Company: SailGP
Business Type: Sailing / Racing
The British team becomes the first to be taken under third-party ownership, a long-term objective of SailGP. As a condition of his entry into the series, Ainslie secured an option to take ownership of the franchise if its running costs and liabilities were covered in full. This was made possible with an investment from Chris Bake, a keen sailor and director at energy trading group Vitol.
Oracle Racing, Larry Ellison’s yacht racing syndicate and SailGP’s main backer, retains a minority equity stake.
The investment was driven by the greater commercial opportunities in a majority ownership, together with SailGP’s sustainability and pathway programmes. With the series aiming to be ‘100 per cent powered by nature, both on and off the water’ by 2025, Ainslie sees the sustainability message as a key selling point to potential partners.
In the official announcement regarding the acquisition, Ainslie commented:
“With new teams, owners and partners coming into SailGP the league is in a very exciting commercial space right now.
“SailGP has the commitment from Larry Ellison to take sailing where it has never been before. We look forward to welcoming new like-minded partners to the GB team who share our ethos and our drive to push forward positive change.”
Bake has previously backed other sailing ventures, including Ainslie’s 35th America’s Cup campaign and 44Cup team Team Aqua, in a yachting racing class inspired and co-designed by Sir Russell Coutts, CEO of SailGP.
Bake’s interest in sailing and sustainability led him to create the Global Sustainability Leadership Institute at the University of Texas. One of the first projects Bake will work with SailGP on is biofuel solutions to support the transition for the league and teams’ logistics, operations and broadcast.
He commented:
“Ever since I have been involved in sailing it’s been clear to me that the sport needs to commit more to providing pathways, both to grow the sport and to grow diversity and inclusion with the sport.
“Over the past couple of years, I have been very impressed and supportive of the work SailGP is doing in this space, particularly through their gender equity initiative. I am delighted to be a part of the League that will inspire future generations to become involved in our sport.”
Coutts is equally as intent on the SailGP team forging ahead in the sustainability market.
He continued:
“SailGP continues to go from strength to strength and this is another fantastic milestone on our journey to having a fully sustainable and commercially viable league.
“This new financial agreement for the British team – along with the announcement of our ninth team and the completion of a second further franchise transaction for a tenth team for Season 3 – continues to give us confidence that our commercially viable model is rapidly growing and can pave a successful and sustainable, year-round, pathway for our global league.”
Two more third-party owned teams will be joining SailGP for its third season next year. A Swiss team, backed by Lundin Energy, was announced last month, while earlier in the year insulation manufacturer Rockwool confirmed it was taking on the operational brief for the Danish team.
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