Recent Blog Posts
-
The Era of the Renminbi Is at Hand
Nov 20 20092:55 pm EDT -
Computer Glitch Snarls Air Traffic
Nov 19 200910:29 am EDT -
Dollar Doldrums? What Dollar Doldrums?
Nov 19 20098:48 am EDT -
American Express Makes a Revolutionary Deal
Nov 18 200912:05 pm EDT -
Calpers Puts Pressure on Private Equity Funding and Fees
Nov 18 200910:27 am EDT -
Madoff Makes Millions (for Others)
Nov 18 20096:04 am EDT -
Lazard Looks Within Its Ranks for New Chief
Nov 17 20091:44 pm EDT -
A Brutal Morning for Geithner
Nov 17 20098:02 am EDT -
GM to Start Payback
Nov 16 20095:57 am EDT -
She Rules
Nov 13 200910:48 pm EDT
Yacht Racing Is So Last Season
Luna Rossa in action.
The latest trend in fashion? Major designers dropping out of America's Cup.
Prada is the latest sponsor to furl its support for the pricey biennial competition. It will not race the luxury red and silver yacht Luna Rossa in the next America's Cup to take place 2009 in Valencia, Spain.
The news, posted earlier on WWD.com (subscription required), comes on the heels of Louis Vuitton's decision last month to also call it quits, after calling the race too commercial with not enough exclusivity in regards to both sponsors and crowds.
Though participation costs have skyrocketed in recent years, Prada C.E.O. Patrizio Bertelli claims that the efforts around racing Luna Rossa were financially healthy and instead cited "a cycle had come to an end" as Prada's reason for opting out.
Prada first raced in the America's Cup in 1997, competing Luna Rossa again in 2000, 2002, and 2007. Their first race (and first losing effort of more to come) cost Prada $50 million and the second, $38.3 million.
Prada's family company Maestrale Holding Srl. manages the boat and most recently Bertelli arranged for Italian tycoon and sailing aficionado Marco Tronchetti Provera to have his Telecom Italia join as a sponsor.
Other Luna Rossa sponsors include bank Intesa Sanpaolo, a five percent owner of Prada, and the Italian Yacht Club. The budget for the final race of Luna Rossa at this year's America's Cup? A cool $117.3 million. And still, no cup to speak of.
Prada's decade of racing in the America's Cup didn't leave the label empty handed. There is now a collection of Luna Rossa-branded accessories and apparel, complete with high-tech, innovative fabrics tested by Prada's sailing team.
"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. "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."
by Andrea Chalupa
Related Link
Luna Rossa Challenge
Laura Rich is a co-founder of Recessionwire, which provides news, advice, perspective and humor about the recession and the recovery.
