Louis Vuitton and the America’s Cup challenge

«Today, with the Louis Vuitton America’s Cup, Barcelona is experiencing the spirit of the 1992 Olympics once again». With these words, spoken in Spanish, Catalan, and English, King Felipe VI of Spain inaugurated the 37th edition of the world’s most prestigious sailing competition. For the first time, it is being held in the Catalan capital, with the flagship maison of the Lvmh group serving as the title partner. «Louis Vuitton has achieved a high level of credibility and legitimacy in the world of sports, and we want to consolidate this position», said Pietro Beccari, president and ceo of the brand, which has over 20 billion euros in revenue. He explained the return to the sailing competition after a break in 2021, when the challenger selection race was called the Prada Cup.

«I’ve known Pietro (Beccari, ed.) for over 20 years, and we spoke a few weeks after he took the helm at Louis Vuitton to discuss this trophy. We immediately connected, and the choice of Europe and Barcelona was a key factor in the success of this edition», said Grant Dalton, a legendary New Zealand sailor and ceo of the America’s Cup, noted. «And the numbers already prove us right. The 2021 competition in Auckland was watched by over 900 million viewers-a number that has already been reached during the technical regattas last week», continued Dalton early in the morning at the Imax cinema hosting the America’s Cup experience at the Olympic Port. «This venue had been practically abandoned since the 1990s... ».

It is expected that during the sixty days of racing, running until October 20, about 2.5 million people will visit the Catalan capital, generating an economic impact of 1.1 billion euros, according to a study by the prestigious Catalan university UPF-Universitat Pompeu Fabra. Of this total amount, the institution estimates that the teams will spend around 230 million euros in the city, while visitors will contribute 690 million euros. Specifically, foreign spectators are expected to spend 480 million euros, while domestic visitors will spend between 110 and 150 million euros. Additionally, the organizers will contribute another 195 million euros. There is no word on Louis Vuitton’s investment, but it is clear that the brand is accelerating its involvement in sports, as seen in the Paris Olympics, summed up by the slogan: «Victory travels in Louis Vuitton».

The trunks for the two competition trophies, custom-made in the historic Asnières workshop, were unveiled during a secret party at Tibidabo amusement park, following a performance by the dancers and mimes of the artistic collective La Fura dels Baus. They house the Auld Mug, the silver pitcher awarded to the winner of the America’s Cup since 1851, considered the oldest international sports trophy in the world, and the Louis Vuitton Cup, a prize created by the maison in 1983 that crowns the challenger.

«Louis Vuitton is a lifestyle brand, and sport plays a fundamental role in this, as it embodies values such as excellence and continuous innovation, which are shared with our maison», Beccari continued. «We have been linked to the America’s Cup since 1983, and today, our return to this historic sailing competition as the title partner fills me with pride». Louis Vuitton has been connected to the America’s Cup for 40 years. Founded just a few years apart, the America’s Cup in 1851 and Louis Vuitton in 1854, the two institutions have followed parallel paths for 130 years.

Now they are coming together again for a challenge that promises record numbers. The previous edition of the competition, held in Auckland, New Zealand, attracted 800,000 people to the city, though this number was reduced due to the pandemic. In total, it reached 941 million viewers and generated a media value of 833 million euros. This is significantly lower than the direct and indirect revenue expected by experts for the 37th edition in Barcelona.

During the New Zealand edition, the city of Auckland invested 106.3 million New Zealand dollars (equivalent to 60.3 million euros at today’s exchange rate) in infrastructure. In Barcelona, a plan of around 30 million euros has been approved to mitigate the impact on the Barcelona area. The budgets of the teams participating in the America’s Cup are significantly higher than the organizational costs.

It is estimated that the six major teams, including Emirates Team New Zealand, Alinghi Red Bull Racing, and American Magic New York Yacht Club, each invest around 200 million euros to compete for the trophy. Luna Rossa Prada Pirelli, for which ceo Beccari has openly expressed support, is considered the favorite challenger. Lorenzo Bertelli and skipper Max Sirena were with the Prada Pirelli team at the opening party. If Italy wins, it will be called upon to organize the 38th edition, which could then take place in Cagliari. (All rights reserved)