Not Their Cup of Tea
Prada on Friday said that it will not compete in the next edition of the famed yacht race, scheduled to be held in Valencia, Spain, in 2009. Italian team Luna Rossa will not challenge for the 33rd America's Cup. Last month, Louis Vuitton announced a significant decision to part ways with the Cup, after executives felt it had become "too commercial," drawing less exclusive crowds and sponsors. This is just the latest blow to the Cup after BMW Oracle and Mascalzone Latino voiced their concerns over the way defender Alinghi has set the rules for the next event.
"Participation in the next America's Cup was carefully analyzed and, while significant human and financial resources are already available, it was decided that after three campaigns, a cycle has come to an end," the luxury goods group said in a statement. Prada chief Patrizio Bertelli, who has invested more than $80 million in the races over the span of a decade, said that the decision was unrelated to Vuitton's dissolution, saying simply that "a cycle had come to an end." He added, "I hope that another Italian team will be able to compete in the next edition and to keep Italy at the top of the game in the America's Cup."
Bertelli set up the Prada Challenge in 1997 to challenge Team New Zealand for the America's Cup in 2000. The Luna Rossa sailing boat, a stylish and sleek red-and-white vessel, competed in three editions of the race-in 2000, 2002, and 2007-and its team members were always impeccably dressed. Luna Rossa won the Louis Vuitton Cup in 2000, qualifying them to race for the America's Cup, though ultimately they lost to Team New Zealand 5-0 in the America's Cup match. In 2003, Luna Rossa was eliminated from the Cup in New Zealand. Swiss team Alinghi has won the last two competitions of the America's Cup.Bertelli invested approximately $50 million on the first losing effort. He pledged an additional $38.3 million of the estimated $90 million needed for the second race series, with the remainder coming from Maestrale Holding Srl, the Prada family's company.
In September 2004, Bertelli signed a deal with Telecom Italia head Marco Tronchetti to sponsor the new Luna Rossa sailing boat. The two industry bigwigs share an equal passion for sailing and together, they forged ahead in the competition for the 32nd America's Cup in Valencia, which concluded last month.
While Bertelli may not be able to boast of having a winner's trophy, his investments have been viewed by analysts as a commercial success in both its ability to move product and generate brand visibility. Prada has licensed everything from the highly popular America's Cup sneakers to its Luna Rossa-branded apparel collections, featuring high-tech fabrics and innovative design. "From a corporate standpoint, participating in these three campaigns has allowed us to acquire and develop precious skills, experience, and visibility for our group," said Bertelli.
