This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Captains of Industry Hijack Yacht Race

SAN FRANCISCO ( TheStreet) -- The 33rd America's Cup concluded with a CEO navigating the winning vessel, one of the world's richest men steering the loser and a decorated skipper in yachting history winning titles with his third different country.

This is boardroom yachting, and the shareholders are divesting.

Oracle BMW's carbon-composite racer took 150,000 hours to build and $20 million to buy.

Within the past decade, a sport historically in the purview of the elite has become almost exclusively the domain of corporations -- with Oracle (ORCL - Get Report) Chief Executive Larry Ellison spending an estimated $200 million to help his Oracle BMW (BMW) USA-17 trimaran bring home this year's America's Cup. That nears the $280 million organizing budget that Tom Cannon, a professor of sports business at Liverpool University, estimated was spent for the entire 2007 America's Cup when he studied its impact for Allianz (AZ). At that time, the America's Cup brought in roughly $8 billion in revenue, which was more than that year's Super Bowl and World Series combined and third only to the Olympics ($13 billion) and FIFA World Cup ($10.5 billion).

Ordinarily, this would be a great opportunity for Ellison, Oracle, BMW and race suppliers like Coca-Cola (KO - Get Report) and Ford (F - Get Report) to bask in the spotlight, but an intense, high-stakes competition made this all but impossible. Ellison's seafaring rival -- Ernesto Bertarelli, a Swiss-Italian pharmaceutical heir worth about $8.2 billion -- spent nearly as much building his Alinghi 5 catamaran and fighting Ellison in court over who the challenger should be, where and when the races should be held, how the boats should be constructed and even what the rules of the match should be. This delayed the race by nearly a year, prompting longtime sponsor Louis Vuitton (LVMH) to ditch its qualifying races for a "Pacific Series" in New Zealand featuring teams in borrowed boats and almost no television coverage.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
F $13.34 0.23%
ERIC $7.77 0.26%
KO $44.96 -0.06%
RBS $6.22 -2.70%
ORCL $39.24 -0.13%


Chart of I:DJI
DOW 17,649.58 -1.68 -0.01%
S&P 500 2,049.63 -1.49 -0.07%
NASDAQ 4,719.8330 -5.8060 -0.12%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs