five challengers, and defenders Oracle Team USA, would be based in Auckland for up to three months in the lead-up to the 35th America's Cup.

Team NZ, which the taxpayer has already spent $5 million keeping going, has said it would struggle to make a challenge without government help and has asked for a similar amount to last time.