The Value of the 2024 America’s Cup: Luna Rossa’s Investment Explained

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Tradition of Excellence in the America’s Cup

The word tradition can indeed be aptly applied without falling into unnecessary rhetoric this time.
The America’s Cup is recognized as the oldest trophy among all international sporting competitions still held today.
The 2024 edition has commenced in Barcelona, featuring the first races, with the renowned Italian boat Luna Rossa vying for victory against other formidable teams, notably Team New Zealand, the current titleholder.

However, the waters off Spain harbor not just competitive vessels, but a significant economic venture as well, bolstered by investments and sponsorships surrounding the entire event, along with substantial funds earmarked for the development of high-performance yachts.

Economic Impact Surpassing 1 Billion Euros

The numbers are significant.
The races will unfold over a span of 60 days, with the economic benefits for Barcelona and the broader Spanish region being quite pronounced.
According to a report from Universitat Pompeu Fabra in Barcelona, it is estimated that teams will spend around 231 million euros, while visitors will contribute 689 million euros towards the overall financial ecosystem.
Specifically, foreign spectator expenditure could reach approximately 482 million euros, while Spanish visitors are expected to spend about 113 million euros and tourists from the Spanish capital around 94 million euros.
Additionally, the organizers will inject another 195 million euros into the local economy, bringing the grand total to roughly 1.1 billion euros.
Moreover, an estimated additional 30 million euros is expected to flow into the Barceloneta area, a picturesque seaside district of the city.

Luna Rossa’s Investment in the Competition

Shifting focus to the Italian side of the America’s Cup, attention naturally turns to Luna Rossa and the budget required to participate in such a prestigious event.
For the 2024 edition, estimates suggest that their investment will total around 90 million euros, consistent with past editions, which includes a noteworthy 2 million dollars just for the entry fee.

To provide some context, leading teams such as Emirates Team New Zealand, Alinghi Red Bull Racing, and American Magic New York Yacht Club are said to invest approximately 200 million dollars each in their pursuit of the trophy.
This figure has remarkably escalated in recent years.
Max Sirena, Luna Rossa’s skipper and team manager, shared in an interview with Luxury Tribune that the team allocated 95 million euros for the 2021 series.

Obtaining specific figures regarding sponsors partnering with Luna Rossa can be challenging; however, insights from recent years offer a foundation for understanding.
Between 2018 and 2021, Prada was the principal sponsor of Luna Rossa, with a cumulative contract worth 65 million euros covering the trio of years.
Pirelli also emerged as a co-title sponsor, investing at least 10 million euros to support the sailing team.

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